What will travel prices be like in 2025?

As we enter the new year, many travelers are thinking about their 2025 vacation plans and how much that trip will cost.

According to Skyscanner, nearly half of Americans (51%) say their choice of destination this year will be determined by the cost of a flight. Additionally, 50% said hotel costs were a factor.

According to the Consumer Price Index, the average person is paying more to travel these days. Airfares rose 8% on an annual basis in December, while hotel prices rose 2%, according to the Consumer Price Index.

But experts say travelers can still find great deals.

Experts say they may find the best bargains by traveling abroad in 2025, especially visiting the Asia-Pacific region.

Airfares for international travel are down 4% this year compared to 2024, according to a recent Kayak analysis. We found that approximately two-thirds of all flight searches for travel in 2025 will be for international flights.

Conversely, airfares for U.S. flights in 2025 will be 3% higher than last year, Kayak said.

Kayak’s analysis looked at internal search data from May 1, 2024 to October 31, 2024 for trips in 2025.

According to travel site Hopper, domestic flight fares were about 12% higher in January compared to the same month last year. It is expected to remain above 2023 and 2024 levels until at least the middle of this year.

Haley Berg, chief economist at Hopper, said domestic travel “overall is going to be a more expensive year than last year.”

The main reason for this is that domestic tickets became cheaper in 2024 as airlines “flooded the market” with seat inventory, Berg said.

Personal Finance Details:
Why Americans traveling to Europe may find bargains in 2025
Demand for international travel drives “travel momentum”
Here are 4 great ways to save on your next trip

“This year’s prices are very similar to 2023 prices,” he said. “And 2024 really hit us at the bottom.”

Meanwhile, long-haul freight rates to Europe, South America, Oceania and Asia have been flat or lower since the start of the year, Berg said.

Of course, international travel is likely to be more expensive in dollar terms than travel closer to home. The average cost of a round-trip ticket to the United States in January is about $300, compared to $685 to South America, $750 to Europe and about $1,100 to Asia. According to Hopper.

According to Kayak, average room rates for hotels overseas and in the U.S. will remain the same as in 2024.

For rental cars, international and domestic flights will cost 8% and 4% more, respectively.

Prices mainly depend on when people book and plan their trips.

For example, travel to Asia is the cheapest it’s been in three years, Kayak found. Average airfares to the continent are down 7% year-on-year.

“Asia continues to look like the best value region year after year,” Berg said.

Even some of Japan’s hotspots, such as Sapporo and Osaka, are becoming cheaper.

Search interest in Sapporo, for example, is up 31% year-over-year, while average airfares are down 19% to $1,230, according to Kayak. Fares to Osaka, Japan’s “gourmet capital,” fell 14% to $1,233.

Tokyo will be the most searched overseas destination in 2025.

According to hospitality market research firm Lighthouse, advertised hotel room rates in Asia Pacific are expected to fall by 11% in the first half of 2025 compared to the same period in 2024.

Berg said airfares to destinations in the Asia-Pacific region have retreated from high levels in response to the coronavirus pandemic.

Asian countries have generally been slower than other countries to reopen their borders and lift COVID-19 restrictions. Airlines are now adding routes, increasing capacity and lowering seat prices, Berg said.

“We have to wait and see what the new market equilibrium will be,” Berg said.

Hopper said the price of jet fuel, a key input cost for airlines, fell 11% in January from last year.

Like Asia, travel to the Caribbean is also the cheapest in three years, with airfares down 17% compared to 2024, according to Kayak.

Hotel prices vary widely around the world, with established regions such as Paris, London, Tokyo and parts of Asia such as Bangkok, Thailand “expected to reflect strong demand,” Expedia Group’s global spokesperson said. Melanie Fish, vice president, said. I wrote in an email.

“On the other hand, emerging destinations or less crowded spots may offer lower fares,” she said.

Fisch said hotel deals are “more likely to be closed” during off-season periods than during busy periods like spring break, summer and holidays, especially in areas with consistently high demand.

Another factor helping international travelers’ wallets is the strength of the U.S. dollar against many international currencies, she said.

Argentina, Japan, Mexico, Brazil and Hungary are the top destinations with the potential for the most dollar growth, with “activities, food and lodging becoming more affordable,” Fish said.

There are several ways consumers can definitely save on travel costs.

1. Flexibility is the key

“Flexibility is really the key to saving on travel costs,” says Berg.

Experts say this applies to many aspects of travel, including the destination, the time of year you visit the area, and the days of the week you travel.

For example, it’s usually cheaper to fly mid-week. A similar trend exists for hotel stays. Bottom line: Prices will probably be higher on weekends.

“Adjusting your[hotel]stay to midweek rather than the weekend or traveling during the off-season can lead to big savings,” says Sally French, travel expert at NerdWallet. I wrote by email.

Fish said seasonality has a “huge impact” on airfares.

A must-see trip to Europe in August can be expensive and crowded, but you can save 30% by traveling in September or October, Berg said. Instead of going on a beach trip during spring break, Fish recommended visiting a city or waiting until fall to head to Europe.

Experts also recommend “duck” travel, a similar but less crowded alternative to popular destinations.

French said he is open to alternative airports.

“Many cities have multiple airports serving them,” she says. “If you’re traveling to San Francisco, for example, rather than flying into San Francisco International Airport, consider flying into Oakland International Airport, which is a similar distance from most parts of the city.”

2. Book at the right time

French said domestic tickets are often cheaper if purchased about one to three months in advance. International travelers should book 2-8 months in advance.

Last-minute discounts on airline tickets are rare, so booking in advance maximizes availability and usually results in lower prices, she said.

This logic is not necessarily the same for hotels. Travelers sometimes find last-minute deals on room rates in certain markets, Fish said.

3. Book directly with the hotel

French said many hotels offer price match guarantees and loyalty member discounts that aren’t available on third-party booking sites.

“Third-party booking sites are great for browsing and comparing hotels on their site, but once you’ve narrowed down the hotel you want to book, you can find prices elsewhere (such as on the hotel’s direct website or on a bank travel site). Please check Portal),” she wrote in an email.

4. Set flight alerts

French said he uses tools like Google Flights and Hopper to monitor prices and score deals when fares drop.