What are the travel price predictions for 2025 and which destinations offer the best vacation deals?

• This year, the destination choices of about 51% of Americans will be influenced by the cost of flights, as stated by Skyscanner.
• In 2025, international airfare is about 4% cheaper than the previous year, while domestic flights are 3% more expensive, according to Kayak data.
• Experts predict that traveling to the Asia-Pacific region will become increasingly affordable, they said.

Many travelers are already planning their 2025 vacation and considering the expenses involved.

This year, 51% of Americans will choose their travel destination based on flight cost, while 50% will consider hotel expenses, according to Skyscanner.

The cost of travel has risen recently: Airline fares increased by 8% in December compared to the previous year, while hotel prices also rose by 2%, according to the consumer price index.

But travelers can still find deals, experts said.

Experts advised that the best bargains can be found by traveling abroad, particularly in the Asia-Pacific region, in 2025.

The cost of airfare for international trips has decreased by 4% in 2025 compared to 2024, as per a recent Kayak analysis. Approximately two-thirds of all flight searches for travel in 2025 involve international flights, the analysis found.

The cost of airfare for U.S. flights in 2025 has increased by 3% compared to the previous year, according to Kayak.

Kayak analyzed its internal search data from May 1 to Oct. 31, 2024, to examine travel plans for 2025.

According to Hopper, a travel site, domestic fares in January are approximately 12% higher compared to the same month in the previous year. It is predicted that they will remain above the 2023 and 2024 levels until at least the halfway point of the year.

Hayley Berg, lead economist at Hopper, stated that domestic travel will be more expensive this year compared to the previous year.

In 2024, flying domestically was affordable due to airlines flooding the market with seat inventory, according to Berg.

Americans traveling to Europe may find bargains in 2025 due to the decline in demand for international trips.

""Prices in 2023 are similar to those this year, but 2024 saw a significant drop," she stated."

Long-haul fares to Europe, South America, Oceania, and Asia are flat or lower at the beginning of the year, according to Berg.

A trip abroad is likely to be more expensive than a domestic one.

According to Kayak, the average hotel rates in the U.S. and abroad in 2024 are similar.

It was stated that rental cars are 8% more expensive for international rates and 4% more expensive for domestic rates.

Why Asia is 'the best bargain'

Price largely depends on when people book and plan to travel.

The average airfare to Asia has decreased by 7% year over year, according to Kayak.

Berg stated that Asia remains the best bargain year after year.

Despite being popular tourist destinations, Sapporo and Osaka, Japan are becoming more affordable for travelers.

The average airfare to Sapporo, Japan's "snowy capital," has increased by 31% year over year, while the average airfare to Osaka, Japan's "gastronomic capital," has decreased by 14% to $1,233, according to Kayak.

Tokyo is the most-searched international destination of 2025, it said.

Lighthouse predicts that hotel room rates in the Asia-Pacific region will decrease by 11% in the first half of 2025 compared to the same period in 2024.

A 'new market equilibrium' for airfare

The demand for airfare to Asia-Pacific destinations is decreasing after the Covid-19 pandemic, according to Berg.

Airlines are adding flight routes, increasing supply, and lowering seat prices, according to Berg, while Asian nations were generally slower to reopen their borders and lift Covid restrictions compared to other countries.

Berg stated that we need to determine the new market equilibrium.

The cost of jet fuel for airlines decreased by 11% in January compared to the previous year, according to Hopper.

The Caribbean is currently the cheapest travel destination in three years, with airfare down 17% compared to 2024, according to Kayak.

Hotel deals more likely for off-season travel

According to Melanie Fish, vice president of global public relations for Expedia Group, hotel prices worldwide will fluctuate greatly, and popular destinations such as Paris, London, and certain parts of Asia, including Tokyo and Bangkok, Thailand, are predicted to experience high demand.

Less-crowded destinations may provide lower rates, she said.

Hotel deals are more likely to be found during off-peak seasons, such as in areas with consistently high demand, according to Fish.

The strength of the U.S. dollar versus many international currencies is another factor that helps travelers' wallets abroad, she stated.

According to Fish, Argentina, Japan, Mexico, Brazil, and Hungary are top destinations where the dollar can go the furthest, making activities, dining, and accommodations more budget-friendly.

Tips for saving money on travel in 2025

There are some ways consumers can reliably save money on travel expenses.

1. Flexibility is 'key'

"Saving on travel is truly dependent on flexibility, according to Berg," said Berg.

Experts advised that various aspects of travel, such as the destination, time of year, and days of the week, can greatly impact the travel experience.

Weekends are likely to be more expensive when it comes to hotel stays.

"Traveling during midweek instead of weekends or during the off-season can result in significant savings, according to Sally French, a travel expert at NerdWallet," the email stated.

Seasonality has a "huge effect" on flight costs, Fish said.

Instead of taking a beach trip during spring break, consider visiting a city in Europe in August. This will save you 30% compared to traveling in September or October, according to Berg. Alternatively, wait until fall to head to Europe for a more affordable and less crowded trip, Fish suggested.

Experts suggest exploring "dupes," or lesser-known but equally appealing alternatives to popular travel destinations.

Also be open to alternative airports, French said.

"Instead of flying into San Francisco International Airport, consider Oakland International Airport for a trip to San Francisco, as it is a similar distance to most parts of the city and serves many cities."

2. Book at the right time

International travelers should book two to eight months in advance, while domestic flights are often cheaper when bought one to three months ahead, according to French.

Booking airfare in advance can increase availability and lower prices, as last-minute deals are rare, she advised.

Certain markets may offer last-minute deals on room rates for travelers, according to Fish.

3. Book directly with your hotel

French stated that many hotels provide exclusive discounts and price-match guarantees for loyalty members, which are not accessible on third-party booking platforms.

It's beneficial to use third-party booking sites to compare hotels, but after selecting a hotel, it's important to verify its price on other platforms, including the hotel's website and bank travel portals.

4. Set flight alerts

Keep track of flight prices and secure deals when they decrease using Google Flights or Hopper, French advised.