Find out what you can expect from travel prices in 2025 and which destinations have the best affordability!
Travel prices have been on the rise, but there’s still hope in 2025 for many travelers who are starting to plan their next vacation. In 2025, airfare for international travel has dropped by 4% compared to 2024, according to a Kayak analysis. The study found that two-thirds of flight searches are for international destinations.
Domestic travel, however, has become pricier. Kayak reported a 3% increase in U.S. airfare for 2025. While an analysis by Hopper found that January fares are 12% higher than the same period last year. Hopper, a travel booking platform, predicts these elevated domestic prices will persist at least until midyear.
Hayley Berg, Hopper’s lead economist, explained that the higher domestic fares are partly due to the unusually low ones in 2024, when airlines offered an excess of seats to stimulate demand. Berg also noted that prices for domestic travel will be higher than last year, reaching levels similiar to those seen in 2023.
While domestic travel costs are up, airfare for long-haul destinations – such as Europe, South America, Oceania, and Asia – is holding steady or even declining, according to Berg. In January, the average U.S. round-trip ticket cost $300, compared to $685 for South America, $750 for Europe, and $1,100 for Asia, Hopper data showed.
While hotel rates, both in the U.S. and abroad, are very similar to 2024 prices, rental car costs have increased by 8% internationally and 4% domestically, according to Kayak. Timing and location also play a big role in travel costs. For example, popular cities like Paris, London, and Tokyo are likely to see higher demand and rates, while emerging or less-crowded destinations may offer better deals.
According to Melanie Fish, vice president of global public relations for Expedia Group, travelers are more likely to find discounts during off-peak seasons rather than during high-demand periods like spring break, summer, or the holidays. On top of that, U.S. dollar has more value against currencies in countries like Argentina, Japan, and Brazil, making them more affordable for Americans, Fish added.
Tips For Saving Money On Travel In 2025
Stay Flexible
Flexibility in destination, travel dates, and even the choice of airport can result in significant savings. Midweek flights and hotel stays are generally cheaper than weekends. For instance, traveling to Europe in September or October instead of August can cut costs by 30%, Berg said.
“Many cities are served by multiple airports. Rather than fly into, say San Francisco International Airport, consider flying into Oakland International Airport, which is a similar distance to most parts of the city for a trip to San Francisco”, said Sally French, a travel expert at NerdWallet.
Book in Advance
For domestic flights, book one to three months ahead, and for international travel, plan two to eight months in advance, French advised. While hotels may sometimes offer last-minute deals, flights generally don’t, so it’s better to secure flights early to avoid higher prices, she added.
Book Directly with Hotels
Many hotels provide exclusive discounts or price-matching guarantees for direct bookings, French noted. Once you’ve compared options on third-party sites, check the hotel’s official website – or even bank travel portals – for better deals, she suggested.
Use Flight Alerts
Platforms like Google Flights and Hopper can track airfare and alert you to price drops, helping you secure deals before prices rise again, French noted.