Americans' Destined Directions for Their Upcoming Holiday Journeys (Along with Their Projected Expenses)
As the holiday season approaches, travelers are making plans for their getaways, with some exciting trends emerging this year.
According to recent data, the average cost of a holiday trip in 2025 is estimated to be $13,533, a 5% decrease from the 2024 average of $14,232. Despite the economic and inflationary pressures, travelers are still venturing out, with 92% of insured travelers planning to travel abroad during the 2025 holiday season, up from 88% last year.
The top destinations for holiday travelers in 2025 include Mexico, South Africa, Australia, and Argentina. However, Mexico is the most popular holiday destination for Americans, followed by The Bahamas, Germany, France, USA (domestic), Jamaica, Puerto Rico, Italy, U.S. Virgin Islands, and Argentina.
Travelers are opting for both warm-weather escapes and festive European destinations. Europe and the Caribbean are becoming increasingly popular, with Switzerland being a popular destination for many US tourists, driven by good flight connections and events like the 2024 Paris Olympics. European countries such as Portugal and Spain are also increasingly popular for longer stays or relocations.
Travelers are making budget-conscious decisions, such as booking earlier, using loyalty points, and finding discounts. Passports are ready for many Americans planning to travel during the holiday season.
One trend that has accelerated in 2025 is the addition of travel insurance add-ons, such as Cancel For Any Reason (CFAR) and Pet Care. CFAR is the most popular travel insurance add-on, covering up to 75% of non-refundable costs if canceled at least 48 hours before departure. Pet Care, on the other hand, covers up to $2,500 in expenses for pets traveling with their families.
A vacation rental damage coverage, CFAR, Pet Care, and 24/7 support are available through one app for holiday travelers in 2025. The cost of a CFAR add-on increases policy cost by around 40-60%.
The holiday travel season of 2025 is expected to be one of the busiest, with more than 88% of insured holiday trips expected to be international. Travelers are focusing on flexibility and pet-friendly protection, with more than 92% of insured travelers planning to travel abroad during the 2025 holiday season.
Overall, the holiday travel landscape for 2025 is shaping up to be an exciting one, with travelers making budget-conscious decisions while still venturing out to explore new destinations.
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- Image by Charlie Neibergall, AP
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