The holidays are always a busy travel season, and this year is no exception. But amidst economic concerns and inflation, their habits are changing. For travel marketers, understanding traveler priorities is key to deploying successful campaigns that maximize not just revenue, but brand loyalty.
Now more than ever, the wealth gap between travelers is growing. Compared to 2023, more consumers are eyeing road trips as economical alternatives to air travel, if they’re traveling at all. What’s more, unlike during the pandemic when travelers visited less crowded destinations, this year they’re returning to more popular and expensive cities–and they’re willing to go the distance and pay a premium for their visits. Currently, our data shows that upscale and luxury hotel pricing is up 1.7% and 1.4%, respectively, while economy lodging remains virtually unchanged, indicating an increase in demand for higher-end accommodations.
The travelers who are willing to spend want immersive adventures, and the brands that deliver personalized, magical experiences have the opportunity to win a high-value customer for life. On the other hand, more economical brands can capture business from local travelers who are doing shorter road trips or interested in a staycation.
Here’s a look at what travelers are doing and where they’re headed this holiday season.
Thanksgiving is always a busy time for American travelers, but this year is on pace to be one for the record books. According to AAA, 55.4 million Americans plan to travel for Thanksgiving, the third highest since 2000, the year the company began benchmarking data. With an estimated 4.7 million people flying over the Thanksgiving holiday, Sojern data shows that domestic flight bookings are up 4% in 2024 compared to the same time period in 2023. While flight bookings to the central and southwest states are down, rural mountain and southern states are seeing strong increases in travel demand, with Orlando taking the top spot as the Thanksgiving flight destination of choice. This year, Honolulu, Hawaii takes the top spot for hotel bookings, capturing 11.6% of all Thanksgiving bookings.
While Thanksgiving is historically a time for domestic travel, international travel has shifted compared to 2023. While Mexico is still the top international destination, American travelers are opting to visit other locations, including Europe, Asia, and Canada. Travel to Europe during the Thanksgiving holiday is on par with 2023 levels, but travel to Asia and Canada are up 4% and 3%, respectively.
Europe’s festive flair and array of Christmas markets have long attracted travelers from around the world–and this year is once again proving to be just as captivating. However, while travelers from around the world are packing their bags and jetting off to major European cities, Europeans have other plans. Currently, domestic flight bookings are down 26% and bookings within Europe are down 5%. Interestingly, flight bookings to Asia (14%), Latin America (3%), and non-conflict countries in the Middle East and Africa (3%) are all up, indicating that Europeans either prefer to drive for their holiday experiences or embark on long-distance adventures.
London, with its charming pubs, festive holiday displays, and as the host of World Travel Market, stands as Europe’s top destination this season, capturing 79.1% of flight bookings and 89.7% of hotel reservations. London’s draw is spiking international travel to the UK, which is up 4%.
With its bustling Christmas markets, Germany and Austria have long been favorite European holiday destinations. International travel to Germany is up 7%, with Americans and British travelers making their way to Frankfurt, Munich, and Berlin. While international travelers are booking the most flights, Germans have booked 37% of hotels, indicating that travel by car or rail is their top choice. Vienna, known as the most livable city in the world, offers numerous markets and holiday music throughout the city, is scooping up 80% of holiday flight bookings into Austria. Overall, international flight bookings to Austria are up 17%.
Paris, with all of its glitz and glamor, is riding high off the 2024 Summer Olympics, and is still one of the most in-demand destinations in Europe. Overall, domestic travel within France is down 41%, but international travel is only down 1%, with Americans looking to imbibe on French delicacies and stroll the markets–or even live out their own version of Emily in Paris. Much like other European destinations, domestic travel within Italy and Spain is down 35% and 8%, but international travel is up 13% and 11%, respectively. Visitors are once again choosing major cities, such as Rome, Milan, Florence, Venice, Madrid, and Barcelona as their destinations-of-choice.
Formula One (F1) events are known to draw large crowds. For example, the 2022 F1 Singapore Grand Prix spiked travel to the country by 63%. The United Arab Emirates (UAE) is on deck to host the Abu Dhabi Grand Prix from December 6-8th, and flight bookings from the past 30 days are up 9% overall during December, with regional bookings up 13% compared to 2023 and international travel up 4%. In addition, as Saudi Arabia (KSA) enters its peak travel season, regional and international travel are showing increased demand. Currently, international flight bookings are up 15% compared to 2023, but regional travel is the shining star with a 38% increase.
During the Christmas season, American travelers are returning to their favorite Christmas hotspots to enjoy the festivities. Domestic travel is down 15%, while travel to Europe is up 2% and Asia up 9%. Top destinations domestically are Honolulu, New York, and Orlando, while the top destinations internationally are Mexico, the United Kingdom, Canada and Dominican Republic. Approximately 7.5 million visitors are expected to descend on New York City during the holidays. While Mexico has long been a popular destination from the U.S. for travelers looking for fun and sun, flight bookings from the U.S. are down 8% this year. Instead, they’re opting to get their beach experiences in the Dominican Republic, where flight bookings are up 14% compared to 2023
Holiday skiing has always attracted travelers, but this year their preferences are changing. Traditional destinations, like the German and Swiss Alps, are still in high demand, with hotel bookings up 20% and 42%, respectively. However, American and Canadian ski destination hotel bookings are down between 9% and 18% and European ski tourism is seeing similar patterns. In 2023, the University of Grenoble’s report studied samples from 28 European countries and found that 53 to 98% of ski resorts are at risk of low snow packs due to climate change, so some travelers may be hesitant to visit more expensive destinations only to be met with poor snow conditions. Instead, Japan is emerging as a top ski destination, with hotel bookings up 417% compared to last year. The current state of the Japanese Yen, coupled with notoriously light powder and incredible resorts, is attracting skiers from around the world.
Chinese New Year in 2025 runs from January 28th to February 3rd and is driving travel across Asia Pacific. Singapore is typically a huge draw, but current hotel bookings are down 11.55% overall compared to the same period in 2024, with domestic bookings down 26%. However, bookings from East Asia are only down 5%, highlighting the fact that travelers typically book international trips earlier than domestic excursions. Singapore is China’s top destination for the holiday, capturing 14.8% of non-intra-regional Asia Pacific travel. While some Chinese travelers are flying for the holiday, flight bookings are down 18.82%. Hotel bookings are up 10.41% compared to 2023, indicating a higher demand for domestic travel, but likely by rail or car.
Today’s travelers are more experience-driven than ever, investing heavily in attending concerts, events, and major sports like the FIFA World Cup. In 2022, Qatar hosted the FIFA World Cup, spiking international lodging searches by 541% worldwide, with United Arab Emirates being the top feeder market. Next up, the 2026 FIFA World Cup will host 104 games and 48 teams across Canada, Mexico, and the U.S., drawing travelers from around the world to cheer for their teams.
Given the time and expense that goes into traveling for these types of events and experiences, travel brands must continually up their game to meet increasing guest expectations and cement their destination as a top choice for future travel. From generative AI-driven concierge services to the proliferation of first-party data, the industry is already evolving to deliver personalized experiences from the moment travelers start their searches–and that will continue well into 2025 and beyond.
Stay ahead of these trends by exploring our Travel Insights Dashboard to get the latest data on how major events are impacting travel behavior and what it means for your business.
*Sojern data pulled as of Oct. 1, 2024
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