Holiday travel in 2025 is unfolding against a backdrop of conflicting forces: persistent inflation, softer airfare prices, record-breaking airport traffic, and a consumer base that is increasingly value-conscious but unwilling to sacrifice experiences. TSA is already projecting the busiest holiday travel season on record, with several December days expected to surpass the 3-million passenger threshold set in 2024.
At the same time, Deloitte’s 2025 holiday outlook shows travelers are more budget-strained than last year, but paradoxically more committed to traveling anyway, prioritizing trips even as discretionary spending tightens.
This tension is shaping a different kind of holiday traveler: one who books earlier, spends more strategically, and relies heavily on digital tools to navigate a more complex planning landscape. As part of iSeatz’s Modern Traveler 2025 research, we surveyed 1,000 U.S. consumers to understand what’s driving their decisions this season: how they’re budgeting, when they’re booking, and what they expect from travel brands right now.
Demand isn’t slowing. But the way people travel is changing fast.
1. Travel Is the Ultimate Gift
Experiences continue to eclipse material gifts, and holiday travel has become one of the most meaningful ways people choose to spend. In our research, 63% of travelers reported cutting back on everyday purchases, including dining out and shopping, to preserve their ability to travel. Millennials remain the most committed, budgeting $1,899 on average for leisure travel.
This mirrors broader consumer sentiment: McKinsey’s State of the Consumer report found that more than half of Gen Z now prioritize experiences over physical goods.
AAA is forecasting near-record travel volumes this holiday season, further signaling that despite economic pressure, Americans continue to treat travel as non-negotiable. On the contrary, it’s something worth protecting, saving for, and gifting.
2. Pre-Planners Are Taking the Lead
Holiday travel has always required foresight, but this year, planning early has become almost essential. Deloitte reports that 76% of travelers plan to book earlier than last year, driven by price volatility and capacity constraints.
Our study shows similar behavior:
- Gen X and Boomers typically book 10–12 weeks out.
- Gen Z, meanwhile, remains spontaneous—twice as likely to book within two weeks of departure.
This early-planning surge isn’t paranoia. Hopper’s 2025 holiday forecast shows airfare can rise 20–30% in the final two weeks of December.
This year, the early planner is the traveler who stays in control.
3. Clicks Beat Chaos
With airports expected to hit historic highs, travelers are increasingly turning to digital tools to simplify the journey. Our research found a significant shift toward digital-first planning:
- 40% prefer booking through OTAs or bundled packages
- More than half want to consolidate trip components into a single checkout
Generational differences in digital behavior are widening. Gen Z is the only cohort that relies more on social media than search engines for researching trips, favoring TikTok, Instagram, and YouTube over traditional travel sites. Older generations still prefer direct booking, valuing clarity and trust over discovery-driven inspiration.
Across generations, one theme holds: digital ease now defines the pre-trip experience.
4. “Reunion Travel” Is Driving the Season
Holiday travel this year is less about far-flung adventures and more about reconnection. In our survey, one in three Americans said visiting friends or family is their primary reason for traveling at year’s end.
Road travel is also resurging. With the U.S. Energy Information Administration projecting winter gas prices to average $3.04 per gallon, many Americans are choosing to drive instead of navigating unpredictable airfare or packed airports.
Expect busy interstates, regional airports at capacity, and a shift toward shorter, more meaningful trips rooted in connection.
5. Trust Is the New Travel Currency
After several years of flight disruptions, technology outages, and loyalty program shake-ups, travelers are prioritizing trust more heavily than before. In our research, trust and reliability outranked loyalty programs as a deciding factor in where people book. And when asked about their biggest booking frustrations, hidden fees led by a wide margin.
Skift’s State of Travel report echoes this pattern: 32% of travelers are willing to pay more for brands they consider more dependable.
While Boomers focus on predictability and consistency, Gen Z frames trust as transparency and authenticity. Both groups, however, are really expressing the same expectation: they want confidence in what they’re booking.
A Holiday Season Defined by Intentionality
The 2025 holiday traveler isn’t scaling back; they’re scaling smarter. They’re budgeting with precision, booking earlier to secure control, relying on digital discovery to cut through the friction, and gravitating toward brands that feel trustworthy and transparent.
Travel has become a deliberate choice. It’s a way to spend time, money, and attention on what feels meaningful.
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