Holiday Trends Revealed: Destinations U.S. Travelers are Choosing and associated Spending Levels

Headline: Travelers Embrace Flexibility and Protection in Popular 2025 Holiday Destinations

In the year 2025, travelers are embracing change as they plan their holiday escapes. The trend of prioritizing flexibility in travel plans, as shown by the surge in purchases of the Cancel For Any Reason (CFAR) add-on, has accelerated. This popular travel insurance add-on, which increases policy cost by around 40-60%, allows travelers to cover up to 75% of non-refundable costs if canceled at least 48 hours before departure.

Travelers are split between warm-weather escapes like Mexico and Jamaica and festive European favorites like Germany, France, and Italy. Jamaica, Puerto Rico, Italy, U.S. Virgin Islands, and Argentina are also among the top 10 holiday destinations for Americans in 2025. The holidays are one of the busiest travel windows of the year, with the average spend per traveler being $5,209 and the average trip cost overall being $13,533 - a 5% decrease from 2024.

The rise in CFAR purchases isn't the only indication of travelers' desire for protection. Pets are now a significant part of holiday plans, as indicated by the rising number of Pet Care add-ons. This add-on covers up to $2,500 in expenses for pets traveling with their families.

In addition to CFAR and Pet Care, travelers can now protect their holiday trips with vacation rental damage coverage, 24/7 support, and even more, all through one app. This comprehensive coverage is a testament to the growing importance of peace of mind for travelers.

As travelers prioritize flexibility and protection, they are also taking steps to manage costs. Reasons for the dip in spending in 2025 may include shorter trip durations, economic and inflationary pressures, and budget-conscious behaviors.

Despite these cost-saving measures, the number of insured travelers during the 2025 holiday season has increased. Over 92% of travelers are heading abroad, an increase from 88% last year. This indicates a renewed enthusiasm for international travel, with trips to Europe and the Caribbean becoming more popular compared to last year.

Christmas markets in Germany and beach escapes in the Bahamas are among the most popular holiday travel destinations. Passports are ready for a significant number of Americans during the 2025 holiday season, reflecting the increased interest in travel.

In conclusion, 2025 is shaping up to be a year of change and adaptation in the travel industry, with travelers prioritizing flexibility, protection, and cost management in their holiday plans.

Holiday Trends Revealed: Destinations U.S. Travelers are Choosing and associated Spending Levels