The holidays are calling: airports are buzzing, passports are ready, and Americans are gearing up for one of the busiest travel windows of the year.
This season, travelers are spending big, heading abroad in record numbers, and adding more protection to their plans. According to Faye’s 2025 holiday travel data, Americans are adjusting how and where they travel compared to last year.
Where Americans are headed in 2025
Out of those insured traveling this holiday season, 92% will be heading abroad. That’s up from 88% last year.
The top 10 2025 holiday destinations are:
- Mexico
- The Bahamas
- Germany
- France
- USA (domestic)
- Jamaica
- Puerto Rico
- Italy
- U.S. Virgin Islands
- Argentina
Travelers are split between warm-weather escapes like Mexico and Jamaica and festive European favorites like Germany, France, and Italy. What they’re spending (and how it compares to 2024)
When it comes to spending, holiday trips are still a major investment:
- Average spend per traveler: $5,209
- Average trip cost overall: $13,533
That’s about 5% less than in 2024, when the average holiday trip cost $14,232.
Why the dip? Likely a variety of reasons, including:
- Shorter trip durations: balancing time away with budgets
- Economic and inflationary pressures: trimming luxury stays and extras
- Budget-conscious behaviors: booking earlier, using loyalty points, finding discounts
How travelers are protecting their trips
More than ever, Americans are adding extra coverage to protect their holiday plans.
Most popular add-on: Cancel For Any Reason (CFAR)
- Can cover up to 75% of non-refundable costs if canceled at least 48 hours before departure
- Increases policy cost by around 40–60%
- Allows travelers to cancel for nearly any reason — yes, even if your dog eats your homework and you need to stay home to rewrite that thesis
Second most popular add-on: Pet Care
- Can cover up to $2,500 in expenses for pets traveling with their families
- A growing signal that pets are now part of holiday plans
How this compares to 2024
Last year, 88% of insured holiday trips were international, while 12% stayed domestic. The top destinations included Mexico, South Africa, Australia, and Argentina. The average trip cost was also higher, at $14,232.
Insurance behavior looked similar — CFAR and Pet Care were already trending. But in 2025, the trend has accelerated, with more travelers doubling down on flexibility and pet-friendly protection. What it all means for holiday travelers
Despite inflation and economic pressures, Americans continue to prioritize travel — especially during the holidays. But how they’re approaching it has slightly shifted:
- Trips abroad are up, especially to Europe and the Caribbean
- Flexibility is key, shown by the surge in CFAR purchases
- Pets are part of the plan, supported by rising Pet Care add-ons
Travel protection for the holidays
From Christmas markets in Germany to beach escapes in the Bahamas, holiday travel is one of the most meaningful times of the year. With Faye, you can keep it stress-free: vacation rental damage coverage, CFAR, Pet Care, and 24/7 support — all in one app.
