It’s no shock that Americans love to travel for the holidays—whether to visit family across the country or escape the cold for a sun-soaked getaway. But this year, we’re seeing a shift: holiday travelers are expanding their horizons (literally) and are ready to spend big for memorable experiences. So, what’s driving this wanderlust and what does this mean for you? Let’s dive in.
Beyond the usual getaway: Americans are going the distance
Hopping in the car for a quick road trip or booking a short, domestic flight has been the holiday go-to for decades, but in 2024, that routine is getting a shake-up. This season, it’s all about turning that wanderlust into “wonder-lust”—the desire for unique destinations, fresh cultures and Instagram-worthy experiences.
According to the Vacationer, nearly 51% of adults will travel for Thanksgiving. And while this holiday is historically known as a time for domestic travel, many plan on leaving the country, with Mexico as the top international destination followed by Europe, Asia and Canada.
When it comes to Christmas travel and New Year’s Eve celebrations, according to our data here at Faye, of those traveling and insuring their trips, 10% are taking domestic trips and 90% are traveling internationally. Where are they going? France, the UK, Mexico, Thailand and Costa Rica are at the top of the list. And they’re not shying away from shelling out more to enjoy this season, with the average Christmas and New Year’s Eve vacation costing $16,838 per trip, a $2k increase from just last month.
Spending big for big memories
So, what’s behind this wave of indulgent travel? In one word: experiences. Americans are shifting from spending on material things to investing in unique travel experiences. Among holiday travelers, 39% of domestic travelers and 50% of international travelers plan to spend more on everything–from gifts to getaways to entertainment.
If you’re wondering who’s leading the way in splurging on experiences, it’s Millennials and Gen Z. On average, Millennials have set aside $751 for holiday travel, a 12% increase from 2023, while Gen Z has increased their budget to $639, a 42% increase from last year.
But it’s not just about experiences–travelers are also investing in peace of mind. This year, more people are enhancing their holiday trips with extra travel insurance coverage. The most popular add-on is Cancel For Any Reason (CFAR), which can increase the cost of your travel insurance policy by 40-60%, given it can reimburse you up to 75% of your non-refundable trip costs as long as you cancel within 48 hours of your departure date. Another trending add-on is pet care, as more and more travelers are opting to bring their furry companions along for the journey.
Where are Americans heading?
Curious about this year’s top spots? Here’s a snapshot of where Americans are spending their holidays this year:
- Orlando, FL takes the lead as the top Thanksgiving flight destination.
- Honolulu, HI tops Thanksgiving hotel bookings, making up 11.6% of all reservations.
- Germany and Austria are attracting international travelers with their festive Christmas markets and holiday traditions. International flight bookings to Germany are up 7% while Austria bookings are up 17%.
- Italy and Spain have seen spikes, with bookings up 13% for Italy and 11% for Spain, as travelers explore iconic cities like Rome, Milan, Madrid, and Barcelona.
- The United Arab Emirates is drawing travelers for the Abu Dhabi Grand Prix, happening December 6-8.
- Saudi Arabia is also seeing an uptick, with winter bookings up 15% as the region hits peak season, compared to 2023.
- Japan is quickly emerging as a top ski destination, with hotel bookings up 417% from last year as travelers seek alternative slopes to the Swiss Alps, where snowpacks are at risk from climate change.
What this means for you
Does this mean you need to jet off to Bora Bora tomorrow? Not necessarily. But if you’re feeling inspired, consider infusing a little extra “treat yourself” energy into your holiday travel plans. Maybe upgrade to that ocean-view room or extend your trip by a day or two for some extra R&R. The holidays are all about making memories, so make them count.
Ring in the season with Faye
As 2024’s holiday travel season kicks into high gear, Americans are more ready than ever to go the extra mile–literally. So book that flight, pack your bags and travel with Faye for the most memorable holiday yet.
These activities and websites are suggestions and Faye is in no way associated with them. This post is meant to give you insight into the holiday travel trends of Americans.
