Economic Caution Drives Demand for Closer, Later Trips

Sojern, a leading digital marketing platform for the hospitality industry, has released its annual travel trend report for the 2025 holiday season. The report highlights significant shifts in travel behavior, with a notable trend towards domestic travel and later bookings. Economic pressures and changing travel preferences are influencing holidaymakers to stay closer to home and seek better value in their travel choices.

Domestic Travel on the Rise in the U.S.

In the United States, there is a marked preference for road trips over air travel during the holiday season. This trend is driven by economic uncertainty, which has also affected airfare prices. Domestic flight bookings have seen a modest increase of 4% year-over-year, while international bookings to popular destinations like Canada, Mexico, and the Caribbean have declined. The report suggests that Black Friday, Cyber Monday, and Travel Tuesday are becoming increasingly important for last-minute holiday travel deals.

Regional Shifts in LATAM and Caribbean Travel

Travel patterns in Latin America and the Caribbean are also reflecting caution, with overall bookings from the U.S. down by 8%. However, Puerto Rico is emerging as a favored destination, with a significant increase in bookings that outpaces other traditional holiday spots in the region.

European Travel Preferences: Short-Haul Over Long-Haul

In Europe, there is a strong preference for short-haul travel over long-haul destinations. Cities like Budapest, Warsaw, and Gdansk are drawing tourists with their festive offerings, particularly their Christmas markets. Despite a general decline in long-haul travel, certain destinations, such as Dubai, continue to attract European travelers.

GCC Sees Growth Driven by Events

The Gulf Cooperation Council (GCC) region is experiencing growth in domestic travel, particularly in Saudi Arabia, which is benefiting from infrastructure investments and major events, such as the Formula 1 Abu Dhabi Grand Prix. However, overall bookings in the UAE are slightly down, with Dubai still dominating the inbound travel market.

APAC and Chinese New Year 2026

Looking ahead to the Chinese New Year in 2026, there is a significant uptick in both flight and hotel bookings across the Asia Pacific region. This surge is driven by strong growth from China, accompanied by notable increases in travel to East Asia and Southeast Asia. The report highlights the expanding horizons of Chinese travelers, who are increasingly exploring both regional and long-haul destinations.