Rising travel demand underscores resilient consumer mobility despite higher costs and congestion
Dec 16, 2025
AAA forecasts a record 122.4 million Americans will travel at least 50 miles from home during the 2025 year-end holiday period, surpassing last year’s high and marking continued growth in leisure travel demand. The increase is driven primarily by road travel, supported by lower gas prices, while air travel also reaches a new milestone despite higher fares. Other modes, including cruises and rail, are growing faster from a smaller base, reflecting changing traveler preferences. Overall, the outlook points to strong consumer confidence in travel, alongside mounting pressure on infrastructure, pricing, and safety.
Key takeaways
- Record-setting travel volume: An estimated 122.4 million Americans will travel over the year-end holidays, up 2.2% from 2024 and the highest level on record.
- Road trips dominate travel choices: About 109.5 million travelers, or 89% of all holiday travelers, will drive, attracted by flexibility and lower fuel prices compared to last year.
- Air travel hits a new milestone: Domestic air travel is expected to exceed 8 million passengers for the first time, even as average roundtrip fares rise around 7%.
- Higher costs reshape travel behavior: Travelers are paying more for flights and rentals, leading many to adjust travel dates, routes, or modes rather than forgo trips altogether.
- Other transport modes gain momentum: Bus, train, and cruise travel is projected to grow 9%, continuing a strong post-pandemic rebound, particularly in cruising.
- Warm destinations lead demand: Florida, Southern California, Hawaii, Mexico, and the Caribbean rank among the most popular year-end destinations, reflecting seasonal escape patterns.
- Congestion and safety concerns intensify: Peak travel days before and after Christmas are expected to strain major metro corridors, reinforcing the importance of timing, planning, and road safety.
Get the full story at AAA
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