Airfares Flat, Hotel Rates Soar: Travelers Face Mixed Bag This Holiday Season

According to the news report, travelers planning year-end getaways in 2025 can expect a mixed bag of deals. While airfares to many popular domestic and international destinations are projected to stay flat compared to last year, hotel room rates in several leisure hotspots are headed for a record-breaking increase.

Industry experts say airlines have ramped up capacity on certain routes, keeping prices in check despite strong travel demand. Airfares to destinations like Thailand, Indonesia, Vietnam, and the Philippines are largely unchanged from 2024 levels. In fact, data shows a dip in both domestic and international fares, down 8.6% and 5.4% respectively.

However, the same cannot be said about accommodation. Hotels are anticipating a nearly 15% average room rate growth in the fourth quarter of 2025 compared to the previous year, driven by strong travel sentiment and preference for premium stays. Some popular leisure destinations, like Radisson Resort & Spa Lonavala, are already seeing year-on-year rate hikes of over 30%.

Travelers are actively taking advantage of improved regional air connectivity to destinations like Vietnam and Sri Lanka, though overall tour pricing has seen a 3-7% increase for domestic and short-haul trips. Airlines are also inducting additional aircraft on short-term leases to cater to the winter rush, leading to more deals and discounts.