Travel trends for 2023 -- KAYAK Travel Hacker Blog

Excited to get your 2023 travel plans going? Same. We’ve crunched the numbers on what we think will be the top trends in travel for next year – because what’s the point of having all this travel data if we don’t share it? From the most affordable destinations to those places we think will be “in,” these are the travel trends you need to know for the year ahead.

Trending destinations.

When it came to 2022 trips, travelers were more than ready – destinations around the country and the world saw tourism coming back. The emergence of “revenge travel” was also too real and there are no signs of it stopping in 2023. So where is everyone headed this year? We’ve got a few educated guesses.

Region of the year: Asia and South Pacific.

Snapshots in London, Paris and the Amalfi Coast flooded our feeds in 2022 as US travelers were returning to travel. In 2023, we expect to see travelers branch out to destinations in Asia and the South Pacific. Based on our data, here are the places that we anticipate will generate buzz:

Top 10 trending destinations for 2023

Ho Chi Minh City, Vietnam: Searches were up 769% year over year
Taipei City, Taiwan: Searches were up 289% year over year
Auckland, New Zealand: Searches were up 272% year over year
Singapore: Searches were up 201% year over year
Hong Kong: Searches were up 190% year over year
Melbourne, Australia: Searches were up 167% year over year
Bangkok, Thailand: Searches were up 166% year over year
Tokyo, Japan: Searches were up 150% year over year
Sydney, Australia: Searches were up 145% year over year
Tel Aviv, Israel: Searches were up 134% year over year

Our takeaways: Travelers will be flocking to bucket list destinations in Southeast Asia, Australia and New Zealand in 2023, likely because these destinations have (finally) re-opened to visitors. Already have your eyes on flights? We’ve got new data on when to book – keep scrolling for the details.

*KAYAK US considered round-trip, economy flights for search dates 1.1 – 11.20.2022 and travel dates 1.1-12.31.2023. To find year over year percent change, the same search dates in 2021 and travel dates in 2022 were considered. Search volume thresholds were utilized, and destinations were excluded based on insufficient search volume.

Which places are cheaper? You’re getting warmer…

Skipped out in 2022 because of audacious flight prices? We hear you – fares this past year were out of control (which might bleed into 2023 too… but more on that later). That’s why we took a look at our numbers to see which destinations are seeing the biggest dips in flight prices:

Destinations trending cheaper vs. last year

Melbourne, Australia: 10% YoY price decrease in airfare
Bora Bora: 9% YoY price decrease in airfare
Copenhagen, Denmark: 8% YoY price decrease in airfare
Sydney, Australia: 2% YoY price decrease in airfare
Fiji: 2% YoY price decrease in airfare

Destinations trending cheaper vs. 3 years ago

Warsaw, Poland: 10% Yo3Y price decrease in airfare
Bora Bora: 8% Yo3Y price decrease in airfare
Mykonos, Greece: 7% Yo3Y price decrease in airfare
Lisbon, Portugal: 4% Yo3Y price decrease in airfare
Bogotá, Colombia: 2% Yo3Y price decrease in airfare

Our takeaways: You might have noticed that Melbourne and Sydney are also on the top-trending destinations list. While flights there are generally expensive, 2023 will see lower-than-usual prices… so this could be your time to plan a trip “down unda.” Additionally, if you’ve had your eyes on Bora Bora, our numbers show flights there are less pricey than they’ve been in years.

*KAYAK US considered round-trip, economy flights for search dates 1.1 – 11.20.2022 and travel dates 1.1-12.31.2023. To find year over year percent change in airfare, the same search dates in 2021 and travel dates in 2022 were considered. To find year over 3 year percent change in airfare, the same search dates in 2019 and travel dates in 2020 were considered. Search volume thresholds were utilized, and destinations were excluded based on insufficient search volume.

Staying within a budget? Here’s where to go.

For flights that don’t drain your bank account, we’d recommend a city adventure that’s closer to home. Based on our data, airfare to these popular destinations in and around the US are where you can see more… for less:

Destinations around North America seeing the lowest fares on average

Want to make use of your recently-renewed passport without paying a hefty price? It’s possible – based on our data, here are some places to consider for international travel on a budget in 2023:

Destinations outside of North America seeing the lowest fares on average

Our takeaways: For those staying closer to home in 2023, we recommend pursuing popular cities in the US, Canada and Mexico. For international excursions, consider flying to destinations in South America and Northern Europe to stay under $800.

*KAYAK US considered round-trip, economy flights for search dates 1.1 – 11.20.2022 and travel dates 1.1-12.31.2023 with the lowest average airfare. Search volume thresholds were utilized, and destinations were excluded based on insufficient search volume.

Flight trends.

The searches continue.

Inflation made its mark (or… dent) in 2022 – and many of us have felt that effect on our budgets. But travelers have continued to search for flights… even if it means shelling out more money than usual. Based on our numbers, here are 3 things we noticed about search behavior and what these trends could mean for 2023:

Interest in travel isn’t going anywhere. It’s clear travelers aren’t willing to sacrifice their long-awaited vacations. Both domestic and international flight searches are up for 2023 compared to 2022 (25% for domestic and 64% for international).*
Solo travel is on the rise.Travelers are ready to find themselves (and their new favorite destinations). Searches for single-person flights are up 36% for travel in 2023 compared to 2022.**
Wanted: more legroom. Travelers are looking to upgrade. Though all flight classes are seeing an increase in search interest, one class got more attention: premium economy. Searches for these seats are up 64% for travel in 2023 compared to 2022.***

Our takeaways: Flight searches in 2022 for travel in 2023 were up 46% versus searches in 2021 for travel in 2022 – which could be telling for travel demand in 2023. Travelers continue to plan trips both domestically and abroad, with no signs of stopping.

**KAYAK US considered round-trip, economy flights for one traveler for search dates 1.1 – 11.20.2022 and travel dates 1.1-12.31.2023.

***KAYAK US considered round-trip flights for different airfare classes for search dates 1.1 – 11.20.2022 and travel dates 1.1-12.31.2023.

Airfare prices are reaching for the sky.

We won’t sugarcoat it – the increase that we saw in 2022 for flights will likely carry over into 2023. Does that mean we’re going to stop traveling? Absolutely not – especially since we have the data to help ease the burden of heftier prices. Based on our numbers, here’s what you can expect for trends in flight prices:

Higher demand = higher prices. With more search interest comes bigger price tags. Both domestic and international flight prices are up in 2023 compared to 2022 (52% for domestic and 29% for international).*
These are the regions with the lowest increases. Flights from the US to destinations around the world will see an increase in price for 2023 trips. That being said, flights to the South Pacific (+3%) and Europe (+10%) will see the smallest price increases.*
Fly out mid-winter. Both domestic and international trips are expected to see price increases through June, so you may save if you take trips earlier in the year. This is especially true for trips abroad – prices for international flights departing in February dip 8%, making this month a great time to travel.*

Our takeaways: Searches show that the demand for travel is there – and even though flight prices continue to soar (up 52% for domestic and 29% for international), this doesn’t seem to be stopping US travelers from getting away.

*KAYAK US considered round-trip, economy flights for search dates 1.1 – 11.20.2022 and travel dates 1.1-12.31.2023.

The best days to book for a better price.

There’s never a straight answer to the age-old question: when is the best time to book flights for the best possible deal? That’s because the data is always changing. As far as when to book in 2023, we have multiple answers. Based on our numbers, here’s what to expect:

Leave on these days of the week. Yet another reason to love Thursdays and Fridays: because they may offer cheaper prices on airfare*. Our historical data shows that the lowest flight prices can be found if you book your departing flights on one of these days.
This is when people are traveling. Travelers really take advantage of that extended holiday time off – our historical data shows that December is when travelers take the longest trips. This data also shows that the largest number of trips are taken during June and July*.
Trips are being booked in advance. Both domestic and international flight booking windows increased compared to 2021 (9% for domestic and 7% for international). Domestic flights were booked 42 – 46 days in advance and international flights were booked 62 – 66 days in advance, respectively.*

Our takeaways: Opt for flights that leave on Thursday or Friday for a better deal and avoid booking trips during the busier months of June and July if you can help it. Booking your flights in advance also would be wise. In fact, here’s when to book your flights based on your destination:

*KAYAK US historical data was considered for flight search dates 1.1.2022-11.20.2022 for travel dates 1.1.2022-12.31.2022.

Hotel trends.

Lots of up and down.

Flights may have their inflation moment next year, but that doesn’t mean that hotels are following suit – it all depends on where you’re going. More travelers are searching for international hotels, meaning that domestic travelers are likely visiting more destinations where they already have a place to stay. Wondering what that means for nightly rates? Based on our numbers, here’s what to expect when finding a place to stay in 2023:

Opposites attract. The data for domestic vs. international stays are pretty opposite. While searches for domestic hotels decreased 5% YoY and nightly rates increased 8% YoY, searches for international hotels increased 4% YoY and nightly rates decreased 6% YoY.*
Staying local? Head west. Looking at the locations with more affordable options, the West dominates with generally lower nightly rates. If you’re looking to stay in and around the US for less, you may find the best hotel prices in Northwest and Southwest locations.*
International places with good prices. Going along with the theme of trending destinations, the international locations where you’ll find stays with reasonable rates are in Asia, the South Pacific and Europe. Many of these international rates rival those located in the States.*

Our takeaways: Travelers are searching less for domestic stays and more for hotels abroad. Domestic nightly rates have increased slightly – making them around the same price point as international nightly rates, which have decreased slightly.

*KAYAK US considered standard, double occupancy hotel searches between 7.1.2022 and 11.20.2022 for travel dates 1.1.2023-12.31.2023.

Where to stay for less.

No matter where you’re looking to stay, nightly prices for hotels and rentals aren’t seeing huge increases in rates. For both domestic and international stays, travelers could expect to pay under $220 a night depending on where they’re headed. Based on our numbers, here are destinations with affordable accommodations:

Destinations around North America with the lowest rates*

Ocean Shores, WA, US: $153/night
Portland, OR, US: $161/night
Cody, WY, US: $169/night
Mexico City, Mexico: $190/night
Reno, NV, US: $190/night
Salt Lake City, UT, US: $192/night
Toronto, Canada: $202/night
Houston, TX, US: $205/night
San Antonio, TX, US: $212/night
Denver, CO, US: $214/night

Destinations outside North America with the lowest rates*

Ho Chi Minh City, Vietnam: $105/night
Bangkok, Thailand: $124/night
Berlin, Germany: $143/night
Lisbon, Portugal: $153/night
Seoul, South Korea: $162/night
Madrid, Spain: $172/night
Istanbul, Turkey: $176/night
Athens, Greece: $176/night
Auckland, New Zealand: $180/night
Cartagena, Colombia: $182/night

Our takeaways: The majority of destinations around North America with affordable nightly rates are what we’d consider “outdoorsy” – great for the traveler looking to get outside. International destinations with affordable hotels overlap with regions that may see the lowest increase in airfare prices, which could mean spending less overall to visit a bucket list destination, despite the general rising cost of airfare.

*KAYAK US considered standard, double occupancy hotel searches between 7.1.2022 and 11.20.2022 for travel dates 1.1.2023-12.31.2023. Search volume thresholds were utilized, and destinations were excluded based on insufficient search volume.

Rental car trends.

The demand for rental cars is going down.

When it comes to search interest and prices, rental cars are in a league of their own. This past year was still a little chaotic for those looking for a ride – especially with residual demand and lack of inventory left over from 2021. With many of these issues in the rearview (we hope), we expect to see rental car searches and rates start to level out. Based on our numbers, here’s what you can expect to see for rental cars over the next year:

There’s more interest abroad. Domestic rental car searches are down 21% YoY, whereas international searches are up 41% YoY.*
Drivers know what they want. What do they want? Some want luxury – searches for luxury car rentals are up 25% YoY. Others want something more sustainable – searches for electric car rentals increased 136% YoY.*
This car won the popularity contest. By “this car” we mean this particular type, which was the most popular class of car among renters in 2022. Compact cars took the top spot in 2022, which could spell out more interest in these types of rentals in 2023.*

Our takeaways: There is less demand for rental cars in 2023 (-3%) compared to 2022. For those who are seeking rented rides, specific classes of cars are all the rage, including EVs – which could continue into the next year, since prices at the pump are still higher than usual.

*KAYAK US considered rental car searches between 7.1.2022 and 11.30.2022 for travel dates 1.1.2023-12.31.2023. For YoY comparison of car categories, the same search dates in 2021 and the same travel dates in 2022 were used.

Rental prices are matching search energy.

Search interest isn’t the only thing that’s going down – rental prices also saw decreases over the past year. Though average daily rates for domestic car rentals are down 7% YoY, average daily rates for international rental car have risen 12% YoY, matching the increased search interest for international rental cars (up 41% YoY). Based on our numbers, here are destinations where drivers can expect lower average daily rental rates:

Destinations around North America with rental deals*

Cancun, Mexico: $37/day
Aruba: $58/day
Miami, FL, US: $59/day
Fort Lauderdale, FL, US: $63/day
Los Angeles, CA, US: $64/day
San Jose, CA, US: $66/day
San Diego, CA, US: $67/day
Tampa, FL, US: $68/day
Boston, MA, US: $68/day
Santa Ana, CA, US: $69/day

Destinations outside North America with rental deals*

Bangkok, Thailand: $37/day
Málaga, Spain: $43/day
San José, Costa Rica: $45/day
Cape Town, South Africa: $49/day
Liberia, Costa Rica: $51/day
Athens, Greece: $53/day
Madrid, Spain: $57/day
Frankfurt, Germany: $59/day
Lisbon, Portugal: $59/day
Auckland, New Zealand: $59/day

Our takeaways: Rental rates as a whole are dropping it low(er), with a total 5% YoY decrease in daily rates compared to those in 2022. For the best deals in and around the US, travelers will find the cheapest rentals located in California and Florida. For international car rentals, travelers can expect to pay less than $60 a day at the most affordable destinations.

*KAYAK US considered rental car searches between 7.1.2022 and 11.30.2022 for travel dates 1.1.2023-12.31.2023. For year over year percent change, the same search dates in 2021 and travel dates in 2022 were used. Search volume thresholds were utilized, and destinations were excluded based on insufficient search volume.

That was… a lot of information, even for data geeks like us. If there’s one thing we took away from all these insights, it’s that rising costs won’t keep travelers from seeing the world. Remember, we always have tools and tips to help you navigate these pricey times, pursue those dream destinations and carpe that diem. Sign up to receive our weekly newsletters to get more on the latest travel trends and information (but they’re never as long as this post, we promise).

Travel trends for 2023