Holiday travel trends are in, and some of them may surprise you

US travel insurance marketplace Squaremouth has analysed data from thousands of policies purchased for travel this winter to identify four key trends this holiday season.

Mexico takes top destination

For the first time in five years, Mexico is the most popular holiday destination for Squaremouth users, surpassing the US and the Bahamas. Over 13% of American travellers are opting to travel to Mexico for the holidays this year, compared with 10% in 2023. The next most popular holiday destinations include the Dominican Republic, the UK, and Costa Rica.

Travellers are spending more on trips

Travel costs have continued to rise all year, and holiday travel is no exception. Travellers taking trips between Thanksgiving and New Year are spending nearly 58% more this year than last year, with the average domestic trip costing US$5,249. Spending for international trips has also increased over 2023, rising by 38% to $7,892.

Travellers are planning and protecting their trips earlier

Frequent travel disruptions and weather disasters marred the travel industry this year, leading to an increase in traveller anxiety over protecting their trips – and doing it early. This holiday season, travellers are purchasing travel insurance an average of 70 days prior to departure, compared with 60 days last year.

Illness and injury are top concern

With flu season well underway and winter storm season looming, travel insurance coverage for illness remains travellers’ top concern. Over 25% of quote filter searches this holiday season were for emergency medical coverage, while another 21% were for coverage for medical evacuation. This marks an increase of 12% over last year’s searches.

Lemongrass recently released its Annual Travel Trend Report 2025, which details the top trends for global travel in 2025.