As droves of American tourists are preparing to travel this holiday season, emerging trends point to rising costs and a surprising new top destination.

Squaremouth.com, the nation's leading travel insurance marketplace, analyzed data from thousands of policies purchased for travel this winter to identify 4 key trends this holiday season.

Mexico Takes Top Destination
For the first time in 5 years, Mexico is the most popular holiday destination for Squaremouth users, surpassing the US and Bahamas. Over 13% of American travelers are opting to travel to Mexico for the holidays this year, compared to 10% in 2023. The next most popular holiday destinations include the Dominican Republic, the UK, and Costa Rica.

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

Travelers Are Planning Ahead and Protecting Their Trips Earlier
Frequent travel disruptions and weather disasters marred the travel industry this year, leading to an increase in traveler anxiety over protecting their trips — and doing it early. This holiday season, travelers are purchasing travel insurance an average of 70 days prior to departure, compared to 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 holiday travelers' top concerns. 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.