Squaremouth Reveals 2025 Summer Travel Trends and Top Destinations

 

PETERSBURG, FL, June 4, 2025  — Summer travel is heating up, with 70% of Americans saying they plan to vacation this season. New data from Squaremouth, the nation’s largest travel insurance comparison service, reveals key insights into where travelers are going and the trends that will shape this summer travel season. 

 

Squaremouth analyzed data from thousands of travel insurance policies purchased for trips this summer, revealing key destinations, traveler sentiment, and more. 

 

Travelers Increasingly Opting to Stay Closer to Home

Travel within the United States and to nearby destinations has gained momentum this summer, with travelers increasingly opting to stay closer to home this summer.

The United States remains the most popular destination for travelers this summer, and Canada has risen to the second spot, climbing two places from last year and overtaking Italy.

Mexico also gained popularity, moving up two spots to rank sixth among the top international destinations.

Travel to the Bahamas has increased by 8% year-over-year, as the Caribbean destination has broken into the top 10 most popular destinations.

 

Top 10 Summer Destinations for 2025

Country	2025 Rank	2024 Rank
United States	1 (=)	1
Canada	2 (+2)	4
United Kingdom	3 (=)	3
Italy	4 (-2)	2
France	5 (=)	5
Mexico	6 (+2)	8
Spain	7 (+2)	9
Bahamas	8 (+4)	12
Iceland	9 (+1)	10
Greece	10 (-4)	6

 

Other Trending Destinations: Portugal, Israel and France 

While many travelers opt to stay closer to home, other global destinations are emerging as hotspots this summer. 

• Portugal: Portugal continues its upward trajectory as one of the most popular summer destinations, with a 10% growth over last year.
• Israel: Israel is the fastest-growing summer destination this year, with a 23% year-over-year increase, driven by the resumption of airline routes and renewed coverage from insurance providers, reflecting improved safety conditions there.
• France: France has gained momentum over last year, with an 8% increase in travelers over last summer, likely driven by those looking to visit now that the Olympic crowds have dispersed.

 

Travelers Still Concerned about Disruptions, Delays and Potential for Lost Bags

Although Americans are still traveling this summer, they are more anxious than ever due to mounting flight delays and travel disruptions.

According to Squaremouth, 48% of travelers cited flight delays or cancellations as their top concern heading into the summer rush, up from just 36% over a year ago. 

 

“We’re seeing more travelers rethink how they travel by proactively seeking out protection in the form of travel insurance as we head into one of the busiest travel seasons of the year,” said Ned Tadic, Manager of Public Relations at Squaremouth. 

About Squaremouth

Squaremouth is a trusted name in the travel insurance industry offering comprehensive, transparent, and competitive coverage to travelers for 20 years through its digital platform. With the largest portfolio of travel insurance carriers and products in the U.S., Squaremouth has insured over 4 million clients.