Katy Perry and Orlando Bloom Are 'Beyond Happy' as They Take Holiday Trip Together: Source

Katy Perry and Orlando Bloom are in paradise — literally and emotionally.

The pop star, 34, shared a sweet photo on her Instagram on Sunday in which she and her movie star beau, 41, are standing in a lagoon with a waterfall in the background and a rainbow arching above them. In the gorgeous snap, the pair have their arms wrapped around each other and are throwing up the peace sign. Also visible is Perry’s ear-to-ear grin.

“End of the rainbow kind of love,” she captioned it alongside the rainbow emoji. “Gold,” Bloom replied.

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The holiday vacation rounds out “a very special year for Orlando and Katy,” a source tells PEOPLE exclusively, adding that “they are doing incredibly well. They seem beyond happy and very serious.”

The insider adds that their families are mixing well, also.

“Katy is amazing with Orlando’s son. She is very involved in his life. It makes Orlando very happy. They will spend part of the holidays together and some days apart as well. They have a trip planned to celebrate New Years’ together,” the source says.

Bloom and his ex-wife Miranda Kerr are parents to 7-year-old Flynn. They split in 2013 after three years of marriage. Perry and Bloom also spent much of the week leading up to Christmas together.

On Monday, the “Dark Horse” singer shared an adorable selfie on her Instagram story of the couple posing in front of rows upon rows of elves on shelves — a display that’s part of pop-up Christmas museum Fa La Land, located in Los Angeles.

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In the photo, they’re touching foreheads and smiling sweetly at the camera. Sporting a red beret and matching plaid dress, the “Roar” musician blended in perfectly with her surroundings.

She also shared a solo selfie in front of the elves and another photo where she’s sitting in a swing below a red sign that reads, “Candyfornia.” Perry captioned it, “Ye olde stomping grounds!” and tagged the venue with a geo-stamp.

Perry and Bloom were first linked in 2016 after they were seen snuggling at a Golden Globes after party. They announced their split a year later in February 2017, when their reps told PEOPLE they’d be “taking respectful, loving space.”

But by April, after the pair celebrated the New Year together in the Maldives and met the Pope at the Vatican, PEOPLE confirmed they were officially back on.

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While the couple has a complicated history, they’ve actually been getting closer as of late. A source close to the Lord of the Rings alum recently told PEOPLE that “he’s ready to settle down with Katy.”

Another source added to PEOPLE that an engagement could be on the horizon.

“Orlando doesn’t have a ring yet but has been talking about the future,” a source close to the actor said in October. “Everyone would be excited if they got engaged. Katy is wonderful!”