India’s travel boom set to reshape global leisure market
As Indian travelers expand their journeys across regional and international destinations, their economic impact on global travel trends is rapidly accelerating
India’s rising middle class and youth-driven travel culture are positioning the country as a key driver of global leisure travel growth, according to a new report from the Boston Consulting Group (BCG). The report projects global consumer spending on leisure travel will triple from $5 trillion in 2024 to $15 trillion by 2040—outpacing industries like fashion and pharmaceuticals. As Indian travelers increasingly venture across domestic, regional, and international borders, their economic influence on global travel trends is growing fast.
Key takeaways
- Global growth: Leisure travel spending is expected to reach $15 trillion by 2040, driven by rising incomes in developing nations and a shift toward experience-based consumption.
- India’s impact: Domestic leisure travel in India is recovering strongly post-pandemic and is set to grow at 12% annually; regional travel at 8%; and international at 10%.
- Youth power: Millennials and Gen Z in India are the most travel-enthusiastic, leading demand with up to 26% higher interest than older generations. Gen X also remains influential.
- Trip trends: Overnight trips will grow by 3% (domestic), 4% (regional), and 6% (international) annually in India.
- Market segments: By 2040, domestic travel globally will grow from $4.1T to $11.7T, regional from $710B to over $2T, and international from $430B to $1.4T.
- Sustained growth: Global leisure travel overnights are forecast to rise 4% annually through 2029, then slow slightly to 3% through 2040.
Get the full report at the Boston Consulting Group