Leisure travel market to triple over the next 15 years
Emerging markets, such as China, India, and Saudi Arabia, are expected to drive significant growth in the travel industry
Global leisure travel spending is set to triple over the next 15 years, propelled by rapid growth in emerging markets. According to a new Boston Consulting Group report, the sector’s momentum will outpace pharmaceuticals and fashion, with rising middle classes in China, India, and Saudi Arabia fueling demand. Travelers are increasingly opting for last-minute bookings and prioritizing experiences over material goods.
Key takeaways
- Massive market expansion: Global leisure travel spending is forecast to grow from $5 trillion in 2024 to $15 trillion by 2040.
- Emerging market dominance: China, India, and Saudi Arabia are expected to lead growth, with China projected to become the top leisure travel spender, growing over 10% annually.
- Blend of business and leisure: About 70% of emerging market travelers extend work trips to include leisure—a much higher rate than in the US.
- Domestic vs. international trends: Domestic travel remains the largest segment, but international leisure travel will more than triple from $424 billion in 2024 to $1.4 trillion by 2040.
- Experience over possessions: Consumers are increasingly booking last-minute trips and choosing experiences rather than material goods, even amid economic uncertainty.
- Resilient industry outlook: Despite geopolitical and economic risks, leisure travel continues to grow steadily, reflecting a “carpe diem” mindset among travelers.
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