Thursday, June 26, 2025
The global leisure travel market is projected to experience a remarkable expansion, with estimates suggesting that it will grow from $5 trillion in 2024 to $15 trillion by 2040. This growth is attributed to a combination of factors, including the rapid increase in the middle-class population in emerging markets, a shift towards valuing experiences over material possessions, and a growing emphasis on creating memorable moments. The increase in spending on domestic leisure travel is also a major contributor to this surge, especially in emerging economies. According to a recent report by the Boston Consulting Group (BCG), leisure travel spending is expected to rise at an annual rate of 8% through 2029, slowing slightly to 7% annually between 2029 and 2040.
This significant market growth highlights a number of opportunities for stakeholders in the travel and tourism industry, especially those catering to emerging markets. As more individuals and families from countries such as China, India, Saudi Arabia, and Cambodia gain financial power, the demand for both domestic and international travel is set to rise, changing the global travel landscape. This trend points to an exciting future for the leisure travel sector, with a diversified pool of travelers that is expected to look very different from today’s customer base.
Domestic Travel Set to Lead Growth
A notable finding of the BCG report is that domestic leisure travel will form the majority of the market’s growth. Domestic trips, particularly in emerging economies, are expected to increase significantly. By 2040, domestic leisure travel spending is anticipated to reach approximately $11.7 trillion, up from $4.1 trillion in 2024. This reflects a growing trend for individuals to seek travel experiences within their own countries, especially as rising middle classes in regions such as Asia, the Middle East, and Eastern Europe have more disposable income to spend on leisure activities.
In emerging markets, where travel infrastructure is expanding and disposable incomes are rising, the demand for local vacations is soaring. Governments and businesses alike are working to attract regional tourists, as they make up a large proportion of total leisure travel spending. This shift towards domestic travel is expected to be a key driver of the broader growth of the leisure travel market, and many stakeholders in the travel industry are focusing efforts on catering to these growing numbers of local tourists.
International Travel Still on the Rise
While domestic travel is projected to see the most significant growth, international leisure travel is also expected to remain strong. The report emphasizes that travelers from emerging markets, such as China, India, Saudi Arabia, and even countries like Bulgaria and Cambodia, are becoming a larger part of the global travel demographic. These travelers are often younger, more digitally connected, and increasingly travel-savvy compared to their predecessors. Their preferences are shifting towards highly personalized travel experiences that leverage technology to meet their needs, from booking flights and accommodations to exploring destinations.
For the international travel sector, this represents an exciting opportunity to attract a new generation of tourists. Travel providers are increasingly looking at ways to cater to the needs of these tech-savvy travelers by offering mobile apps, digital payment options, and personalized itineraries. Understanding the preferences of these emerging travelers will be essential for countries and companies hoping to maintain a strong position in the global leisure travel market.
The Changing Profile of Travelers
The future of travel is likely to see a shift in the demographic makeup of tourists. Younger travelers, particularly from emerging markets, are expected to become more prominent in the coming years. These travelers are not only more likely to travel for leisure, but they are also more digitally connected, tech-savvy, and experience-oriented. Many of them are moving away from traditional, luxury travel experiences and opting for more authentic, immersive, and budget-friendly options.
According to government tourism agencies and industry reports, this change is already evident in destinations across the globe. Younger travelers from Asia, the Middle East, and Africa are increasingly seeking out experiences that offer cultural immersion, adventure, and social engagement. Traditional tourist destinations are adapting by diversifying their offerings to attract this new generation of travelers, incorporating technology and sustainable practices to meet their expectations.
The Role of Technology in Shaping the Future of Travel
Technology is expected to play a significant role in the future of the leisure travel industry. With younger, more tech-savvy travelers driving a large portion of the market growth, the demand for digital solutions is expected to soar. From virtual reality tours to AI-powered personalized travel recommendations, technology will allow companies to cater to the evolving needs of these new travelers. Governments and tourism boards are also investing in digital infrastructure to make destinations more accessible and convenient, enhancing the overall traveler experience.
Additionally, sustainable tourism practices are becoming a higher priority for both travelers and travel providers. As the market for leisure travel grows, there will be increasing pressure on the industry to adopt environmentally friendly practices and create sustainable travel options. Governments and organizations around the world are promoting sustainability through policies that encourage eco-friendly tourism and environmentally conscious travel habits.
A Promising Future for Global Leisure Travel
The future of global leisure travel looks incredibly promising, with projections indicating significant growth driven by emerging markets, domestic travel, and a new generation of digitally savvy and experience-focused travelers. By 2040, the leisure travel market is expected to reach $15 trillion, with the vast majority of that growth coming from domestic travel, especially in developing countries. At the same time, international travel will continue to grow, driven by younger travelers from emerging markets who are eager to explore the world.
For the travel industry, this presents both challenges and opportunities. As the market diversifies, businesses will need to adapt to the changing preferences of travelers while embracing technology and sustainability. The key to success will be understanding these evolving trends and catering to the unique needs of tomorrow’s global travelers. The future of leisure travel is bright, and those who can tap into this growing market stand to benefit significantly from the opportunities ahead.
