Wednesday, July 2, 2025
Boston Consulting Group (BCG) recently released a report that forecasts that the world market for leisure travel will grow tremendously and triple in value to US$15 trillion by 2040, up from US$5 trillion in 2024. The massive growth is due to a surge in emerging market growth like China, India, and Saudi Arabia, whose economic growth is leading to a burgeoning middle-class population that is increasingly looking towards leisure travel as a preferred use of disposable income. With increased disposable incomes, these new consumers are set to adopt leisure travel enthusiastically and revolutionize world tourism.
Growth Driven by Emerging Markets
The report underscores that the primary drivers of this rapid growth will come from emerging economies. China is predicted to become the world’s largest spender on leisure travel, with annual growth rates exceeding 10%. The middle-class boom in countries like China, India, and Saudi Arabia is creating a new class of consumers who are now able to afford travel as part of their lifestyle. Just as the rise of the middle class in the United States helped foster a resort culture decades ago, the expanding middle class in these countries is fueling a shift towards global travel.
The Rise of Bleisure Travel
One of the key findings in the report is the trend of “bleisure” travel, where business trips are extended to include leisure activities. Approximately 70% of travelers from emerging markets are combining work with leisure, a practice much less common in the United States. This trend reflects a changing attitude towards travel, where business travelers are increasingly seeking ways to maximize their time away from home by incorporating personal experiences into their trips. This shift is likely to become an important contributor to the overall growth of the travel market in the coming years.
Domestic and International Travel Growth
While domestic travel will still represent the majority of demand, international travel is expected to grow at a faster pace. BCG forecasts that international leisure travel will increase more than threefold, from US$424 billion in 2024 to US$1.4 trillion by 2040. This surge in international tourism highlights the increasing desire for cross-border travel, particularly from emerging economies, where citizens are increasingly seeking to explore the world beyond their borders.
Implications for the Travel Industry
As the demand for leisure travel grows, the industry will face significant challenges in terms of infrastructure. Airports, hotels, and transportation networks will need to be upgraded and expanded to accommodate the growing number of travelers. This presents a major opportunity for both the public and private sectors to invest in tourism infrastructure. New airports, more direct flight routes, and enhanced travel services will be essential to meet the rising demand for travel.
With growth comes a heightened focus on sustainability. The travel industry must adopt eco-friendly practices to mitigate the environmental impact of increased travel. This includes promoting sustainable tourism initiatives, reducing carbon footprints, and ensuring that tourism benefits local communities. The industry’s focus on sustainability will play a crucial role in shaping its future trajectory.
Technological Advancements in Travel
Technological innovations are another important factor contributing to the growth of leisure travel. Digital platforms for booking, artificial intelligence for personalized travel experiences, and virtual reality for destination previews are all expected to play significant roles in the future of the travel industry. These technologies will make travel more accessible, efficient, and tailored to individual preferences, enhancing the overall experience for consumers. As the leisure travel market grows, the industry will need to embrace these advancements to stay competitive and meet the evolving demands of travelers.
Conclusion
The future of leisure travel market is bright, and growth is likely to be stimulated by emerging economies like India, China, and Saudi Arabia. As these economies mature, international tourism’s middle class is going to further be a leading force. Travel trends are changing, with more utilization of business and leisure travel simultaneously, and international tourism is going to develop very rapidly. But growth is followed by a need to make huge investments in infrastructures, sustainability, and technologies so that travel and tourism is capable of meeting today’s traveler’s demands. As travel and tourism transforms, it is going to create new opportunities as a result for both those who travel and those who offer travel and tourism products and services.
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