Leisure Travel Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

The global leisure travel market stood at a value of around USD 1.32 Trillion in 2024. The market is further expected to grow at a CAGR of 7.00% in the forecast period of 2025-2034 to attain USD 2.60 Trillion by 2034.

Increasing Preference for Online Bookings and Associated Travel Services to Bolster the Growth of the Global Leisure Travel Industry

Based on sales channel, the online segment is expected to account for a significant share in the global leisure travel industry. This surge can be attributed to the rapid implementation of technical innovations and IoT (Internet of things) solutions in processes such as booking services, among others, which have become significantly easier. The increasing consumer demand for convenient services and the increasing penetration of smart phones, especially in emerging economies, are expected to further bolster the market growth in the forecast period.

The Asia-Pacific Region to Account for a Significant Market Share of the Global Leisure Travel Industry

The Asia-Pacific region is expected to account for a significant share of the global leisure travel industry in the forecast period. The region is home to some of the popular tourist locations such as China, India, Thailand, and Malaysia. These countries offer a variety of rich cultural experiences and a variety of recreational and entertainment activities. An important factor contributing to this growth is substantial investments and promotional strategies devised by the governments to strengthen the tourism sector, which is a crucial factor in the development of major economies within the region. However, due to the COVID-19 pandemic, almost all regions were adversely affected in the year 2020.

Leisure Travel: Market Segmentation

Leisure travel refers to a vacation undertaken by an individual or a group of individuals for personal enjoyment. These trips help people unwind and relax by taking time off of their busy lives, travelling to popular destinations, and exploring new cultures around the world. The leisure travel industry includes various travel services such as accommodation, transportation, food and beverage, retail, and recreation, among others. It plays a significant role in the growth of many developing economies.

Market Breakup by Traveller Type

• Solo
• Group

Market Breakup by Sales Channel

• Conventional Channel
• Online Channel

Market Breakup by Age Groups

• Baby Boomers
• Generation X
• Millennials
• Generation Z

Market Breakup by Expenditure Type

• Lodging
• Transportation
• Food and Beverage
• Event and Entertainment
• Others

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Globalisation and Increasing Digitisation to Drive the Global Leisure Travel Industry

The rapid digitisation and globalisation are the primary factors spurring the growth of the leisure travel industry globally. The increasing investments, both public and private, in the tourism industry as it encompasses other sectors, such as logistics, food and beverage, and transportation, which substantially impact the growth of the overall economy, are expected to aid the market growth. Meanwhile, rapid digitisation with increased usage of AI and cloud-based services allows for the efficient functioning of processes such as online booking, which is leading to an improved user experience and increased productivity.

However, the recent surge of the COVID-19 pandemic has negatively impacted the leisure travel industry and the associated sectors. The nationwide lockdowns and restrictions on travelling have hampered the travel market growth. In a report issued by the UNWTO dated June 2nd, 2021, worldwide international tourist arrivals were recorded to have reduced down to 73% in 2020. Furthermore, Asia and the Pacific remained the worst hit globally, recording a sharp decline of 84% in international arrivals during the same year. Meanwhile, the annual report issued by IATA dated November 2020 notes a strong potential for travelling due to the reduction in restrictions in various parts of the world and increased domestic travel bookings.

Key Industry Players in the Global Leisure Travel Market

The report gives a detailed analysis of the following key players in the global leisure travel market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• JTB USA Inc.
• Expedia Group, Inc.
• Cox & Kings Ltd.
• CWT Global B.V.
• American Express Company
• Travel Leaders Group
• TUI AG
• Others

The comprehensive report provides an in-depth assessment of the industry based on the Porter's five forces model and SWOT analysis.