Leisure Travel Set to Explode to $15 Trillion by 2040—Here’s What’s Fueling It

As leisure travel across the globe continues to rise rapidly, a golden opportunity is emerging for hotels, airlines, and other stakeholders in the travel industry. According to a report by the Boston Consulting Group (BCG), the global leisure travel market is expected to surge from $5 trillion in 2024 to a massive $15 trillion by 2040.

The report attributes this explosive growth to several key factors: an experience-driven society that prioritises memories over material possessions, the rapid expansion of the middle class in developing economies, and a growing eagerness to explore the world.

Interestingly, making good memories doesn’t always require international travel—and that’s exactly what many in emerging economies are realising. Instead, people in these markets are increasingly choosing domestic travel to create memorable experiences. The report notes that the real potential lies in attracting local, regional, and international visitors within each country.

In India, leisure travel spending is expected to show moderate to strong growth between 2019 and 2024. The data indicates a quick recovery from the impact of COVID-19. “We expect significant continued growth. Indian travelers are increasingly exploring their own country, as well as the world,” the BCG report states, projecting annual growth in overnight stays of 3% domestically, 4% regionally, and 6% internationally.

Leisure travel spending is expected to grow annually by 12% domestically, 8% regionally, and 10% internationally. “Our survey found that younger generations are especially keen to travel more and spend more on travel,” the report adds.
The sector is also witnessing increased use of technology at every step—from planning to booking to post-trip sharing. As customer behaviour evolves rapidly, the report urges travel companies to adapt quickly.

“Travel companies along the value chain must find ways to understand and welcome new travelers while continuing to serve traditional customers,” the report concludes. With a rising middle class and the growing importance of experiences, leisure travel is poised to become a powerhouse industry in the coming decades.

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