Leisure Travel Market

• Increasing amount of discretionary income is driving the market growth

Global Market CAGR for leisure travel is being driven by the increasing amount of discretionary income. Well-established businesses such as retail, dining, lodging, entertainment, logistics, and other tourism services are all part of the leisure travel economy. Businesses in related industries, whether big and small, are always trying to make a difference in people's lives by fostering community support, economic growth, and interpersonal interaction. When a significant amount of money is invested in tourism, it can stimulate private investment, aggregate demand, infrastructure development, and employment growth.

Additionally, growing discretionary income and regional economic stability boost consumers' capacity to spend on leisure trips. People are more likely to set aside money for leisure activities and trips when they have greater disposable income. Experiences are becoming more and more valued than material belongings. Leisure travel is in high demand because travelers want to have memorable and one-of-a-kind experiences. This includes traveling to new places, immersing oneself in the culture, engaging in adventurous activities, and having customized travel experiences. The market for leisure travel is heavily influenced by the comfort and availability of access to information provided by technology.

Travel decisions are influenced by online booking platforms, travel applications, review sites, and social media, which also facilitate the planning and booking of travel.

Travelers' choices are influenced by shifting lifestyles and interests, such as increased emphasis on wellness, eco-friendly travel, eco-friendly lodging, and genuine local experiences. This creates a demand for particular leisure travel options. The need for travel is fueled by the growing number of older persons and retirees who have more free time and disposable income. This group looks for possibilities for leisure travel that will allow them to unwind, have adventures, see new cultures, and interact with others.

Higher-speed rail, air travel, and better road networks are examples of improved transportation infrastructure that contributes to increased connectivity and more convenient and accessible travel. For leisure tourists, this accessibility opens up new markets and travel possibilities. For instance, the number of outbound travelers has increased exponentially over the past ten years, with over 1.4 billion departures from around the world in 2018. Thus, result in driving the Leisure Travel market revenue.

The Global Leisure Travel Market is poised for substantial growth, with projections indicating a remarkable increase from 1930.1 USD Billion in 2024 to 13880.0 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 19.64% from 2025 to 2035. Such figures highlight the expanding opportunities within the industry, driven by various factors including rising disposable incomes, technological advancements, and changing consumer preferences. The market's potential for growth underscores the importance of strategic planning and investment in the Global Leisure Travel Market Industry.

As global economies continue to recover and grow, there is a notable increase in disposable incomes among consumers. This trend appears to drive the Global Leisure Travel Market Industry, as individuals are more willing to allocate a portion of their earnings towards travel experiences. For instance, in regions like Asia-Pacific, rising middle-class populations are expected to contribute significantly to leisure travel expenditures. With the Global Leisure Travel Market projected to reach 1930.1 USD Billion in 2024, the increase in disposable income is likely to play a pivotal role in sustaining this growth trajectory.

The rapid evolution of technology has transformed the way consumers plan and book their travel. Innovations such as mobile applications, artificial intelligence, and virtual reality are enhancing the customer experience in the Global Leisure Travel Market Industry. For example, AI-driven chatbots are providing personalized travel recommendations, while virtual reality allows potential travelers to preview destinations. These advancements not only streamline the booking process but also create more engaging experiences, thereby attracting a broader audience. As the Global Leisure Travel Market continues to expand, these technological developments are likely to be a driving force.

The preferences of consumers regarding travel experiences are evolving, with a noticeable shift towards unique and personalized journeys. This trend is influencing the Global Leisure Travel Market Industry, as travelers increasingly seek authentic experiences over traditional tourist activities. For instance, immersive cultural experiences and local culinary tours are gaining popularity. This shift indicates that the market is adapting to meet the desires of modern travelers, who prioritize meaningful interactions and personalized services. As a result, the Global Leisure Travel Market may continue to grow, driven by these changing consumer expectations.

The ongoing development and enhancement of travel infrastructure globally is facilitating easier access to various destinations. Investments in airports, rail systems, and road networks are crucial for the Global Leisure Travel Market Industry, as they improve connectivity and reduce travel times. For example, the expansion of high-speed rail networks in Europe is making it more convenient for travelers to explore multiple countries. This infrastructure growth is expected to support the projected increase of the Global Leisure Travel Market to 13880.0 USD Billion by 2035, as improved accessibility encourages more individuals to travel.

There is a growing awareness and concern regarding environmental sustainability among travelers. This shift in consumer preferences is influencing the Global Leisure Travel Market Industry, as more individuals seek eco-friendly travel options. Destinations that promote sustainable practices, such as carbon offset programs and conservation efforts, are becoming increasingly popular. For instance, eco-tourism initiatives in countries like Costa Rica are attracting environmentally conscious travelers. This trend suggests that as the Global Leisure Travel Market evolves, sustainability will likely be a key driver, shaping travel choices and influencing industry practices.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Leisure Travel market area will dominate this market. The leisure travel market in North America is expanding due to various causes such as rising disposable income and an increasing number of individuals who have a greater interest in traveling.

Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.

Figure2: LEISURE TRAVEL MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Leisure Travel market has the second-largest portion of the market, because of increased investment and government awareness of the need to improve travel. Further, the German Leisure Travel market had the biggest market share, and the UK Leisure Travel market was the European market with the quickest rate of growth.

The Asia-Pacific Leisure Travel Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. The development of small and medium-sized travel businesses to improve consumers' travel experiences also contributes to the market's expansion. Moreover, China’s Leisure Travel market had the biggest market share, and the Indian Leisure Travel market was the Asia-Pacific region's fastest-growing market.

Leading market players are putting a lot of money on R&D to broaden their product offerings, which will fuel further growth in the leisure travel market. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Leisure Travel industry must provide reasonably priced goods.

Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the Leisure Travel industry to help customers and expand the market segment. In recent years, the Leisure Travel industry has provided some of the biggest benefits to medicine. Major players in the Leisure Travel market, including EXPEDIA GROUP, CARLSON WAGONLIT TRAVEL, COX & KINGS LTD., JTB USA, INC., WORLD TRAVEL, INC., TUI GROUP, PRICELINE(BOOKING HOLDINGS INC.), THOMAS COOK INDIA LTD., and others, are engaging in research and development activities in an effort to boost market demand.

Expedia Group, Inc. is a travel technology firm based in the United States. It is the owner and operator of several travel pricing aggregators and travel metasearch engines, such as Hotels.com, Expedia.com, Exbookers, CheapTickets, Hotwire.com, Orbitz, Expedia Cruises, Wotif, and Trivago. The websites of the companies allow users to book tickets on over 500 airlines and over 3 million accommodation options. Its headquarters are in Seattle, Washington, and it employs 16,500 people. In April 2020, The Expedia Group appointed Peter Kern as its CEO.

In 2021, he received $296 million in total salary, making him the highest paid CEO among the S&P 500.

CWT (previously Carlson Wagonlit Travel) arranges business travel, conferences, exhibits, meetings, incentives, and event planning. With its main office located in Minneapolis, Minnesota, the business recorded a total transaction volume of US$23 billion in 2018. It comes in at number five on Travel Weekly's ranking of the highest-earning travel companies. In July 2020, According to the Register, CWT had to pay US$4.5 million to resolve a ransomware outbreak that occurred one week prior.