The leisure travel market was valued at $1.2 trillion in 2023, and is projected to reach $6.2 trillion by 2033, growing at a CAGR of 18.3% from 2024 to 2033.
Leisure travel refers to trips taken for relaxation, recreation, or pleasure rather than for business or work purposes. This type of travel involves tourists who seek to explore new destinations, engage in cultural or adventure experiences, or enjoy activities such as sightseeing, shopping, and dining. With the growing accessibility of travel options and increasing demand for personalized and unique travel experiences, the leisure travel sector has expanded significantly, contributing to both individual well-being and economic growth worldwide.
The growth of the leisure travel market is driven by increase in desire for unique, personalized, and immersive travel experiences and rise in disposable income. Furthermore, increase in impact of social media influence significantly contributes toward the market growth. This is attributed to the fact that travelers are increasingly inspired by content shared by influencers, bloggers, and their own social networks. As per a survey, 43% of the individuals will consider a travelling destination that is trending on social media. There are approximately 624 million posts featuring various travelling destinations on Instagram.
Moreover, increase in focus on mental and physical well-being is fueling the growth of health-related leisure travel, such as wellness retreats, spa vacations, and fitness-focused trips. According to a 2020 report from the Global Wellness Institute, wellness tourism was growing at twice the rate of global tourism overall, with over 936.4 million trips taken in 2019, reflecting travelers' increased focus on health and relaxation. In addition, improved transportation options, including low-cost airlines, high-speed trains, and enhanced road networks, have made leisure travel more accessible and convenient, which significantly boosts the growth of the global market.
However, fluctuating prices of airfare, fuel, and accommodations can be a barrier to many travelers, thus hampering the market growth. In addition, during periods of economic instability or recessions, consumers tend to prioritize essential expenses over discretionary spending, which directly affects leisure travel. For example, global travel experienced a significant drop during the 2008 financial crisis and the outbreak of the COVID-19 pandemic.
On the contrary, rise in penetration of online booking platforms, mobile apps, and travel planning tools has made it easier for consumers to research, book, and manage their travel itineraries. Virtual reality tools are also enhancing the planning experience. Such developments are expected to offer lucrative opportunities for the expansion of the global market during the forecast period.
The global leisure travel market has been segmented into traveler type, sales channel, age group, and region. Depending on traveler type, the market is bifurcated into solo and group. On the basis of sales channel, it is fragmented into conventional channels, online channels. The report also gives insights on the leisure travel market by age group which includes baby boomers, generation X, millennials, and Gen Z. Region wise, the market is studied across North America, Europe, Asia-Pacific, Latin America, and Middle East, & Africa.
On the basis of age group, the generation X segment was the major shareholder in 2023; however, the millennials segment is expected to grow at the highest CAGR during the forecast period.
Depending on expenditure type, the lodging segment dominated the market in 2023; however, the events & entertainment segment is anticipated to lead in the coming years.
As per sales channel, the online channels segment held the major share of the market share in 2023; however, the conventional channel segment is projected to grow at the highest rate in the near future.
Region wise, Asia-Pacific emerged as the most lucrative market for leisure travel in 2023.
Leisure travel refers to trips taken for relaxation, recreation, or pleasure rather than for business or work purposes. This type of travel involves tourists who seek to explore new destinations, engage in cultural or adventure experiences, or enjoy activities such as sightseeing, shopping, and dining. With the growing accessibility of travel options and increasing demand for personalized and unique travel experiences, the leisure travel sector has expanded significantly, contributing to both individual well-being and economic growth worldwide.
The growth of the leisure travel market is driven by increase in desire for unique, personalized, and immersive travel experiences and rise in disposable income. Furthermore, increase in impact of social media influence significantly contributes toward the market growth. This is attributed to the fact that travelers are increasingly inspired by content shared by influencers, bloggers, and their own social networks. As per a survey, 43% of the individuals will consider a travelling destination that is trending on social media. There are approximately 624 million posts featuring various travelling destinations on Instagram.
Moreover, increase in focus on mental and physical well-being is fueling the growth of health-related leisure travel, such as wellness retreats, spa vacations, and fitness-focused trips. According to a 2020 report from the Global Wellness Institute, wellness tourism was growing at twice the rate of global tourism overall, with over 936.4 million trips taken in 2019, reflecting travelers' increased focus on health and relaxation. In addition, improved transportation options, including low-cost airlines, high-speed trains, and enhanced road networks, have made leisure travel more accessible and convenient, which significantly boosts the growth of the global market.
However, fluctuating prices of airfare, fuel, and accommodations can be a barrier to many travelers, thus hampering the market growth. In addition, during periods of economic instability or recessions, consumers tend to prioritize essential expenses over discretionary spending, which directly affects leisure travel. For example, global travel experienced a significant drop during the 2008 financial crisis and the outbreak of the COVID-19 pandemic.
On the contrary, rise in penetration of online booking platforms, mobile apps, and travel planning tools has made it easier for consumers to research, book, and manage their travel itineraries. Virtual reality tools are also enhancing the planning experience. Such developments are expected to offer lucrative opportunities for the expansion of the global market during the forecast period.
The global leisure travel market has been segmented into traveler type, sales channel, age group, and region. Depending on traveler type, the market is bifurcated into solo and group. On the basis of sales channel, it is fragmented into conventional channels, online channels. The report also gives insights on the leisure travel market by age group which includes baby boomers, generation X, millennials, and Gen Z. Region wise, the market is studied across North America, Europe, Asia-Pacific, Latin America, and Middle East, & Africa.
Key Findings
By traveler type, the group segment held the major share of the market share in 2023; however, the solo segment is projected to register the highest growth from 2024 to 2033.On the basis of age group, the generation X segment was the major shareholder in 2023; however, the millennials segment is expected to grow at the highest CAGR during the forecast period.
Depending on expenditure type, the lodging segment dominated the market in 2023; however, the events & entertainment segment is anticipated to lead in the coming years.
As per sales channel, the online channels segment held the major share of the market share in 2023; however, the conventional channel segment is projected to grow at the highest rate in the near future.
Region wise, Asia-Pacific emerged as the most lucrative market for leisure travel in 2023.
Competition Analysis
Competitive analysis and profiles of the major players in the global leisure travel market include AMERICAN EXPRESS TRAVEL, CARLSON WAGONLIT TRAVEL, COX & KINGS LTD., Expedia Group, Inc., JTB USA, Inc., PRICELINE(BOOKING HOLDINGS INC.), THOMAS COOK INDIA LTD., TRAVEL LEADERS GROUP, TUI GROUP, WORLD TRAVEL, INC. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to sustain the intense competition and gain a strong foothold in the global market.Additional benefits you will get with this purchase are:
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Key Market Segments
By Traveler Type
- Solo
- Group
By Age Group
- Baby Boomers
- Generation X
- Millennials
- Generation Z
By Expenditure Type
- Lodging
- Transportation
- Food and beverages
- Events and entertainment
- Others
By Sales Channel
- Conventional Channels
- Online Channels
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Thailand
- Malaysia
- Indonesia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- UAE
- Argentina
- Rest of LAMEA
Key Market Players
- AMERICAN EXPRESS TRAVEL
- CARLSON WAGONLIT TRAVEL
- COX & KINGS LTD.
- Expedia Group, Inc.
- JTB USA, Inc.
- PRICELINE(BOOKING HOLDINGS INC.)
- THOMAS COOK INDIA LTD.
- TRAVEL LEADERS GROUP
- TUI GROUP
- WORLD TRAVEL, INC
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET LANDSCAPE
CHAPTER 4: LEISURE TRAVEL MARKET, BY TRAVELER TYPE
CHAPTER 5: LEISURE TRAVEL MARKET, BY AGE GROUP
CHAPTER 6: LEISURE TRAVEL MARKET, BY EXPENDITURE TYPE
CHAPTER 7: LEISURE TRAVEL MARKET, BY SALES CHANNEL
CHAPTER 8: LEISURE TRAVEL MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- AMERICAN EXPRESS TRAVEL
- CARLSON WAGONLIT TRAVEL
- COX & KINGS LTD.
- Expedia Group, Inc.
- JTB USA, Inc.
- PRICELINE(BOOKING HOLDINGS INC.)
- THOMAS COOK INDIA LTD.
- TRAVEL LEADERS GROUP
- TUI GROUP
- WORLD TRAVEL, INC
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 280 |
| Published | September 2024 |
| Forecast Period | 2023 - 2033 |
| Estimated Market Value ( USD | $ 1.2 trillion |
| Forecasted Market Value ( USD | $ 6.2 trillion |
| Compound Annual Growth Rate | 18.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
