Leisure Travel Market Size was valued at USD 1215.5 Billion in 2022. The Leisure Travel market industry is projected to grow from USD 1489 Billion in 2023 to USD 7550.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 22.50% during the forecast period (2023 - 2032). Growing government programs, the growth of low-cost carriers, and technological developments are the key market drivers boosting the expansion of the market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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 Leisure Travel market segmentation, based on Traveler Type includes Solo and Group. The solo segment dominated the market. These days, solo travel is more common since it allows people to experience new things, see different cultures, reflect on their lives, and feel more powerful.
Figure1: Leisure Travel Market, by Traveler Type, 2022&2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Leisure Travel market segmentation, based on Sales Channel, includes Conventional Channels, and Online Channels. The online channels category generated the most income. The utilization of Al, big data analytics, and IoT in web-based booking operation improvements is anticipated to enhance the growth of the leisure travel market by delivering a smooth and uninterrupted consumer experience.
The Leisure Travel market segmentation, based on Age Group includes Baby Boomers, Generation X, Millennials, and Generation Z. The millennials segment dominated the market. The most important consideration for millennials when selecting travel locations continues to be learning about and gaining understanding of various cultures and traditions.
The Leisure Travel market segmentation, based on Expenditure Type, includes Lodging, Transportation, Food & Beverages, Events & Entertainment, and Others. The transportation category generated the most income. Better connectivity makes it possible for tourists to reach far-off or unusual places, which promotes discovery and expands their options for where to go.
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, MRFR 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.
Key Companies in the Leisure Travel market include
Leisure Travel Industry Developments
August 2023: Skyscanner launched its Hindi language experience for all of its products and services in an effort to further solidify its position in the Indian market.
August 2023: MakeMyTrip and the Ministry of Tourism collaborated to release a unique Travellers' Map of India, which features more than 600 locations outside of the country's most popular tourist destinations.
October 2021: American Express introduced full-service business checks under its brand for small and medium-sized enterprises.
| Report Attribute/Metric | Details |
| Market Size2022 | USD 1215.5 Billion |
| Market Size 2023 | USD 1489 Billion |
| Market Size2032 | USD 7550.6 Billion |
| Compound Annual Growth Rate (CAGR) | 22.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Traveler Type, Sales Channel, Age Group, Expenditure Type, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, German, France, UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil |
| Key Companies Profiled | Â EXPEDIA GROUP, CARLSON WAGONLIT TRAVEL, COX & KINGS LTD., JTB USA, INC., WORLD TRAVEL, INC., TUI GROUP |
| Key Market Opportunities | ·        Growing disposable income and regional economic stability will support market expansion. |
| Key Market Dynamics | ·        Experiences are becoming more and more valued than material belongings. |
Frequently Asked Questions (FAQ) :
In 2022, the size of the leisure travel market was estimated to be USD 1215.5 billion.
From 2023 to 2032, the market is expected to expand at a compound annual growth rate (CAGR) of 22.50%.
North America held the most market share worldwide.
EXPEDIA GROUP, CARLSON WAGONLIT TRAVEL, COX & KINGS LTD., JTB USA, INC., WORLD TRAVEL, INC., and TUI GROUP are the leading companies in the market.
In 2022, the Solo category held a dominant market share.
In the market, the online channels held the most share.
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