Leisure Travel to Hit $15T by 2040, Driven by Key Global Markets

Domestic and Regional Travel: The Key Growth Drivers

According to the report, domestic travel is poised to be the primary force behind this growth, contributing nearly $12 trillion by 2040. Regional travel is also expected to see substantial gains, with projections suggesting it will more than triple to exceed $2 trillion. While international travel is anticipated to grow at the fastest pace, it will remain the smallest segment, reaching around $1.4 trillion.

Emerging Markets Take Center Stage

Countries like China, India, Saudi Arabia, and Vietnam are reshaping the global travel landscape, overtaking traditional tourism leaders such as the United States, United Kingdom, and Germany. The surge in outbound travelers from these regions is redefining industry dynamics and influencing future travel trends.

New Demographics and Evolving Travel Preferences

Based on insights from nearly 5,000 travelers across 11 countries and data from 68 global markets, the BCG study highlights a shift in traveler behavior. Millennials and Gen Z now lead the travel sector, taking more trips and spending more than older generations. These younger travelers prioritize cultural enrichment and personal fulfillment over conventional leisure experiences. Solo travel has moved into the mainstream, with more individuals seeking spiritual, wellness, or cultural journeys on their own. The trend of “bleisure” travel—a blend of business and leisure—is also gaining momentum, particularly in countries such as China, India, Nigeria, and Saudi Arabia.

Travel Motivations and the Role of AI

While relaxation and time with loved ones remain key travel motivators, there’s a growing interest in experiences focused on culture, wellness, and spirituality. Food tourism is also rising in popularity, especially among travelers from China, Vietnam, and Indonesia. Technology is playing a pivotal role in shaping the travel planning process. The use of AI-powered tools for booking and organizing travel is especially prevalent in emerging markets. However, the report notes that despite the increasing use of digital tools, a strong demand for human interaction in travel services remains.

What This Means for the Travel Industry

For travel businesses, the evolving landscape presents both opportunities and challenges. Companies must remain agile and responsive to shifting demographics, technological innovations, and changing traveler expectations. Those that embrace these trends will be well-positioned to thrive in a market poised to reach $15 trillion. The global leisure travel industry is entering a transformative era. To succeed, stakeholders must understand emerging trends and align their strategies to meet the demands of a new generation of travelers.