Leisure Travel Market

In 2022, the Global Leisure Travel Market had a value of $1,006.5 billion. It is anticipated to reach $1,737.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 22.6% from 2023 to 2030. Among different types of travelers, the group segment had the largest market share in leisure travel in 2022, and it is expected to maintain its dominance throughout the projected period.

Over the past decade, there has been a remarkable increase in outbound travelers, with the total number of international travelers surpassing 1.4 billion departures in 2018. A significant portion of these departures originate from emerging countries, where individuals are traveling for the first time, contributing billions of dollars to the travel economy and driving its growth. The leisure travel market industry is predicted to surpass global GDP growth and is projected to grow at a substantial CAGR during the forecast period.

The leisure travel economy encompasses a diverse range of industries, including logistics, accommodation, food, retail, recreation, and various tourism services. Companies of all sizes within these industries continually strive to create memorable experiences, foster community support, and contribute to the economic growth of a country. Significant investments in tourism have ripple effects on the expansion of the economy, such as infrastructure development, stimulating private investment, increasing aggregate demand, and generating employment opportunities. Tourism directly and indirectly supports a nation's economy, leading to remarkable growth in recent years, particularly in the developing regions of Asia-Pacific and Africa. This growth has attracted the attention of tourism development experts, policymakers, and industry leaders.

In recent years, there has been a shift in consumer spending preferences, with a greater focus on experiential activities rather than purchasing goods. Spending on consumer durables and apparel has declined, while expenditures on recreation, travel, and dining have experienced rapid growth. As a result, the demand for travel experiences has outpaced the demand for tangible goods. This trend aligns with the increasing number of global outbound tourists in recent years. This robust growth is expected to continue in the foreseeable future, primarily driven by the expansion of low-cost airlines, government initiatives, and technological advancements.

While the expansion of the tourism industry has led to job creation, an abundance of tour operators, and improved ease of booking accommodations, logistics, and services, it also brings unique challenges, such as economic slowdowns, infrastructure limitations, and political tensions.

The leisure travel market is segmented based on traveler type, sales channel, age group, expenditure type, and region. Traveler type includes solo and group categories. Sales channels encompass conventional channels and online channels. Age groups are divided into baby boomers, generation X, millennials, and Generation Z. Expenditure types are categorized as lodging, transportation, food and beverages, events and entertainment, and others. Regionally, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa).

Market Segmentation:
By Traveler Type
• SOLO
• GROUP

By Sales Channel
• CONVENTIONAL CHANNELS
• ONLINE CHANNELS

By Age Group
• BABY BOOMERS
• GENERATION X
• MILLENNIALS
• GENERATION Z

By EXPENDITURE TYPE
• Lodging
• Transportation
• Food & beverages
• Events & entertainment
• Others

The global leisure travel market is divided into two segments based on traveler type: solo and group. Group travelers currently hold a substantial market share, but the solo segment is expected to grow at the highest compound annual growth rate (CAGR) during the forecast period. There has been a notable increase in the number of people who prefer to travel alone, leading industry stakeholders to cater to the needs of both group and solo travelers. Nowadays, individuals are more inclined to embark on solo trips to seek new experiences, explore different cultures, engage in self-reflection, and experience a sense of empowerment.

Regarding sales channels, the leisure travel market is classified into conventional channels and online channels. The online channel currently leads in terms of market share and is projected to continue growing at a robust CAGR in the forecast period. The utilization of artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) in optimizing web-based bookings is expected to drive the growth of the leisure travel market, providing customers with seamless experiences.

In terms of age groups, the Generation X segment currently dominates the global market and is expected to maintain its dominance throughout the forecast period. However, the millennials segment is anticipated to witness significant market growth in the coming years. Millennials are actively seeking unique destinations to gather unconventional experiences. Additionally, their desire to learn about different cultures and traditions greatly influences their choice of destinations. As tech-savvy and influential buyers, millennials are profoundly impacted by technology.

The market is further categorized by expenditure type, including lodging, transportation, food and beverages, events and entertainment, and others. The lodging segment currently holds the largest share in the market and is projected to remain dominant during the forecast period. However, the transportation segment is expected to experience significant market growth in the upcoming years.

The report profiles key players in the leisure travel market, including Expedia Group, Priceline Group, Carlson Wagonlit Travel, JTB Americas Group, World Travel Inc., American Express Travel, Travel Leaders Group, TUI Group, Thomas Cook (India) Limited, and Cox & Kings Ltd.

Key Benefits For Stakeholders
• This report presents a comprehensive analysis of the leisure travel market from 2022 to 2030, focusing on market segments, current trends, estimations, and dynamics. The aim is to identify the existing opportunities in the leisure travel market. The research provides valuable insights into the key drivers, restraints, and opportunities in the industry.
• Additionally, a Porter's five forces analysis is conducted to evaluate the bargaining power of buyers and suppliers, enabling stakeholders to make informed and profitable business decisions while strengthening their supplier-buyer network.
• A thorough analysis of the leisure travel market segmentation is carried out to identify the prevailing market opportunities. The report also includes a mapping of major countries within each region, based on their revenue contribution to the global leisure travel market.
• Market player positioning is emphasized, allowing for benchmarking and providing a clear understanding of the current positions of key players in the leisure travel market.
• Furthermore, the report encompasses an analysis of regional and global leisure travel market trends, key players, market segments, application areas, and market growth strategies.