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Leisure travel is projected to triple in value, rising from $5 trillion in 2024 to a staggering $15 trillion by 2040, according to a new report by Boston Consulting Group (BCG).
Interestingly, the growth isn’t primarily fuelled by international jet-setting. Instead, it’s the closer-to-home trips that are leading the charge: domestic leisure travel alone is expected to generate nearly $12 trillion by 2040, with regional travel set to triple to over $2 trillion. International travel will also see rapid growth but will comprise the smallest share—reaching around $1.4 trillion.
Moreover, the next wave of travellers is increasingly emerging from countries like China, India, Saudi Arabia, and Vietnam—behind growth that surpasses traditional tourism giants such as the US, UK, and Germany.
These insights feature in BCG’s report,Unpacking the $15 Trillion Opportunity in Leisure Travel, which is based on a survey of nearly 5,000 travellers across 11 nations, conducted by BCG’s Centre for Customer Insight, alongside analysis of travel patterns in 68 markets.
"India is poised to become one of the most dynamic leisure travel markets globally. With domestic leisure travel spend projected to grow at 12 per cent annually and international spend at 10 per cent through 2040, Indian travellers are increasingly exploring both their own country and the world. There is a clear shift observed in the travel industry led by younger generations—Millennials and Gen Z—who are not only travelling more, but also seeking experiences that blend value, personalisation, and purpose," said Nitima Malhotra, Partner, BCG.
She further added, "India also stands out for its strong preference for multigenerational travel and the growing popularity of ‘bleisure’, with over 70 per cent of travellers looking to combine work and leisure. As travel becomes more digital, culturally relevant, and experience-led, India’s rising consumer base will play a pivotal role in shaping the next chapter of global leisure travel.”
Key Indian Insights:
- Younger generations in India are 22 per cent more likely to expect more trips in the coming year and have a higher intent to spend more on travel.
- Indian travellers favour nature, city, beach, and cultural destinations (58 per cent), with a higher interest in spiritual pursuits (10 per cent) than other markets.
- Main reasons for travel include relaxation (15 per cent), exploration (13 per cent), and escapism (11 per cent), with a focus on religious experiences (six per cent) more prominent than elsewhere.
- 28 per cent typically travel with a partner or spouse, and 23 per cent with immediate family; only nine per cent travel alone.
- Activities (18 per cent) and ease of travel (17 per cent) influence decisions more than cost or family and friends.
- A significant share plan to combine business with leisure travel; millennials are most likely (35 per cent) to do so.
- At least once, 81 per cent of Indian travellers have combined business and leisure trips.
- 59 per cent utilise AI tools for travel planning, though 80 per cent still value human interaction.
“With more people taking vacations—and taking them more frequently—we’re seeing a profound shift in who’s travelling, what they expect, and how they plan their journeys,” said Christina Mühlenbein, a BCG managing director and partner, and a coauthor of the report. “New demographics, digital habits, and expectations are rewriting the rules.”
Emerging Trends for Future Travellers
- Millennials and Generation Z now influence global travel more than ever, planning more trips and spending more than older generations. They are also highly digitally savvy and socially conscious.
- Solo travel is transitioning from niche to mainstream, with between 18 per cent and 39 per cent of travellers now taking solo trips. Younger explorers seek cultural, spiritual, or wellness retreats over traditional beach holidays.
- ‘Bleisure’ travel isn’t just a pandemic phenomenon. In China, India, Nigeria, and Saudi Arabia, over 70 per cent of travellers intend to combine business and leisure — compared to only 15–30 per cent in the UK, US, and Germany.
What Travellers Crave
While relaxation and quality time with loved ones remain top travel motivators, preferences are evolving towards cultural exploration, health retreats, spiritual journeys, and food tourism — especially among Chinese, Vietnamese, and Indonesian travellers.
“People are seeking travel experiences that reflect who they are,” said Dennis Utzerath, a BCG managing director and partner, and a coauthor of the report. “Traditional beach and city getaways haven’t lost their charm. But more and more, travellers are prioritising meaning, convenience, and personal fulfilment alongside relaxation.”
AI and the Future of Travel Planning
Travellers, particularly from emerging markets, are increasingly turning to AI tools for planning and booking trips. In China (65 per cent), India (59 per cent), Indonesia (58 per cent), and Vietnam (51 per cent), many use AI chatbots and tools, although most still value personal human contact.
“The travellers of tomorrow look different—who they are, who they travel with (or without), what they expect, and how they make decisions,” said Lara Koslow, a BCG managing director and senior partner, and a coauthor of the report. “To stay relevant, travel companies will need to get ahead of these shifts—or risk being left off the itinerary.”
