Leisure Travel Market

Global Leisure Travel Market:

The global leisure travel market size reached USD 931.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,723.5 Billion by 2033, exhibiting a growth rate (CAGR) of 6.73% during 2025-2033. The continuous integration of big data analytics, the Internet of Things (IoT), and artificial intelligence (AI) in the tourism industry is stimulating the market.

Leisure Travel Market Analysis:

• Major Market Drivers: The rising awareness of unique destinations among tourists and the widespread understanding of easy internet booking services are propelling the market.
• Key Market Trends: The improved lifestyle standards of the people and a major shift in consumer spending behaviors are acting as significant growth-inducing factors.
• Competitive Landscape: Some of the major market companies include American Express Company, Cox & Kings Ltd., Direct Travel Inc., Flight Centre Travel Group Limited, Hays Travel Limited, JTB Americas Ltd. (JTB Corporation), MakeMyTrip Pvt. Ltd., Tripadvisor Inc., Trivago N.V., TUI Group, and World Travel Inc., among many others.
• Geographical Trends: Asia-Pacific is currently dominating the market due to the increasing disposable incomes, the rising middle class, and the growing interest in international and domestic travel.
• Challenges and Opportunities: The fluctuating travel restrictions and uncertainties are hampering the market. However, introducing flexible booking policies and improving safety measures to restore passenger confidence will continue to catalyze the market over the forecast period.

Leisure Travel Market Trends:

Growth of Digital Booking Platforms

The convenience of digital platforms has resulted in an increase in online bookings. Travelers prefer websites and apps for researching, planning, and booking vacations as they provide simple access to reviews, comparisons, and customized travel packages. In July 2024, ITA Airways launched an innovative digital booking platform for cargo shipments. This platform offers scalable and user-friendly services that allow freight forwarders to manage bookings immediately, ensuring quality, efficiency, and variety.

Rise of Solo Travel

As per the leisure travel market forecast report, solo travel has become more popular, particularly among millennials and Generation Z. Travelers value the independence of self-guided experiences, individualized itineraries, and the potential for self-discovery, resulting in an increase in solo travel packages and services. In October 2024, Norwegian technology company Fast Travel teamed up with travel retail business development agency Blueprint to introduce a taxi booking platform designed to simplify the traveler experience.

Increased Interest in Wellness Tourism

Wellness tourism, which focuses on physical, mental, and spiritual well-being, is quickly expanding. Travelers are looking for yoga retreats, spa vacations, and wellness-focused resorts that prioritize health as an important aspect of their leisure travel experiences. In August 2024, the Tamil Nadu Tourism Development Corporation (TTDC) launched a new two-day tour package that combines several spiritual destinations in Trichy city with adventure spots in the forest areas of Puliyancholai streams in Trichy district and Kolli Hills in Namakkal district.

Global Leisure Travel Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the leisure travel market forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on traveler type, age group, expenditure type, and sales channel.

Breakup by Traveler Type:

• Solo
• Group
   

Currently, the group holds the largest leisure travel market share

The report has provided a detailed breakup and analysis of the market based on the traveler type. This includes solo and group. According to the report, group represented the largest market segmentation.

The travel industry for group travelers is growing, fueled by families, friends, and business trips seeking common adventures. Group travel packages provide cost savings, convenience, and personalized itinerary options, making them popular for both leisure tourists and scheduled tours.

Breakup by Age Group:

• Baby Boomers
• Generation X
• Millennial
• Generation Z
   

The report has provided a detailed breakup and analysis of the market based on the age group. This includes baby boomers, generation X, millennial, and generation Z.

The leisure travel market is shaped by distinct preferences across age groups. Baby boomers value relaxation and cultural activities, but Generation X prefers family-oriented trips. Millennials like adventure, social media-friendly destinations, and eco-tourism, while Generation Z is more interested in cost-effective, tech-driven, and immersive travel experiences. This represents the leisure travel market outlook.

Breakup by Expenditure Type:

• Lodging
• Transportation
• Food and Beverage
• Events and Entertainment
• Others
   

Among these, lodging leads the leisure travel market growth

The report has provided a detailed breakup and analysis of the market based on the expenditure type. This includes lodging, transportation, food and beverage, events and entertainment, and others. According to the report, lodging represented the largest market segmentation.

Lodging remains a substantial expense, with tourists increasingly choosing a variety of places to stay, ranging from luxury hotels to low-cost vacation rentals. Demand for one-of-a-kind accommodations, such as boutique hotels or eco-lodges, continues to drive demand in this sector.

Breakup by Sales Channel:

• Conventional Channel
• Online Channel
   

Currently, online channel holds the largest leisure travel market demand

The report has provided a detailed breakup and analysis of the market based on the sales channel. This includes conventional channel and online channel. According to the report, the online channel represented the largest market segmentation.

The online sales channel in the leisure travel business is quickly expanding, with more travelers depending on websites and applications for bookings. Convenient comparison tools, personalized deals, and simple access to reviews are significant elements pushing the transition to online platforms.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia-Pacific currently dominates the market

The leisure travel market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia-Pacific accounted for the largest market share. 

Asia-Pacific exhibits a clear dominance in the market driven by improved access to low-cost airlines and the growing popularity of experiential travel, in which passengers seek unique cultural, adventure, or wellness activities.

Competitive Landscape:

The leisure travel market outlook report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include:

• American Express Company
• Cox & Kings Ltd.
• Direct Travel Inc.
• Flight Centre Travel Group Limited
• Hays Travel Limited
• JTB Americas Ltd. (JTB Corporation)
• MakeMyTrip Pvt. Ltd.
• Tripadvisor Inc.
• Trivago N.V.
• TUI Group
• World Travel Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Leisure Travel Market Recent Developments:

• October 2024: Norwegian technology company Fast Travel teamed up with travel retail business development agency Blueprint to introduce a taxi booking platform designed to simplify the traveler experience.
• August 2024: The Tamil Nadu Tourism Development Corporation (TTDC) launched a new two-day tour package that combines several spiritual destinations in Trichy city with adventure spots in the forest areas of Puliyancholai streams in Trichy district and Kolli Hills in Namakkal district.
• July 2024: ITA Airways launched an innovative digital booking platform for cargo shipments. This platform offers scalable and user-friendly services that allow freight forwarders to manage bookings immediately, ensuring quality, efficiency, and variety.

Leisure Travel Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the leisure travel market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global leisure travel market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the leisure travel industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.