Leisure Travel Market

Leisure Travel Market Size and Share:

The global leisure travel market size was valued at USD 931.16 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,723.46 Billion by 2033, exhibiting a CAGR of 6.73% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 30.0% in 2024. The market is witnessing significant growth, driven by rising disposable incomes, growing demand for unique experiences, and technological advancements in booking platforms. Trends like sustainable tourism, wellness retreats, and adventure travel are reshaping consumer preferences and fueling market growth.

Key drivers in the leisure travel market include growing disposable incomes, increased consumer spending on travel experiences, and a rising demand for personalized vacations. Technological advancements, such as online booking platforms and mobile apps, have made travel planning more convenient. For instance, in January 2025, Tripism launched a leisure travel tool for corporate clients, enabling companies to offer employees access to corporate-negotiated rates for personal trips. This initiative aims to enhance supplier relationships while providing tailored perks for employees. Currently in pilot with four clients, a broader rollout is expected soon. Additionally, trends like eco-tourism, wellness tourism, and the desire for unique cultural experiences further boost the market. Increased connectivity and affordable air travel also play significant roles in expanding leisure travel options globally. These factors are collectively creating a positive leisure travel market outlook across the world.

In the United States leisure travel market, key drivers include strong consumer spending power, rising disposable incomes, and a growing desire for experiential travel. The increasing popularity of domestic travel, driven by accessibility and affordability, has further fueled the market. Technological innovations, like advanced booking platforms and mobile apps, offer convenience for travelers. For instance, in February 2025, Costco Travel announced its partnership with Travelport to enhance travel options for its members. Utilizing Travelport’s advanced technology, Costco will offer improved flight choices, faster search capabilities, and industry insights, simplifying the travel planning process. This collaboration aims to provide a modern and seamless experience for millions of Costco members. Additionally, shifting preferences for wellness, adventure, and eco-friendly tourism have impacted choices. Improved transportation infrastructure and lower airfares also contribute to the market's growth.

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. According to new figures from the International Telecommunication Union (ITU), an estimated 5.5 billion people were in 2024, marking an increase of 227 million individuals compared to revised estimates for 2023. This rapid digital expansion is fostering a more connected global economy, where industries are leveraging online platforms to enhance efficiency and accessibility. 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. This shift is reflected in market projections, with Smartguide stating that the solo travel service market is expected to grow at a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. 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. According to the Global Wellness Institute, the global wellness tourism market is now valued at USD 651 Billion annually, with a projected average annual expenditure growth of 16.6% through 2027. 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) introduced a new two-day tour package that integrates various spiritual sites in Trichy city with adventure locations in the forested regions of the Puliyancholai streams in Trichy district and the Kolli Hills in Namakkal district.

Leisure Travel Industry Segmentation:

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

Analysis by Traveler Type:

• Solo
• Group

Group stand as the largest traveler type in 2024, holding around 73.5% of the market. Group travel stands as the largest traveler type in the leisure travel market due to the growing demand for shared experiences and cost savings. Group tours often offer travelers the chance to explore destinations together, fostering social connections and enhancing the overall experience. These tours typically provide value through bulk pricing, including accommodations, transportation, and guided excursions. The convenience of organized itineraries, safety, and the appeal of traveling with family, friends, or like-minded individuals further drive the popularity of group travel.

Analysis by Age Group:

• Baby Boomers
• Generation X
• Millennial
• Generation Z

Generation X leads the market with around 38.3% of leisure travel market share in 2024. Generation X leads the leisure travel market due to their strong financial stability, higher disposable incomes, and a desire for quality travel experiences. This generation values convenience and seeks a balance between family vacations and personal leisure time. With many Gen Xers being at the peak of their careers, they prioritize meaningful travel experiences that offer relaxation, adventure, and cultural enrichment. Additionally, their familiarity with technology enables them to plan and book travel seamlessly, contributing to their dominance in the market.

Analysis by Expenditure Type:

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

Lodging leads the market with around 38.4% of market share in 2024. Lodging is a leading segment in the leisure travel market, driven by the essential need for accommodation during travel. As tourism and travel continue to grow, the demand for diverse lodging options, including hotels, resorts, vacation rentals, and boutique stays, has surged. Consumers are seeking unique and personalized experiences, which has led to the rise of alternative accommodations like Airbnb. Additionally, the growing popularity of luxury and wellness-focused stays, along with the need for convenient and comfortable lodging, solidifies its leadership in the market.

Analysis by Sales Channel:

• Conventional Channel
• Online Channel

Online leads the market with around 78.8% of market share in 2024. Online platforms lead the leisure travel market due to the convenience, accessibility, and vast range of options they offer travelers. The rise of online booking websites, travel agencies, and apps has transformed the way people plan and book vacations, allowing for real-time comparisons, reviews, and personalized recommendations. The ease of securing flights, accommodations, and activities through digital channels, along with the growing use of mobile devices, has made online booking the preferred choice for many travelers, driving market dominance.

Regional Analysis:

• 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

In 2024, Asia-Pacific accounted for the largest market share of over 30.0%. The Asia-Pacific region accounts for the largest market share in the leisure travel market, driven by rapid economic growth, a rising middle class, and increased disposable incomes. Countries like China, Japan, India, and Southeast Asian nations have seen a surge in both domestic and international travel. The growing popularity of cultural, adventure, and wellness tourism, coupled with expanding air connectivity and improved infrastructure, further boosts the region's dominance. Additionally, digitalization and mobile technology have made travel planning more accessible, encouraging greater participation.

Key Regional Takeaways:

North America Leisure Travel Market Analysis

The North American leisure travel market continues to thrive, driven by a combination of strong consumer spending and a preference for unique, experiential travel. U.S. consumers are increasingly allocating more resources toward leisure activities, benefiting from well-established tourism infrastructure, including a variety of accommodation options, airlines, and attractions. The growing trend toward adventure tourism, wellness retreats, and luxury travel reflects a shift in consumer interests. Digital platforms, including AI-driven recommendations and virtual travel previews, are enhancing customer engagement and simplifying booking processes. The demand for sustainable travel and eco-tourism is on the rise, as travelers seek to minimize their environmental impact. Social media plays a crucial role in shaping travel trends, with influencer marketing and user-generated content fueling interest in offbeat and lesser-known destinations. This blend of technological innovation, evolving consumer preferences, and an emphasis on sustainability contributes to the ongoing growth of the North American leisure travel market.

United States Leisure Travel Market Analysis

In 2024, the United States accounted for over 86.50% of the leisure travel market in North America. The United States leisure travel market continues to grow, driven by rising disposable income, a strong preference for experiential travel, and advancements in digital booking platforms. According to the U.S. Bureau of Economic Analysis, disposable personal income (DPI) increased by USD 79.7 Billion (0.4%), while personal consumption expenditures (PCE) rose by USD 133.6 Billion (0.7%). This rise in income and spending power directly contributes to higher travel demand, as consumers allocate more resources toward leisure experiences. The market is experiencing steady growth, driven by both domestic and international travel. Domestic travelers seek diverse experiences, while international travelers seek affordability and cultural exploration. The industry benefits from a well-established tourism infrastructure, including airlines, hotels, and attractions. Adventure tourism, wellness retreats, and luxury travel are gaining popularity. Technology, such as AI-driven travel recommendations and virtual reality previews, enhances customer engagement. The growth of eco-tourism and sustainable travel encourages environmentally friendly practices. Short-term rentals and alternative accommodations diversify the market. Social media and influencer marketing further influence travel trends.

Europe Leisure Travel Market Analysis

The Europe leisure travel market is thriving due to its diverse tourism offerings, including cultural heritage sites and coastal retreats. The extensive transportation network makes travel across regions convenient. Short-haul travel is a key trend, with rail connectivity and budget-friendly air travel options driving this. Wellness tourism, adventure activities, and themed vacations attract travelers seeking relaxation. The demand for personalized itineraries and curated experiences is increasing, with technology enhancing booking efficiency and customer engagement. Sustainable tourism is also influencing travel choices. The growing trend of workations, where professionals combine work and leisure travel, is contributing to market expansion. According to Eurostat, in 2024, the estimated number of nights spent at tourist accommodation establishments in the EU reached 3 billion, exceeding the previous year by 65.4 million. This growth reflects the increasing enthusiasm for leisure travel across the region. Digital platforms and social media shape consumer preferences, driving demand for offbeat destinations and unique travel experiences.

Latin America Leisure Travel Market Analysis

The Latin America leisure travel market is expanding due to diverse landscapes, cultural heritage, and tourism investments. Domestic and regional travel remains strong, with eco-tourism and sustainable initiatives growing. Digital advancements improve booking convenience, and wellness tourism and immersive experiences are growing trends for relaxation and authentic local encounters. Social media and digital marketing play a key role in influencing travel preferences and encouraging the exploration of lesser-known destinations. According to the Presidency of the Republic, Brazil welcomed 6.6 million international tourists in 2024, marking its best historical performance. This reflects the growing appeal of the region as a leisure travel destination, attracting visitors with its unique cultural and natural experiences. The market is expected to experience steady growth due to increased travel enthusiasm and tourism sector advancements.

Middle East and Africa Leisure Travel Market Analysis

The Middle East and Africa leisure travel market is growing due to expanding infrastructure and increasing disposable incomes. Consumers seek luxury, adventure, and cultural experiences, with sustainable tourism, digital platforms, and wellness tourism gaining popularity. Social media plays a key role in shaping travel trends and destination choices, influencing travelers toward unique and offbeat experiences. The market is also benefiting from a surge in international tourist arrivals, with the Ministry News stating that the Kingdom of Saudi Arabia ranked third globally in the growth rate of international tourist arrivals, recording an increase of over 61% from January to September of 2024. The market is expected to expand further due to growing appeal, continuous tourism investments, and evolving traveler preferences.

Competitive Landscape:

The competitive landscape of the leisure travel market is dynamic, with key players constantly innovating to meet the evolving needs of travelers. Major travel agencies, online platforms, and tour operators are focusing on enhancing customer experiences through personalized itineraries, unique vacation packages, and seamless booking processes. The rise of digital technologies, such as AI-based recommendations and mobile apps, has transformed how consumers plan and book their trips. Additionally, alternative accommodation providers like Airbnb and Vrbo are increasingly competing with traditional hotel chains. Sustainability is becoming a significant differentiator, with many companies emphasizing eco-friendly practices and offering sustainable travel options. Social media and influencer marketing continue to shape consumer preferences, driving demand for off-the-beaten-path destinations and experiential travel. This highly competitive environment reflects the growing leisure travel market demand, as consumers seek new and enriching travel experiences.

The report provides a comprehensive analysis of the competitive landscape in the leisure travel market with detailed profiles of all major companies, including:

• 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.

Latest News and Developments:

• February 2025: Cox & Kings launched ten new franchise locations across India, offering travelers personalized planning, expert consultation, and AI-powered booking services. Under Wilson & Hughes Ltd.'s ownership, the company plans to establish 300 franchises, preferred agents, and holiday clubs globally over the next two years.
• October 2024: American Express India enhanced its Platinum Card®, offering over INR 4,50,000 in annual benefits. New perks include upgraded welcome gifts, elite hotel memberships, digital subscriptions, Apple product discounts, and exclusive travel, dining, and entertainment privileges. The annual fee is now INR 66,000+ taxes, with benefits tailored for premium consumers and corporate users.
• September 2024: Norwegian tech firm Fast Travel has partnered with Blueprint, a travel retail business development agency, to launch a taxi booking platform aimed at enhancing the experience for travelers. The platform allows passengers to select rides based on preferences, such as vehicle type and amenities.
• 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.
• February 2024: Flight Centre Travel Group’s Independent division launched Envoyage, a premier brand designed to empower independent travel agents and agencies. With a refined visual identity, cutting-edge technology, and an extensive product marketplace, Envoyage aims to be the heart and home for independent travel professionals.

Leisure Travel Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s 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 study 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.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.