Global Leisure Travel To Triple In Value By 2040

Leisure travel is set to triple in value, reaching USD 15 trillion by 2040, per a BCG report. Domestic tourism will drive USD 12 trillion of the growth. India is among the fastest-growing markets with younger travellers. AI adoption and blended trips are shaping new behaviour. Emerging economies like India and Vietnam are expected to surpass traditional markets in outbound spending.

According to a new report by Boston Consulting Group, the global leisure travel industry is projected to reach USD 15 trillion in value by 2040, up from USD 5 trillion today. The study highlights that nearly USD 12 trillion of this growth will be driven by domestic tourism, with regional and international travel expected to contribute USD 2.1 trillion and USD 1.4 trillion, respectively.

India features prominently in the findings, with domestic leisure travel spending expected to grow at an annual rate of 12 per cent and international travel at 10 per cent. The insights are part of BCG’s report titled Unpacking the USD 15 Trillion Opportunity in Leisure Travel, based on responses from nearly 5,000 travellers across 11 countries and data from 68 travel markets.

Indian millennials and Gen Z are playing a key role in this shift, with 22 per cent more likely to increase travel in the coming year. Their preferences are moving towards more personalised, purpose-driven experiences. Nature, city, beach and cultural trips remain top choices for Indian travellers, while spiritual travel has a notably higher appeal in India than the global average.

The survey also found that most Indian travellers prefer to journey with a spouse or family, while solo travel accounts for just 9 per cent. Notably, 81 per cent of Indian travellers reported having taken at least one leisure trip combining business with leisure, indicating a continued shift in travel purposes. Technology, particularly AI, is also influencing planning behaviour. While 59 per cent of Indian respondents use AI to research or plan travel, 80 per cent still rely on advice from people they trust. This suggests that while digital tools are increasingly important, the human element in travel planning remains relevant.

“India is poised to become one of the most dynamic leisure travel markets globally. With domestic leisure travel spending projected to grow 12 % annually and international spending 10% through 2040, Indian travellers are increasingly exploring their own country and the world. A clear shift is observed in the travel industry led by younger generations, Millennials and Gen Z, who travel more and seek experiences that blend value, personalisation, and purpose. India also stands out for its strong preferences for multigenerational travel and the growing popularity of leisure, with over 70% of travellers looking to combine work and leisure. As travel becomes more digital, culturally relevant, and experience-led, India’s rising consumer base will be pivotal in shaping the next chapter of global leisure travel”. Said Nitin Malhotra, Partner, BCG.

BCG notes that destinations and travel providers must respond to shifting expectations, particularly in emerging markets, to capture future growth as the leisure travel sector undergoes this transformation.

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