The leisure travel market size has surged rapidly in recent years, escalating from $1,108.52 billion in 2023 to $1,260.91 billion in 2024, which corresponds to a remarkable CAGR of 13.8%. This growth during the historic period can be attributed to factors such as rising disposable incomes, a growing middle-class population, increased globalization, the expansion of tourism infrastructure, enhanced connectivity and transportation options, the rise of low-cost airlines, government initiatives, the impact of social media and digital marketing, and a greater variety of eco-friendly travel options. The leisure travel market is projected to experience continued rapid growth, reaching $2,119.96 billion in 2028 with a CAGR of 13.9%. This future growth is expected to be driven by paradigm shifts in consumer spending patterns, increased global outbound tourism, improved lifestyle standards, the integration of big data analytics, the adoption of AI and IoT in tourism, a growing interest in eco-friendly tourism, the emergence of space tourism, trends in wellness tourism, the influence of social media on travel, and the availability of low-cost airlines. Noteworthy trends during this period include a surge in solo travel preferences, a focus on unique and exotic destinations, the rise of online booking services, sustainable tourism practices, advances in travel technology and AI, a growing interest in adventure and wellness travel, the use of mobile travel applications, and the demand for customized travel experiences.
Major Driver In The Leisure Travel Market
The increasing consumer preference for recreational travel experiences is expected to drive the growth of the leisure travel market moving forward. Recreational travel involves activities and trips primarily designed for leisure, enjoyment, and relaxation, with consumers prioritizing memorable and immersive travel experiences over material possessions. Additionally, there is a notable demand for connection, involvement, and authenticity in these experiences. Leisure travel provides opportunities to engage in various recreational activities, including outdoor adventures, sports, cultural events, and relaxation at diverse destinations. In May 2024, the Adventure Travel Trade Association reported that the average number of travelers served by adventure travel operators surged to 6,553, reflecting a 54% increase from 4,243 in 2022 and an impressive 384% rise from 1,355 in 2021. Therefore, this growing consumer preference for recreational travel experiences is a key driver behind the expansion of the leisure travel market.
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Leisure Travel Market Competitive Landscape
Major companies operating in the leisure travel market are TUI Group, Priceline Group, Booking Holdings Inc., Expedia Group Inc., CWT Global BV, Airbnb Inc., American Express Global Business Travel, Flight Centre Travel Group Ltd, TripAdvisor Inc, Orbitz LLC, World Travel Inc., Contiki Holidays Ltd., Abercrombie & Kent Ltd., G Adventures Inc., Trivago N.V., Cox & Kings Ltd., Travelocity.com LP, Direct Travel Inc., Travel Leaders Group LLC, MakeMyTrip Pvt. Ltd., Luxury Escapes Pty Ltd., Intrepid Travel Pty Ltd., GetYourGuide AG, Kayak Software Corporation, JTB Americas Group Inc., TravelBag Ltd., Thomas Cook Group plc, Trafalgar Tours Ltd., Hays Travel Limited
Key Leisure Travel Market Trend
Major companies in the leisure travel market are focusing on digital transformation and online bookings through platforms like hotel content distribution systems to enhance personalized experiences and streamline operations. A hotel content distribution platform centralizes and simplifies the management and distribution of hotel information, rates, and availability across multiple booking channels to enhance visibility and optimize bookings. For instance, in March 2024, Amadeus IT Group SA, a Spain-based travel technology company, launched Amadeus Leisure Connect, a unified technology solution that connects hotel providers with travel sellers. It integrates private agreements to streamline hotel content distribution, providing real-time rates and inventory. Travel sellers can personalize and upsell services while accessing exclusive prepaid net rates from over 600,000 properties. The platform simplifies bookings and optimizes revenue, enhancing traveler experiences and operational efficiency.
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Global Leisure Travel Market Segmentation
The leisure travel market covered in this report is segmented –
1) By Expenditure Type: Lodging, Transportation, Food And Beverages, Events And Entertainment, Other Expenditure Types
2) By Traveler Type: Solo, Group
3) By Sales Channel: Online Channels , Conventional Channels
4) By Age Group: Baby Boomers, Generation X, Millennials, Generation Z
By Geography:The regions covered in the leisure travel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the leisure travel market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Leisure Travel Global Market Report 2024 furnishes information about the global leisure travel market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
