Wednesday, June 25, 2025

In a groundbreaking new report by , the global landscape of leisure travel is set to undergo a dramatic transformation. is projected to triple in value by 2040, soaring from today to a staggering . This shift is not driven by the typical international vacations, but by a surge in , which is expected to generate nearly by 2040. Alongside this growth, is anticipated to triple to over , while will grow the fastest, albeit maintaining the smallest share of the market at .

The dramatic rise in travel spending is being fueled by new demographics, evolving digital habits, and a shift in expectations. The travelers of tomorrow are different from those of today, driven by changing preferences and an increasing demand for more meaningful and personalized travel experiences. Emerging markets, particularly , , , and , are now leading the charge, surpassing traditional travel powerhouses like the , , and .

This comprehensive analysis by BCG’s explores not only the in the travel sector but also delves into the and behaviors of the global traveler. Through a survey of nearly across and an analysis of travel patterns in , BCG has uncovered key trends that will define the future of travel.

The way people travel is evolving rapidly, and several key trends are emerging in this opportunity. Here are some of the most prominent shifts in the travel industry:

The future of leisure travel is increasingly in the hands of and . These are not only planning more trips but also spending more than their older counterparts. Their affinity for and is reshaping the industry. and are increasingly opting for travel experiences that align with their personal values, whether that’s , , or .

Once considered a niche market, has become increasingly popular. Today, report taking solo trips, with younger adventurers leading the charge. Many of these solo travelers are seeking , , and , moving away from the traditional beach vacations in favor of more enriching and self-reflective journeys.

The trend of travel, which combines and trips, is not just a pandemic-era phenomenon. Countries like , , , and are leading the charge, with over in these countries incorporating leisure into their business trips. In contrast, the , , and see much lower figures, with only of travelers opting for trips.

Across all regions, travelers are still motivated by the desire to and spend quality time with . However, their definitions of relaxation are changing. While traditional beach vacations, urban adventures, and nature getaways remain popular, travelers are increasingly seeking , , and . is also gaining momentum, with travelers from , , and ranking as a top motivator for their trips.

Travelers today are more empowered and digitally savvy than ever before, and technology plays a huge role in how they plan their trips.

In emerging markets, and are playing a central role in travel planning. A significant percentage of travelers in countries like (65%), (59%), (58%), and (51%) are already using AI tools to plan and book their trips. However, despite the rise of , human interaction remains important. In these same markets, between of travelers still value when planning their trips.

As becomes a dominant force in the travel industry, it is clear that and will continue to be essential elements in ensuring a meaningful travel experience.

Travelers are no longer solely seeking relaxation. Many are looking for trips that provide a deeper sense of meaning and personal fulfillment. Whether it’s exploring new cultures, embracing wellness practices, or embarking on spiritual journeys, the modern traveler is increasingly motivated by experiences that reflect their personal values. and are becoming just as important as traditional forms of relaxation.

As global travel spending grows, is set to experience explosive growth. By 2040, are expected to contribute over to the global leisure travel market. The growing preference for is attributed to several factors:

remains the largest segment, with expected to be spent by 2040. The is driven by factors such as the rising disposable incomes in emerging economies, easier access to travel, and a growing desire for local experiences.

The most significant growth in leisure travel spending is coming from emerging markets, particularly , , , and . These countries are experiencing rapid economic growth, urbanization, and rising disposable incomes, which are enabling more people to travel both domestically and regionally.

: China is leading the charge in travel spending, with more citizens traveling domestically and across Asia. The rise of and growing interest in are driving the growth in the Chinese travel market.

: India’s burgeoning middle class and increasing internet access are fueling the growth of . Indians are increasingly seeking , , and .

: With the implementation of , Saudi Arabia is positioning itself as a global tourism hub. within the Middle East is also on the rise, with more people exploring the diverse cultures and landscapes of the region.

: Vietnam’s rising travel market is driven by both domestic and regional tourism. With an increasing number of and , Vietnam is becoming a hotspot for , , and wellness retreats.

Looking ahead, the future of leisure travel is incredibly bright. By 2040, the global leisure travel market will be worth $15 trillion, driven by the growing demand for domestic travel, regional tourism, and the emergence of new travelers from emerging markets. The changing landscape of travel will be shaped by younger, more digitally savvy travelers who value personalization, convenience, and meaningful experiences.

To stay ahead in this rapidly evolving market, travel companies must adapt to the changing needs and expectations of the new wave of travelers. Those who can offer personalized, convenient, and fulfilling experiences will thrive in this massive market.

As AI continues to evolve and become a larger part of the travel planning process, it’s clear that technology will play a significant role in shaping the travel experience of the future. However, human connection, personal engagement, and cultural exploration will remain core to what makes travel meaningful.

The growth of the leisure travel industry presents exciting opportunities for both travelers and the travel sector alike. With domestic travel, regional tourism, and the rise of emerging markets, the future of travel is not only lucrative but also diverse and inclusive. As the $15 trillion opportunity unfolds, the future of leisure travel looks set to be more dynamic than ever before. Whether through AI-powered booking, cultural exploration, or wellness-focused retreats, travelers will continue to seek experiences that resonate with their personal desires, and the industry will need to evolve accordingly to meet these demands.

For businesses in the travel sector, the key to success lies in adapting to these changes, staying ahead of the curve, and offering experiences that speak to the new wave of travelers. Global tourism is evolving, and now is the time for companies to embrace the changes that are shaping the $15 trillion opportunity ahead.