The global leisure travel market size was valued at $1,006.5 billion in 2019, and is projected to reach $1,737.3 billion by 2027, registering a CAGR of 22.6% from 2021 to 2027.By traveler type, the group segment garnered the highest leisure travel market share in 2019 and is expected to retain its dominance throughout the forecast period.
Last decade experienced an exponential growth in outbound travelers with the number of international travelers across the globe crossing over 1.4 billion departures in 2018. A major share of departures are from emerging countries travelling for the very first time, spending billions of dollars, and augmenting the growth of the travel economy. Leisure travel market industry is projected to outpace global GDP growth and is estimated to grow with a significant CAGR during the forecast period.
The leisure travel economy comprises well-entrenched biosphere of industries including but not limited to logistics, accommodation, food, retail, recreation and other tourism services Companies, large and small in associated industries continuously strive to create experiences by bringing people together, supporting communities, and boosting economics of a country. Substantial investment on tourism have multiplier effects in the expansion of economy including infrastructure development, stimulating private investment, aggregate demand, and jobs. Tourism offers direct and indirect aid to a nation’s economy; therefore, it has experienced remarkable growth in the past few years and garnered the attention of tourism development experts, policy makers, and industry leaders, especially in the developing regions of Asia-Pacific and Africa.
By Traveler Type
Group segment dominates the global market and is expected to retain its dominance throughout the forecast period.
Recent years have witnessed a paradigm shift toward experience rather than goods. Spending on consumer durables, apparels have faltered while, experiential spending on recreation, travel, and eating have seen rapid growth. As a result, travel is outpacing the demand for goods. The trend is in sync with growing number of global outbound tourists in the last few years. The robust growth is expected to continue in the estimated future, driven primarily by the expansion of low cost airlines, government initiatives, and technological advancements.
While expansion in the tourism industry has led to creation of jobs, a proliferation of tour operators, and increased ease in booking accommodation, logistics and services, the growth has its own set of unique challenges-economic slowdown, infrastructure, and political tensions, among other.
By Sales Channel
Online Channels segment is expected to grow at a highest CAGR of 23.1% during the forecast period.
The leisure travel market has been segmented based on traveler type, sales channel, age group, expenditure type and region. Based on traveler type, the leisure travel market is bifurcated into solo and group. Based on sales channel the global market is studied across conventional channels, online channels. By age group, it is divided into baby boomers, generation X, Millennials and Generation- Z. On the basis of expenditure type, the market is categorized into lodging, transportation, food and beverages, events & entertainment and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Based on traveler type, the global leisure travel market is segmented into solo and group. Group travelers constitute a major market share; however, the solo segment is projected to experience growth at the highest CAGR during the leisure travel market forecast period. There has been a significant increase in people who want to travel solo, which encouraged engaged stakeholders in the industry to felicitate not only group traveler but solo traveler as well. Nowadays people are more likely to travel solo owing to new experience, exploring new cultures, self-reflection and getting a sense of empowerment.
By Age Group
Generation X segment dominates the global market and is expected to retain its dominance throughout the forecast period.
Based on sales channel, the leisure travel market is classified into conventional channels and online channels. Online channel leads in terms of market share and is expected to continue to grow with robust CAGR during the forecast period. Use of AI, big data analytics, and IoT in operation optimizations for web-based bookings, are projected to augment the leisure travel market growth providing seamless customer experience.
By age group, the Generation X segment dominated the global market and is expected to retain its dominance during the forecast period. However, the millennials segment is anticipated to garner significant market growth during the upcoming years. Millennials are constantly drifting toward a search for uncommon destinations to gather unique experience. In addition, learning and gaining knowledge about different cultures and traditions remains the most influencing factor while choosing destinations for millennials. Millennials are tech-savvy and influential buyers and technology profoundly influences them.
By Expenditure Type
Lodging segment dominates the global market and is expected to retain its dominance throughout the forecast period.
By expenditure type, the market is categorized into lodging, transportation, food and beverages, events & entertainment and others.The lodging segment held the major share in the market, and is projected to remain dominant during the forecast period.However, the transportation segment is anticipated to garner significant market growth during the upcoming years.
The key players profiled in the report includes Expedia Group, Priceline Group, Carlson Wagonlit Travel, JTB Americas Group, World Travel, Inc., American Express Travel, Travel Leaders Group, TUI Group., Thomas Cook (India) Limited and Cox & Kings Ltd.
Asia-Pacific dominates the market and is expected to grow with a CAGR of 24.1% during the forecast period
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the leisure travel market analysis from 2019 to 2027 to identify the prevailing leisure travel market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis of the leisure travel market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global leisure travel market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the leisure travel market players.
- The report includes the analysis of the regional as well as global leisure travel market trends, key players, market segments, application areas, and market growth strategies.
Leisure Travel Market Report Highlights
By Traveler Type
By Sales Channel
By Age Group
By EXPENDITURE TYPE
Key Market Players
COX & KINGS LTD., TRAVEL LEADERS GROUP, THOMAS COOK INDIA LTD., WORLD TRAVEL, INC., TUI GROUP, CARLSON WAGONLIT TRAVEL, JTB USA, INC., AMERICAN EXPRESS TRAVEL, PRICELINE(BOOKING HOLDINGS INC.), EXPEDIA GROUP
With consumers choosing to travel more, engaged stakeholders in the tour and travel industry facing high strenuous to deliver better consumer experience, most of which exhibiting wide apart travel tastes and preferences. As a result, need to efficiently manage marketing expenditure in terms of who to market, what to market to, where to market, using what medium to market and when to market will act as a key differentiator in the highly competitive consumer centric tourism industry.
Technology advancements around the world will heavily shape the future of the leisure travel industry. Innovative advancements in artificial intelligence, big data and analytics, social media and machine learning will leverage consumers’ expectations in the leisure travel industry, from destination planning to obtain a visa, currency exchange to bookings and payments, digital technologies will penetrate even deeper into the traveler’s personal space providing end to end customer solution with utmost convenience.