Leisure travel is set to triple in value by 2040, growing from $5 trillion today to $15 trillion, according to a new report by Boston Consulting Group (BCG). But it’s not international jet-setting fueling the boom. The real engine is closer to home: domestic leisure travel is projected to generate nearly $12 trillion by 2040, while regional travel is set to triple to more than $2 trillion. International travel will grow the fastest but still hold the smallest share—reaching $1.4 trillion.
Meanwhile, the next wave of travelers is increasingly coming from emerging markets like China, India, Saudi Arabia, and Vietnam—outpacing traditional tourism heavyweights like the US, UK, and Germany.
These are among the findings of BCG’s report, Unpacking the $15 Trillion Opportunity in Leisure Travel, based on a survey of nearly 5,000 travelers across 11 countries, conducted by BCG’s Center for Customer Insight, plus an analysis of travel patterns in 68 markets.
"India is poised to become one of the most dynamic leisure travel markets globally. With domestic leisure travel spend projected to grow at 12% annually and international spend at 10% through 2040, Indian travelers are increasingly exploring both their own country and the world. There is a clear shift observed in the travel industry led by younger generations—Millennials and Gen Z—who are not only traveling more, but also seeking experiences that blend value, personalization, and purpose. India also stands out for its strong preference for multigenerational travel and the growing popularity of ‘bleisure’, with over 70% of travelers looking to combine work and leisure. As travel becomes more digital, culturally relevant, and experience-led, India’s rising consumer base will play a pivotal role in shaping the next chapter of global leisure travel.”, said Nitima Malhotra, Partner, BCG.
Key Indian Findings:
- Younger generations in India are 22% more likely to anticipate taking more trips in the next year and also have higher intent to spend more on travel
- Indian travelers prefer nature, city, beach and cultural destinations (58%), with higher interest in spiritual (10%) than other countries
- Indian travelers primarily take trips to relax (15%), explore (13%), and escape (11%) with higher focus on religion (6%) than other countries
- 28% of Indian travelers typically take trips with a partner or spouse and 23% with immediate family; only 9% travel alone
- Indian travelers are most influenced by activities (18%) and ease of travel (17%) with lower emphasis on cost and family/friends
- Most Indians plan to combine business with leisure travel; millennials are most likely to do so (35%)
- 81% of Indian travelers have combined business with leisure travel at least once
- 59% of Indians use AI tools, while 80% say human touch remains important
“With more people taking vacations—and taking them more frequently—we’re seeing a profound shift in who’s traveling, what they expect, and how they plan their journeys,” said Christina Mühlenbein, a BCG managing director and partner, and a coauthor of the report. “New demographics, digital habits, and expectations are rewriting the rules.”
Trends Shaping the Traveler of the Future
- Millennials and Gen-Zers are now the most influential travelers globally.They plan more trips and spend more compared with older generations. These younger travelers are digitally savvy and socially conscious.
- Once considered niche, solo travel is now mainstream.Today, 18% to 39% of travelers say they take solo trips. This is often driven by younger adventurers seeking cultural experiences, spiritual getaways, or wellness retreats over traditional beach vacations.
- “Bleisure” travel isn’t just a pandemic-era phenomenon. In China, India, Nigeria, and Saudi Arabia, more than 70% of travelers plan to combine business and leisure trips. This compares with just 15% to 30% in the US, UK, and Germany.
What Travelers Want
Across all markets, relaxing and spending quality time with loved ones remain top reasons to travel, but how people relax is shifting. While traditional beach getaways, urban adventures, and nature experiences are still popular, BCG’s report finds that travelers are increasingly motivated by cultural exploration, health and wellness retreats, and spiritual or religious journeys. Food tourism is also booming, where Chinese, Vietnamese, and Indonesian travelers ranked food as a top motivator.
“People are seeking travel experiences that reflect who they are,” said Dennis Utzerath, a BCG managing director and partner, and a coauthor of the report. “Traditional beach and city getaways haven’t lost their charm. But more and more, travelers are prioritizing meaning, convenience, and personal fulfillment alongside relaxation.”
AI Is the New Travel Agent
Travelers—especially those from emerging markets—are turning to AI for their trip plans. Many consumers in China (65%), India (59%), Indonesia (58%), and Vietnam (51%) report that they’re using AI-powered tools and chatbots to plan and book trips. But 79% to 85% of travelers from these same markets also say that human touch points remain important.
“The travelers of tomorrow look different—who they are, who they travel with (or without), what they expect, and how they make decisions,” said Lara Koslow, a BCG managing director and senior partner, and a coauthor of the report. “To stay relevant, travel companies will need to get ahead of these shifts—or risk being left off the itinerary.”
