Leisure Travel Market Size, Share, Growth Analysis, By Traveler Type(Solo, Group), By Expenditure Type(Lodging, Transportation) - Industry Forecast 2024-2031

Leisure Travel Market size was valued at USD 340.31 Billion in 2022 and is poised to grow from USD 417.3 Billion in 2023 to USD 2129.96 Billion by 2031, at a CAGR of 22.6% during the forecast period (2024-2031).

The leisure travel market encompasses a diverse array of key players such as online travel agencies (OTAs), hotels, cruise lines, airlines, and tour operators, and all engaged in fierce competition, defining the market’s competitive landscape. Major airlines like United, Delta, and American Airlines lobby for market share, through competitive pricing, upgraded in-flight services, and loyalty programs for repeat customers. hotel chains like Accor, Marriott, and Hilton, are in an intense competition with home-sharing platforms like Airbnb and boutique hotels. These new platforms have transformed the traditional hotel industry, as they offer personalized experiences and diverse accommodation choices. Online travel agencies like Booking.com, Expedia, and TripAdvisor are essential in providing travelers with a variety of options and are usually engaged in price wars to get a larger chunk of the consumer base. Cruise businesses like Carnival Corporation and Royal Caribbean have grown their number of fleets and introduced innovative onboard treats and activities to attract vacationers. Large and small tour operators are providing specialized travel experiences, ranging from cultural tours to adventure trips. They have adjusted according to evolving consumer preferences by integrating experiential and sustainable elements into their service offerings. The competitive landscape of the market is also affected by the growth of mobile apps and digital platforms, which help travelers research and book trips on their own. As the leisure travel industry continues to evolve and adapt, the key factors for success in the leisure travel market are adaptability, innovation, and digitalization. 'Marriott International, Inc. (USA)', 'Accor S.A. (France)', 'Ctrip.com International Ltd. (China)', 'InterContinental Hotels Group (IHG) (UK)', 'Expedia Group, Inc. (USA)The Priceline Group, Inc. (USA)', 'Hilton Worldwide Holdings Inc. (USA)', 'American Express Business Travel (USA)', 'Booking Holdings Inc. (USA)', 'TripAdvisor, Inc. (USA)', 'Airbnb, Inc. (USA)', 'Royal Caribbean Group (USA)', 'Norwegian Cruise Line Holdings Ltd. (USA)', 'Qantas Airways Limited (Australia)', 'Delta Air Lines, Inc. (USA)', 'Lufthansa Group (Germany)', 'Air Canada (Canada)', 'Turkish Airlines (Turkey)', 'Emirates Group (United Arab Emirates)', 'Singapore Airlines Limited (Singapore)', 'China Southern Airlines Co., Ltd. (China)', 'Carnival Corporation & plc (USA)', 'LATAM Airlines Group S.A. (Chile)', 'Japan Airlines Co., Ltd. (Japan)', 'ANA Holdings Inc. (Japan)'

A larger part of the population has the financial resources to invest in leisure travel as disposable incomes are on the rise worldwide. The growing middle-class population, particularly significant in emerging economies, have shown an interest in exploring new places and having more travel experience. The growth of the leisure travel industry is only rising as the higher disposable incomes give families and individuals the opportunity to set aside a greater part of their budget to travel.

Shift Towards Experiential Travel: There is a key market trend that is influencing a drastic change in the leisure travel market. This is the shift to trying experiential travel. Travelers now want uniquely authentic experiences. They prefer this over checking off popular tourist locations spread across the world. This trend has birthed new types of travel activities. These include cultural immersion and adventure travel, along with culinary tourism and ecotourism. Travelers want to understand and immerse themselves in the visiting destinations. This has led to activities like interacting with local cultures and people, coupled with trying the local cuisine. Travel companies have included more experiential-focused packages in their product portfolio to attract consumers obsessed with experiential travel. These packages are chock full of the aforementioned activities to cater to this demand.

As a result of its wide range of tourist attractions, population’s high disposable income, and well-developed infrastructure, North America, particularly the United States and Canada,has held the leading position in the leisure travel market. Boasting an influential travel industry, this region appeals to a significant number of international tourists, thus retaining its dominance. The North American market is home to famous tourist destinations like Las Vegas, Orlando, and New York City, and also offers stunning natural landscapes, contributing to this region’s growth.