New Delhi– India’s rising middle class and its younger, travel-enthusiastic population are set to play a major role in shaping the future of global leisure travel, according to a new report released Wednesday.
As more Indian travelers explore both domestic and international destinations, the country is emerging as a key driver of what is projected to become a $15 trillion global leisure travel industry by 2040, according to data from the Boston Consulting Group (BCG).
The report reveals that global consumer spending on leisure travel is expected to triple—from $5 trillion in 2024 to $15 trillion by 2040—making the industry larger than pharmaceuticals and fashion.
This explosive growth will be fueled by rising disposable incomes in developing economies and a generational shift toward prioritizing experiences over material possessions.
India’s domestic leisure travel sector has already bounced back strongly from the pandemic, with spending between 2019 and 2024 showing moderate to robust growth. BCG forecasts this upward trend to continue, with domestic leisure travel spending expected to grow at 12% annually, regional travel at 8%, and international travel at 10%.
Overnight trips are also on the rise, projected to increase by 3% annually for domestic travel, 4% for regional, and 6% for international trips.
Millennials and Gen Z are leading this surge in demand, showing a significantly higher enthusiasm for travel—up to 26 percentage points more than older generations. Notably, in India, even Gen X continues to be an influential travel segment, bucking trends seen in many developed countries where their impact is declining.
Globally, leisure overnight travel is projected to grow 4% annually through 2029, then ease to 3% per year through 2040.
Domestic travel will remain the dominant segment, growing from a $4.1 trillion industry in 2024 to $11.7 trillion by 2040. Regional travel is expected to expand from $710 billion to over $2 trillion, while international leisure travel is set to more than triple, reaching $1.4 trillion over the same period. (Source: IANS)
