New Delhi– India’s expanding middle class and its young, travel-enthusiastic population are poised to play a major role in reshaping the global leisure travel industry, according to a new report released Wednesday.
As more Indian travelers explore both domestic and international destinations, the country is emerging as a vital engine powering what is projected to become a $15 trillion global leisure travel market by 2040, according to data from the Boston Consulting Group (BCG).
The report forecasts that global consumer spending on leisure travel will triple — from $5 trillion in 2024 to $15 trillion by 2040 — surpassing industries such as pharmaceuticals and fashion in economic size.
This rapid growth is expected to be driven by increasing incomes in developing economies and a global shift in consumer preferences from material possessions to experiences.
In India, domestic leisure travel has already made a strong post-pandemic comeback. Between 2019 and 2024, the sector saw moderate to robust growth, and BCG projects this upward trend will continue in the coming years.
According to the report, domestic travel spending in India is expected to grow at 12% annually, regional travel at 8%, and international travel at 10%. Overnight trips are also projected to rise steadily — by 3% within India, 4% regionally, and 6% for international destinations.
Millennials and Gen Z are leading the charge, with their interest in travel exceeding that of older generations by as much as 26 percentage points. Unlike in many developed countries, India’s Gen X also remains an influential travel demographic, sustaining demand across age groups.
Globally, leisure travel overnights are forecast to grow by 4% annually through 2029, with the rate moderating to 3% per year from 2030 to 2040.
Domestic travel is expected to continue dominating the market, increasing in value from $4.1 trillion in 2024 to $11.7 trillion by 2040. Regional travel is projected to grow from $710 billion to more than $2 trillion, while international leisure travel will more than triple, reaching $1.4 trillion. (Source: IANS)
