USD 340.31 Billion
Report ID:
SQMIG25O2016 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
64
|Figures:
79
Global 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 global market for leisure travel is a rapidly developing industry. It offers a wide range of services and activities for recreational and enjoyable experiences for travelers. Prior to the COVID-19 pandemic, this market was growing steadily. This was because of heightened demand for memorable vacations, which rose increasingly in the middle-class population due to higher incomes.
However, the pandemic interrupted this growth period. The market witnessed a sharp fall in international tourism. The leisure travel market was restricted due to travel constraints and border closures. Now, the market is slowly reviving as domestic tourism comes to help. International tourism has taken a backseat in the remodeled market. Travelers seek local destinations with a focus on nature-based outdoor activities. The strict health protocols placed on the market also dictate its growth. These standards have become more rigid as a result of growing health and safety concerns.
Technological advancements have also gripped the market for leisure travel. The emergence of mobile apps and online platforms have transformed the market. Travel providers are using digital marketing travel strategies to bolster market demand. Environmentally conscious travel solutions are gaining popularity as travelers become more aware of the environmental impact their traveling can have.
The leisure travel market has also seen the entry of niche market segments. These include adventure travel, wellness tourism, and cultural experiences. As travelers look for immersive and authentic experiences, this niche category is becoming more popular. A new trend has taken over the market with the introduction of remote work called "workcations," where individuals enjoy leisure travel while maintaining professional commitments, furthering market growth.
Global Market Size
USD 340.31 Billion
Largest Segment
Solo
Fastest Growth
Group
Growth Rate
22.6% CAGR
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By traveler type, the market is segmented into solo, group. The market can be divided into conventional channels and online channels based on sales channels. If market segmentation is done on the basis of age group, we end up with the following categories: Baby Boomers, Generation X, Millennials, Generation Z. Based on Expenditure Type, the market segmentation leads to categories like Lodging, Transportation, Food and Beverages, Events & Entertainment, and Others. Bifurcating the market by region gives us North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis By Traveler Type
Solo travelers who are in search of independence and personal exploration, who above all value spontaneity, flexibility, and wish to go on a self-discovery journey, have generally been the top traveler type segment in the leisure travel market. A growing preference for immersive and authentic travel encounters, a rise in solo female travelers, and digital connectivity that helps solo adventurers share their experiences, have sustained the market growth in the solo travel segment.
Conversely, in recent years, group travel is quickly developing into becoming the fastest growing segment. The desire for shared experiences, wanting to travel with friend groups, and multigenerational family trips have bolstered the growth in this segment. The convenience of organized itineraries, and the safety and companionship found in numbers have driven group travel to expand. Travel companies are now providing unique experiences to cater to diverse interests in customizable group packages to take advantage of the demand for group travel.
Analysis By Expenditure Type
The global leisure travel market's most dominant expenditure type segment is Lodging. This segment’s prominence is a direct result of travelers prioritizing convenient and comfortable living accommodations in their travels, making lodging the perfect budgeted choice. A variety of options like hostels, vacation rentals, hotels, and more are included in this segment. With the increased usage of online booking platforms and rise of the sharing economy, travelers are now provided with a wide range of lodging choices, which further helps the segment maintain its position. The demand for lodging services has seen a boost due to increasing business travel and international tourism.
Conversely, the events & entertainment segment has taken up the title of the fastest-growing category in the leisure travel market. This segment caters to the rising demand of immersive and unique experiences at travel destinations. It includes expenditures on activities such as attending concerts, festivals, sports events, cultural performances, and theme parks. The rapid growth of this segment can be attributed to the growing appetite for experiential travel and the desire for memorable, Instagram-worthy moments. The substantially quick growth of this expenditure type is driven by innovations in event ticketing and promotion and the provision of different entertainment options at tourist destinations.
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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.
However, Asia-Pacific is the fastest-growing region in the global leisure travel market. Southeast Asian nations like China and India are one of the tourist hubs of the region. A growing interest in exploring international destinations, improved transportation networks, and rising middle-class incomes have fueled this region’s growth. It is an appealing travel destination for both international and domestic travelers due to its rich cultural heritage, unique experiences, and picture-perfect landscapes.
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Drivers
Rising Disposable Income:
Technological Advancements:
Restraints
Global Economic Uncertainty:
Environmental Concerns and Sustainability:
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The global 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. Global 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 global leisure travel market are adaptability, innovation, and digitalization.
Top Player’s Company Profile
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
Based on SkyQuest’s analysis, the global market for leisure travel experienced a huge transformation after the COVID-19 pandemic. The global health crisis had resulted in a sharp decline in travel activities. Regardless, the market is reviving as people recover and return to old travel pleasures.
In 2021, domestic tourism was dominant in the market. This is because safety is preferred over exotic locales. Travelers wanted to explore local destinations, with a stress on outdoor activities and nature-based experiences. The popularity of private and more socially distanced options boosted the demand for different accommodations in local areas. This included glamping and vacation rentals.
The emergence of online platforms and mobile apps have transformed the market landscape. The developing technology in the travel industry offers personalized travel experiences, along with contactless bookings and check-ins. Eco-friendly travel practices are becoming more popular. This led to travelers choosing destinations and accommodations that focus on improving environmental health. This environmentally driven trend has also influenced the popularity of immersive travel which included authentic cultural experiences.
After the COVID-19 pandemic, international travel was burdened by several restrictions. This included health concerns and border restraints. However the leisure travel market adapted and is now reviving. Its commitment to adjust and show resilience led to great innovation in the market. The world is returning to normalcy. Thus, the leisure travel market can expect to return to a state of stability as well. The market can move forward with a renewed focus on safety, sustainability, and personalization.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 340.31 Billion |
Market size value in 2031 | USD 2129.96 Billion |
Growth Rate | 22.6% |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Leisure Travel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Leisure Travel Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Leisure Travel Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Leisure Travel Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG25O2016