Leisure Travel Global Market Report 2025

Leisure travel refers to trips taken for recreation, relaxation, and personal enjoyment, allowing individuals or groups to explore new cultures and experiences. It encompasses activities such as sightseeing, dining, and engaging in recreational pursuits, with the goal of enhancing overall well-being and cultural knowledge.

The main expenditure categories for leisure travel include lodging, transportation, food and beverages, events and entertainment, and other expenses. Lodging involves costs associated with staying in various types of accommodations, such as hotels, resorts, hostels, or vacation rentals. Lodging expenses constitute a significant portion of travelers' budgets and influence the demand for different accommodation options, ranging from budget to luxury. Travelers can be categorized as solo or group, with sales channels including both online platforms and traditional methods. The age groups involved in leisure travel include baby boomers, Generation X, millennials, and Generation Z.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly affecting the recreation sector, especially in the supply of imported sports gear, outdoor equipment, and leisure products. Manufacturers and retailers are grappling with increased costs for goods like bicycles, camping supplies, fitness equipment, and gaming consoles-many of which rely heavily on international supply chains with few domestic alternatives. Small recreational retailers are particularly vulnerable, with some cutting back on stock or raising prices to manage shrinking profit margins. Event organizers and recreational venues are also experiencing rising costs for imported materials and equipment. In response, the industry is shifting toward suppliers in non-tariff regions, boosting local procurement efforts, and advocating for tariff exemptions on widely used recreational goods.

The leisure travel market research report is one of a series of new reports from the business research company that provides leisure travel market statistics, including leisure travel industry global market size, regional shares, competitors with an leisure travel market share, detailed leisure travel market segments, market trends and opportunities, and any further data you may need to thrive in the leisure travel industry. This leisure travel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The leisure travel market size has grown rapidly in recent years. It will grow from $1260.91 billion in 2024 to $1431.5 billion in 2025 at a compound annual growth rate (CAGR) of 13.5%. The growth in the historic period can be attributed to rising disposable incomes, a growing middle-class population, increasing globalization, expanding tourism infrastructure, enhanced connectivity and transportation, rise of low-cost airlines, government initiatives and incentives, growth in social media and digital marketing; increase in eco-friendly travel options.

The leisure travel market size is expected to see rapid growth in the next few years. It will grow to $2393.27 billion in 2029 at a compound annual growth rate (CAGR) of 13.7%. The growth in the forecast period can be attributed to paradigm shifts in consumer spending patterns, an increase in global outbound tourism, improved lifestyle standards, the integration of big data analytics, the adoption of AI and IoT in tourism, rising eco-friendly tourism, the growth of space tourism, wellness tourism trends, social media influence on travel, and the availability of low-cost airlines. Major trends in the forecast period include a surge in solo travel preferences, a focus on unique and exotic destinations, online booking services, sustainable tourism practices, advances in travel technology and AI, adventure and wellness travel, the use of mobile travel apps, and customized travel experiences.

The forecast of 13.7% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff escalation on aviation fuel, imported travel gear, and airport services could make leisure travel more expensive and reduce discretionary spending by tourists. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing consumer preference for recreational travel experiences is anticipated to drive the expansion of the leisure travel market. Recreational travel experiences focus on activities and trips designed for leisure, enjoyment, and relaxation. This shift stems from consumers valuing memorable and immersive travel experiences more than material possessions. Additionally, there is an increased demand for connection, involvement, and authenticity in these travel experiences. Leisure travel offers opportunities for outdoor adventures, sports, cultural events, and relaxation across various destinations. For example, in May 2024, the Adventure Travel Trade Association reported a 54% increase in the average number of travelers served by adventure travel operators, rising to 6,553 from 4,243 in 2022, and a 384% increase from 1,355 in 2021. This trend underscores the growing consumer preference for recreational travel experiences and its impact on the leisure travel market.

Companies in the leisure travel sector are increasingly focusing on digital transformation and online booking solutions, such as hotel content distribution platforms, to enhance personalized experiences and streamline operations. These platforms centralize and simplify the management and distribution of hotel information, rates, and availability across multiple booking channels to improve visibility and optimize bookings. For instance, in March 2024, Amadeus IT Group SA introduced Amadeus Leisure Connect, a technology solution that connects hotel providers with travel sellers. This platform integrates private agreements to streamline hotel content distribution, offering real-time rates and inventory. Travel sellers can personalize and upsell services while accessing exclusive prepaid net rates from over 600,000 properties. Amadeus Leisure Connect simplifies bookings and optimizes revenue, enhancing traveler experiences and operational efficiency.

In January 2023, Flight Centre Travel Group (FLT), an Australia-based travel service provider, acquired Scott Dunn for £121 million ($149 million). This acquisition aims to broaden Flight Centre's luxury and leisure travel portfolio, drive revenue growth, and achieve cost efficiencies by integrating Scott Dunn's high-margin, premium brand. Scott Dunn Ltd., a U.K.-based tour operator, specializes in leisure travel services.

Major companies operating in the leisure travel market are TUI Group, Priceline Group, Booking Holdings Inc., Expedia Group Inc., CWT Global BV, Airbnb Inc., American Express Global Business Travel, Flight Centre Travel Group Ltd, TripAdvisor Inc, Orbitz LLC, World Travel Inc., Contiki Holidays Ltd., Abercrombie & Kent Ltd., G Adventures Inc., Trivago N.V., Cox & Kings Ltd., Travelocity.com LP, Direct Travel Inc., Travel Leaders Group LLC, MakeMyTrip Pvt. Ltd., Luxury Escapes Pty Ltd., Intrepid Travel Pty Ltd., GetYourGuide AG, Kayak Software Corporation, JTB Americas Group Inc., TravelBag Ltd., Thomas Cook Group plc, Trafalgar Tours Ltd., Hays Travel Limited

North America was the largest region in the leisure travel market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the leisure travel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the leisure travel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The leisure travel market consists of revenues earned by entities by providing services such as travel planning and booking, accommodation, transportation, tour packages, activities and excursions, travel insurance, travel concierge services, special interest travel, visa and documentation assistance. The market value includes the value of related goods sold by the service provider or included within the service offering. The leisure travel market also includes sales of airline tickets, hotel reservations, car rentals, cruise packages, tour packages, travel insurance policies, activity passes, vacation packages, special interest travel packages, travel accessories. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Leisure Travel Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on leisure travel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
• Assess the impact of key macro factors such as geopolitical conflicts, trade policies and tariffs, post-pandemic supply chain realignment, inflation and interest rate fluctuations, and evolving regulatory landscapes.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on the latest market shares.
• Benchmark performance against key competitors.
• Suitable for supporting your internal and external presentations with reliable high quality data and analysis
• Report will be updated with the latest data and delivered to you within 2-3 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for leisure travel ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The leisure travel market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Expenditure Type: Lodging; Transportation; Food And Beverages; Events And Entertainment; Other Expenditure Types
• 2) By Traveler Type: Solo; Group
• 3) By Sales Channel: Online Channels; Conventional Channels
• 4) By Age Group: Baby Boomers; Generation X; Millennials; Generation Z
• Subsegments:
• 1) By Lodging: Hotels And Resorts Or Vacation Rentals Or Hostels Or Bed And Breakfasts (B And Bs) Or Campsites And Glamping Sites
• 2) By Transportation: Airfare Or Car Rentals Or Rail Travel Or Cruises Or Bus Services Or Ride-sharing
• 3) By Food And Beverages: Restaurants And Cafes Or Street Food Or Bars And Pubs Or All-Inclusive Dining Packages Or Catering And Banquets
• 4) By Events And Entertainment: Concerts And Festivals Or Theme Parks And Attractions Or Cultural And Heritage Tours Or Adventure Activities Or Sporting Events And Tickets
• 5) By Other Expenditure Types: Shopping Or Travel Insurance Or Spa And Wellness Services Or Travel Accessories And Gear Or Tour Guides And Excursions
• Companies Mentioned: TUI Group; Priceline Group; Booking Holdings Inc.; Expedia Group Inc.; CWT Global BV; Airbnb Inc.; American Express Global Business Travel; Flight Centre Travel Group Ltd; TripAdvisor Inc; Orbitz LLC; World Travel Inc.; Contiki Holidays Ltd.; Abercrombie & Kent Ltd.; G Adventures Inc.; Trivago N.V.; Cox & Kings Ltd.; Travelocity.com LP; Direct Travel Inc.; Travel Leaders Group LLC; MakeMyTrip Pvt. Ltd.; Luxury Escapes Pty Ltd.; Intrepid Travel Pty Ltd.; GetYourGuide AG; Kayak Software Corporation; JTB Americas Group Inc.; TravelBag Ltd.; Thomas Cook Group plc; Trafalgar Tours Ltd.; Hays Travel Limited
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.