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Global Leisure Travel Market was valued at US$ 4,405.5 Bn in 2021 and is projected to reach US$ 6,347.8 Bn by 2027. The market is estimated to register a CAGR of 5.7% during the forecast period 2022-2027. Leisure travel refers to a vacation undertaken by an individual or a group of individuals for personal enjoyment. The leisure travel industry aims to provide an enjoyable experience for its customers. They operate in an increasingly competitive business environment, where rapid development and change are the norms.
The market is majorly driven by factors such as changing the spending patterns of consumers, an increase in diversity, and global connectivity. The last decade experienced exponential growth in outbound travelers with the number of international travelers across the globe crossing over 1.4 billion departures in 2018. With the rising disposable income of people across the world, their spending pattern is also changing. A large part of this income is also spent on leisure travel which is fueling the market growth. Moreover, the diversified population across the globe is driving people to explore new places and meet new people. Travelers now seek to learn about different cultural diversities and ethnicities. This drives them to travel across various places, hence boosting the market growth.
Furthermore, due to the rapid availability of the internet, people are now aware of all the places across the globe. The growing aerospace industry has also enabled people to easily traveling experience. Currently, all locations are connected via various means of transport, and this has boosted global connectivity, which is increasing the adoption of leisure travel, hence positively impacting the overall market growth. However, factors such as political instability, the demand for a personalized experience, lack of skilled workforce at the mid and upper level of management, and environmental impact of leisure travel.
The study of the Global Leisure Travel Market considers various market determinants, industry value chain analysis, and competitor analysis of the market. The report discusses the analysis of the leisure travel industry for the period 2017-2027, where the base year is 2021 and the forecast period is 2022-2027. The report provides a detailed analysis of the Global Lithium-ion Battery Market across 13 Chapters and, 156 pages. The report includes data presentation across 22 tables and 57 statistical figures.
The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein the threat of substitutes and bargaining power of buyers is high.
The subsequent section provides details of the market analysis based on different segments such as traveler type, sales channel, and region. The report also includes a detailed study of the leisure travel industry. It includes factors influencing the leisure travel market, travel costs, demographics, destinations, reasons to travel, and different types of leisure and tourism organizations. The report also covers extensively the key competitors in the Global Leisure Travel Market.
The solo segment is estimated to have the fastest CAGR during the forecast period
Based on traveler type, the global leisure travel market is segmented into solo and group. Group travelers constitute a major market share in 2021, however, the solo segment is projected to experience growth at the highest CAGR during the leisure travel market forecast period. The highest growth of the segment is attributed to various factors such as social media influence, different interests, psychographic traits, and other key factors. A study by Booking.com of 20,500 global travelers, states about a surge in solo travel with two-fifths (40%) of global Baby Boomers having taken a solo trip in the last year, and a further fifth (21%) planning to take one in the future.
Online Channels holds the majority of the leisure travel market share
Based on sales channels, the leisure travel market is classified into conventional channels and online channels. The online channel leads in terms of market share and is expected to continue its dominance during the forecast period. The growth in the online segment is attributed to the high adoption of online channels to book travel packages owing to the convenient, easy, and faster methods as compared to conventional channels. As per TripAdvisor, an online travel company, 86% of travelers use online resources when deciding on their accommodation and 73% of travelers use online sources when deciding on their destination. The online travel agency market alone is expected to grow at a CAGR of 13.1% during 2021-2027. Hence, online platform plays a key role in planning and executing travel plans irrespective of region. The use of AI, big data analytics, and IoT in operation optimizations for web-based bookings, are projected to augment the leisure travel market growth during the forecast period.
The Asia Pacific dominates the Global Leisure Travel Market
Asia Pacific region holds the highest share in the Global Leisure Travel Market and is estimated to continue its dominance during the forecast period. The region is home to some of the popular tourist locations such as China, India, Thailand, and Malaysia. These countries offer a variety of rich cultural experiences and a variety of recreational and entertainment activities. Moreover, Asia-Pacific leisure travel market growth is attributed to increasing awareness related to leisure traveling, the rising trend of wellness travel, and government support to boost tourism in APAC.
Key players in the market for leisure travel are Absolute Travel, American Express Travel, Backroads, Carlson Wagonlit Travel, Classic Journeys, Cox & Kings Ltd., Expedia Group, G Adventures, Inspiring Travel Company, Journeys Within Tour, JTB Americas Group, Priceline Group, TCS World Travel, and Travel Leaders Group among others.
Segmentation Overview of the Global Leisure Travel Market
By Traveler Type Segment of the Global Leisure Travel Market is further sub-segmented into:
By Sales Channel Segment of the Global Leisure Travel Market is further sub-segmented into:
By Region Segment of the Global Leisure Travel Market is further sub-segmented into:
|Market Size Value in 2021||US$ 4,405.5 Bn|
|Expected Revenue in 2027||US$ 6,347.8 Bn|
|Unit||Value (USD Bn)|
|Segments covered||By Traveler Type, Sales Channel, and Region|
|Key Companies||Absolute Travel, American Express Travel, Backroads, Carlson Wagonlit Travel, Classic Journeys, and other prominent players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
The factors affecting leisure travel market are changing disposable income, demographics, travel costs and destinations among others.
Global Leisure Travel Market is segmented based on traveler type, sales channel, and region.
The Global Leisure Market is estimated to grow at a CAGR of 5.7% during the forecast period 2022-2027.
The leisure travel market is majorly driven by factors such as changing spending pattern of consumers, increase in diversity and global connectivity.
Factors such as political instability, demand of personalized experience, and lack of skilled workforce at mid and upper level of management are the restraints in the leisure travel market.
The development and use of tourism facilities and infrastructure may require blasting, sand and stone mining, concretization and cause erosion, loss of wildlife habitats and loss of natural drainage. Furthermore, the huge amount of waste generated by the sector is also a growing concern.
Space and wellness tourisms are the emerging opportunities in the leisure travel market.
Solo traveler type has the highest share in the Global Leisure Travel Market.
Online sales channel has the fastest CAGR during the forecast period 2022-2027.
Asia Pacific dominates the Global Leisure Travel Market.
The key players in the market for leisure travel are Absolute Travel, American Express Travel, Backroads, Carlson Wagonlit Travel, Classic Journeys, Cox & Kings Ltd., Expedia Group, TCS World Travel, and Travel Leaders Group among others