India’s expanding middle class and its younger, travel-savvy population are poised to play a pivotal role in driving the future of global leisure travel, according to a new report released on Wednesday.
Data compiled by the Boston Consulting Group (BCG) projects that annual global consumer spending on leisure travel will triple from $5 trillion in 2024 to an estimated $15 trillion by 2040 — making it larger than the global pharmaceutical and fashion industries.
The report attributes this sharp rise to increasing incomes in developing economies and a growing preference for spending on experiences rather than material possessions.
India’s domestic leisure travel segment has already rebounded strongly after the pandemic, with spending between 2019 and 2024 showing moderate to robust growth.
This momentum is expected to continue, with BCG forecasting domestic leisure travel spending in India to rise by 12 per cent annually. Regional spending is projected to grow by 8 per cent, and international spending by 10 per cent per year.
Overnight trips are also likely to grow steadily — by 3 per cent domestically, 4 per cent regionally, and 6 per cent internationally.
Millennials and Gen Z are leading this surge, with their enthusiasm for travel exceeding that of older generations by up to 26 percentage points. Notably, Gen X in India continues to remain an influential segment for the travel industry — unlike in many developed economies, where their share is declining.
Globally, leisure travel overnights are expected to grow at 4 per cent annually until 2029, before moderating to 3 per cent per year through 2040.
Domestic travel will continue to form the largest share, increasing from a projected $4.1 trillion in 2024 to $11.7 trillion by 2040. Regional travel is forecast to grow from $710 billion to over $2 trillion, while international leisure travel is expected to more than triple to $1.4 trillion during the same period.
-IANS
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