Leisure Travel Market: Industry Analysis and Forecast (2024-2030)
The Leisure Travel Market size was valued at USD 1491.5 Bn. in 2023 and the total Leisure Travel Market revenue is expected to grow at a CAGR of 22.72 % from 2024 to 2030, reaching nearly USD 6252.2 Bn.
Format : PDF | Report ID : SMR_1854
Leisure Travel Market Overview
Leisure travel refers to the act of individuals or groups embarking on trips for recreational purposes, relaxation, exploration, or personal enjoyment. It includes various activities such as sightseeing, cultural experiences, adventure tourism, beach vacations, and wellness retreats, among others. Unlike business travel, leisure travel is typically discretionary and driven by personal preferences, interests, and leisure time availability.
The leisure travel market is a dynamic and multifaceted sector within the broader travel and tourism industry. It is experiencing significant growth and evolution driven by several key factors. The increasing disposable income and changing lifestyles of consumers, particularly in emerging economies, have led to a rise in demand for travel experiences. Additionally, advancements in technology, particularly the internet and mobile devices, have revolutionized the way people research, plan, and book leisure trips, making them more accessible and convenient.
The growing awareness and emphasis on health and wellness have fueled the demand for wellness tourism, including spa retreats, yoga retreats, and holistic wellness experiences. Cultural immersion and experiential travel have also gained traction, with travelers seeking authentic and meaningful experiences that allow them to connect with local communities and traditions. The rise of digital nomadism and remote work trends has opened new opportunities for leisure travel, as individuals seek to combine work and leisure while exploring different destinations.
Recent developments in the leisure travel market include strategic partnerships and acquisitions by key players to enhance their Leisure Travel Market presence and offerings. For example, Travel + Leisure Co. announced a multi-year marketing agreement with Allegiant, aimed at cross-company promotion to enhance customer engagement.
The acquisition of Accor Vacation Club by Travel + Leisure Co. reflects a strategic move to expand its vacation ownership segment and tap into new geographical regions. Moreover, technological innovations, such as Sabre Vacations, a next-generation leisure travel solution unveiled at ITB Berlin, highlight the industry's commitment to providing personalized and seamless travel experiences. The leisure travel market is poised for continued growth and innovation, driven by evolving consumer preferences, technological advancements, and strategic initiatives by Leisure Travel Market players to cater to the diverse needs and aspirations of travelers around the world.
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Leisure Travel Market Dynamics:
Technological Innovations in the Leisure Travel Market:
Advancements in technology continue to shape the leisure travel market, enhancing convenience and personalization. For instance, Sabre Vacations, developed with Peakwork, offers a state-of-the-art comparison tool for leisure travel agents, streamlining the booking process and providing a consumer-grade shopping experience. Collaborations between travel companies, like the marketing agreement between Travel + Leisure Co. and Allegiant, allow for expanded customer reach and engagement through cross-promotion, driving growth for both parties. Acquisitions, such as Travel + Leisure Co.'s acquisition of Accor Vacation Club, enable companies to tap into new geographical regions and customer segments, fostering Leisure Travel Market growth and revenue growth.
Rising disposable income levels globally contribute to increased spending on leisure travel. As consumers prioritize experiences, they are willing to invest in travel packages and vacation ownership, driving Leisure Travel Market growth. Consumers seek personalized travel experiences tailored to their preferences. Travel companies respond by offering customizable vacation packages and exclusive perks, enhancing customer satisfaction and loyalty.
Growing Interest in Package Travel:
Research indicates a significant portion of trips, particularly those lasting five days or more, are booked through tour operators. This trend underscores the importance of package travel in the leisure market, driving demand for comprehensive travel solutions like Sabre Vacations. Membership and loyalty programs, such as Allegiant's Always Rewards and Travel + Leisure Co.'s vacation ownership and exchange memberships, foster customer engagement and repeat business, driving Leisure Travel Market growth through increased bookings and revenue. Affordable family vacations remain a priority for many travelers. Companies like Allegiant and Travel + Leisure Co. cater to this demand by offering budget-friendly travel packages and promotions, attracting a broad spectrum of travelers and stimulating Leisure Travel Market growth.
With increasing awareness of environmental issues, there's a growing preference for sustainable travel options. Companies that prioritize eco-friendly practices and offer sustainable travel experiences gain a competitive edge, attracting environmentally conscious travelers and driving Leisure Travel Market growth. Investment in product development, such as Sabre's introduction of Sabre Vacations, ensures that travel companies stay ahead of Leisure Travel Market trends and consumer preferences. By offering innovative solutions and enhancing the booking experience, companies stimulate Leisure Travel Market growth and maintain competitiveness in the leisure travel sector.
Leisure Travel Market Segment Analysis:
Based on Age Group, In the leisure travel market, Generation Z (Gen Z) emerged as the dominant segment, poised to maintain and expand its influence in the coming years. Gen Z, with its conspicuous consciousness and reliance on social media platforms like TikTok for trip planning, is rapidly asserting its influence. As these younger generations increasingly prioritize values alignment and authenticity in their consumer activities, travel providers must adapt by offering personalized experiences, sustainable options, and dynamic loyalty programs. Meanwhile, Millennials, labeled digital natives, have long been associated with technology and digital consumption, shaping their travel preferences and behaviors.
Their affinity for social media and tech-driven solutions continues to drive innovation and redefine the travel landscape. While Baby Boomers and Generation X still hold significance, their dominance in the Leisure Travel Market is waning compared to digital-savvy millennials and Gen Z. The future of the leisure travel market lies in catering to the preferences and behaviors of these younger demographics, who are expected to continue driving innovation and pushing sustainability to the forefront of the industry.
Leisure Travel Market Regional Insights:
Europe holds significant sway due to its well-established tourism industries and diverse offerings. Europe, renowned for its rich history, cultural heritage, and scenic landscapes, remains a top destination for leisure travelers globally. Countries like France, Italy, Spain, and the United Kingdom attract Billions of tourists each year, bolstering the region's dominance. Similarly, North America, with its iconic landmarks, vibrant cities, and natural wonders, including the Grand Canyon and Niagara Falls, commands a substantial share of the leisure travel market. However, emerging regions such as Asia Pacific and Latin America are poised for rapid growth.
Asia Pacific, fueled by rising disposable incomes, increasing urbanization, and government initiatives to promote tourism, has witnessed a surge in leisure travel. Destinations like Japan, Thailand, and Australia are experiencing a boom in tourist arrivals, driven by their unique cultural experiences and natural attractions. In Latin America, countries like Mexico, Brazil, and Costa Rica are emerging as popular leisure travel destinations, attracting visitors with their rich biodiversity, pristine beaches, and cultural festivities. The Middle East and Africa are tapping into their cultural heritage and investing in tourism infrastructure to capture a larger share of the leisure travel market. While Europe and North America continue to dominate the leisure travel market, the Asia Pacific, Latin America, Middle East, and Africa regions offer immense growth opportunities, driven by their diverse attractions and increasing accessibility.
Leisure Travel Market Competitive Landscape
The development is poised to drive significant growth in the travel Leisure market. Travel + Leisure Co.'s multi-year marketing agreement with Allegiant enables both companies to tap into a broader customer base, enhancing engagement through cross-promotion. With Allegiant's extensive Allways Rewards membership and Travel + Leisure Co.'s robust vacation ownership and exchange membership, the collaboration promises heightened customer engagement and increased travel bookings. Moreover, Travel + Leisure Co.'s acquisition of Accor's vacation ownership business expands its reach into key regions like Asia Pacific, the Middle East, Africa, and Turkey, further amplifying its Leisure Travel Market presence and offerings. These strategic moves position both companies for accelerated growth and innovation in the leisure travel sector.
On April 23, 2024, Travel + Leisure Co. and Allegiant unveiled a multi-year marketing pact aimed at bolstering customer engagement through reciprocal promotion. With over 100 Club Wyndham and WorldMark vacation ownership resorts conveniently located within 50 miles of Allegiant-served airports, the collaboration targets a shared demographic seeking affordable family getaways. Leveraging Allegiant's expansive Allways Rewards membership base of 15 Billion alongside Travel + Leisure Co.'s 800,000 vacation ownership members and 3.5 Billion vacation exchange members, the alliance promises diverse promotional offerings tailored to a broad spectrum of travelers. Scott Cavanaugh, Travel + Leisure Co.'s VP of Strategic Partnerships, anticipates accelerated growth through the provision of enticing travel packages catering to customer preferences.
On February 1, 2024, Travel + Leisure Co. expanded its brand portfolio by acquiring Accor Vacation Club, the vacation ownership arm of global hospitality giant Accor, for US$48.4 Billion. The deal, slated to close in Q1 2024, is expected to immediately enhance Travel + Leisure Co.'s earnings. With this acquisition, Travel + Leisure Co. gains control over Accor Vacation Club's 24 resorts and nearly 30,000 members, along with exclusive rights to develop new vacation ownership clubs and products in the Asia Pacific, Middle East, Africa, and Turkey regions. Accor, renowned for its extensive hotel chain in Asia Pacific, secures a licensing fee from vacation ownership sales revenue under an exclusive agreement.
On March 6, 2023, at ITB Berlin, Sabre unveiled Sabre Vacations, a cutting-edge leisure travel solution developed in collaboration with Peakwork. Initially launched in Germany and soon expanding to Austria and Switzerland, the tool targets the lucrative package travel market. With forecasted revenue of nearly 40 billion euros in 2023, Sabre's investment aims to revolutionize the sector with enhanced personalization and a consumer-centric shopping experience. Sabre Vacations simplifies trip planning for leisure agents, offering easy comparison and booking of packaged tours, hotels, cruises, rental cars, and travel insurance. It's set to replace Sabre's current leisure tool, Shop Holidays, by Q4 2023.
Leisure Travel Market Scope:
Leisure Travel Market |
|
Market Size in 2023 |
USD 1491.5 Bn. |
Market Size in 2030 |
USD 6252.2 Bn. |
CAGR (2024-2030) |
22.72 % |
Historic Data |
2018-2022 |
Base Year |
2023 |
Forecast Period |
2024-2030 |
Segments |
By Traveller Type Solo Group |
By Age Group Baby Boomers Generation X Millennials Generation Z |
|
By Expenditure Type Lodging Transportation Food & Beverages Events & Entertainment Others |
|
By Sales Channel Conventional Channels Online Channels |
|
Regional Scope |
North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America |
Leisure Travel Market Key Players:
- Marriott International, Inc. (USA)
- Travel + Leisure Co. (USA)
- Accor S.A. (France)
- Expedia Group, Inc. (USA)
- The Priceline Group, Inc. (USA)
- Hilton Worldwide Holdings Inc. (USA)
- American Express Global Business Travel (USA)
- Booking Holdings Inc. (USA)
- TripAdvisor, Inc. (USA)
- Airbnb, Inc. (USA)
- Royal Caribbean Group (USA)
- Norwegian Cruise Line Holdings Ltd. (USA)
- Qantas Airways Limited (Australia)
- Delta Air Lines, Inc. (USA)
- Lufthansa Group (Germany)
- Air Canada (Canada)
- Emirates Group (United Arab Emirates)
- Singapore Airlines Limited (Singapore)
- China Southern Airlines Co., Ltd. (China)
- Carnival Corporation & plc (USA)
- LATAM Airlines Group S.A. (Chile)
- Japan Airlines Co., Ltd. (Japan)
- ANA Holdings Inc. (Japan)
Frequently Asked Questions
Growing Interest in Package Travel is a major opportunity for the Leisure Travel market.
Europe is expected to lead the Leisure Travel Market during the forecast period.
The Leisure Travel Market size was valued at USD 1491.5 Billion in 2023 and the total Leisure Travel Market revenue is expected to grow at a CAGR of 22.72 % from 2024 to 2030, reaching nearly USD 6252.2 Billion.
The segments covered in the Leisure Travel Market report are by Traveller Type, Age Group, Expenditure Type, Sales Channels, and Region.
1. Research Methodology
1.1 Research Data
1.1.1. Primary Data
1.1.2. Secondary Data
1.2. Market Size Estimation
1.2.1. Bottom-Up Approach
1.2.2. Top-Down Approach
1.3. Market Breakdown and Data Triangulation
1.4. Research Assumption
2. Leisure Travel Market Executive Summary
2.1. Market Overview
2.2. Market Size (2023) and Forecast (2024 – 2030) and Y-O-Y%
2.3. Market Size (USD) and Market Share (%) – By Segments and Regions
3. Global Leisure Travel Market: Competitive Landscape
3.1. SMR Competition Matrix
3.2. Key Players Benchmarking
3.2.1. Company Name
3.2.2. Headquarter
3.2.3. Business Segment
3.2.4. End-user Segment
3.2.5. Y-O-Y%
3.2.6. Revenue (2023)
3.2.7. Profit Margin
3.2.8. Market Share
3.2.9. Company Locations
3.3. Market Structure
3.3.1. Market Leaders
3.3.2. Market Followers
3.3.3. Emerging Players
3.4. Consolidation of the Market
3.4.1. Strategic Initiatives
3.4.2. Mergers and Acquisitions
3.4.3. Collaborations and Partnerships
3.4.4. Developments and Innovations
4. Leisure Travel Market: Dynamics
4.1. Leisure Travel Market Trends by Region
4.1.1. North America
4.1.2. Europe
4.1.3. Asia Pacific
4.1.4. Middle East and Africa
4.1.5. South America
4.2. Leisure Travel Market Drivers
4.3. Leisure Travel Market Restraints
4.4. Leisure Travel Market Opportunities
4.5. Leisure Travel Market Challenges
4.6. PORTER’s Five Forces Analysis
4.6.1. Intensity of the Rivalry
4.6.2. Threat of New Entrants
4.6.3. Bargaining Power of Suppliers
4.6.4. Bargaining Power of Buyers
4.6.5. Threat of Substitutes
4.7. PESTLE Analysis
4.7.1. Political Factors
4.7.2. Economic Factors
4.7.3. Social Factors
4.7.4. Technological Factor
4.7.5. Legal Factors
4.7.6. Environmental Factors
4.8. Technological Roadmap
4.9. Regulatory Landscape by Region
4.9.1. North America
4.9.2. Europe
4.9.3. Asia Pacific
4.9.4. Middle East and Africa
4.9.5. South America
5. Leisure Travel Market: Global Market Size and Forecast by Segmentation (by Value in USD Million) (2023-2030)
5.1. Leisure Travel Market Size and Forecast, by Traveller Type (2023-2030)
5.1.1. Solo
5.1.2. Group
5.2. Leisure Travel Market Size and Forecast, by Age Group (2023-2030)
5.2.1. Baby Boomers
5.2.2. Generation X
5.2.3. Millennials
5.2.4. Generation Z
5.3. Leisure Travel Market Size and Forecast, by Expenditure Type (2023-2030)
5.3.1. Lodging
5.3.2. Transportation
5.3.3. Food & Beverages
5.3.4. Events & Entertainment
5.3.5. Others
5.4. Leisure Travel Market Size and Forecast, by Sales Channel (2023-2030)
5.4.1. Conventional Channels
5.4.2. Online Channels
5.5. Leisure Travel Market Size and Forecast, by Region (2023-2030)
5.5.1. North America
5.5.2. Europe
5.5.3. Asia Pacific
5.5.4. Middle East and Africa
5.5.5. South America
6. North America Leisure Travel Market Size and Forecast by Segmentation (by Value in USD Million) (2023-2030)
6.1. North America Leisure Travel Market Size and Forecast, by Traveller Type (2023-2030)
6.1.1. Solo
6.1.2. Group
6.2. North America Leisure Travel Market Size and Forecast, by Age Group (2023-2030)
6.2.1. Baby Boomers
6.2.2. Generation X
6.2.3. Millennials
6.2.4. Generation Z
6.3. North America Leisure Travel Market Size and Forecast, by Expenditure Type (2023-2030)
6.3.1. Lodging
6.3.2. Transportation
6.3.3. Food & Beverages
6.3.4. Events & Entertainment
6.3.5. Others
6.4. North America Leisure Travel Market Size and Forecast, by Sales Channel (2023-2030)
6.4.1. Conventional Channels
6.4.2. Online Channels
6.5. North America Leisure Travel Market Size and Forecast, by Country (2023-2030)
6.5.1. United States
6.5.2. Canada
6.5.3. Mexico
7. Europe Leisure Travel Market Size and Forecast by Segmentation (by Value in USD Million) (2023-2030)
7.1. Europe Leisure Travel Market Size and Forecast, by Traveller Type (2023-2030)
7.2. Europe Leisure Travel Market Size and Forecast, by Age Group (2023-2030)
7.3. Europe Leisure Travel Market Size and Forecast, by Expenditure Type (2023-2030)
7.4. Europe Leisure Travel Market Size and Forecast, by Sales Channel (2023-2030)
7.5. Europe Leisure Travel Market Size and Forecast, by Country (2023-2030)
7.5.1. United Kingdom
7.5.2. France
7.5.3. Germany
7.5.4. Italy
7.5.5. Spain
7.5.6. Sweden
7.5.7. Austria
7.5.8. Rest of Europe
8. Asia Pacific Leisure Travel Market Size and Forecast by Segmentation (by Value in USD Million) (2023-2030)
8.1. Asia Pacific Leisure Travel Market Size and Forecast, by Traveller Type (2023-2030)
8.2. Asia Pacific Leisure Travel Market Size and Forecast, by Age Group (2023-2030)
8.3. Asia Pacific Leisure Travel Market Size and Forecast, by Expenditure Type (2023-2030)
8.4. Asia Pacific Leisure Travel Market Size and Forecast, by Sales Channel (2023-2030)
8.5. Asia Pacific Leisure Travel Market Size and Forecast, by Country (2023-2030)
8.5.1. China
8.5.2. S Korea
8.5.3. Japan
8.5.4. India
8.5.5. Australia
8.5.6. Indonesia
8.5.7. Malaysia
8.5.8. Vietnam
8.5.9. Taiwan
8.5.10. Rest of Asia Pacific
9. Middle East and Africa Leisure Travel Market Size and Forecast by Segmentation (by Value in USD Million) (2023-2030)
9.1. Middle East and Africa Leisure Travel Market Size and Forecast, by Traveller Type (2023-2030)
9.2. Middle East and Africa Leisure Travel Market Size and Forecast, by Age Group (2023-2030)
9.3. Middle East and Africa Leisure Travel Market Size and Forecast, by Expenditure Type (2023-2030)
9.4. Middle East and Africa Leisure Travel Market Size and Forecast, by Sales Channel (2023-2030)
9.5. Middle East and Africa Leisure Travel Market Size and Forecast, by Country (2023-2030)
9.5.1. South Africa
9.5.2. GCC
9.5.3. Nigeria
9.5.4. Rest of ME&A
10. South America Leisure Travel Market Size and Forecast by Segmentation (by Value in USD Million) (2023-2030)
10.1. South America Leisure Travel Market Size and Forecast, by Traveller Type (2023-2030)
10.2. South America Leisure Travel Market Size and Forecast, by Age Group (2023-2030)
10.3. South America Leisure Travel Market Size and Forecast, by Expenditure Type (2023-2030)
10.4. South America Leisure Travel Market Size and Forecast, by Sales Channel (2023-2030)
10.5. South America Leisure Travel Market Size and Forecast, by Country (2023-2030)
10.5.1. Brazil
10.5.2. Argentina
10.5.3. Rest Of South America
11. Company Profile: Key Players
11.1. Marriott International, Inc. (USA)
11.1.1. Company Overview
11.1.2. Business Portfolio
11.1.3. Financial Overview
11.1.3.1. Total Revenue
11.1.3.2. Segment Revenue
11.1.3.3. Regional Revenue
11.1.4. SWOT Analysis
11.1.5. Strategic Analysis
11.1.6. Recent Developments
11.2. Travel + Leisure Co. (USA)
11.3. Accor S.A. (France)
11.4. Expedia Group, Inc. (USA)
11.5. The Priceline Group, Inc. (USA)
11.6. Hilton Worldwide Holdings Inc. (USA)
11.7. American Express Global Business Travel (USA)
11.8. Booking Holdings Inc. (USA)
11.9. TripAdvisor, Inc. (USA)
11.10. Airbnb, Inc. (USA)
11.11. Royal Caribbean Group (USA)
11.12. Norwegian Cruise Line Holdings Ltd. (USA)
11.13. Qantas Airways Limited (Australia)
11.14. Delta Air Lines, Inc. (USA)
11.15. Lufthansa Group (Germany)
11.16. Air Canada (Canada)
11.17. Emirates Group (United Arab Emirates)
11.18. Singapore Airlines Limited (Singapore)
11.19. China Southern Airlines Co., Ltd. (China)
11.20. Carnival Corporation & plc (USA)
11.21. LATAM Airlines Group S.A. (Chile)
11.22. Japan Airlines Co., Ltd. (Japan)
11.23. ANA Holdings Inc. (Japan)
12. Key Findings
13. Analyst Recommendations
13.1. Strategic Recommendations
13.2. Future Outlook