Leisure travel market expected to hit $1,737.3bn. by 2027

WILMINGTON, NEW CASTLE, DELAWARE 19801 USA, UNITED STATES – A new report by Allied Market Research titled, “Leisure Travel Market by Traveler Type, Sales Channel, By Age Group and By Expenditure Type: Opportunity Analysis and Industry Forecast, 2021–2027,”  provides a detailed analysis of the top investment pockets, top winning strategies, drivers & opportunities, market size & estimations, competitive landscape, and changing market trends. The global leisure travel market size was valued at $1,006.5 billion in 2019, and is projected to reach $1,737.3 billion by 2027, registering a CAGR of 22.6% from 2021 to 2027.

Rise in social media use, and pursuit of unique experiences to heighten the global tourism industry are the major factors driving the growth of the global leisure travel market. On the other hand, fluctuating fortunes for destinations curtail down the growth to some extent. However, unique destinations gaining high traction amongst tourists, and new trends prevailing among millennials are expected to pave the way for a plethora of opportunities in the industry.

As consumers increasingly embrace travel, stakeholders in the tour and travel sector face significant pressure to enhance consumer experiences, catering to diverse travel preferences. Consequently, effective management of marketing budgets becomes crucial in this fiercely competitive, consumer-focused tourism industry. Identifying target demographics, crafting appropriate messages, selecting optimal marketing channels, and timing campaigns strategically are pivotal factors for success.

The future of the leisure travel industry will be heavily influenced by technological advancements worldwide. Innovations in artificial intelligence, big data analytics, social media, and machine learning will reshape consumer expectations across various facets of leisure travel, ranging from destination selection and visa acquisition to currency exchange, bookings, and payments. Digital technologies will increasingly infiltrate travelers’ personal spheres, providing end-to-end customer solutions with unparalleled convenience.

Evidence of evolving leisure travel market is emanating across regions whether developing or developed. Deployment of digital technologies including but not limited to artificial intelligence, big data and analytics, Internet of Things will continue to remain in cynosure for rapidly developing tourism industry. The increasing advent of digitalization will continue to foster bringing paradigm shift in the leisure travel and tourism industry regarding how engaged stakeholders will reach out to tech-savvy customers.

The outbound leisure travel have gained significant momentum at the starting of 21st century as the result of rise in disposable income, expansion of logistics & infrastructure, rigorous promotion & advertising of tourism by governments. The outbound tourism market has expanded sprightly, as a result the number of outbound tourists maintained robust growth each year from 2002 to 2018.

Based on age group, the generation X segment held the major share in 2018, garnering nearly two-fifths of the total market. Simultaneously, the millennials segment would register the fastest CAGR of 6.6% till 2026. The segment of generation Z is also analyzed in the market report. In addition, the travel & tourism industry will suffer a loss of $910 billion to $1.2 trillion in export revenues from tourism in 2020, which is further expected to hamper the growth of the market. Moreover, according to UNWTO, the pandemic is likely to increase unemployment by putting around 100 to 120 million direct tourism jobs at risk, thereby restraining the growth of the leisure travel market.

UK is at the verge of Brexit and no deal exit might have appalling ramifications on the outbound tourism market. According to AMR analysis a no deal Brexit might cause a drop of about 5-7% in out bound travelers from UK. Spain, France and Italy would see a significant drop of tourists travelling from UK owing to weaker exchange rate, imposition of tariffs, higher air fare rates and higher travel insurance premiums. A decrease in the value of British currency will result in changing UK residents preferences for domestic holidays A no deal scenario will result in increased overall expenditure incurred by UK residents. No deal exit will have cascading effect to the UK economy, which will negatively impact UK outbound tourism industry.

The key market players analyzed in the market report include Priceline Group, Thomas Cook (India) Limited and Cox & Kings Ltd., Carlson Wagonlit Travel, Expedia Group, World Travel, Inc., American Express Travel, Travel Leaders Group, JTB Americas Group, and TUI Group.

𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐚𝐧𝐝 𝐃𝐞𝐦𝐚𝐧𝐝𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧 𝐨𝐟 𝐋𝐞𝐢𝐬𝐮𝐫𝐞 𝐓𝐫𝐚𝐯𝐞𝐥

• 𝐓𝐨𝐮𝐫𝐢𝐬𝐦 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐆𝐫𝐨𝐰𝐭𝐡: The primary opportunity lies in the overall growth of the tourism industry. As more people have disposable income and a desire for leisure, the demand for travel experiences increases.
• 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐓𝐫𝐚𝐯𝐞𝐥 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬: There is an increasing demand for unique and personalized travel experiences. This opens up opportunities for businesses to offer specialized services such as adventure tourism, cultural experiences, and eco-friendly travel options.
• 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐓𝐨𝐮𝐫𝐢𝐬𝐦: With an increased awareness of environmental issues, there is a growing demand for sustainable tourism practices. Businesses that adopt eco-friendly initiatives can attract environmentally conscious travelers.
• 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭: The expansion of leisure travel necessitates the development and maintenance of infrastructure, including transportation networks, airports, and tourist attractions.
• 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬: Governments and regulatory bodies need to adapt to the growing demands in the leisure travel sector by implementing and updating policies to ensure safety, security, and sustainability.
• 𝐄𝐧𝐯𝐢𝐫𝐨𝐧𝐦𝐞𝐧𝐭𝐚𝐥 𝐂𝐨𝐧𝐬𝐞𝐫𝐯𝐚𝐭𝐢𝐨𝐧:As travel increases, the impact on the environment becomes more significant. There is a demand for responsible tourism practices and efforts to minimize the ecological footprint of leisure travel.

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor’s degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.