Leisure Travel Industry: A $15 Trillion Opportunity by 2040, According to BCG
The leisure travel industry is currently witnessing an unprecedented growth. Boston Consulting Group (BCG) projects that the market will triple from its current value of $5 trillion in 2024 to reach a staggering $15 trillion by 2040. This dramatic expansion is primarily driven by a burgeoning middle class in emerging markets who are increasingly eager to travel, and a growing societal emphasis on experiences over material possessions.
The BCG’s market research reveals that domestic trips constitute the majority of leisure travel, particularly in emerging markets. To capitalize on this $15 trillion opportunity, travel companies are advised to attract local and regional tourists alongside international visitors, while simultaneously preparing for rapidly evolving customer demographics.
Airlines, in particular, should anticipate growth patterns similar to the 6.5% air travel growth witnessed in 2024, continuing into 2025. However, various economic and geopolitical variables remain in play. The report emphasizes that younger, digital-savvy travelers are increasingly seeking wellness-focused, culturally rich experiences powered by AI-driven journey planning.
Travel and tourism companies have already demonstrated strong value creation for investors over the past five years. This has been largely due to the global economic recovery and increasing travel demand from developing markets.
Source: BCG