Leisure Travel Market Size, Share, Competitive Landscape and Trend Analysis Report, by Traveler Type, by Age Group, by Expenditure Type, by Sales Channel : Global Opportunity Analysis and Industry Forecast, 2024-2033

Key market dynamics 

• Nowadays, technology has become a basic prerequisite to ensure multiple operations are carried out immaculately, and the tourism industry is no different. Technology has always been a supporting factor for the travel and hospitality industry. Technology is disrupting the established market with the advent of web-based booking and use of AI and IoT in operation optimizations. Technology-driven players such as online hotel aggregators and metasearch engines have heavily invested in big data analytics to make analytics-driven business decisions. Furthermore, use of Artificial Intelligence has been deployed in chatbots and virtual assistants to provide seamless customer experience is expected to boost leisure travel market demand 

• Rise in exposure of people to different forms of social media has enhanced their knowledge about various trends shaping the tourism industry. Social media is increasingly becoming a pseudo-travel agent. Customers are increasingly opting for travel services and products by taking advice from the people who have either stayed or traveled there before. They also refer to reviews and insights detailed on various social networking sites. Views and opinions shared on sites offer better transparency with respect to products which is expected to propel leisure travel market growth. 

• Travelers are opting for unique and exotic holiday destinations, to get away from the hectic daily schedule and gain valuable experiences. Private, quiet, serene, and exotic locations are major factors that people consider while choosing their travel location. Private islands have been voted as top preference by the luxury travelers. In addition, destinations that are culturally and traditionally intriguing are becoming popular among affluent travelers, owing to the growing interest of people in learning and understanding the local culture. Travelers who want to gain a firsthand taste of culture and local life often opt for culinary tours. According to the 2016 Food Travel Monitor, approximately 95% American travelers opted for some unique food experience while traveling. Therefore, a rise in demand for unique holiday experiences is expected to drive leisure travel market growth. 

Value Chain Analysis 

Each stage in the value chain contributes to the overall value of leisure travel and influences factors such as pricing, quality, and customer satisfaction. Analyzing each step helps identify areas for improvement and opportunities for innovation in the market. 

• Inbound Logistics: Inbound logistics in the leisure travel market involves establishing strong relationships with airlines, hotels, and other suppliers, and effectively managing travel inventory to ensure adequate availability. This includes negotiating favorable terms and ensuring seamless coordination to provide a diverse range of travel options, thereby enhancing the overall customer experience and meeting fluctuating demands. 

• Operations: Operations focus on streamlining booking systems, providing exemplary customer service, and meticulously planning travel itineraries. This encompasses the creation of user-friendly online platforms, responsive support for inquiries and issues, and the design of personalized travel plans and guided tours, all aimed at delivering a seamless and enjoyable travel experience from start to finish. 

• Outbound Logistics: Outbound logistics involves managing the distribution of travel services through various channels, ensuring timely delivery of tickets and travel documents, and maintaining efficient communication with customers. This includes leveraging online travel agencies, traditional agents, and direct sales to reach customers effectively, while also ensuring all necessary documentation is accurate and promptly provided. 

• Marketing and Sales: Marketing and sales strategies include conducting thorough market research, developing impactful advertising campaigns, and implementing sales tactics such as discounts and loyalty programs. This helps in understanding customer preferences, promoting travel packages, and building a strong brand presence. Engaging marketing efforts attract new customers, while strategic sales initiatives drive bookings and customer retention. 

• Service: Service entails providing comprehensive customer support, gathering, and acting on feedback, and offering on-trip enhancements like guided tours and local experiences. This includes 24/7 assistance for travel-related queries and emergencies, ensuring customer satisfaction through continuous improvement, and enriching the travel experience with added services that create memorable and personalized journeys. 

• Technology Development: Technology development focuses on creating and maintaining user-friendly websites and mobile apps, leveraging data analytics for personalization, and incorporating AI and automation for efficiency. This enhances the customer experience by providing seamless booking, tailored recommendations, and efficient service management, ensuring that technological advancements contribute significantly to the overall value offered to travelers. 

• Procurement: Procurement involves selecting high-quality suppliers, negotiating favorable contracts, and ensuring consistent quality assurance. This includes choosing reliable service providers, securing competitive pricing, and regularly assessing supplier performance to maintain high standards. Effective procurement practices ensure the availability of superior travel options, contributing to an overall satisfying travel experience. 

• Human Resource Management: Human resource management encompasses recruiting skilled staff, providing comprehensive training, and implementing retention programs. This involves hiring knowledgeable personnel, equipping them with necessary industry and customer service skills, and creating incentive programs to retain top talent.  

• Infrastructure: Infrastructure includes maintaining strategic office locations, investing in robust IT systems, and ensuring legal compliance. This involves having offices for efficient operations, advanced IT systems for seamless processes, and adherence to travel regulations. 

Market Segmentation 

The leisure travel market has been segmented based on traveler type, sales channel, age group, and region. Based on traveler type, the leisure travel market is bifurcated into solo and group. Based on sales channel, the global market is studied across conventional channels, online channels. The report also gives insights on the leisure travel market by age group which includes baby boomers, generation X, Millennials and Generation- Z. Region wise, the market is studied across North America, Europe, Asia-Pacific, Latin America and Middle East, and Africa. 

Regional Market Outlook 

Asia-Pacific held the major leisure travel market share in 2023, particularly owing to Asia-Pacific has been known for its diverse culture and attractive destinations. China, Japan, South Korea, India, and Malaysia have the highest outbound trip concentration among the higher household income brackets. Based on the household income, households earning above $10, 000 account for more than 73% of all outbound travel. This can be attributed to the rapidly growing economy and new job opportunities promoting an increase in household income in the Asia-Pacific region. ???????

 Industry Trends 

• Experiential travel has become a significant trend, with travelers seeking more meaningful and personalized experiences over traditional sightseeing. Leisure travel market trends is characterized by a desire for unique, immersive experiences that allow travelers to engage with local cultures and environments. Companies like Airbnb have capitalized on this by offering "Airbnb Experiences, " which are activities designed and led by locals, such as cooking classes, guided tours, and cultural workshops. Similarly, G Adventures focuses on small group travel with an emphasis on authentic experiences, such as community-based tourism and adventure travel. 

• Sustainability has become a major focus in the travel industry, with increasing demand for eco-friendly and responsible travel options. Travelers are more conscious of their environmental footprint and prefer companies that prioritize sustainability. For example, Intrepid Travel offers carbon-offset trips and promotes sustainable practices such as staying in eco-friendly accommodations and supporting local communities. Another example is the Six Senses hotel chain, which integrates sustainability into its operations through practices like waste reduction, renewable energy use, and conservation programs. 

• The integration of technology in the travel industry has transformed how travelers plan, book, and experience their trips. From mobile apps and online booking platforms to virtual reality (VR) tours and AI-powered travel assistants, technology enhances convenience and personalization. Expedia Group is a leading example, offering a comprehensive platform for booking flights, hotels, and activities, along with AI-driven recommendations. Google Travel is another key player, utilizing its extensive data and AI capabilities to provide personalized travel planning tools and insights. 

• Adventure travel continues to grow, attracting travelers who seek excitement and outdoor activities. This trend encompasses a wide range of activities, from hiking and cycling to extreme sports like skydiving and white-water rafting. Companies like REI Adventures and National Geographic Expeditions specialize in adventure travel, offering trips that focus on outdoor activities and exploration of remote destinations. These companies emphasize safety, expert guides, and sustainable practices to appeal to adventure enthusiasts. 

Competitive Landscape 

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

Recent Key Strategies and Developments 

• In March 2024, American Express Global Business entered into a definitive agreement to acquire CWT, a global business travel and meetings solutions provider, in a transaction that values CWT at approximately $570 million on a cash-free, debt-free basis, subject to certain assumptions and purchase price adjustments. 

• In April 2019, Expedia Group, Inc. and Liberty Expedia Holdings, Inc. entered into a definitive agreement under which Expedia Group has agreed to acquire Liberty Expedia in an all-stock transaction. Liberty Expedia's principal asset is approximately 23.9 million shares of Expedia Group (consisting of 11.1 million shares of Expedia Group common stock and 12.8 million shares of Expedia Group Class B common stock) . 

• In November 2017, Thomas Cook India Group completes acquisition of Kuoni’s Global Destination Management Network.  

Key Benefits for Stakeholders 

• This report provides a quantitative analysis of the leisure travel market segments, current trends, estimations, and dynamics of the leisure travel market analysis from 2024 to 2033 to identify the prevailing leisure travel market opportunities. 

• Market research is offered along with information related to key drivers, restraints, and opportunities. 

• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network. 

• In-depth analysis of the leisure travel market segmentation assists to determine the prevailing market opportunities. 

• Major countries in each region are mapped according to their revenue contribution to the global leisure travel market statistics. 

• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players. 

• The report includes the analysis of the regional and global leisure travel market trends, key players, market segments, application areas, and market growth strategies.