The leisure travel market is heading toward explosive growth fueled by experiential, sustainable, and AI-personalized trips amid rising incomes. It is expected that experiential demand will increasingly prioritize unique adventures and wellness over traditional sightseeing.
Chicago, Feb. 10, 2026 (GLOBE NEWSWIRE) — The global leisure travel market size was valued at USD 5.50 trillion in 2025 and is projected to hit the market valuation of USD 9.57 trillion by 2035 at a CAGR of 5.70% during the forecast period 2026–2035.
Global demand for the leisure travel market is expanding rapidly, driven by a fundamental shift in consumer values where experiences now outweigh material possessions. Data from UN Tourism confirms that international arrivals reached 1.4 billion in 2024, recovering to 99% of pre-pandemic levels. This surge is financially supported by robust spending habits; the GBTA projects global business travel spending—which significantly influences leisure extensions—will hit USD 1.48 trillion in 2024.
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Furthermore, IATA forecasts that total airline industry revenues will surpass USD 1 trillion for the first time in 2025, signaling a historic financial milestone for the sector. Travelers are aggressively prioritizing their holidays despite broader economic uncertainties. According to Hilton’s 2024 trends, 64% of global travelers plan to reduce other personal spending to ensure they can prioritize leisure travel.
Financial commitment is further evidenced by Booking.com findings, which show 48% of travelers expect to spend more on travel in 2024 than in the previous year. Optimism is high, with 77% of global leisure travelers feeling excited about exploring the world in 2025. These indicators suggest the leisure travel market is entering a period of resilient, value-driven growth.
Key Market Vital Signs (2026 Year-to-Date):
- Top Disruption Vector: Generative AI has moved from novelty to utility, influencing $350 Billion in booking value through hyper-personalized itinerary agents. Adoption metrics have tripled since 2023, with 58% of active travelers now utilizing AI tools for planning, fundamentally bypassing traditional OTA filters.
- Strategic Takeaway: The era of “easy growth” via pent-up demand is over. The winners of 2026-2030 will be defined by Inventory Efficiency (AI) and Niche Dominance (Wellness/Adventure). This is evidenced by the “subscription-based” living models (e.g., Portal, Zoku) replacing standard room rates for long-term travelers.
- Total Addressable Market (TAM): By 2030, the leisure travel market is projected to reach $7.2 Trillion.
- Inflationary Impact: Adjusted for inflation, real revenue growth sits at 3.2%. The “sticker shock” of 2023-2024 has normalized, but baseline pricing for accommodation remains 22% higher than 2019 benchmarks.
By Distribution Channel, Digital Transformation Reshaping Booking Preferences and Raising Traveler Expectations Worldwide
Technology continues to streamline the leisure travel market, with 80% of travelers stating it is important to book their trip entirely online. Speed is critical; 75% of German travelers value easy access to travel info via apps. Booking behaviors are becoming more spontaneous, with Amadeus noting that 51% of North American hotel reservations in early 2024 were made within one week of travel.
Future expectations for the leisure travel market center on AI and sensory comfort. 66% of travelers want AI tools to provide up-to-date information on delays, and 74% desire more “block out noise” options across the travel journey. Inclusivity is also rising in demand, with 68% of travelers seeking sensory rooms in airports and hotels. Generations are aligned on value; 73% of Millennials, 74% of Gen Z, and 69% of Baby Boomers prefer travel experiences over material gifts.
Aviation Recovery Propelling Leisure travel market Toward Record Breaking Global Passenger Volumes
Aviation metrics for 2024 and 2025 paint a picture of full recovery and expansion for the market. IATA projects global passenger numbers will climb to 5.2 billion in 2025, while ACI World estimates 2024 traffic will close at 9.5 billion passengers globally. Financial health is returning to carriers, with airline net profits expected to reach USD 36.6 billion in 2025.
Operational efficiency is also peaking, as the average passenger load factor is forecast to hit 84% in 2025. Regional data further supports this upward trajectory in the leisure travel market. Amadeus reports that air capacity in the Americas rose 20% in early 2024 compared to 2023, meeting the surge in demand. Direct connectivity remains crucial, with 71% of travelers to North America arriving via direct flights. Looking ahead, IATA anticipates a 5.8% growth in Revenue Passenger Kilometers (RPKs) and a 7.1% rise in international traffic for 2025. Capacity is set to expand in tandem, with Available Seat Kilometers (ASK) increasing by 5.2%.
Hospitality Expansion Strengthening Global Leisure Market Through Growth In Hotel Development Pace
In the competitive hospitality segment of the leisure travel market, Marriott International’s 2024 performance offers a benchmark for aggressive expansion. The giant opened a record 123,000 rooms globally in 2024, closing the year with over 9,300 properties. Their confidence in future demand is evident in their massive pipeline, which stood at 577,000 rooms at year-end. This growth is not just in volume but in value, with net unit growth reaching 6.8% for the year.
Luxury remains a critical focus for the leisure travel market, as evidenced by Marriott signing 61 specific luxury hotel deals in 2024 alone. Their luxury pipeline has now swelled to 266 properties, catering to high-net-worth travelers. The branded residence model is also thriving, generating USD 2.1 billion in sales revenue in 2024. These figures confirm that major players are betting heavily on sustained, high-value demand, reinforcing the robust outlook for the broader hospitality sector.
Cruise Industry Renaissance Accelerating Market Recovery With Youthful and Diverse Traveler Demand
The cruise sector is outpacing other segments of the leisure travel market in terms of recovery speed. CLIA forecasts passenger volume will reach 35.7 million in 2024, a significant leap from 31.7 million in 2023. This resurgence is underpinned by strong consumer confidence, with 82% of travelers expressing a clear intent to cruise again.
To accommodate this demand, global cruise capacity is forecast to grow by 10% between 2024 and 2028. Demographics within the cruise segment of the leisure travel market are shifting younger and becoming more diverse. CLIA reports that 27% of cruisers over the past two years are new-to-cruise, indicating successful market penetration. Family travel is driving bookings, with 30% of families traveling with at least two generations. Interestingly, solo travelers now account for 8-13% of passengers. These shifts prove the sector is successfully shedding old stereotypes and attracting a broader base of leisure travelers.
Sleep and Wellness Tourism Redefining Hospitality Offerings In The Modern Travel Market
Rest and relaxation have become primary drivers in the leisure travel market, spawning the “sleep tourism” phenomenon. Hilton’s 2024 data reveals that 18% of travelers now pack their preferred pillow, and 10% bring a white noise machine. To ensure uninterrupted rest, 22% of guests utilize earplugs or headphones, while 33% listen to music or podcasts specifically to induce sleep. Hotels are adapting, as 20% of travelers now specifically request rooms away from elevators to minimize noise.
Wellness in the leisure travel market is evolving beyond spas to include longevity and gender-specific retreats. Booking.com found that 48% of UK travelers would pay for a holiday solely to extend their lifespan. Social support for wellness is also strong, with 47% of travelers encouraging the men in their lives to attend men-only wellness retreats. Travelers still have distinct setting preferences, with 60% preferring resort destinations for relaxation compared to 40% who favor city locations.
Experience Economy Transforming Consumer Behavior and Driving Event Centered Global Travel Demand
The “experience economy” is a dominant force in the leisure travel market, with mega-events dictating travel flows. Amadeus recorded a staggering 446% week-over-week growth in bookings to Australia coinciding with Taylor Swift concert dates. Similarly, bookings to Romania spiked 436% and flight searches to Athens jumped 62% following major concert announcements. This trend is formalized in traveler planning, with 24% of global travelers now arranging getaways specifically for concerts or sporting events.
Cultural immersion remains a top priority alongside entertainment in the leisure travel market. Hilton reports that 40% of respondents cite learning about different cultures as their primary reason to travel. Adventure is also trending upward across all age groups; 23% of Baby Boomers are now interested in high-octane adventures, a figure that has more than doubled from previous years. These statistics highlight a shift away from passive vacations toward active, event-driven itineraries.
Noctourism and Sustainability Trends Influencing Traveler Choices and Destination Development Globally
Climate change and overcrowding are birthing “noctourism” within the leisure travel market. Booking.com reveals that 62% of travelers are considering “dark sky” destinations to witness the stars, while 72% are interested in specific “starbathing” experiences. This shift is partly environmental; 61% of travelers plan to reduce sun exposure, and 57% of British travelers specifically seek darker, cooler skies to avoid heat. Rare phenomena drive urgency, with 59% of travelers seeking once-in-a-lifetime cosmic events.
Sustainability concerns are changing behavior in the leisure travel market beyond just carbon offsets. 54% of travelers say they will not tag nature locations on social media to protect them from over-tourism. Furthermore, 50% of UK travelers indicated they would book accommodation without lights to reduce light pollution. Travelers are also adopting “vintage voyaging,” with 51% interested in buying their vacation wardrobe at second-hand stores during the trip rather than buying new beforehand.
Regional Leaders and Emerging Markets Redefining The Global Geography Of Travel Growth
Geographic growth in the leisure travel market is uneven, with specific regions outperforming the global average. The Middle East is a standout, with UN Tourism reporting arrivals climbed 26% above 2019 levels in early 2024. In terms of spending growth, the Asia Pacific region leads, with a 36% increase in business-related travel spend, followed by Western Europe at 33% and North America at 25%. North American domestic traffic alone is set to reach 1.1 billion passengers in 2025.
Emerging destinations are capturing more attention in the leisure travel market. Amadeus data shows search volumes for Argentina from US travelers increased 159% in early 2024. Searches for El Salvador grew by 25% in late 2024, indicating a broadening of the typical tourist map. Financial flows are also shifting; 46% of parents (SKI – Spending Kids’ Inheritance) would rather spend money on trips than leave it as inheritance, and 58% of travelers admit their parents paid for part of their holidays.
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Leisure Travel Market Key Players:
- Absolute Travel
- American Express Travel
- Backroads
- Carlson Wagonlit Travel
- Classic Journeys
- Cox & Kings Ltd.
- Expedia Group
- G Adventures
- Inspiring Travel Company
- Journeys Within Tour
- JTB Americas Group
- Priceline Group
- TCS World Travel
- Travel Leaders Group
- Other Prominent Players
Key Market Segmentation:
By Traveler Type
- Solo
- Group
By Sales Channel
- Conventional Channels
- Online Channels
By Region
- North America
- Europe
- Asia Pacific
- Middle East
- Africa
- South America
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