PORTLAND, OR—Allied Market Research recently published a report, titled, “Leisure Travel Market: Global Opportunity Analysis and Industry Forecast, 2021-2027,” which projected the global travel industry to reach $1.7 trillion by 2027, growing at a CAGR (compound annual growth rate) of 22.6% from 2021 to 2027. The report also noted that the industry was pegged at $1 trillion in 2019.
The pursuit of unique experiences, the emergence of mobile applications, big data analytics and artificial intelligence in the tourism industry, as well as the rise in social media influence, drive the growth of the global leisure travel market, according to the report. However, the rise in terrorism and domestic issues in several countries and confined tourism due to natural environmental conditions hamper market growth. On the contrary, the advent of eco-friendly tourism and rise in search for unique destinations by tourists are expected to create lucrative opportunities for market players in the future.
By age group, the Generation X segment held the largest share in 2019, accounting for nearly two-fifths of the global leisure travel market, as this demographic has more disposable income and holidays compared to Millennials. However, the Millennials segment is expected to register the highest CAGR of 23.7% during the forecast period, as this demographic is driven by wanderlust and breaking life’s monotony.
By expenditure type, the events and entertainment segment is expected to register the highest CAGR of 26.2% during the forecast period, as international events such as the FIFA World Cup attract more tourists. However, the lodging segment held the lion’s share in 2019, contributing to more than two-fifths of the global leisure travel market, as lodges offer several services such as fitness centers, spas, yoga space, air purification and pools.
By region, the market across Asia-Pacific held the largest share in 2019, accounting for nearly two-fifths of the market. Moreover, the region is expected to portray the highest CAGR of 24.1% from 2021 to 2027, owing to rapidly growing economy and new job opportunities promoting an increase in household income. However, the global leisure travel market across North America is expected to register a CAGR of 20.4% during the forecast period.