Is India’s Expanding Middle Class Set to Propel the Global Leisure Travel Boom?
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Synopsis
India's burgeoning middle class and its adventurous youth are on the brink of reshaping global leisure travel. With expectations of the leisure travel market soaring to $15 trillion by 2040, this report unveils exciting insights into how India will play a crucial role in this booming industry.
Key Takeaways
- India's middle class is a significant driver of global leisure travel.
- The leisure travel market is set to reach $15 trillion by 2040.
- Increasing incomes in developing economies are fueling travel growth.
- Millennials and Gen Z are reshaping travel preferences.
- Domestic travel spending is projected to grow at 12 percent per year.
New Delhi, July 2 (NationPress) The expanding middle class in India, along with its youthful and adventure-seeking population, is poised to significantly influence the future of global leisure travel, according to a new report released on Wednesday.
As more Indians seek out new travel experiences, the nation is emerging as an essential player in what is anticipated to become a $15 trillion global leisure travel market by 2040, as per data from the Boston Consulting Group (BCG).
The report emphasizes that worldwide consumer expenditure on leisure travel is projected to triple from $5 trillion in 2024 to $15 trillion by 2040, surpassing industries such as pharmaceuticals and fashion.
This remarkable growth will be fueled by increasing incomes in developing regions and a shift towards prioritizing experiences over material possessions.
India has witnessed a robust recovery in domestic leisure travel post-pandemic, with spending from 2019 to 2024 showing moderate to strong growth.
BCG forecasts this trend to persist, with domestic travel spending increasing by 12 percent annually, regional spending by 8 percent, and international spending by 10 percent.
Overnight trips are also expected to witness steady growth – 3 percent domestically, 4 percent regionally, and 6 percent internationally.
Millennials and Gen Z are leading this travel trend, showing a greater enthusiasm for travel compared to older generations by as much as 26 percentage points.
In India, even Gen X remains a significant travel demographic, contrary to many developed nations where their impact is diminishing.
On a global scale, leisure travel overnight stays are anticipated to grow by 4 percent annually through 2029, before tapering to 3 percent per year until 2040.
Domestic travel is expected to remain dominant, increasing from a valuation of $4.1 trillion in 2024 to $11.7 trillion by 2040, according to the report.
Regional travel is projected to rise from $710 billion to over $2 trillion, while international leisure travel is likely to more than triple, reaching $1.4 trillion, as indicated in the report.
Point of View
It's evident that India's middle class is not just a demographic but a transformative force in the global economy. The trend towards experiential travel is reshaping not only our domestic landscape but also impacting global travel patterns significantly. It's vital for stakeholders to recognize and adapt to these changes to harness the opportunities ahead.
NationPress
10/09/2025
Frequently Asked Questions
What is the projected value of the global leisure travel market by 2040?
The global leisure travel market is projected to reach $15 trillion by 2040.
How much is domestic travel spending expected to grow in India?
Domestic travel spending in India is expected to rise by 12 percent annually.
Which demographics are leading the travel surge in India?
Millennials and Gen Z are at the forefront of the travel surge in India.
What is the expected annual growth rate for overnight trips?
Overnight trips are expected to grow by 3 percent domestically, 4 percent regionally, and 6 percent internationally.
How much will international leisure travel increase by 2040?
International leisure travel is expected to triple to $1.4 trillion by 2040.
