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India’s expanding middle class and its increasingly travel-savvy youth are expected to reshape the global leisure travel landscape, according to a new report released Wednesday by the Boston Consulting Group (BCG).

The report forecasts that the global leisure travel industry is on track to triple in size, from $5 trillion in 2024 to a staggering $15 trillion by 2040. This would make it larger than both the pharmaceutical and fashion industries. India is projected to be a key contributor to this growth, driven by rising incomes and a generational shift toward prioritizing experiences over possessions.

BCG attributes this travel boom to growing affluence in emerging economies, with India standing out as a major player due to its youthful demographic profile and evolving consumption patterns.

Domestic Travel Shows Strong Momentum

India’s domestic leisure travel has already rebounded strongly post-pandemic. From 2019 to 2024, the country witnessed moderate to robust growth in this sector. Looking ahead, BCG anticipates annual domestic travel spending to increase by 12 per cent, regional travel by 8 per cent, and international leisure travel by 10 per cent.

Overnight travel is also expected to maintain steady momentum—rising 3 per cent for domestic trips, 4 per cent for regional travel, and 6 per cent for international journeys.

Youth Drive The Demand Surge

Millennials and Gen Z are leading the charge globally, with travel interest outpacing that of older generations by up to 26 percentage points. In India, even Gen X continues to play a strong role in leisure travel—contrasting with global trends where their impact is fading.

Global Travel Forecasts

Worldwide, leisure overnight trips are expected to grow at an annual rate of 4 per cent until 2029, before moderating to 3 per cent per year through 2040.

Domestic travel will continue to dominate, increasing from $4.1 trillion in 2024 to $11.7 trillion by 2040. Regional travel is forecast to rise from $710 billion to more than $2 trillion, while international leisure travel is expected to exceed $1.4 trillion, more than tripling in value.