New Delhi: India’s growing middle class and its travel-loving population are set to play a major role in shaping the future of global leisure travel, a new report said on Wednesday. 

As more Indians explore new destinations, the country is emerging as a key contributor to what is projected to be a $15 trillion global leisure travel industry by 2040, according to data compiled by the Boston Consulting Group (BCG).

The report highlights that annual global consumer spending on leisure travel is expected to triple from $5 trillion in 2024 to $15 trillion by 2040, making it a larger industry than pharmaceuticals and fashion.

This dramatic growth will be driven by rising incomes in developing economies and a growing preference for experiences over material goods.

India’s domestic leisure travel has already shown a strong recovery after the pandemic, with spending between 2019 and 2024 registering moderate to strong growth.

BCG projects this momentum to continue, with domestic travel spending rising by 12 per cent annually, regional spending by 8 per cent, and international spending by 10 per cent.

Overnight trips are also expected to grow steadily -- 3 per cent domestically, 4 per cent regionally, and 6 per cent internationally.

Millennials and Gen Z are at the forefront of this travel surge, with their enthusiasm for travel outpacing older generations by up to 26 percentage points.

In India, even Gen X remains a powerful travel segment, unlike in many developed countries where their influence is waning.

Globally, leisure travel overnights are expected to grow 4 per cent annually through 2029 and then slow to 3 per cent per year until 2040.

Domestic travel will continue to dominate, growing from a value of $4.1 trillion in 2024 to $11.7 trillion by 2040, as per the report.

Regional travel is forecast to increase from $710 billion to over $2 trillion, while international leisure travel will more than triple to $1.4 trillion, according to the report.

(IANS)