New research reveals Gen Z travellers from China, India and Saudi Arabia will fuel massive travel industry growth over the next 15 years, with AI reshaping how trips are planned and booked. Olivia Palamountain reports

The global leisure travel industry is poised for explosive growth, with spending expected to triple from US$5 trillion in 2024 to US$15 trillion by 2040, according to a new report by Boston Consulting Group.

The surge will be driven primarily emerging markets, particularly China, India and Saudi Arabia, where burgeoning middle classes are eager to travel. Younger generations – millennials and Gen Z – are leading the charge, embracing digital technologies and seeking experiences over material possessions.

The research identifies significant shifts in travel patterns, with solo travel becoming mainstream (18% to 39% of travellers now take solo trips) and multigenerational travel rising due to changing lifestyles and flexible work arrangements.

Meanwhile, “bleisure” travel is particularly popular in emerging markets, where more than 70% of travellers plan to mix work with pleasure, compared to just 15% to 30% in established markets like the US, UK and Germany.

Artificial intelligence is revolutionising trip planning, with travellers increasingly using AI-powered search agents like ChatGPT for personalised recommendations. However, the research notes that “smart integration and handoffs between technology and the human touch will best meet travellers’ needs.”

Key Growth Areas:

Domestic travel dominance : Will account for US$11.7 trillion by 2040 (up from US$4.1 trillion in 2024), representing approximately 18 billion overnight stays

: Will account for US$11.7 trillion by 2040 (up from US$4.1 trillion in 2024), representing approximately 18 billion overnight stays Regional travel : Expected to triple from US$710 billion to just over US$2 trillion in the same timeframe

: Expected to triple from US$710 billion to just over US$2 trillion in the same timeframe International travel: Set to more than triple from US$425 billion to approximately US$1.4 trillion

Emerging Market Drivers:

China : On track to become the highest-spending leisure travel country, with domestic, regional and international spending growing by 10%, 11% and 11% annually respectively

: On track to become the highest-spending leisure travel country, with domestic, regional and international spending growing by 10%, 11% and 11% annually respectively India : Showing “significant continued growth” with domestic spending rising 12% annually, regional 8% and international 10%

: Showing “significant continued growth” with domestic spending rising 12% annually, regional 8% and international 10% Saudi Arabia: Benefiting from religious travel and new domestic destinations, with domestic spending growing 7% annually

Changing Travel Demographics:

Age groups : Millennials and Gen Z are “the most influential travellers globally,” planning more trips than older generations

: Millennials and Gen Z are “the most influential travellers globally,” planning more trips than older generations Travel companions : Multigenerational travel particularly prevalent in Vietnam, India, Mexico and Saudi Arabia

: Multigenerational travel particularly prevalent in Vietnam, India, Mexico and Saudi Arabia Solo travel: Now mainstream rather than niche, with younger generations most likely to travel alone

Destination Preferences:

Traditional favourites : Beaches, nature trips and cities remain top choices

: Beaches, nature trips and cities remain top choices Emerging trends : Wellness and spiritual travel gaining popularity, along with food tourism, especially in Asia

: Wellness and spiritual travel gaining popularity, along with food tourism, especially in Asia Purpose-driven experiences: Travellers seeking more curated, meaningful journeys

Five Traveller Archetypes Identified:

Relaxation : Seeking rejuvenation and time with loved ones

: Seeking rejuvenation and time with loved ones Fun : Focused on freedom, escape and enjoyment—particularly common in Germany and China

: Focused on freedom, escape and enjoyment—particularly common in Germany and China Safety : Prioritising health and security for families—important in Nigeria, India, Vietnam and Saudi Arabia

: Prioritising health and security for families—important in Nigeria, India, Vietnam and Saudi Arabia Meaningful Value : Wanting comfort and stress-free trips—emphasised by Western travellers

: Wanting comfort and stress-free trips—emphasised by Western travellers Uncompromising: Mainly from emerging markets and younger demographics, wanting “it all: relaxation as well as exciting, high-quality experiences”

Technology and AI Impact:

Search evolution : “GenAI search may pose an existential threat to travel companies” as AI platforms increasingly direct users to offers

: “GenAI search may pose an existential threat to travel companies” as AI platforms increasingly direct users to offers Social media influence : Emerging-market travellers particularly rely on social platforms for inspiration

: Emerging-market travellers particularly rely on social platforms for inspiration Booking transformation: AI-powered conversational booking becoming standard, though human interaction remains valued

Industry Recommendations:

Airlines : Refine networks for emerging market routes, enhance AI personalisation, adapt loyalty programmes for multigenerational and bleisure travellers

: Refine networks for emerging market routes, enhance AI personalisation, adapt loyalty programmes for multigenerational and bleisure travellers Hotels : Integrate work-friendly amenities for bleisure travellers, ensure discoverability on AI platforms, optimise revenue management for flexible bookings

: Integrate work-friendly amenities for bleisure travellers, ensure discoverability on AI platforms, optimise revenue management for flexible bookings Cruise lines : Establish emerging markets as cruise hubs, attract first-time passengers with shorter trips

: Establish emerging markets as cruise hubs, attract first-time passengers with shorter trips Online travel agents: Optimise AI interfaces, prepare for conversational shopping, expand business lines to remain relevant

The research concludes that “travel is becoming a modular, lifestyle-aligned product” where “personalisation and flexibility now shape the full journey.”