How India Is Set to Be a Powerhouse in $15 Trillion Global Leisure Travel Market

The global leisure travel market is expected to triple in value by 2040 to reach $15 trillion, according to Boston Consulting Group’s new report. And India is among the countries expected to drive this surge.

Domestic leisure travel is expected to reach $12 trillion by 2040, while regional travel will triple to over $2 trillion, according to the report. International leisure travel is projected to grow the fastest, however, it will still hold the smallest share of around $1.4 trillion.

BCG added that the next wave of travelers is increasingly originating from “emerging markets” such as China, India, Saudi Arabia, and Vietnam. These markets, it added, are outpacing traditional tourism drivers like the U.S., U.K., and Germany.

Projections for India: “India is poised to become one of the most dynamic leisure travel markets globally,” said Nitima Malhotra, partner at BCG. “With domestic leisure travel spend projected to grow at 12% annually and international spend at 10% through 2040, Indian travelers are increasingly exploring both their own country and the world,” Malhotra added. “As travel becomes more digital, culturally relevant, and experience-led, India’s rising consumer base will play a pivotal role in shaping the next chapter of global leisure travel.”

In its report, BCG noted that India experienced moderate to strong growth in leisure travel spending from 2019 through 2024, “suggesting a quick recovery from Covid-19-related impacts on travel.” It is expecting significant continued growth as Indian travelers are increasingly traveling domestically as well as internationally.

It projected that for Indian travelers, domestic, regional, and international overnights will rise by 3%, 4%, and 6%, respectively, per year.

The Changing Indian Dynamics: There is a clear shift in the travel industry led by millennials and Gen Z travelers, Malhotra said. This generation is traveling more and also seeking “experiences that blend value, personalization, and purpose.”

“India also stands out for its strong preference for multigenerational travel and the growing popularity of ‘bleisure’, with over 70% of travelers looking to combine work and leisure,” she said.

BCG’s report found that younger Indian travelers are planning to take more trips next year and also intend to spend more on travel. While Millennials are most likely to combine business with leisure travel, over 80% of Indian travelers have done so at least once.

Indian travelers prefer taking trips with their spouse or with family, with less than 10% preferring to travel alone, BCG said. Still, family or friends is a lower factor for Indian travelers’ travel plans as compared to activities and ease of travel. These factors also trump the cost factor, even as Indians are historically budget-conscious travelers. This is in line with the recent trend of Indians choosing to spend more on travel plans for unique experiences.

It added that religious travel, although a global niche, is a prominent travel preference among Indians.

Indian villa rental platform StayVista has raised more than INR 400 million ($4.7 million) in its Series B funding round. The company said that the funding will drive its strategic expansion into new markets, while allowing it to “strengthen its service offerings” and “elevate its guest and host experiences.”

StayVista Co-Founder Pranav Maheshwari said that over the past few years, the company has turned profitable and has more than 1,000 homes on its platform.

The investment was led by JSW Ventures, along with existing investors DSG Consumer Partners and Capri Global.

For JSW Ventures, the investment came as there is a clear shift in traveler preferences from hotels to alternative accommodation, said Sachin Tagra, managing partner.

According to Skift Research, in August 2023, only about 7% of Indian travelers opted for vacation rentals. However, last July, Skift Research’s preliminary analysis indicated that the Indian short-term rental industry could expand into a $3 billion market by 2033.

In an interview with Skift last year, Amit Damani, the co-founder of StayVista, said, “The market for alternative accommodations in India is still in its nascent stage.” He said that Indian travelers often take trips in groups, and seek “private, exclusive spaces that can accommodate their entire group, which hotels often cannot provide.”

Indian travelers spent nearly $1.3 billion on international travel in April 2025, Skift reported. This is a 10% increase year-on-year and 13% higher than March, according to data from India’s central bank Reserve Bank of India.

Travel accounted for over 51% of the total international spending by Indians during April, while in March this was around 44%. The monthly international travel spending of Indians has consistently exceeded $1 billion, with it having reached $1.1 billion in February and $1.13 billion in March.

In fiscal year 2024, Indians spent a record $31.7 billion abroad. International travel accounted for 54% of this spending amounting to $17 billion. In the 2025 fiscal year while total overseas spending dipped to $29.5 billion, travel spending remained steady at $16.9 billion, signaling a stabilized international travel spending pattern post-Covid.

Notably, in August 2024, Indians spent over $2 billion on international travel, accounting for nearly 63% of that month’s $3.2 billion in foreign spending.

Scandinavian Airlines, the flag carrier of Denmark, Norway, and Sweden, is returning to India after 17 years. The airline will be launching a new direct service from Copenhagen to Mumbai next June, allowing people to travel on the route in nine hours. The airline will operate five weekly flights on the route.

The airline’s President and CEO Anko van der Werff said that India is a key global market, both in terms of growing demand and economic importance. “Mumbai is a natural next step in our strategy to link Scandinavia with one of the world’s most important regions for business and leisure travel,” he said, adding that the route will also support increased connectivity between India and Northern Europe, as well as between India and North America.

In line with this, the airline said that the flight times have been “designed to support smooth transfers to and from major destinations in Scandinavia, Europe, and North America.”

Northeastern state of Assam has tied up with entertainment platform BookMyShow to boost the concert economy in the state. Through this agreement, the state is seeking to become a leading music and tourism destination. This initiative is set to begin with rap artist Post Malone’s concert in Guwahati in December.

Under the partnership, the concerts will be conducted exclusively through BookMyShow and the state government will not interfere. No free passes for the concerts will be issued, even for ministers, Chief Minister Himanta Biswa Sarma said.

This comes after the state recently approved its Concert Tourism Policy as live concerts have become a strong driver for travel in India. Skift had earlier reported that over 222,000 people attended British rock band Coldplay’s Ahmedabad concerts earlier this year.

A report by BookMyShow Live and EY’s strategic consulting arm EY-Parthenon said that the concert generated an estimated economic impact of INR 6.41 billion ($75 million) for Ahmedabad. For the three days that the concert was held, Ahmedabad airport handled 138,000 travelers. The inflow of tourists for the concert also pushed up room rates as hotel bookings increased 1047% during January 26-28.

IndiGo has announced a direct service between Hindon airport in Ghaziabad and Goa starting this month. The airline will operate six flights a week on the route.

Last week, the airline announced its plans to commence operations from the Hindon airport in the Delhi national capital region (Delhi-NCR). At the time of the announcement, it said that it would launch services connecting Hindon with eight cities - Ahmedabad, Bengaluru, Chennai, Indore, Kolkata, Mumbai, Patna, and Varanasi.

The Hindon airport in Uttar Pradesh is located in Ghaziabad providing connectivity for residents of Ghaziabad, East Delhi, and Western Uttar Pradesh.

Wanderlust follows the latest stories in tourism and experiences from across the globe.

Get it in your inbox every Thursday.

By submitting this form, you agree to receive email communication from Skift.