India’s leisure travel market is booming, set to hit $15 trillion globally by 2040. Driven by Gen Z, multigenerational trips, and ‘bleisure,’ this shift fuels massive growth in alternative stays, concert tourism, and international air routes. India is fast becoming a powerhouse in global tourism.
We’re diving into a huge story shaping the future of global tourism: the explosive growth of India’s leisure travel market and what it means for short-term rentals, hotels, and tourism providers worldwide.
According to a new report from Boston Consulting Group, the global leisure travel market is expected to triple to $15 trillion by 2040, and India is emerging as one of the key driving forces behind that growth.
Domestic leisure travel in India is growing at 12% annually.
International travel spending is up by 10% each year.
What’s fueling this? A younger, experience-driven generation—millennials and Gen Z—who prioritise meaningful, culturally rich journeys over budget options. There’s also a notable surge in multigenerational travel and ‘bleisure’ trips, where travellers combine business with leisure.
Even more interesting, budget is no longer the top driver for many Indian travellers. Convenience, ease of travel, and the quality of the experience are starting to matter more than price. This marks a significant shift for a market once thought to be primarily price-sensitive.
The vacation rental market is booming alongside this travel surge. One example: StayVista, an Indian vacation rental platform, just raised $4.7 million to expand its operations. This reflects a growing demand for private villas, group-friendly stays, and more flexible alternatives to traditional hotels.
At the same time, concert tourism is taking off. The Indian state of Assam has partnered with BookMyShow to bring international acts like Post Malone, aiming to turn the region into a cultural and tourism hotspot. This mirrors trends seen globally, where music festivals and major concerts are becoming key drivers of destination demand.
International airlines are also taking note. For example, Scandinavian Airlines (SAS) is returning to India after 17 years, launching direct flights between Copenhagen and Mumbai. This move signals how airlines view India as an essential growth market, both for outbound and inbound travel.
Combine that with India’s outbound travellers now spending over $1 billion per month on international travel, and the picture is clear: India isn’t just participating in global tourism growth—it’s leading it.
If you’re in the short-term rental space, here’s why this matters:
India is a fast-growing source market. Whether you’re hosting in Europe, the Middle East, Australia, or Southeast Asia, Indian guests are an increasingly important segment.
Cater to the experience-driven traveller. Focus on personalisation, cultural immersion, and flexibility. These are no longer luxury preferences—they’re expectations.
Group stays are a big opportunity. Indian travellers often travel in family groups or friend circles, making larger homes, villas, and multi-bedroom accommodations highly attractive.
Think beyond price. Quality, service, and seamless experiences are just as important as affordability to this audience.
India’s rise in the global travel market isn’t a future prediction—it’s happening now. With massive growth in leisure, alternative accommodations, and event-driven tourism, the ripple effects will be felt worldwide. For property managers, STR hosts, and hospitality businesses, the opportunity is simple: start planning for Indian travellers now—or risk missing out on one of the biggest growth markets of the next two decades.
