Leisure travel demand is a key factor in the recovery and growth of the travel industry after the pandemic. Leisure travelers are those who travel for pleasure, relaxation, recreation or personal enrichment, rather than for business or professional purposes. Leisure travel demand can be influenced by various factors, such as income, preferences, expectations, safety, convenience and accessibility.

According to the U.S. Travel Association, domestic leisure travel demand in the U.S. has been robust and resilient in the post-pandemic period, but it is starting to normalize from the surge experienced in the last year. The association forecasts that domestic leisure travel volume will grow by 2% in 2023 and 2024, while inflation-adjusted spending will grow by 1% and 2%, respectively. The association also expects international inbound travel demand to recover by 2025, driven by strong demand from Canada and Brazil, among other markets. For example, Canada accounted for 18% of total international arrivals to the U.S. in 2019, while Brazil was the fifth-largest overseas market with 1.9 million visitors. Both countries have shown strong interest and intention to travel to the U.S. once travel restrictions are lifted.

Leisure travel demand is essential for the economic and social benefits it brings to both travelers and destinations. Leisure travel can enhance well-being, happiness, creativity and cultural awareness for travelers, as well as generate revenue, employment, investment and development opportunities for destinations. Therefore, it is important for travel companies to create and capture leisure travel demand in a post-pandemic market.

To do so, travel companies need to understand and adapt to the changing needs and expectations of leisure travelers, who are looking for more personalized, flexible, sustainable and immersive experiences. Travel companies also need to leverage digital technologies, data analytics and innovation to improve their products, services and operations, as well as to enhance their customer engagement and loyalty. Moreover, travel companies need to collaborate with other stakeholders in the travel ecosystem, such as governments, airports, airlines and destinations, to ensure a safe, seamless and enjoyable travel journey for leisure travelers. For instance, some travel companies have partnered with health providers to offer COVID-19 testing and vaccination services for their customers, while others have implemented contactless check-in and payment systems to reduce physical contact.

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