Travel & Tourism

The cross-border foreign exchange (FX) ecosystem is undergoing a major transformation across Europe and the United States. With international travel recovering and consumer demand for seamless transactions rising, FX fees have become a critical point of friction. Traditional banking and card-based systems typically charge hidden mark-ups ranging from 1–3.5% on every transaction, translating to billions in consumer losses annually. In contrast, digital wallets offering real-time FX conversion, transparent pricing, and multi-currency functionality are rapidly emerging as cost-efficient disruptors. By 2030, digital wallets are projected to save travelers approximately $4 billion in cumulative FX-related fees. This will be driven by wallet adoption rising from 20% of frequent travelers in 2025 to 45% by 2030, supported by improved infrastructure, embedded fintech APIs, and heightened regulatory pressure on fee transparency. The FX margin among traditional card issuers will compress from 1.8% to near 1.2%, while wallet-based transactions stabilize at a much lower 0.5% margin. Europe leads this shift due to the PSD3 regulatory framework, the Digital Euro initiative, and mature fintech ecosystems, while the U.S. sees slower uptake but a larger total transaction base.

The AI-powered expense management market in the USA is projected to save $8B in corporate travel spend by 2030, driven by the adoption of automated expense reporting, real-time data tracking, and intelligent budgeting tools. By 2030, 50% of companies will be using AI-based systems to handle travel expenses, reducing fraud and cost overruns by 30%. With advanced analytics and predictive insights, AI will improve compliance, streamline workflows, and enhance employee satisfaction by offering faster reimbursements and greater visibility into spending patterns.

The Esports and Gaming Travel Payments ecosystem in Southeast Asia is set to expand from $1.1B in 2025 to $3.0B by 2032, achieving a CAGR of 15.2%. The growth is driven by the convergence of gaming tourism, digital wallets, and cross-border fintech innovation. By 2032, over 40 million esports travelers will engage in global events, fueling demand for instant, multi-currency, and crypto-compatible payment systems. Governments across ASEAN are also investing in payment interoperability frameworks, positioning Southeast Asia as a $3B hub for esports travel finance.

Crypto-based payments are emerging as a transformative niche within the U.S. travel industry, reshaping how consumers book flights, hotels, and travel packages. In 2025, crypto-payments represent an estimated $1.2 billion in booking value only 2% of total digital travel payments. By 2030, this share is expected to reach 8%, equating to a $10 billion market. The adoption is driven by improved payment infrastructure, rising crypto-asset liquidity, and increased acceptance among online travel agencies (OTAs), airlines, and hotel chains. While volatility and regulation remain challenges, stablecoins and crypto payment processors like BitPay, Binance Pay, and Travala are accelerating institutional adoption. The market’s growth trajectory aligns with broader digital transformation trends in travel, where flexible payments, low transaction fees, and global reach are prioritized. Crypto-payments provide unique advantages faster cross-border settlement, reduced FX costs, and enhanced security through blockchain verification. However, mainstream adoption depends on regulatory clarity and integration with existing payment rails such as Visa and Mastercard crypto gateways.

India’s outbound travel market is undergoing a historic expansion, projected to grow from $38B in 2025 to $65B by 2030, before crossing $80B in annual spend by 2035. This surge is fueled by rising disposable incomes, visa liberalization, and digital-first booking ecosystems. Between 2025 and 2030, outbound trips are expected to increase from 26 million to 46 million, driven by leisure, education, and medical tourism. With evolving travel fintech, payment digitization, and airline connectivity, India will emerge as Asia’s largest outbound traveler source by 2030.

India’s emerging space tourism sector is projected to reach a $2B market opportunity by 2040, with a strong foundation in public–private space collaborations, commercial launch infrastructure, and aerospace innovation ecosystems. Between 2025 and 2030, the domestic market will expand from a conceptual $120M to $410M, marking a CAGR of 27.4%, before accelerating post-2030 due to regulatory liberalization and technological readiness. ISRO, alongside private entities like Skyroot, Agnikul, and Bellatrix, is shaping the foundation for suborbital tourism, training centers, and orbital viewing modules. By 2040, India could capture 3.5–4% of global space tourism revenue, driven by affordable access models and emerging astronaut training ecosystems.

The U.S. private jet membership market is forecasted to grow from $4.1B in 2025 to $10.2B by 2032, marking a CAGR of 13.8%. Demand for subscription-based aviation models is accelerating as business travelers, high-net-worth individuals (HNWIs), and corporate clients seek flexible, on-demand air mobility solutions. By 2032, over 60% of private flight bookings in the U.S. will occur through membership or fractional ownership platforms, driven by fleet digitalization, sustainability incentives, and expanding mid-tier clientele. The shift from ownership to access-based aviation signals a permanent transformation in private air travel economics.

The Sustainable Aviation Fuel (SAF) mandates in the USA are set to increase airfares by 20% by 2030, driven by the rising costs of green fuel production and carbon-reduction targets. As the Biden administration accelerates SAF adoption through regulatory frameworks like the Clean Energy Standard, airlines are expected to invest heavily in SAF technology and infrastructure. While SAF will help decarbonize the aviation sector, the additional costs will result in higher airfares for consumers, estimated to rise by $15–$30 per ticket by 2030. However, regulatory incentives will reduce overall expenses for airlines, and fuel production technologies will gradually reduce costs.

The Middle East’s mega and giga projects—including Saudi Arabia’s NEOM, UAE’s Expo City Dubai, and Qatar’s Lusail—are projected to collectively generate $50B in tourism revenue by 2035, supported by sustained investment through 2025–2030. The event-to-legacy transformation model will drive regional diversification, leveraging infrastructure, smart cities, and global tourism initiatives. Between 2025 and 2030, regional tourism investment is set to grow from $16.2B to $32.4B, with giga projects contributing 35–40% of all new visitor inflows. The integration of sustainability frameworks, digital travel tech, and long-term hospitality expansion positions the region as a global hub for post-event tourism economics.

The corporate travel tech market in the USA is expected to save $12B annually by 2030 through the integration of AI-powered travel management systems. By 2030, AI technologies such as automated booking systems, real-time expense tracking, and predictive analytics will reduce corporate travel spend by 15% annually. AI-powered platforms will enhance efficiency, improve cost control, and offer personalized travel experiences for employees, leading to streamlined travel management. Increased adoption of AI-driven systems will further optimize corporate travel policies, resulting in greater visibility, expense reduction, and compliance.