Millennials and older gen Zs are leading the charge in international travel from India, making up 48% of outbound travellers, with 36% under the age of 35, says a new report.
Digital insurer Acko’s comprehensive annual travel trends report mentions that young, mobile, and experience-driven, these travellers are redefining why, where, and how India explores the world. Whether it is for work, weddings, wellness, or wanderlust, often combined in a single trip, this generation is planning longer, deeper, and more meaningful journeys.
India’s outbound travel accelerates demand for insurance
The report was based on over 49,000 travel insurance policies covering more than 102,000 travellers. It indicates a strong surge in international travel from India, which is driven by rising incomes, increased connectivity, and a global-first mindset across Tier 1, 2, and 3 cities, outbound travel is projected to exceed $55bn by 2034, with FY2024 alone witnessing a 25% rise in overseas spending, reaching $31.7bn.
The report highlighted that 9.48% of Acko’s travellers opted for medical insurance, while 83% chose comprehensive plans covering disruptions such as baggage loss and delays. This reflects a growing preference for risk-managed, seamless travel. A significant trend seen in the report is that women now make up 43% of India’s international travellers. The narrowing gender gap reflects a notable cultural shift — as more women take to the skies, their growing independence and appetite for adventure are reshaping travel norms. From solo trips to all-women getaways and family holidays, female travellers are making their mark on India’s global travel story.
According to the report, the top destinations for Indian travellers in 2024 include: Thailand (13%), UAE (10%), USA (6%), Vietnam (5%), Indonesia (5%). Visa ease, social media trends, and flight accessibility are key drivers behind these choices. Two distinct traveller segments emerged: Beach lovers, flocking to sunny spots like Phuket, Bali, and Da Nang and City explorers, heading to global hubs such as Dubai, New York, Los Angeles, and San Francisco.
Travel mishaps are common and costly
Despite the joys of exploration, many travellers face disruptions that lead to significant expenses. Medical claims comprise 33% of payouts, averaging INR16,542 ($193) per claim. The UK and USA emerge as the most expensive countries for outpatient care. Delayed baggage accounts for 25% of travel insurance claims, with an average payout of INR17,379. The UK, Schengen countries, and the USA report the highest incidents. Trip rescheduling, due to delays, missed connections, or cancellations, results in major claims, with an average payout of INR72,428.