As an Indian traveller, getting travel insurance protects you in case of emergencies like medical problems, lost luggage, lost travel funds, or missed flights, to name a few. In addition, travellers must choose a sum insured according to their opinion to cover the financial loss arising in case of emergencies. They must also consider whether the policy aligns with their insurance requirements
India’s travel industry is changing and emerging as one of the powerhouses in the tourism sector. After observing not-so-exciting travel years, the Indian travel industry is on its way to a revival with a cascade of demand among Indian travellers.
Do you know that 60% of Indians are planning to travel internationally in 2023?
To help you understand travel insights, trends, and post-pandemic behaviour, ACKO, India’s first-tech insurance, in collaboration with YouGov, prepared a travel report, ‘Travel Index 2023’.
Here, they surveyed 1000 respondents across seven different Indian cities between the age group of 24 and 45 years.
Where do Indians Want to Spend Their Vacation?
According to ACKO’s report, 60% of Indians are planning an international trip. The remaining 40% of the correspondents have plans to explore the rich Indian culture and heritage by vacationing within the country.
Regarding choosing an international travel destination, 25% of correspondents chose Dubai, and 24% chose the Maldives as their top place to visit. Moreover, for domestic travel destinations, 22% and 26% of correspondents wish to travel to Kerala and Himachal Pradesh (Manali, Shimla, etc.).
How Much Are Indians Willing to Spend on Their Travel?
India’s travel industry is on the rise post-pandemic, and most Indians want to go on a vacation to take a break from their everyday lives. Since people have not been able to come out of their homes to enjoy vacations during the pandemic, they are now ready to increase their spending on vacations.
As per ACKO’s travel index, 71% of the correspondents want to increase their travel budget and spend between Rs. 1 lakh and Rs. 6 lakh for their international trips. Out of these 71%, 11% are willing to spend more than Rs. 6 lakhs, and 24% want to spend somewhere between Rs. 4 lakh and Rs. 6 lakh.
Interestingly, 23% of the correspondents are willing to spend around Rs. 50,000 to Rs. 1 lakh for their domestic leisure trips. Moreover, 80% of correspondents are ready to spend a maximum of Rs. 1 lakh on their domestic travel destinations, and the rest 20% are willing to spend more than Rs. 1 lakh for the same.
How Indians Plan for Their Trip?
The report highlights that 3 out of 4 correspondents will utilise digital mediums to plan their international and domestic travels. Moreover, the report shows that 43% of them will choose online mode to arrange their transport to the destination, while 8% will choose offline mode during their trip.
Nevertheless, 43% of correspondents have chosen offline and online modes to plan their transportation to their destinations. In short, around half of the respondents prefer both online and offline modes to plan their trips. The report also highlights that 1 out of 3 correspondents are excited about taking adventurous holidays. Moreover, 29% of them want to go on a shopping spree in international and domestic destinations.
Who Indians Want to Travel With?
As highlighted in ACKO’s travel index, most correspondents want to spend their holidays with friends, spouses and immediate family. In short, 36% want to spend their leisurely vacation with friends, and around 33% want to go on a trip with their family.
Moreover, around 14% want to travel solo and explore destinations to fulfil their travel itinerary. Interestingly, the report also highlights that 4% of correspondents prefer their furry friends to accompany them on their trips.
What Indians Consider for Their Travel?
When it comes to choosing the top consideration for travel in terms of transportation, 50% of the respondents want a comfortable journey without any inconveniences or hassles. Additionally, 39% want the lowest or lower ticket prices to their desired destinations, along with 38% wanting flexible travel bookings. Such facilities make it easy for them to reschedule or cancel their trips in case of emergencies.
Interestingly, around 51% of travellers prefer cleanliness and proper sanitation as their biggest priority during accommodation, and 36% want complimentary edibles. The report also points out that 46% of the correspondents favour safety, convenience and easy accessibility to their accommodation’s location.
When it comes to activities, 51% of the correspondents want to have convenience, safety and easy accessibility to the venue, and 45% of them prefer cleanliness and sanitation of the venue or activity. Moreover, 36% of the travellers want an easy booking procedure for the activity or venue.
How COVID-19 Changed the Travel Industry?
The travel industry was deeply affected by COVID-19, which has brought the industry to a halt. It has brought the international and domestic travel industry to a standstill, majorly affecting people whose earnings depend solely on tourism. However, the scene has changed since mid-2022, as many Indians are willing to travel to spend their time amongst nature and away from their daily hustle.
According to the report, 31% of the correspondents want to take more international trips in 2023 due to the pandemic in previous years. Moreover, 37% of them are willing to increase their trip duration, and 48% of them are ready to increase their travel budget post-pandemic.
Furthermore, 31% of the correspondents are willing to go on more domestic trips, and 30% have stated they will increase their trip duration. The report also highlights that 44% are ready to allocate more budget for their leisure domestic trips.
What Do Indians Think About Travel Insurance?
According to the ACKO’s travel index report, a towering 67% of respondents think that travel insurance is significant for them when they plan for their holidays. Interestingly, 62% of them are aware that travel insurance will help them during medical emergencies on the trip, and around 49% know that the insurance will cover their lost baggage.
The report also highlights that 48% of the correspondents prefer comprehensive travel insurance policies, and 39% want customisable and more flexible travel insurance online options. These statistics show there is an increasing demand for travel insurance among travellers.
What Indians Prefer in Their Travel Insurance?
When considering the top priorities travellers prefer in their travel insurance, it shows that medical and accident coverage are the top priorities. Moreover, 15% of them want coverage for lost baggage, 18% prefer trip emergency coverage, and 12% want coverage for missed or delayed flights.
When choosing the mode of travel insurance purchase, there is an equal division between actively researching providers, seeking help from agents and other travel insurance applications.
Why Indians Must Avail Travel Insurance?
If you plan for a vacation, you must consider availing travel insurance apart from other necessary things. Many Indians prefer opting for travel insurance at the eleventh hour, as they predominantly travel to Asian nations. In most Asian countries, Indian travellers are not required to showcase their travel insurance until their travel dates. It encourages them to buy insurance at the last moment.
Nevertheless, the scene is different in the case of other countries. For instance, if you want to travel to a Schengen nation, you must avail of travel insurance for Schengen before applying for a visa, as the visa officials may reject your application. Moreover, apart from travel restrictions, it also assists travellers during emergencies on their vacations.
As an Indian traveller, getting travel insurance protects you in case of emergencies like medical problems, lost luggage, lost travel funds, or missed flights, to name a few. In addition, travellers must choose a sum insured according to their opinion to cover the financial loss arising in case of emergencies. They must also consider whether the policy aligns with their insurance requirements. Moreover, they can compare the insured sum of various insurers providing travel insurance online to choose the right insurer that aligns with their needs.
Bottom Line
Overall, there has been a surge of Indian travellers wanting to travel to international and domestic destinations. A specific group of travellers wants to spend their vacations enjoying scenic beauty. The report highlights that most correspondents want clean vacations with comfortable travel and accommodations.
Moreover, they are ready to increase their holiday budget and want to spend around Rs. 1 lakh to Rs. 6 lakh to enjoy their leisure trips. It can be seen that the majority of them are aware of the significance of travel insurance during their trips. In addition, it has increased the number of people opting for insurance to secure their trip during unforeseen circumstances.
Hence, as the travel industry is undergoing a revival, Indian travellers are ready to spend up to Rs. 6 lakhs to enjoy their next dream vacation and enjoy nature from its closest.