India’s travel industry has been charting a steady path to revival, with increased demand among travellers after the pandemic ended. In line with this recovery, ACKO – a prominent tech-first insurance company in India – announced the release of its ‘Travel Index 2023’ report, in association with YouGov India.
The report is based on ACKO’s survey of 1,000 correspondents between the ages of 24 and 45 across 7 major cities in India to identify the COVID-19 impact on their travel plans. According to the report, 60 per cent of Indians are planning an international trip, while the rest are planning to explore the remarkable destinations of India.
Where do Indians want to spend their vacations?
The survey revealed that 35 per cent of the respondents want to enjoy their vacations in scenic destinations, like mountains or the seaside. It also highlighted that 25 per cent of people chose Dubai as their favourite international travel destination, while 29 per cent wanted to explore Goa.
The report also showed that most travellers preferred to spend holidays with friends, spouses, partners or immediate family. 14 per cent of the surveyed youngsters however wanted to travel solo to explore and fulfil their travel goals.
How do Indians plan trips?
Three out of four participants said they use digital platforms to plan their travel. However, there is still demand for offline bookings and plans.
50 per cent of respondents consider the journey’s comfort as a prime factor. The cleanliness of the accommodations ranks highest among 51 per cent of travellers. Regarding activities, around half of the travellers prefer convenience, safety, and accessibility as the most significant considerations.
How much do Indians want to spend on travel?
According to ACKO’s Travel Index 2023 report, 71 per cent of respondents are willing to extend their travel budget and spend between Rs 1 lakh and Rs 6 lakh in the next few years on their international trip. Out of the 71 per cent of respondents, 47 per cent of them are willing to spend Rs. 1 lakh to Rs. 3 lakh, while 11 per cent would spend Rs. 6 lakhs and more on such trips.
For domestic travel, 55 per cent of people surveyed would spend Rs. 1 lakh or less for leisure trips in the country. However, 20 per cent of the individuals are open to spending more than Rs. 1 lakh on domestic travel.
Post-pandemic travel
According to ACKO’s report, 31 per cent of the respondents want to take more international trips after the pandemic. Of the total surveyed respondents, 48 per cent stated that they would increase their travel budget, and 37 per cent would increase their trip duration.
Interestingly, the domestic travel scenario is the same: 31 per cent plan to go for more domestic trips, and 44 per cent will allocate more budget towards vacation. However, when it comes to travel, most of them prefer comfort and cleanliness as their top priorities in terms of international and domestic travel.
What do Indians know about travel insurance?
According to ACKO’s Travel Index 2023 report, 67 per cent of respondents think travel insurance is mandatory when planning their international or domestic travels. The report added that many of them know that travel insurance will cover their medical emergencies in case of unforeseen circumstances and their lost baggage, increasing travel insurance demand among travellers.
The report also highlights that 48 per cent prefer having travel insurance policies with comprehensive coverage. 39 per cent want their policies to be more flexible and customisable according to their travel requirements.
The best travel insurance
When asked about their top priorities in travel insurance, they prefer medical and accidental coverage. However, 15 per cent want lost baggage coverage, and 18 per cent want trip emergency coverage. In addition, 17 per cent of correspondents prefer having a trip flexibility plan.
Regarding choosing the medium of purchasing travel insurance, there is almost an equal split between correspondents researching and considering suggestions from travel agents and travel service provider applications.
Why should Indians buy travel insurance?
Many people opt for travel insurance at the last minute while travelling abroad. One of the prominent factors contributing to the last-minute purchase of travel insurance is that most Indians travel frequently to Asian nations. In most Asian countries, travellers need not showcase their policy copy until their trip date arrives, encouraging a relaxed approach towards acquiring international travel insurance.
However, the scenario is different for other countries. For instance, travellers must showcase travel insurance while applying for a Schengen visa. Without valid Schengen travel insurance, the authorities will not issue a visa. In addition to travel restrictions, travel insurance assists travellers during emergencies arising due to unforeseen circumstances.
Opting for travel insurance covers emergencies like missed flights, loss of baggage, funds and passports, medical services and emergency support, to name a few. However, when buying travel insurance, travellers must select a sum insured according to their assessment to cover the financial loss arising from emergencies and choose the policy that aligns with their needs. In addition, they must consider various insurers providing travel insurance online and select the one that fits their budget.
