ACKO India Travel Report 2025

According to the report, Millennials and older Gen Zs lead in international travel, comprising 48% of outbound travelers, with 36% under 35 years old. This younger, tech-savvy group is transforming the travel landscape of India. Their trips are often multi-faceted, blending work and leisure and emphasizing deeper experiences.

Growth of Outbound Travel

With over 49,000 travel insurance policies analyzed from more than 102,000 travelers, there is a notable increase in outbound travel from India. Rising incomes and enhanced connectivity across cities are driving this surge, with expectations for outbound travel to exceed $55 billion by 2034. Notably, the spending for FY 2024 alone reached $31.7 billion, a 25% increase compared to previous years.

The Modern Traveler

Today’s travelers are younger, digitally savvy, and increasingly seek protection while traveling. The report indicates that 99.48% chose medical insurance, and 83% preferred comprehensive plans covering potential issues like baggage loss or delays, highlighting a trend towards risk-managed travel.

Women Travelers Close the Gender Gap

Women now represent 43% of international travelers from India, indicating a cultural shift as they embrace solo and group adventures, reshaping travel norms.

Top Destinations

Key travel destinations for Indian travelers include Thailand (13%), UAE (10%), and USA (6%), driven by visa accessibility and social media trends. Two main segments are identified: beach enthusiasts and city explorers.

Travel Challenges

Travelers frequently encounter challenges resulting in substantial expenses. Medical claims account for 33% of payouts, while baggage delays contribute to 25% of claims. Frequent changes in trip itineraries also lead to higher costs for travelers.

A spokesperson from ACKO stated, “India’s travelers are exploring with newfound confidence, yet each journey comes with its uncertainties. Our report emphasizes the importance of strategic planning and adequate insurance for seamless travel experiences.”