Indian youth driving surge in international travel – with insurance in hand

According to the newly released India Travel Report 2025 from Indian travel insurer ACKO, nearly half (48%) of outbound travellers from India now belong to a younger, digital-savvy demographic.

These travellers are increasingly opting for extended, purpose-driven trips that blend leisure, work, and life events such as destination weddings. Despite their adventurous spirit, this group remain financially cautious: 99.48% of ACKO’s customers chose medical travel insurance, while 83% went further, selecting bundled plans covering baggage loss, delays, and trip disruptions.

Financial strain of travel mishaps

The report, which analysed 49,000 ACKO policies covering over 100,000 travellers, also revealed the financial toll of common travel hiccups:

• Medical emergencies accounted for 33% of claims, averaging ₹16,542 per incident
• Delayed baggage represented 25% of claims, with average payouts of ₹17,379
• Trip rescheduling – due to missed connections or cancellations – incurred the highest average payout, at ₹72,428.

Travellers to the UK, US, and Schengen countries filed the most claims, underscoring the importance of robust coverage when visiting high-traffic destinations.

Solo travel

Another key trend is the sharp rise in women travelling abroad. Women now make up 43% of Indian international travellers, signalling a significant narrowing of the gender gap. Many are travelling solo, with friends, or leading family trips – reflecting increased autonomy and confidence among Indian women exploring the world.

This reflects recent research by Confused.com, which found that globally solo travel is more popular than ever, with searches for ‘solo travel tips’ soaring by an astonishing 5,043% over the past year.

Popular destinations

Top destinations in 2024 for Indian travellers included Thailand (13%), the United Arab Emirates (10%), the USA (6%), Vietnam (5%), and Indonesia (5%). Easy visa processes, low-cost airfares, and social media influence were thought to be the major drivers behind these choices.

Two prominent traveller profiles stood out:

• Beach lovers drawn to Phuket, Bali, and Da Nang
• Urban adventurers exploring cities like Dubai, New York, and San Francisco.

With outbound travel from India projected to top US$55 billion by 2034, and current spending already up 25% year on year to $31.7 billion in FY24, the global footprint – and financial impact – of Indian travellers is rapidly growing.