60% of Indians are planning international trips in 2023
67% of Indians believe travel insurance is mandatory
39% Indians are interested in a more flexible and customizable travel insurance policy
After witnessing not-so-exciting years, the travel industry is ready to make a revival with a surge in demand among travelers. Did you know, 31% Indians will be taking international trips in 2023? To reveal further travel trends and insights and understand the post pandemic travel behavior, ACKO, India’s tech-first insurance company, in association with YouGov, brings out its latest research report: ACKO Travel Index 2023.
The report surveyed 1000 respondents across seven major Indian cities between the ages of 24 and 45 and identified key patterns of travel consideration among Indians. Given a surge in demand towards traveling, the report reveals that around 48% of Indians will be allocating an increased budget for their travel in the coming year and 37% will be increasing the duration of the trip, to embark on extraordinary adventures and make the most of every opportunity.
With a considerable increase in demand for international travel, while planning their domestic travel, 44% of Indians will allocate an increased budget for travel post-pandemic, 31% will take more domestic trips in 2023-24, and 30% will increase the trip duration.
The report further states that approximately 71% of respondents are ready to spend Rs 1–6 lakh on their international trips, while domestic travelers would like to spend up to Rs 1 lakh.
Apart from the destinations and budget, the report highlights a significant shift in the behavior of travelers. Now in every aspect of planning a trip, cleanliness is of utmost importance followed by flexibility and convenience. The respondents also wish to avoid being in crowded spaces.
Speaking at the launch, Brijesh Unnithan, SVP, Embedded Insurance, said, “We wanted to understand how Indians plan to travel in 2023 and how their travel preferences have changed over the past couple of years. The survey clearly shows that now travelers are more concerned about convenience and flexibility, and they are ready to spend more for the experience. It is great to see that Indian travelers understand the importance of travel insurance and know what to expect from a policy. Travelers are now more conscious about their well-being on a trip and are demanding customized insurance products that match their needs and expectations. They want products which give them confidence that they are sufficiently prepared for any eventuality.”
The report surveyed 1000 respondents across seven major Indian cities between the ages of 24 and 45 and found that 60% wanted to go on an international trip while 40% wanted to plan only a domestic journey.
While planning a trip, the most crucial consideration is the comfort of the journey throughout the trip, where 50% of the respondents agreed that the convenience of the travel is paramount, followed by lower ticket prices, flexible ticket booking, and the cleanliness of the flight, train, or bus they are boarding.
Cleanliness of accommodation also ranks highest for the respondents when choosing accommodation, followed by convenience, safety, and accessibility of the accommodation location. Convenience also topped the list of considerations for the respondent while choosing local activities, with cleanliness at a close second.
Do Indians Understand Travel Insurance?
The report answers this question in its entirety. 67% of respondents said that travel insurance is mandatory while planning their trip while 62% of the respondents know that travel insurance provides medical and accident coverage, which is also their top priority while considering a policy. 49% are aware of the lost baggage cover, followed by trip emergency coverage, missed or delayed flight cover, and trip flexibility cover.
When asked about their preferences while choosing an insurance policy, 48% said they prefer comprehensive travel insurance policies. However, 39% have also expressed interest in a more flexible and customizable travel insurance policy tailored to their needs. Only 13% said they don’t want to take out a travel insurance policy.
45% of respondents revealed that they use online portals to do their research and buy a policy eventually, while 43% said they consult their travel agents before making the decision. Only 12% seek advice from their family and friends while buying a policy.
Offline Vs Online
Most Indians use a combination of online and offline sources to plan their trip, for instance, 45% of respondents use online and offline information to choose local transport to travel to their destination. 44% rely on both information streams when deciding on the accommodation, and 43% decide how to reach the goal based on their research.
Where Do They Want To Go?
The respondents also gave their preferred international destinations, with Dubai ranking first, followed by the Maldives, Singapore, Switzerland, and Bali. Goa ranked first among the preferred domestic travel destinations, followed by Himachal Pradesh, Kerala, Uttarakhand, and Rajasthan.
Interestingly, 1 in 3 respondents strongly expressed interest in adventurous holidays. Some want to travel to a destination with a scenic appeal, like the sea or a mountain. Other reasons to go on a holiday are for a shopping spree, to try new cuisines, or to experience a theme park.
36% of Indians want to go on their trip with their friends, 35% with their spouse or partner, and only 14% want to take a solo trip. Few (4%) also like to travel with their pets.