What is the story about?
60% of Indian travellers are planning domestic holidays, while 85% are likely to buy travel insurance, reflecting a shift toward more cautious and financially prepared travel decisions, according to the Allianz Partners Global Travel Confidence Index 2026, conducted with Ipsos.
The report shows that India continues to rank among the most travel-enthusiastic markets globally, with 87% of respondents planning to travel this summer, well above the global average of 74%.
However, rising costs, uncertainty, and risk awareness are shaping how trips are planned and financed.
Domestic travel dominates
India leads globally in domestic travel intent, with 60% of travellers preferring holidays within the country, compared with a global average of 42%. The trend reflects growing cost sensitivity and a preference for shorter, value-oriented trips.
Insurance becomes a key travel expense
Travel insurance is emerging as a standard part of travel budgeting, with 85% of Indian travellers indicating they are likely to purchase coverage for upcoming trips. The report notes that protection against medical emergencies, cancellations, and disruptions is a key driver, alongside demand for peace of mind.
Costs and risks reshape decisions
Financial pressure remains a major factor, with 76% of travellers cutting non-essential spending to fund travel and 72% reducing vacation plans due to higher costs. Meanwhile, 82% expect further increases in travel expenses.
At the same time, 83% say geopolitical uncertainty influences destination choices, while 84% are concerned about extreme weather and environmental risks.
Digital and experience-led travel rises
The study also highlights rising use of AI in travel planning, with 82% of respondents adopting or planning to adopt digital tools. Experience-led travel is also gaining traction, with many travellers prioritising concerts, festivals, sports events, and wellness trips.
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The report shows that India continues to rank among the most travel-enthusiastic markets globally, with 87% of respondents planning to travel this summer, well above the global average of 74%.
However, rising costs, uncertainty, and risk awareness are shaping how trips are planned and financed.
Domestic travel dominates
India leads globally in domestic travel intent, with 60% of travellers preferring holidays within the country, compared with a global average of 42%. The trend reflects growing cost sensitivity and a preference for shorter, value-oriented trips.
Insurance becomes a key travel expense
Travel insurance is emerging as a standard part of travel budgeting, with 85% of Indian travellers indicating they are likely to purchase coverage for upcoming trips. The report notes that protection against medical emergencies, cancellations, and disruptions is a key driver, alongside demand for peace of mind.
Costs and risks reshape decisions
Financial pressure remains a major factor, with 76% of travellers cutting non-essential spending to fund travel and 72% reducing vacation plans due to higher costs. Meanwhile, 82% expect further increases in travel expenses.
At the same time, 83% say geopolitical uncertainty influences destination choices, while 84% are concerned about extreme weather and environmental risks.
Digital and experience-led travel rises
The study also highlights rising use of AI in travel planning, with 82% of respondents adopting or planning to adopt digital tools. Experience-led travel is also gaining traction, with many travellers prioritising concerts, festivals, sports events, and wellness trips.
ALSO READ | The oldest bridge in Paris will turn into a spectacular cave from June 6
