After the onset of COVID-19 ended, India’s travel industry witnessed an increased demand among travellers in India. ACKO, one of India’s prominent tech-first insurance companies, surveyed this revived path of travelling. Their prepared report, ‘Travel Index 2023’, in association with YouGov India, attempts to know the ongoing curve of the travel industry through a survey of a few respondents.
ACKO attempted to identify the impact of COVID-19 on the travel plans of different individuals in the country through a survey of 1,000 correspondents between the ages of 24 and 45 across 7 major cities in India. Based on the report, 60% of Indians are planning an international trip, and the remaining are planning to explore prominent destinations in India.
While this data is remarkable in terms of increasing the curves of the travel industry, there are more such interesting updates on travelling.
Let us have a look at some of the insights from the travel index report.
What Vacation Spots Are Indians Choosing?
According to the ACKO’s Travel Index, it has been revealed that 26% of domestic travellers wish to enjoy their vacations in mountainous destinations, like Shimla, Manali, etc., while 29% of travellers would like to spend their vacation in seaside places like Goa. It also says that 25% of people choose Dubai as their ideal international gateway. On the other hand, 18% of them are keen to explore Switzerland.
Apart from this, the number of correspondents wanting to spend their holiday with friends, spouses, partners or immediate family is comparatively higher. The report also reflects that 14% of people are solo travellers, and 4% want to explore destinations with their friends.
How Much Are Indians Ready to Splurge on Their Travel?
The ACKO’s Travel Index 2023 report reflects that 71% of respondents are willing to spend between Rs. 1 lakh and Rs. 6 lakh on their international trips in the next few years. Out of the 71% of respondents, 47% are ready to spend Rs. 1 lakh to Rs. 3 lakh, while 11% can spend Rs. 6 lakhs and above on their trips.
However, in terms of travelling to domestic destinations, around 55% of people are willing to spend Rs. 1 lakh or less for their domestic gateways. Also, approximately 13% of the individuals want to spend around Rs. 1 lakh on domestic travel plans while 7% can spend more than Rs. 2 Lakhs on their leisure domestic trips.
How Do Indians Plan for Their Domestic/ International Gateways?
It has been observed that the number of Indians using digital tools has increased massively. These tools help them conveniently prepare their travel itinerary per their preferences and choices. Based on the survey reports, 3 out of 4 Indians use digital platforms to plan their travel itineraries.
However, offline mode is also preferred by a group of people for various purposes, which include their travel planning and any bookings related to hotels, transportation or others.
Along with that, the report says that 50% of individuals prefer their journey’s comfort as their prime consideration. 51% of people prioritise cleanliness and properly sanitised accommodation more than any other factors. Other significant considerations of the travellers during the trip include convenience, safety, and accessibility.
What Change Did COVID-19 Make in the Indian Travel Industry?
The advent of COVID-19 had an undeniable impact on international and domestic travel and, consequently, on the tourism industry as well. However, after mid-2022, when the scenario began to tone down a bit, many Indians started travelling to scenic destinations like mountains or seaside to keep themselves away from the bustling city life.
The ACKO’s survey report also states that 31% of the correspondents are going to take more international trips this year. Besides, 48% of them stated that they would increase their travel budget, while 37% of people would like to increase the duration of their trip.
Moreover, 31% of the correspondents are willing to plan more domestic trips, while 44% will increase their travel budget towards vacation. However, what is interesting to note is that most of the correspondents prefer comfort and cleanliness to be the most significant factors when it comes to international and domestic gateways.
What Do Indians Think of Travel Insurance?
As per the 2023 report of ACKO’s Travel Index, 67% of respondents consider travel insurance to be a mandatory requirement when planning their international or domestic travels. On the contrary, many of them understand that travel insurance provides financial coverage to cover their medical emergencies in case of unforeseen circumstances like cancellation of flight, loss of baggage, etc. This in turn increases the demand for travel insurance among travellers.
It has also been observed from the report that 48% of the correspondents prefer having travel insurance policies with comprehensive coverage. 39% want their policies to be more flexible and customisable, which perfectly aligns with their travel requirements.
What Indians Want from Their Travel Insurance?
After surveying their top priorities in travel insurance, medical and accidental coverage have come out as the prime priorities of the travellers. On the other hand, it has been noted that 15% of people prefer coverage over lost baggage, and 18% would like to have trip emergency coverage. Besides, 17% of them want a trip flexibility plan.
When it comes to the mode of purchasing travel insurance, it is interestingly almost equal between correspondents researching and considering suggestions from travel agents.
Why Should Indians Opt for Travel Insurance for Their International/ Domestic Gateways?
It has been observed that quite a several people purchase travel insurance online at the last minute while travelling to international destinations. This is because most Indians travel frequently to Asian nations. In case of travelling among the Asian countries, Indian citizens may not be required to carry their policy copy until their trip date arrives. This leads to delays in acquiring international travel insurance.
However, this does not apply to other countries, for instance, European countries. The scenario in European countries is different since having travel insurance is a mandatory requirement for travellers when applying for a Schengen visa. To get a visa to travel to European countries, you must have valid Schengen travel insurance.
Travel insurance is beneficial in these cases since it covers emergencies like cancellation of flights, loss of baggage, funds and passports, medical services, emergency support etc. However, travellers must ensure to assess their coverage requirements, budget and other financial aspects before opting for a travel insurance policy.
Moreover, it is highly recommended to compare multiple travel insurance providers along with their specifications. It will help them better understand the policies that align with their preferences and ensure the reliability of the insurers.
Bottom Line
After the global pandemic, the demand for travelling internationally and domestically has increased quickly within the country. And from the ACKO Travel Index survey report, it has been made clear that Indian travellers prioritise their comfort and sanitisation, leading to a preference for clean accommodation.
Additionally, the report says that many people would like to extend their travel budgets for both international and domestic gateways. Interestingly, some of the correspondents are willing to spend up to Rs. 3 – 6 lakhs to enjoy their ideal vacations in scenic destinations like mountains and seasides. However, the increased demand for domestic and international trips calls for a rise in the demand for travel insurance as well.
Hence, travel insurance not only provides them with a sense of security but allows them to enjoy their leisure time peacefully.
