A surge in demand towards both domestic & international travel has been observed in 2023
The travel industry is not only bouncing back, but also witnessing a sharp spike in demand. As much as about 31 pc Indians are estimated to go for international trips in 2023, says recent survey Acko Travel Index 2023, published in joint collaboration with insurance company Acko and market analysis firm YouGov.
The survey studies future travel trends, market insights along with the post pandemic travel behaviour. About 1,000 respondents across seven major Indian cities participated in the survey. The respondents were between the age-groups of 24 to 45 years, who identified key patterns of travel consideration among Indians.
According to the report, a surge in demand towards travelling has been observed in 2023. Around 48 pc of Indians are forecast to allocate an increased budget for their travel in the coming year. The report adds that 37 pc of travellers plan to extend their trip’s duration to make it more memorable. The survey found that 60 pc respondents wanted to go on an international trip while 40 pc wanted to plan only a domestic journey.
There has been a noted increase in the demand for international travel, says the report, adding that about 71 pc of respondents are ready to spend INR 0.1-0.6 million (approx USD 1200-7200) on their international trips, while domestic travellers would like to spend up to INR 0.1 million.
While planning their domestic travel, 44 pc of Indians will allocate an increased budget for travel post-pandemic and 31 pc will take more domestic trips in 2023-24.
“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 travellers are more concerned about convenience and flexibility, and they are ready to spend more for the experience. It is great to see that Indian travellers understand the importance of travel insurance and know what to expect from a policy. Travellers are now more conscious about their well-being on a trip and are demanding customised insurance products that match their needs and expectations. They want products which give them confidence that they are sufficiently prepared for any eventuality,” says Brijesh Unnithan, SVP, Embedded Insurance.
On the list of most preferred international destinations, Dubai ranked first, followed by the Maldives, Singapore, Switzerland and Bali. The statement adds that Goa ranked first among the preferred domestic travel destinations, followed by Himachal Pradesh, Kerala, Uttarakhand and Rajasthan.
It goes on to say that 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.
About 36 pc of Indians want to go on their trip with their friends, 35 pc with their spouse or partner and only 14 pc want to take a solo trip. Few, accounting for 4 pc, also like to travel with their pets.
A comfortable journey topped the priority for most travellers, where 50 pc of the respondents agreed that the convenience of the travel is paramount. It was followed by lower ticket prices, flexible ticket booking and the cleanliness of the flight, train, or bus they are boarding.
The statement adds that 67 pc of respondents said that travel insurance was mandatory while planning their trip. Around 62 pc travellers knew that travel insurance provides medical and accident coverage, which is also their top priority while considering a policy. Additionally, 49 pc were 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 pc said they preferred comprehensive travel insurance policies. However, 39 pc preferred a more flexible and customisable travel while 13 pc rejected the need of any.
The study says that 45 pc of respondents use online portals to do their research and buy a policy eventually, while 43 pc consult their travel agents. Only 12 pc seek advice from their family and friends while buying a policy.
