71% ready to spend Rs 1-6 lakh on international holidays, Dubai tops list

Nearly half of India's travellers who are going overseas for their vacations in 2023 are willing to spend between Rs one and three lakh for their holidays abroad, while the budget for domestic leisure trips for majority are between Rs 30,000 and Rs 50,000, according to a survey. 

At least 50 per cent are planning international trips this year , and two out of three mentioned a total budget between Rs 1 and six lakh, revealed a survey conducted by Acko,  tech-first insurance company in collaboration with YouGov.

Among the international destinations, Dubai topped the list, followed by Maldives, Singapore, Switzerland and Bali.

Domestically, Goa was the most in demand, followed by Himachal Pradesh (Shimla and Manali), Kerala, Uttarakhand and Rajasthan. Surprisingly a majority 37 per cent are looking for adventure holidays, followed by scenic mountain and seaside holidays. At leasy 29 per cent prioritised shopping while 26 per cent want to travel to theme parks. Only 16 per cent are venturing out for a 'gastronomic holiday.

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 revealed that around 48 of Indians will be allocating an increased budget for their travel in the coming year and 37 per cent will be increasing the duration of the trip.

At least 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, revealed the survey results.

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.

While planning a trip, the most crucial consideration is the comfort of the journey throughout the trip, where 50 per cent  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 the importance of travel insurance?

 A whopping 67 per cent of respondents said that travel insurance is mandatory while planning their trip while 62 per cent of the respondents know that travel insurance provides medical and accident coverage, which is also their top priority while considering a policy. 49 per cent  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 per cent said they prefer comprehensive travel insurance policies. However, 39 per cent have also expressed interest in a more flexible and customizable travel insurance policy tailored to their needs. Only 13 per cent said they don’t want to take out a travel insurance policy.

45 per cent of respondents revealed that they use online portals to do their research and buy a policy eventually, while 43 per cent said they consult their travel agents before making the decision. Only 12 per cent seek advice from their family and friends while buying 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," said Brijesh Unnithan, SVP, Embedded Insurance.

Offline Vs Online

Most Indians use a combination of online and offline sources to plan their trip, for instance, 45 per cent of respondents use online and offline information to choose local transport to travel to their destination. 44 per cent rely on both information streams when deciding on the accommodation, and 43 per cent decide how to reach the goal based on their research.

36 per cent of Indians want to go on their trip with their friends, 35 per cent with their spouse or partner, and only 14 per cent want to take a solo trip. Few (4%) also like to travel with their pets.