More budget, more time, more international—how Indians will travel in 2023

With the pandemic putting travel plans on hold, Indians are now willing to make up for lost time and spend more for the experience, says a survey

By Anubhuti Matta Forbes India Staff

Published: Jul 12, 2023 03:42:49 PM IST

Updated: Jul 12, 2023 04:08:51 PM IST

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In 2023, most respondents will plan an adventurous holiday, followed by a vacation in the mountains, according to the ACKO-YouGov survey. Image: Shutterstock

Indians are planning to spend more time and money on both domestic and international travel in 2023, according to the recently released report by insurance company, ACKO, in association with market research firm, YouGov. The research surveyed 1,000 respondents who intend to travel this year, between ages 24 and 45, across seven major cities, shedding light on key considerations and preferences when it comes to travel. Here are the findings:

International vs. domestic travel

Given how the pandemic put travel plans on hold, 31 percent said that they will now plan more international trips this year. Additionally, 37 percent stated they will increase the duration of the trip and 48 percent will also allocate an increased budget for travel.

On the domestic front, 31 percent said they will take more vacations, 30 percent will increase the duration of the stay and 44 percent will set aside more budget for holidays.

The report highlights that 60 percent of Indians are planning a vacation abroad, of which 10 percent are sure about only travelling outside India. Forty percent responded saying they will plan only domestic vacations.

71 percent of those planning an international holiday mention a total budget between Rs 1 lakh and Rs 6 lakh. The budget for domestic holidays for 55 percent is expected to be under Rs 1 lakh.

Apart from the destinations and budget, the report highlights a significant shift in the behaviour of travellers. 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.

Also read: The most luxurious train journeys in India

Online vs. Offline

When it comes to booking transport within the holiday destination, accommodation, and activities, most respondents prefer to use a mix of online and offline mediums as compared to doing it completely online or offline.

For instance, 45 percent of respondents use online and offline channels to choose the mode of transport at their holiday destination and 44 percent rely on both information streams when deciding on the accommodation.

Most preferred holiday locations

The top five international destinations, in order of preference, are Dubai, Maldives, Singapore, Switzerland, and Bali.

Goa is the most preferred domestic location, followed by Himachal Pradesh, Kerala, Uttarakhand, and Rajasthan.

Also read: Top 5 luxury hotels in the world in 2023, according to TripAdvisor

Type of holiday Indians seek

Most respondents are in favour of an adventurous (37 percent) holiday, followed by a holiday in the mountains (36 percent). Others prefer a vacation by the sea (35 percent). Other surprising trends include shopping (29 percent), theme parks (26 percent), and gastronomic (16 percent) holidays.

Do Indians understand travel insurance?

For 67 percent of respondents, travel insurance is mandatory. When asked about their preferences while choosing an insurance policy, 48 percent said they prefer comprehensive policies. However, 39 percent would prefer a more flexible and customisable policy. 13 percent of travellers are not interested in buying a travel policy.

“Travelers 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, at ACKO.