According to Vivek Chaturvedi, CMO & Head of Direct Sales at Digit Insurance, the uptake of travel insurance for domestic trips is linked to frequent travel.
DGCA data shows Indian airlines transported over 1.36 crore passengers in June 2025, a 7.34% increase year-on-year, reflecting higher travel volumes and awareness of potential disruptions such as flight delays, cancellations, or lost baggage.
Hospitality experts highlight that domestic short trips are often aligned with long weekends and holidays.
Yazad Marfatia, Corporate Director & Head of Sales & Marketing at Apeejay Surrendra Park Hotels, noted that travellers are prioritising convenience, memorable experiences, and value-for-money, facilitated by improved connectivity, regional flight networks, and curated hotel packages.
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Rajat Gera, Commercial Director at Six Senses Fort Barwara, pointed out that guests are seeking curated experiences that blend wellness, cultural immersion, and sustainability during short breaks.
Ajay Mehtani, Partner at Treehouse Hotels and Resorts, explained that domestic travel provides accessible and convenient options — with guests increasingly choosing shorter, frequent trips over international travel which involves higher uncertainties.
Role of travel insurance
According to Chaturvedi, domestic travel insurance policies typically cover trip disruptions such as cancellations, flight delays, and baggage loss.
Coverage for medical or accidental emergencies provides financial protection against potentially high out-of-pocket costs.
Chaturvedi further noted that international policies often include broader protection, such as higher sum insured amounts, personal liability, and medical emergency coverage. These policies can be customised with add-ons like adventure sports coverage or extended durations, whereas domestic plans generally feature simpler, pre-set coverage options.
Insights from hospitality sector
According to Marfatia, the combination of better infrastructure, curated hotel offerings, and long-weekend planning supports domestic travel.
Gera highlighted that immersive and wellness-focused experiences are influencing traveller preferences for short breaks.
Mehtani noted that affordability, convenience, and flexibility are factors driving domestic travel, prompting hospitality providers to focus on quality accommodations and services.
Key takeaways
Travel insurance helps manage financial risks arising from trip disruptions, lost baggage, or emergencies.
Domestic and international policies differ in scope and coverage, requiring travellers to choose based on trip type and anticipated risks.
Short trips and staycations are viewed as opportunities for curated experiences, with travel insurance providing an added layer of security.
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