\n<\/p>\n
The growth comes alongside a preference for closer international destinations, with Asia-Pacific emerging as the dominant region for outbound travel.<\/p>\n
\nJapan recorded the highest surge in bookings, rising 17% in 2026, making it the top destination among Indian travellers. Thailand followed with a 12% increase, while Vietnam saw a 7% rise. Singapore and Malaysia maintained steady demand, and Sri Lanka gained traction as a value-driven destination.
In contrast, travel to the UAE declined by over 70%, impacted by regional tensions and safety concerns. Long-haul travel to Europe and the US also softened due to higher airfares and airspace restrictions, pushing travellers toward shorter and more cost-efficient Asian destinations.
At the same time, insurance preferences have shifted toward higher protection levels. Travellers opting for coverage above $250,000 have doubled compared to earlier years, indicating a move away from basic policies. Rising medical costs and evacuation risks are driving this change.<\/p>\n
Add-on covers are also seeing evolving demand patterns. Medical cover remains the most preferred at around 75%, followed by trip cancellation cover at nearly 50% and evacuation cover at about 40%. Adventure sports cover, though still niche, is gradually expanding. Demand is also rising for protection against flight delays, rerouting, and airspace disruptions.<\/p>\n
Travel behaviour is also becoming more cautious and flexible. Cancellation requests have increased by 32%, while many travellers are delaying bookings closer to departure dates. With travel costs rising by 20\u201325%, travellers are opting to adjust plans rather than cancel, choosing shorter trips and nearby destinations.<\/p>\n
Manas Kapoor, Business Head, Travel Insurance at Policybazaar.com, said Indian travellers are not reducing travel but are adapting to global uncertainties with more flexibility and stronger protection.<\/p>\n
He noted a clear shift toward Asia-Pacific destinations and increasing reliance on insurance as a core part of travel planning rather than a formality, driven by medical inflation, evacuation risks, and geopolitical uncertainty.<\/p>\n<\/div>\n