International travel spend by Indians up 25% to $31.7 bn in FY24: Report

Millennials and Gen Zs comprise almost half of travelers going abroad, says survey by insurance company

Millennial and Gen Z Indians comprise 48 per cent of outbound travellers in the country, said a report by an insurance company on Wednesday, marking a shift in the industry’s customers.

  According to Pew Research, anyone born between 1981 and 1996  is considered a Millennial and anybody born after 1996 are Gen Z 

“India’s international travel spending rose by 25 per cent in FY24 alone, touching $31.7 billion,” said the ACKO India Travel Report 2025. Outbound travel is projected to cross $55 billion by 2034.

 

As many as 36 per cent of outbound travellers were younger than 35, said the report based on data on 49,000 travel insurance policies covering over 100,000 Indians. “The young Indian traveller is digitally savvy and adventurous, blending work, wellness, weddings, and wanderlust into longer, more meaningful trips,” said a spokesperson for ACKO.

 

Almost 99 per cent of ACKO customers bought medical insurance, while 83 per cent chose broader plans covering baggage loss and travel delays. “Today’s travellers want peace of mind. They’re planning smarter, not just harder,” said the spokesperson.

 

Women travellers

Women made up 43 per cent of Indian outbound travellers in 2024, showing independence and shifting societal norms. “From solo adventures to family getaways, women are reshaping India’s travel story,” said the report.

 

Where Indians are travelling

   

Top international destinations in 2024, based on ACKO's data:

   

Thailand (13 per cent)

   

UAE (10 per cent)

   

USA (6 per cent)

   

Vietnam (5 per cent)

   

Indonesia (5 per cent)

   

Visa-friendly policies, flight connectivity and social media trends shape Indians’ travel choices. Beach lovers travel to Phuket, Bali, and Da Nang, while “urban explorers” prefer cities like Dubai, New York, and San Francisco.

   

Disruptions prove costly

   

Medical claims form 33 per cent of insurance payouts, averaging Rs 16,542.

   

Delayed baggage accounts for 25 per cent of claims (avg. Rs 17,379).

   

Trip rescheduling sees average claims of Rs 72,428.

   

“Travel today is more than a break — it’s a statement,” said the ACKO spokesperson. “But it comes with risks. That’s why smart planning and comprehensive insurance matter more than ever.”