India witnessed a remarkable 25% increase in international travel spending in FY24, reaching a total of ₹2,72,176 crore (US$ 31.7 billion), according to the ACKO India Travel Report 2025. This surge is largely attributed to the enthusiastic participation of millennials and Gen Z, who have emerged as the primary drivers of India’s outbound travel economy.

The ACKO India Travel Report, based on data collected from over 49,000 travel insurance policies, reveals that 48% of outbound travellers were either millennials or Gen Z, with 36% being under the age of 35. These younger Indian travellers are shaping the future of global tourism, not only in terms of volume but also through their evolving preferences—seeking experiences that combine leisure, wellness, work, and exploration.

This demographic of travellers is digitally savvy and highly adaptable, often planning trips that stretch over longer durations and incorporate remote work setups, wellness retreats, and adventure tours. Their travel behaviour is characterized by social media influence, quick decision-making, and reliance on online booking platforms and travel insurance for greater security and flexibility.

According to ACKO’s data, a staggering 99% of customers purchased medical insurance, and 83% opted for comprehensive travel plans covering everything from baggage loss to flight delays and trip cancellations. These numbers indicate a rising awareness about risk mitigation and smart planning, especially among the younger demographic.

Interestingly, the report also highlights a significant gender shift—women accounted for 43% of outbound Indian travellers in 2024, signaling a notable change in social dynamics and growing independence among Indian women in global travel.

The top international destinations for Indians in 2024 included:

• Thailand (13%)

• UAE (10%)

• USA (6%)

• Vietnam (5%)

• Indonesia (5%)

These destinations were chosen not only for their tourist appeal, but also for factors such as visa-friendly policies, easy flight connectivity, and their popularity on social media platforms. Beach destinations like Phuket, Bali, and Da Nang attracted nature and relaxation seekers, while urban travellers gravitated towards cities like Dubai, New York, and San Francisco for their cosmopolitan offerings and modern attractions.

The travel insurance data further gives a clear picture of traveller concerns and experiences. Medical claims accounted for 33% of all payouts, with the average claim amounting to ₹16,542 (US$ 193). Delayed baggage claims averaged ₹17,379 (US$ 202), while trip rescheduling claims were notably higher, averaging ₹72,428 (US$ 844). These numbers reinforce the importance of comprehensive insurance coverage as a crucial component of international travel.

The ACKO spokesperson emphasized the significance of smart planning, especially among Indian outbound travellers, in navigating the evolving landscape of global travel post-pandemic. Comprehensive insurance plans provide much-needed protection against uncertainties that can disrupt otherwise well-planned trips.

The report suggests that as Indian travellers gain more disposable income, especially the younger generation, international travel will continue to grow at a strong pace. The combination of rising aspirations, global exposure, and tech-enabled convenience is reshaping how Indians view travel—not as a luxury, but as a lifestyle priority.

What’s also notable is the changing motivation behind travel. While traditional tourism still holds ground, there’s a growing trend of workcations (work + vacation), wellness journeys, and purpose-driven travel—such as trips taken for self-discovery, learning, and cultural immersion. This trend is expected to grow further as Indian professionals continue to blend work and leisure seamlessly.

On the economic front, this 25% surge in international travel spending reflects positively on India's rising middle class and growing urbanisation. With increased flight frequencies, low-cost carriers, new visa waivers, and globalisation of Indian services, the barriers to international travel have significantly decreased.

Moreover, India’s per capita income growth and the government’s thrust on foreign relations and aviation infrastructure have also played pivotal roles. The growth in Indian travellers heading to Southeast Asia, the Middle East, and North America shows diversification in travel preferences, compared to earlier years when the outbound market was more skewed toward a few destinations.

Looking ahead, FY25 and FY26 are expected to continue this upward trend. With more international events, education fairs, business expos, and sports tournaments scheduled abroad, the volume of Indian outbound travel is projected to grow further. Travel companies, airlines, and insurance providers are aligning their offerings to cater to the informed, adventurous, and prepared Indian traveller.

To summarise, the ACKO India Travel Report 2025 confirms that India’s international travel spending rose 25% in FY24, amounting to a whopping ₹2.72 lakh crore (US$ 31.7 billion). This growth, driven largely by millennials, Gen Z, and women travellers, showcases a transformation in India’s global travel story—one that is defined by digital empowerment, smart choices, global exposure, and a new cultural confidence. As this demographic matures, the world can expect India’s presence in the global tourism market to become not just visible, but pivotal.

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