The Allianz Partners Travel Index 2026 shows that Indians continue to prioritise travel, even as cost concerns grow.
Indians are among the world’s most avid travellers in 2026, with 87% planning to go on holiday this summer – well above the global average of 74%, the Allianz Partners Travel Index 2026 shows.
Allianz Partners’ newly launched Global Travel Confidence Index, conducted by Ipsos, finds that Indian travellers remain highly committed to holidays and experiences, but their travel choices are increasingly influenced by rising costs, geopolitical uncertainty, climate and evolving digital behaviour.
The survey was conducted with 11,010 respondents across 10 global markets including India, China, United States, France, Germany, Great Britain, Italy, Spain, Switzerland and the Netherlands.
Domestic Travel Leads the Way
India was the top global market for domestic travel intent with 60% of Indian travellers looking to holiday within the country this summer, well ahead of the global average of 42%.
The findings suggest that in the context of rising travel costs and uncertainty, Indian travellers are increasingly leaning towards destinations closer to home and value-for-money travel experiences.
Meanwhile, travel remains very important for Indian consumers. Despite economic pressures, the majority still put annual holidays first, reflecting the increasing importance of travel to wellbeing, leisure and personal experiences.
Rising Costs Influence Travel Decisions
Despite strong travel intent, many Indian consumers are becoming more mindful about travel spending amid rising costs.
The report says:
76% of Indian travellers are cutting down on non-essential spending to make travel affordable
72% say they are cutting back on vacation plans because of higher costs
82% are worried travel costs will increase
72% are worried about their personal financial situation when planning holidays
The results indicate that Indian consumers still have a very aspirational mindset towards travel, but are more value conscious and thoughtful in their spending choices.
Travel Insurance Gains Importance
As travel becomes more complex and uncertain, travellers are placing greater emphasis on protection and reassurance. Globally, travellers cited peace of mind, protection against disruptions and reimbursement for cancellations among the top reasons for purchasing travel insurance.
In India too, travel insurance adoption is witnessing strong momentum with 85% of Indian travellers saying they are likely to buy travel insurance for their summer holidays. Peace of mind and general security are cited by 89% of insured Indian travellers as key reasons to purchase travel insurance, with medical assistance and repatriation support valued by 89% of insured Indian travellers. Furthermore, 65% anticipate being able to access 24/7 customer support and emergency assistance through mobile apps offered by travel insurers, underscoring increasing demand for seamless, digitally-enabled protection services.
Experience-Led Travel on the Rise
The report notes a significant shift towards experience-led travel among Indian consumers, considerably higher than global averages across categories.
Among Indian travellers, 75% are likely to attend concerts, festivals or performing arts events during vacations, 71% plan to attend sporting events while traveling, 73% are planning trips specifically around ticketed events or experiences, 74% intend to pursue sports or hobbies during holidays, 73% are considering wellness retreats and spa vacations and 74% are interested in cruises, expedition or riverboat-style travel experiences.
These trends indicate that Indian travellers are looking for activity packed and experiential holidays over traditional travel.
AI and Digital Planning
Among the most digitally engaged travellers in the world when it comes to planning a vacation are Indian travellers.
The study found that 82% of Indian travellers have used or plan to use Artificial Intelligence tools to plan vacations, 78% feel vulnerable to cyber risks while travelling and 84% now consider environmental risks and extreme weather conditions while selecting destinations.
The findings suggest that Indian travellers are increasingly aware of technology, safety, climate risks and travel preparedness.
Safety and Geopolitical Concerns
Indian travellers also said they were more worried about global instability and disruptions to travel.
According to the report 83% say stricter border controls and geopolitical uncertainty are influencing destination choices, 85% are concerned about global geopolitical issues, 83% are worried about safety and security while travelling, 80% are concerned about delays and cancellations, 78% worry about health issues while travelling, 79% are concerned about public health risks, 75% are concerned about lost or delayed luggage, and 74% are worried about losing travel documents.
The findings suggest that although Indian travellers continue to be keen to travel, confidence today is more about preparedness, flexibility and protection.
Work and Travel Continue to Merge
Indian travellers are also embracing flexible work-and-travel lifestyles.
The report found 73% plan to extend trips to combine work and leisure, 77% intend to work remotely away from home for a few weeks, and 70% are considering longer-term remote working or digital nomad lifestyles.
This highlights the growing overlap between work, leisure and travel among Indian consumers.
Leadership Perspective
Commenting on the findings, Charu Kaushal, Managing Director at Allianz Partners India, said, “Indian travellers continue to demonstrate strong confidence and enthusiasm for travel. What is evolving, however, is how consumers are planning and prioritising their vacations.
Today’s travellers are more value-conscious, digitally enabled and experience-driven. They are seeking meaningful travel experiences while also paying closer attention to safety, flexibility, climate risks and financial preparedness.
The findings also highlight the growing importance of domestic travel and the increasing role of technology, including AI, in shaping travel planning and decision-making. At the same time, the data reinforces that travellers increasingly view protection and preparedness as an essential part of the overall travel experience.”
Sharing perspective on the findings, Parikshit Kohli, Sales Director, Travel at Allianz Partners India, said, “Indian travellers today are more informed, digitally connected and aware on managing travel related uncertainties. While the appetite to travel remains strong, we are seeing consumers put more emphasis on preparedness, flexibility and protection when planning their journeys.
Travel insurance is increasingly viewed not just as a financial safety net, but an essential enabler of stress-free travel. “Today’s travellers expect comprehensive and seamless protection across their travel experience, from medical emergencies and trip disruptions to real-time assistance and digital support services.”
