The Rise of Young Indian Explorers: spending up 25% to $31.7 bn in FY24: Report

Millennials and Gen Z account for 48% of India’s outbound travelers, driving a surge in international tourism. India’s travel spending rose 25% in FY24, reaching $31.7 billion, with younger travelers favoring adventurous and meaningful trips. Women now represent 43% of international travelers, reflecting societal shifts. Popular destinations include Thailand, UAE, and the USA, driven by visa ease and social media trends. Comprehensive insurance is increasingly prioritized, as disruptions like medical issues and delays prove costly. Smart planning defines modern Indian travel.

Indian Millennials and Gen Z are redefining the country’s outbound travel landscape, according to a recent report by an insurance firm. These two generations now account for 48% of India’s international travelers, reflecting a significant shift in who drives the travel industry.

Generational Trends in Indian Travel

Millennials, born between 1981 and 1996, and Gen Z, born after 1996, are playing a pivotal role in shaping the travel trends of modern India. The ACKO India Travel Report 2025 reveals that India’s international travel expenditure surged by 25% in FY24, reaching $31.7 billion. This robust growth is projected to continue, with outbound travel expected to exceed $55 billion by 2034.

Notably, 36% of outbound travelers in India are under the age of 35, signaling the increasing influence of younger demographics on international tourism. These travelers are characterized by their digital savviness and an adventurous spirit, often blending work, wellness, social events like weddings, and leisure into extended and more meaningful trips.

Smarter Travel Choices

The findings emphasize a growing preference for comprehensive insurance among Indian travelers. Nearly 99% of ACKO’s customers opted for medical insurance, while 83% chose expansive plans covering aspects like baggage loss and travel delays. “Today’s travelers are prioritizing peace of mind by planning smarter,” noted a spokesperson from ACKO.

Women at the Forefront of Travel

Another notable trend is the rising participation of women in international travel. Women represented 43% of Indian outbound travelers in 2024, showcasing an evolving societal narrative marked by independence and empowerment. From solo expeditions to family vacations, women are increasingly shaping the narrative of India’s travel industry.

Favorite Destinations for Indian Travelers

The report also sheds light on the top international travel destinations for Indians in 2024:

• Thailand: 13%

  
  

• UAE: 10%

  
  

• USA: 6%

  
  

• Vietnam: 5%

  
  

• Indonesia: 5%

  
  

Factors like visa-friendly policies, convenient flight connectivity, and popular trends on social media play a significant role in shaping these preferences. Beach destinations such as Phuket, Bali, and Da Nang appeal to those seeking relaxation, while urban enthusiasts are drawn to cities like Dubai, New York, and San Francisco.

The Cost of Disruptions

Travel disruptions can be costly, with medical claims constituting 33% of insurance payouts, averaging ₹16,542. Delayed baggage accounted for 25% of claims, with an average cost of ₹17,379. Meanwhile, rescheduling trips led to claims averaging ₹72,428.

The ACKO spokesperson emphasized, “Travel today is more than just a break; it’s a statement. However, it comes with risks. This is why smart planning and comprehensive insurance are essential.”

A New Chapter in Indian Travel

The preferences and priorities of Millennials and Gen Z, coupled with the rising participation of women travelers, are reshaping India’s travel industry. As international travel continues to grow, it’s clear that Indian travelers are embracing new experiences while ensuring their journeys are well-planned and protected.