Despite geopolitical tensions and rising airfares, Indians are opting to adapt rather than cancel their summer holiday plans. Data from Policybazaar reveals a shift toward short-haul Asian destinations, an increase in solo travel, and a significant rise in travel insurance coverage.
Indians increasingly regard travel insurance as protection against medical emergencies, trip cancellations, and airline disruptions — not a last-minute add-on, said the digital insurance platform. According to its 2026 summer trends report, the number of travel insurance policies sold has grown 22 per cent year-on-year. The number of travellers buying insurance cover of more than $250,000 has doubled.
The biggest beneficiary of the changing travel landscape is the Asia-Pacific region.
Japan has seen a 17 per cent rise in travel demand, Thailand 12 per cent, and Vietnam 7 per cent, while Singapore and Malaysia have maintained steady demand. Sri Lanka is also emerging as a preferred destination for Indian travellers looking for value-driven international trips.
Travel to the United Arab Emirates has dropped by more than 70 per cent due to regional tensions and safety concerns, according to the report. Long-haul travel to Europe and the United States is also slowing because of higher ticket prices and airspace restrictions.
The shift reflects a broader financial recalibration among Indian households. With international travel costs rising by 20-25 per cent, travellers are prioritising destinations that are closer, cheaper, and easier to access.
Instead of cancelling trips altogether, many are shortening travel duration, booking closer to departure dates, and comparing costs more aggressively.
Solo travel dominates summer bookings
One of the sharpest behavioural changes this year is the rise of solo travel.
More than 76 per cent of summer travellers in 2026 are travelling alone, compared with nearly 70 per cent last year, the report said.
In contrast, family travel has fallen to 4.67 per cent from 7.75 per cent in 2025, while senior citizen travel has also declined gradually amid global uncertainty.
The trend indicates growing preference for flexible and independent travel plans, especially among younger travellers. Solo travel also typically allows greater control over budgets and itinerary changes during periods of uncertainty.
Manas Kapoor, business head for travel insurance at Policybazaar, said Indian travellers were becoming more “flexible” and “value-conscious” rather than withdrawing from travel altogether.
“Summer 2026 shows that Indian travellers are not pulling back due to geopolitical sensitivities, they’re simply travelling smarter,” Kapoor said.
Why higher travel insurance cover is becoming common
The report shows a major jump in the amount of insurance cover travellers are purchasing.
Between 2022 and 2023, most travellers typically opted for basic cover of around $100,000. During 2024-25, coverage levels moved towards the $100,000-$250,000 range as post-pandemic awareness improved.
In 2026, however, cover above $250,000 is increasingly becoming the norm.
The change is being driven by several factors:
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Rising overseas medical costs -
Evacuation risks during geopolitical conflicts -
Flight cancellations and rerouting disruptions -
Greater awareness of emergency travel expenses
Medical cover remains the most popular add-on, chosen by roughly 75 per cent of travellers. Trip cancellation protection is seeing the fastest growth, with nearly half of travellers opting for it, while evacuation cover is gaining traction amid global instability.
Adventure sports cover is also emerging as a niche but growing category.
Insurers are additionally introducing more flexible features such as “Cancel For Any Reason” upgrades and wider protection against delays and airspace disruptions.
Travel insurance increasingly seen as financial protection
The data highlights a broader change in how Indians are approaching international travel financially.
Travel insurance, which was once viewed largely as a procedural requirement for visas, is increasingly being treated as a risk-management tool.
“The number of travellers opting for add-ons has risen, insurance cover above $250,000 have doubled, and overall policy issuance are up by 22% year-on-year,” Kapoor said.
He added that travellers were now making “a conscious decision driven by medical inflation, evacuation risks and global unpredictability”.
For travellers, the shift also reflects a practical financial calculation. Overseas hospitalisation, emergency evacuation, or last-minute cancellations can run into several lakh rupees, particularly in destinations such as Japan, Europe, or the US.
As travel costs rise and uncertainties persist, Indian consumers appear more willing to spend extra upfront on insurance rather than risk significantly larger losses later.
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