Younger travellers are venturing farther than before. Gen Z and Millennials show greater interest in long-haul trips to Europe, the UK and Australia, while Gen X tends to prefer destinations closer to home. Australia, in particular, is becoming a Gen Y favourite, with 48% planning a trip there.
Travel behaviour is also shifting. A majority of travellers (64%) still prefer to travel with partners, spouses or friends, but Gen Z stands out for its independence. They are three times more likely to travel solo and four times more likely to travel with colleagues. They also seek new experiences: 62% plan to try adventure sports on their next trip, and half are likely to rent vehicles for a more flexible, personalised holiday.
Trip planning is steadily moving online. About 60% book travel themselves or use online travel agencies, though 30% still rely on traditional agents—especially for complex itineraries. Challenges remain common: 41% of respondents struggle with visas, logistics and understanding insurance. Gen X travellers are 2.6 times more likely to depend on their children for planning and booking.
Awareness of travel insurance is rising, with 88% familiar with it. Recent disruptions—flight delays, climate events and geopolitical tensions—have prompted more travellers to seek protection. Still, gaps persist: 49% of hesitant buyers cite lack of awareness, 34% find insurance expensive and 21% believe it offers limited benefit. The most frequent claims relate to medical emergencies, cancellations, delays, baggage loss and misplaced travel documents. Claims are often rejected due to exclusions or unmet policy conditions.
The report also highlights emerging trends such as digital-first experiences, embedded insurance, telemedicine support, parametric payouts and flexible, on-demand protection.
To meet evolving expectations, ICICI Lombard has introduced TripSecure+, an AI-driven travel insurance product offering customised and continuous protection. Earlier this year, the company also released India’s first AI-generated travel safety anthem.
“Indian travellers today are exploring the world with greater confidence and independence, and they expect the same from their protection,” said Anand Singhi, Chief Retail and Government Business, ICICI Lombard. “With AI-powered solutions like TripSecure+, we are reimagining travel insurance to be adaptive and always-on, so travellers can focus on what truly matters—enriching and memorable experiences.”