Headline: Indian Outbound Travel Evolves in FY26: New Destinations and Digital Adoption Drive Shift, Says Tata AIG

Key Points

- Nearly 40% of travellers now prefer emerging destinations such as South Korea, Egypt, Sri Lanka, Philippines, Japan, and the Maldives. - Online insurance policy purchases continued to grow, registering an average annual growth of ~10%, reflecting sustained digital adoption.

Tata AIG General Insurance Company's New Findings

July 07, 2026, Mumbai: Tata AIG General Insurance Company, one of India’s leading general insurers, has released new insights into outbound travel trends for FY26, highlighting a noticeable shift in traveller demographics, destination preferences and insurance adoption behaviour. The findings point to a more diverse and digitally engaged traveller base, with growing interest in emerging global destinations, travellers under 50 accounting for the majority of the cohort, and a steady shift towards digital-first insurance journeys.

Major Trends

While traditional hotspots continue to dominate outbound travel, emerging destinations are witnessing faster growth. Nearly 40% of travellers now prefer emerging destinations such as the Maldives, Japan, South Korea, Egypt, Sri Lanka, among others. Southeast Asia accounts for 26% of the insured travellers’ share and registering a double digital growth year-on-year. The data also points to distinct travel behaviour patterns, with shorter stays in nearby regions and longer durations in long-haul destinations . The average duration of international trips remained largely unchanged from the previous two years, with Indian travellers spending approximately of 24 days overseas in FY26. Regionally, Europe and the United States emerged as destinations with the average stay at approximately 32 days, while travel to Southeast Asia averaged 11 days. Seasonality trends remained consistent, with May and June emerging as peak travel periods, largely driven by summer vacations. Air travel dominated outbound journeys, accounting for nearly 98% of insured trips.

Point of View of Dr. Chandrakant Consumer Underwriting, Tata AIG General Insurance Company

“Indian outbound travel is becoming more diverse, frequent and digitally driven, with travellers across age groups exploring both established and emerging international destinations. At Tata AIG, we are seeing stronger adoption of travel insurance among families, senior travellers and first-time international travellers, particularly during peak vacation months. The increasing preference for seamless, digital-first insurance journeys also highlights how travellers today are prioritising convenience, preparedness and protection while planning overseas trips.”

Other Key Trends

Another key trend observed is the participation of travellers above 55 accounting for 22% of international travellers insured by Tata AIG, indicating growing confidence among older Indians to travel overseas. However, the working-age population continues to dominate outbound travel, with the 21–55 age group comprising 66% of insured travellers. The insights also show that online insurance policy purchases are registering consistent momentum, with an average year-on-year growth of ~10%. This underscores the sector’s steady digital adoption and signals a long-term shift in consumer behaviour toward online channels Tata AIG said it continues to enhance its travel insurance portfolio through advanced digital capabilities, customer-centric product design, and comprehensive coverage solutions. These initiatives aim to keep pace with the evolving needs of Indian travellers as outbound tourism continues to grow in scale and complexity.