Global Travel Landscape Shifts: Over 40% of Indians Choose Emerging Hotspots Like South Korea and Egypt, Says Tata AIG

Global Travel Landscape Shifts: Over 40% of Indians Choose Emerging Hotspots Like South Korea and Egypt, Says Tata AIG​

The patterns of Indian outbound tourism are undergoing a significant evolution. New insights from Tata AIG General Insurance Company reveal that more than 40 percent of domestic travellers are opting for emerging destinations such as South Korea, Sri Lanka, and Egypt for overseas holidays in FY26. This surge indicates a widespread shift away from traditional travel circuits toward a diverse array of global locations.

The report highlights a growing digital footprint among the travelling public. A substantial segment of outbound tourists is under 50 years old, underscoring a younger, digitally engaged traveller base. Southeast Asia represents a key growth area, accounting for 26 percent of insured travellers and demonstrating double-digit year-on-year expansion.

The Rise of Diverse Travel Destinations​

While established international destinations remain popular, the preference trend is clearly moving towards less traditional markets. Singapore, Egypt, Sri Lanka, South Korea, Japan, and the Maldives are among these preferred new territories gaining traction.

According to Tata AIG, this diversity reflects a traveller who is digitally savvy and actively explores global markets. The average duration for an international trip remained stable over the last two years, with Indian travellers spending approximately 24 days overseas in FY26.

Duration and Market Segmentation​

The study detailed that Europe and the United States continue to command extended stays, averaging around 32 days. In contrast, trips to Southeast Asia tend to be shorter, clocking an average of 11 days.

Chandrakant Said, Vice President (Consumer Underwriting) at Tata AIG General Insurance Company, noted that Indian travel is becoming more frequent and digitally driven across all age demographics. This reflects a move toward exploring both established routes and these emerging global hotspots.

Senior Citizens and Working Age Dominance in Travel​

The insights also provided keen visibility into the demographic composition of outbound tourists. People aged above 55 account for 22 percent of the international travellers insured by the company, signifying increased confidence among senior Indians to undertake overseas journeys.

However, the working-age population remains the core segment, with those between 21 and 55 years making up a commanding 66 percent of all insured travellers.

Digital Adoption Drives Insurance Purchases​

The journey toward booking travel insurance is rapidly moving online. The insurer’s data confirms that online purchases are gaining momentum, registering an average annual growth rate of approximately 10 percent.

This robust digital adoption trend suggests a long-term shift in consumer behaviour. As travellers increasingly favour seamless and digital-first purchasing journeys, they are prioritizing preparedness and convenience when planning their overseas trips.

Seasonality Trends and Transportation Preferences​

Seasonality trends remained consistent during FY26, with May and June identified as the busiest months for international travel. These peaks are predominantly driven by seasonal summer vacations.

Air travel stands as the overwhelmingly preferred mode of transport, accounting for nearly 98 percent of all insured outbound trips according to Tata AIG data.