Indian travellers are set to dominate the domestic travel trend in 2026, with 60% planning holidays within the country, according to the Allianz Partners Global Travel Confidence Index. This figure significantly surpasses the global average of 42%, signalling a structural shift in travel behaviour among one of the world's fastest-growing outbound markets.
The survey, conducted by Ipsos among 11,010 respondents across 10 countries, also found that 87% of Indian respondents intend to travel this summer, compared to a global average of 74%. Despite economic pressures, Indian travellers continue to prioritise holidays, underscoring the importance of travel for wellbeing and leisure in the market.
Cost Pressures and Insurance Uptake
Rising travel costs are reshaping spending patterns. 76% of Indian travellers report reducing non-essential spending to afford trips, while 85% are likely to purchase travel insurance, citing peace of mind and protection against disruptions as key reasons. This trend aligns with broader industry observations about value-conscious behaviour in emerging markets.
Charu Kaushal, Managing Director at Allianz Partners India, noted: “Indian travellers continue to demonstrate strong confidence and enthusiasm for travel. Today’s travellers are more value-conscious, digitally enabled and experience-driven.”
Experience-Led Travel and AI Adoption
Experience-led travel is gaining traction, with 75% of Indian travellers planning to attend concerts and festivals. This shift towards experiential spending is a key opportunity for destination marketers and tour operators. Meanwhile, the use of Artificial Intelligence (AI) in travel planning is on the rise, with 82% of Indians utilising AI tools for vacation planning. This mirrors broader trends in social commerce and AI reshaping travel distribution, particularly among younger travellers who book on influence.
The findings highlight the growing role of technology in shaping travel decisions, from itinerary building to real-time price comparisons. For travel-tech vendors, this represents a clear signal to invest in AI-driven planning tools tailored to the Indian market.
Implications for the Travel Industry
For airlines, hoteliers, and cruise lines, the data underscores the need to strengthen domestic offerings in India. Carriers such as IndiGo, Air India, and Vistara may see increased demand on domestic routes, while hotel groups like Taj Hotels, ITC Hotels, and Marriott International could benefit from targeted domestic packages. The trend also presents opportunities for near-airport resorts in the Maldives and other short-haul destinations that appeal to Indian travellers seeking convenience.
Geopolitical uncertainties and rising costs are not unique to India, but the country's strong domestic travel intent stands out. As global travel patterns evolve, India's domestic market is poised to become a key driver of growth for the travel industry in 2026.
