As short trips and staycations grow in popularity, more Indian travelers are seeing travel insurance as a way to manage financial risks from trip disruptions or emergencies.
Vivek Chaturvedi, CMO and Head of Direct Sales at Digit Insurance, said the rise in domestic travel is linked to frequent trips and increasing awareness of potential travel disruptions.
Data from the DGCA shows that Indian airlines carried over 1.36 crore passengers in June 2025, marking a 7.34% year-on-year increase. The figures reflect growing travel volumes and heightened awareness of risks such as flight delays, cancellations, or lost baggage.
Hospitality experts note that domestic trips are often planned around long weekends and holidays. Yazad Marfatia, Corporate Director and Head of Sales & Marketing at Apeejay Surrendra Park Hotels, said travelers now prioritize convenience, memorable experiences, and value for money. Improved regional flight networks and curated hotel packages make short trips easier and more attractive.
Rajat Gera, Commercial Director at Six Senses Fort Barwara, highlighted that guests increasingly seek curated experiences combining wellness, cultural immersion, and sustainability during short breaks.
Ajay Mehtani, Partner at Treehouse Hotels and Resorts, added that domestic travel offers accessible and convenient options. Guests are now favoring shorter, frequent trips over international travel, which involves higher uncertainties.
Chaturvedi explained that domestic travel insurance typically covers trip disruptions, including cancellations, flight delays, and baggage loss. Coverage for medical or accidental emergencies provides protection against potentially high out-of-pocket costs.
He also noted that international travel insurance policies offer broader protection. These often include higher insured sums, personal liability coverage, and medical emergency assistance. International plans can be customised with add-ons, such as adventure sports coverage or extended durations, whereas domestic policies usually provide simpler, pre-set coverage options.
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