Solo travel surges as Asia-Pacific destinations gain popularity; travel insurance demand rises

Indian travellers are increasingly opting for solo and shorter international trips, with Asia-Pacific destinations emerging as the preferred choice amid global uncertainties and rising travel costs, according to the latest report by Policybazaar.  

The report stated that solo travel accounted for over 76.5% of all summer travellers in 2026, up from 70% in 2025, reflecting a growing preference for independent and flexible travel experiences. In contrast, family travel declined sharply to 4.67% from 7.75% last year while senior citizen travel also seen a gradual dip as travellers adopted a more cautious approach amid geopolitical tensions. 

Asia-Pacific destinations emerged as biggest gainers 

Asia-Pacific destinations have emerged as the biggest gainers this summer season. Japan recorded a 17% increase in travel demand, followed by Thailand at 12% and Vietnam at 7%. Singapore and Malaysia continued to witness stable year-on-year demand while Sri Lanka gained traction as an affordable and easily accessible destination. 

Meanwhile, travel to the UAE dropped by over 70% due to ongoing regional conflict and safety concerns. Long-haul travel to Europe and the US also slowed as higher airfares and airspace disruptions pushed travellers toward shorter and more cost-efficient destinations across Asia. 

Key rise in travel insurance adoption 

The report highlighted a significant rise in travel insurance adoption, with policy issuance increasing 22% year-on-year in 2026, indicating growing awareness around travel preparedness amid geopolitical sensitivities. 

Travellers are also opting for higher insurance coverage, with the number of customers choosing plans above $250,000 doubling compared to previous years. The market has shifted considerably from the earlier preference for basic $100,000 cover during 2022–23, driven by rising global healthcare expenses and evacuation-related risks. 

Medical cover remains the most preferred travel insurance add-on, selected by 75% of travellers. Trip cancellation coverage has emerged as the fastest-growing segment at 50% while evacuation cover accounted for 40% demand amid rising global uncertainty. Adventure sports cover, currently chosen by 20% of travellers, is also witnessing gradual growth. 

Insurers are additionally seeing higher demand for protection against flight delays, rerouting, and airspace disruptions, with flexible options such as “Cancel For Any Reason” upgrades gaining popularity. 

Travel behaviour becoming increasingly cautious 

According to the report, travel behaviour is becoming increasingly cautious and reactive. Cancellation requests rose 32% as travellers responded to evolving safety concerns. Many travellers are now delaying bookings until closer to departure dates while actively comparing prices and optimising travel budgets instead of cancelling plans altogether. 

Manas Kapoor, Business Head, Travel Insurance at Policybazaar.com, said Indian travellers are becoming smarter and more value-conscious in their travel decisions. “Summer 2026 shows that Indian travellers are not pulling back due to geopolitical sensitivities; they are simply travelling smarter. We are seeing a strong shift toward Asia-Pacific destinations alongside growing awareness around travel risks and protection,” Kapoor said. 

He added that travel insurance is increasingly being viewed as a conscious purchase driven by medical inflation, evacuation concerns, and global unpredictability rather than merely a compliance requirement.