Hello Kamanro77
Yes, Milan is in Italy and Lugano in Switzerland. In this case the Swiss Travel Pass will be valid for Switzerland and if you plan to travel to Italy, you pay the difference from the border to Milan. As soon as you get back in Switzerland, you can use the rest of the Travel Pass. It won’t be valid in Italy.
For further information, I’ll recommend you to contact our SBB Contact Center by calling the number +41 51 225 78 00.
I wish you a nice day.
Kind regards, VlaznimA.