Fintech
Paytm’s latest moves in the travel sector
Take Skift
Paytm is a major fintech player in India and has a strong user base in smaller cities in India. This user base gives it a slight edge over other OTAs.
—Bulbul Dhawan
Paytm started as a financial services company in India, but is now diversifying its revenue streams, with a focus on travel. The fintech company often refers to itself as an online travel agency and considers travel as a core business segment.
In its latest initiative to enhance its travel offerings, Paytm has entered into a strategic partnership with German intercity bus service company FlixBus, which entered India in February this year.
Want to become an OTA? Officially, Paytm is still a “mobile payments and financial services delivery company,” with a mission to bring 500 million Indians closer to the traditional economy using technology.
However, after his Payments bank (which ignored payments wallets, customer accounts and term deposits) was shut down earlier this year by India’s central bank, the Reserve Bank of India, and the fintech operator began looking for alternative sources of revenue, including travel.
About Paytm websitePaytm Travel is the first segment to appear, allowing customers to book flight, bus or train tickets.
Paytm Chief Commercial Officer Vikash Jalan highlighted the theme of travel in his statement on the partnership with FlixBus: “As a leading company travel aggregatorWe are committed to improving the overall travel experience in India. Our partnership with FlixBus marks a significant step forward in this mission, directly aligning with our core business goals to stimulate growth in the travel sector.”
Last month, Paytm has announced its partnership with travel aggregators Skyscanner, Google Flights and Wego. The move followed a 19% year-on-year increase in flight bookings on Paytm in the January-March quarter this year.
It recently added features like guaranteed seat assistance to its train booking segment and partnered with Samsung to offer flight and bus ticket booking through Samsung Wallet.
Its travel division has also added three new airlines to its lineup: Cambodia Angkor Air, SalamAir and FlyDubai.
Importance of Paytm: Paytm has played a crucial role in India’s digital economy, especially after demonetization in November 2016, where the Indian government discontinued INR 500 and 1,000 notes to curb the issuance of counterfeit currency. The move led to a surge in digital payments in India, with Paytm gaining the first-mover advantage in QR-based mobile payments using its payment wallet.
Paytm’s user base has grown from around 140 million in October 2016 to 270 million a year later, reaching even the remotest parts of the country.
This user base of small cities in India makes Paytm a crucial player, giving it a slight edge over other OTAs.
Visa Applications for France Increase Before Paris Olympics
Online visa platform Atlys has registered a 60% increase in visa applications to France from Indian travellers ahead of the Paris Summer Olympics. Applicants from metropolitan cities including Delhi, Mumbai and Bangalore account for the largest share.
There has also been a 45% increase in group visa applications as Indians are planning to travel to the Olympics with their families and friends.
Sports tourism is on the rise in India, as Skift has previously reportedIndian online travel companies have seen up to a 40% increase in demand for global sporting events, including tennis tournaments, the Cricket World Cup, the Olympics and F1.
Atlys also saw a 50% increase in inquiries about sports tourism, with travellers also interested in visiting French sports venues such as the Stade de France and Stade Roland Garros.
Mumbai Airport records 7% growth in passenger traffic
Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai has recorded a passenger footfall of over 13.4 million between April and June 2024. This marked a 7% increase over the same quarter last year.
In May alone, the airport handled 4.7 million passengers, CSMIA said in a statement. Mumbai is India’s second busiest airport, after Delhi.
Among domestic markets, Delhi, Bangalore and Hyderabad were the top three destinations for passengers departing from Mumbai. Internationally, most passengers travelled to Dubai, Singapore and London.
Indian airlines IndiGo, Air India and Vistara held the highest market share in domestic and international traffic at the airport during the quarter, CSMIA said.
Air India collaborates with Bicester Collection
Full-service airline Air India has partnered with luxury retail destination The Bicester Collection. The partnership will allow members of Air India’s Flying Returns loyalty program to earn reward points on shopping and dining at The Bicester Collection’s open-air villages in Europe.
“The demand for luxury shopping among Indians continues to grow at a record pace, with Indians now among the top spenders when travelling across the world,” said Sunil Suresh, Head of Marketing, Loyalty and E-Commerce, Air India.
During the financial year 2023-24, Indians spent $31.7 billion, reaching a New peak in spending abroadOf this, 54%, or $17 billion, was spent on international travel, a 25% increase over the previous year.
Radisson opens Grand Mirage Dhanbad in Jharkhand
Radisson Hotel Group has opened Grand Mirage Dhanbad, a member of Radisson Individuals, in Jharkhand. The hotel has 70 rooms and suites.
The property is part of Radisson’s strategy to focus on tier 2 and tier 3 cities in India for its expansion, as more than 50% of its portfolio of 180 hotels is located in smaller cities.
Executive Vice President and Head of Global Development Elie Younes also shared this with Slip earlier this year, saying: “Our expansion plans for 2024 are ambitious, focusing not only on major metropolitan cities, but also targeting tier 2 and 3 cities to meet the growing demand in these markets.”
Radisson operates 10 brands in India, including Radisson Collection, Radisson Individuals and its recently launched extension Radisson Individuals Retreats.
Photo credit: The fintech company often refers to itself as an online travel agency.