Paytm owned by One97 Communications Limited has sold over 38 million tickets in the fiscal year 2018 and is now looking forward to a two-fold growth in ticketing volumes by end of the fiscal year 2019. The company now aims to become a major player in the online travel booking space.
Abhishek Rajan, Vice President of Paytm said that “We are excited about the overwhelming response received over the past year. Interestingly 60% of our growth has come smaller cities, pointing at a rapid adoption of online travel services in smaller cities where Paytm has a deep penetration. We believe our focus on solving customer needs and creating disruptive product experiences has played a crucial role in offering the confidence to book their travel online. This year, we plan to double our tech team as we continue to focus on building experiences that travelers love. Our goal is to build the country’s most preferred destination forkinds of travel needs.”
In a span of just two years since its launch, Paytm witnessed remarkable growth in online bookings and came out with flying colors and was ranked as IRCTC’s largest reseller of train tickets, second largest player for bus tickets and was among the top three players in flight bookings. Paytm has been consistently fulfilling the demands of mobile-friendly travelers and has noticed a 3x growth compared to the fiscal year 2017.
The growth was significantly possible because of Paytm’s stronghold in non-metros with few complimentary products such as FREE Cancellation that starts as low as Rs.49 for Flights and Rs.3 for Bus, Zero processing fees on cancellation of flight tickets and instant refunds among others.
Paytm has also been successful in establishing direct relationships with most of the major domestic and international airlines. Today more than 85% of travel bookings come Paytm app, and the traveling offers provided the app has gained huge popularity across the metros, mini metros as well as tier 2 and 3 cities such as Jaipur, Indore, Vizag and Lucknow and many others.
Paytm isset to compete with market leadersMakeMyTrip (MMT), Yatra, ixigo and many other established names in the online travel booking space. According to a recent report by ET, MakeMyTrip’s Nasdaq-listed parent has invested additional funds in its tour & travels portal and aggregator through a rights issue, estimating MakeMyTrip’s earning at around Rs 26,000 crore. In its report for the quarter ended December 2017, MMT also said that it had to undergo a loss of $45.3 million due to augmented expenses following MakeMyTrip’s merger with Ibibo Group.
Gurgaon-based online travel agency Yatra also claims to raise $100 mn capital in the next three years. The company has declared a 40.8% year-on-year (YoY) growth in revenue to $52.7 mn (Rs 336.04 Cr) for the last quarter of 2017.
Yet another Gurgaon-based travel company ixigo has made its entry in Bengaluru by establishing a new product development center. A few months back, Ixigo had also launched the “ixigo skill’ feature for Amazon Alexa in India which will support travelers to take benefits of voice-assisted travel planning to know more about flight date, status, bookings, prices and other details.