India's appetite for travel continued to deepen and diversify in 2025, driven by a surge in spiritual journeys, festival-linked trips, entertainment tourism and growing demand from tier-2 cities, according to Paytm's latest travel recap. One 97 Communications Limited, the company behind the Paytm brand, reported sustained growth across spiritual, cultural, leisure and impulse travel categories, underscoring rising aspirations and renewed willingness among Indians to travel more frequently.

Spiritual Tourism Drives Major Growth

Spiritual tourism emerged as one of the strongest growth engines during 2025. The Kumbh Mela proved to be a defining event, with bookings to Prayagraj increasing more than threefold during January and February. This marked a sharp acceleration from 2024, when pilgrimage destinations such as Ayodhya, Shirdi and Varanasi had already seen close to 50 percent year-on-year growth.

In 2025, searches for Ayodhya, Varanasi and Tirupati climbed 34 percent, further cementing faith-based travel as a mainstream trend.

Festival Calendars Shape Travel Patterns

Festival calendars continued to shape travel behaviour at scale throughout 2025. During Chhath Puja, flight bookings to Patna rose by 25 percent, reflecting one of the country's largest annual migration movements. This pattern mirrors previous years' spikes around major festivals such as Holi, highlighting the enduring role of cultural occasions in driving seasonal travel demand.

The data also revealed increasingly spontaneous travel habits, with bookings jumping 15 percent immediately after salary credits, pointing to a close link between disposable income cycles and travel decisions.

Entertainment and Leisure Tourism Momentum

Entertainment tourism gained fresh momentum in 2025, with concerts acting as key travel triggers. Cities such as Mumbai and Bengaluru saw higher inbound demand as live events prompted short-duration trips, extending a trend that began in 2024 when concert-led travel grew by over 40 percent, particularly among younger travellers.

Leisure destinations remained resilient throughout the year. Srinagar stood out as a major comeback story, registering record bookings during 2025, while Goa continued to attract higher traveller volumes than in 2024, maintaining its position as India's most popular holiday destination.

Tier-2 Cities Drive Regional Expansion

A notable shift was the expansion of travel beyond major metros. Tier-2 cities recorded meaningful growth in inbound traffic, signalling deeper digital adoption and growing travel aspirations across regional India.

Platform Enhancements and Future Focus

The company recently rolled out Paytm Checkin, an AI-powered travel app offering personalised recommendations and conversational booking across flights, trains, buses and metro services on a single platform. Key features include:

• Zero convenience fees
• Low-cost flight cancellations
• Fast refunds
• Subscription-based Travel Pass with travel insurance
• Real-time flight updates
• Ticket Assure for trains
• Paytm Assured for buses

A Paytm spokesperson commented: "Travel trends in 2025 reinforce patterns that have been steadily strengthening over recent years. From the continued rise of spiritual and festival-led travel to greater spontaneity, event-driven trips and growing demand from tier-2 cities, users continue to place their trust in Paytm Travel. We remain focused on building a seamless, reliable and scalable travel ecosystem that supports India's evolving mobility needs."

One 97 Communications has announced major international expansion initiatives on December 22, 2025, marking a significant step in its global growth strategy. The fintech giant disclosed plans to establish new subsidiaries in Indonesia and Luxembourg while securing a strategic partnership in the UAE through a substantial investment deal.

New Subsidiary Incorporations in Indonesia and Luxembourg

Paytm Cloud Technologies Limited (PCTL), a wholly owned subsidiary of One 97 Communications, approved the incorporation of two new wholly owned subsidiaries in Indonesia and Luxembourg at its board meeting held on December 22, 2025. These strategic moves align with the company's earlier disclosure about exploring select new markets for future growth and bringing its advanced technology across merchant payments and financial services to international markets.

Both subsidiaries will focus on expanding the distribution of Paytm's technology-led merchant payments and financial services stack using various approaches, including strategic partnerships, investments, organic expansion, and local licenses. No governmental or regulatory approvals are required for the incorporation of these proposed wholly owned subsidiaries.

Strategic UAE Partnership with Abbar Global

In a parallel development, Paytm Arab Payments L.L.C (PAPL), which was incorporated on April 30, 2025, approved a significant investment from Abbar Global Opportunities Holdings Limited (AGOHL) at its board meeting held on December 22, 2025. The transaction involves the issuance and allotment of 76,862 equity shares with a face value of AED 100.00 each, representing 49.00% of the post-issue paid-up share capital of PAPL.

Upon completion of this transaction, PAPL will cease to be a wholly owned subsidiary of PCTL and will become its 51.00% owned subsidiary, while continuing as a step-down subsidiary of One 97 Communications.

Strategic Partnership with Industry Leader

AGOHL serves as a Special Purpose Vehicle (SPV) of Mohamed Ali Rashed Alabbar, a prominent figure in the Middle Eastern business landscape. Alabbar is the founder of Emaar Properties, the developer behind iconic projects such as Burj Khalifa and Dubai Mall. He also co-founded Noon and holds leadership roles in Americana Restaurants, Zand Bank, Eagle Hills, and various other ventures.

Regulatory Compliance and Documentation

The Share Subscription Agreement between PAPL, Paytm Cloud Technologies Limited, and AGOHL was executed on December 22, 2025. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. One 97 Communications confirmed that AGOHL does not belong to the company's group companies, and the transaction does not fall within related party transactions.

All relevant details as required under the SEBI Listing Regulations, along with SEBI Master Circular and related circulars, have been properly documented and will be hosted on the company's investor relations website at https://ir.paytm.com/ .

These developments represent One 97 Communications' continued commitment to international expansion, leveraging strategic partnerships and direct investments to establish its presence in key global markets across Southeast Asia, Europe, and the Middle East.