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 , the parent company of digital payments platform Paytm, has received regulatory approval for its subsidiary to establish two Wholly Owned Subsidiary Services (WOSS) in Indonesia and Luxembourg. This development represents a significant milestone in the company's international expansion efforts.

Regulatory Approval Details

The approval allows One 97 Communications' subsidiary to establish operational entities in both Indonesia and Luxembourg, providing a foundation for expanded business activities in these markets. The WOSS structure will enable the company to maintain full control over its operations while complying with local regulatory requirements.

Strategic Market Expansion

The establishment of WOSS in Indonesia and Luxembourg positions One 97 Communications to tap into diverse market opportunities. Indonesia represents one of Southeast Asia's largest economies with a growing digital payments sector, while Luxembourg offers strategic advantages as a European financial hub.

Business Implications

This regulatory approval enables the fintech company to:

• Establish direct operational presence in two key international markets
• Maintain full ownership and control over subsidiary operations
• Comply with local regulatory frameworks while expanding services
• Strengthen its global business infrastructure

The WOSS structure provides operational flexibility while ensuring adherence to regulatory requirements in both jurisdictions, supporting One 97 Communications' broader international growth strategy.