Paytm' Travel Pass' Enhance Booking Flexibility: CEO Vikash Jalan

Paytm Travel CEO said his company is changing India's travel industry by offering a composite platform for aircraft, trains, and buses. With a strong focus on user frequency and AI to be repeated 80-90 percent, the company aims to optimize costs and increase the user experience, especially in understanding Tier 2 and Tier 3 markets.

In a special conversation with Travel World, Vikash Jalan, CEO of Paytm Travel, shared insight into the company's development path, unique market status, and ambitious plans to use artificial intelligence to redefine the journey experience.

Paytm Yatra is looking ahead and looking for a new path to expand its offerings. "We look at partnerships and new products that can provide more overall travel experiences," Jalan said. This includes ordering events, potential expansion in experiences, and integration of taxi and car booking platforms. The company is also starting new products, such as travel passes and guarantees, which are expected to increase the user experience.

With a strong focus on user acquisition, repeat customers and innovative product offerings, Paytm Travel is poised to capitalize on the booming travel sector, which is expected to double by 2030.

Market Position and User Acquisition: A Winning Strategy

Paytm Travel has carved a niche by providing a holistic travel experience under one platform. "We are one of the few brands that offer all three travel vertices flights, trains, and buses under one platform," Jalan said. This integrated approach has helped the platform acquire new orders and retain a loyal customer base. Jalan Paytm Trave flaunts an impressive 80 to 90 per cent repeat user rate, a testament to the trust and convenience it offers.

Expanding its offerings, Paytm has recently partnered with a digital travel platform, a part of Booking Holdings, to offer hotel booking services on the Paytm app. This partnership expands Paytm Travel's offerings to hotel bookings alongside flight, bus, and train booking services.

Tier 2 and Tier 3 Markets: The Growth Engine

Paytm Travel's focus on tier 2 and tier 3 markets has been a key driver of its growth. "Our reach in these markets is unparalleled. We can connect with users faster than most other OTAs", Jalan noted.

This advantage has translated into a significant market share, with Paytm Travel emerging as the second-largest player in trains and buses and among the top three in flights.

The company's ability to offer competitive pricing and seamless booking experiences has further solidified its position. The platform's deep preparation in tier 2 and 3 markets has been a game changer."These markets are underserved, and there's immense potential here," Jalan said.

The platform's ability to offer competitive prices and easy booking options has resonated with users in these regions. "Our last-mile reach is a significant advantage. Users can access prices and make bookings directly from the platform without any hassle," he added.

The company's efforts in these markets have yielded impressive results. While Jalan did not share specific numbers, he highlighted Paytm Travel's significant presence in the travel market. "We are the second biggest in trains and buses and among the top three in flights," he said. This dominance is a clear indicator of the platforms' growing influence.

Repeat Users and Marketing Strategies

One of Paytm Travel's standout achievements is its high repeat user rate. "Our repeat users contribute significantly to our volumes and engagement," Jalan said. The platform's focus on convenience and last-mile reach has been instrumental in building this loyal customer base. "We have made a travel booking as simple as possible, and that keeps users returning," he added. Regarding collaborations, Paytm has recently partnered with regional airline Fly91 to provide direct access to FLY91's ticketing inventory and seamless flight booking options across necessary regional routes in India. Based in Goa, FLY91 connects key cities like Bengaluru, Hyderabad, Pune, Jalgaon, Sindhudurg, and Agatti in the Lakshadweep islands.

Digital Transformation and AI

The travel industry is the top CSP of a digital transformation, and Paytm Travel is at the forefront of this change. "Digitisation and AI are going to play a huge role in shaping the future of travel," Jalan said. The platform is already working on AI-driven features to simplify the travel planning process. "We are exploring how AI can assist users in planning trips and providing personalised recommendations," he added.

Jalan believes that AI has the potential to optimise costs and improve user experience across all travel segments. "By 2030, we expect the travel industry to double in size driven by AI and other technological advancements," he said. This optimism is reflected in Paytm Travel's ongoing efforts to integrate AI into its platform.

Challenges and Opportunities 

With the future looking promising, Jalan acknowledges challenges to overcome. "Supply chain constraints in the flight business are a concern," he said. However, he remains optimistic about the opportunities in other segments, such as road transport and electric buses. "The resurgence of road transport and the potential of electric buses are exciting developments," he added. In the training sector, Paytm Travel is focusing on premiumization and matching international standards. "We are seeing a shift towards premium services, and we are working to meet those expectations," Jalan said.

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