The Hindu Business Line : In cost-cutting mode...

Post 9/11 and SARS, though corporates have invested in advanced communication technologies and prefer economical travelling options, in the coming years business travel is bound to grow and improve, with greater choices for the commuter.

Helicopters for short hops. Chartered private jets for longer hauls. Preferred services on business class. Mercedes pick-ups from the airport. Luxury hotel rooms fitted with wi-fi access. Low-calorie gourmet meals and rejuvenating spa treatments.

If this is what travel for senior management is about, why is anyone complaining? But business travel is also about a blur of airport lounges and hotel rooms, of being on the road for more days than one is at home, and of coping with security fears and mysterious viruses.

Certainly, CEOs and senior management travel in far greater comfort today than they did some years ago, when options were limited and technology less advanced. Today, the options from the lowly executive to the CEO are far greater, and while the travel schedules of head honchos are more demanding now, with globalisation and the increasing interest in the Asia-Pacific region, advances in communications and technology have made it far easier to pow-wow with a colleague in Dhaka, make a presentation to a client in Dubai, and interview a candidate in Delhi right from the corner office in south Mumbai.

Worldwide, travel budgets and perks have shrunk in recent years as companies tightened their belts with the economic downturn, followed by post 9/11 security concerns and then SARS. Companies have instead invested in advanced communications technologies such as video and Web-conferencing, fly executives by low-cost airlines or book them on economy rather than business class. Even if economic conditions improve, drastic changes in travel budgets are unlikely.

In India there has certainly been a decline in business travel since the heady days of the tech boom. Still, about 80 per cent of Jet Airways' clients are business travellers, and while some hotels cater almost exclusively to them, even luxury hotels are tailoring their offerings to this segment, which contribute up to 85 per cent of business for some hotels.

The rapid growth in businesses such as IT, telecom, electronic media, financial services and automobiles, has led to the growth in business hotels in the metros. Several hotels have specific floors for business travellers with sophisticated communication facilities, and they all offer services such as 24-hour check-out, broadband and wi-fi connectivity and videoconferencing. Complementary airport pickups in luxury cars are routine, as are add-ons such as mineral water and choice of reading material.

The needs of business travellers have changed over the years as the pressures of time and technology have changed, said a spokesperson for The Oberoi Hotels. Travellers are far more tech-savvy, and demand a lot more than just being able to plug their laptops in their rooms. The Oberoi Hotels therefore offers wi-fi access and is wired for videoconferencing. Travellers are also far more aware of their health and fitness, so the hotel offers healthy menus, and sophisticated facilities at its health clubs, as well. The hotels also offer spa facilities that business travellers are increasingly making use of for de-stressing.

Going forward, travellers will expect greater comfort in their rooms, a wider access to technology and services that also meet their health and lifestyle needs, the spokesperson added.

When it comes to air travel, corporate houses typically have agreements with Jet Airways, Indian Airlines or Sahara. The launch of a low-cost, no-frills airline, Air Deccan, which provides connectivity to even small towns, should also make travel easier. While options have increased and services have improved, expectations of business travellers have essentially remained the same: reliability in terms of schedules and timings, and comfort and convenience at all levels — from booking to checking in, the on-ground and on-air services, food and general ambience, said a spokesperson for Jet Airways. While the economy downturn has certainly impacted business travel, with fewer trips and use of economy rather than business class, the greater use of technology has also led to the shift, the spokesperson added.

Recognising the need for a quick and easy means of transport for short hops, Deccan Aviation launched a fleet of helicopters about six years ago. Positioning itself as the "limousine in the sky," the company has found ready acceptance among corporate heads and politicians alike. The charter costs range from Rs 45,000 to Rs 65,000 per hour.

Several companies also maintain their own aircraft and choppers. The United Breweries group, for instance, has three aircraft, a Boeing 727 executive jet which seats 26, a Gulfstream 2B, which seats 13, and an HS-125 which seats seven. UB Chairman and MP, Vijay Mallya, uses the Boeing 727 and the Gulfstream Jet, and charters a chopper for short hops. While on terra firma, he rides in bullet-proof Mercedes cars, that have been customised by auto designer Dilip Chhabria.

For his longer political road trips in the interiors of Karnataka, he uses a Mercedes van, which has been converted into an office, and a bus, which has been converted into a mobile home, a spokesperson said.

"With 18 distilleries and 11 breweries across the country, plus his political obligations, Mallya prefers to use these modes of transport rather than be limited by the timings and the fixed schedules of commercial flights," the spokesperson pointed out.

"On board, he also conducts meetings with management teams."

The group has ongoing deals with Indian Airlines and Sahara for its travel needs, and also uses teleconferencing and videoconferencing facilities a great deal, according to the spokesperson. The group is also investing in implementing technology that will link its breweries and distilleries and offices across the country: "These truly are the media of the future."

The Raymond group also has a small plane and two choppers, which the senior management use in addition to commercial airlines. The choppers seat four or five people, and the plane seats 10. While the use of technology has reduced the need to travel frequently, with 120 Raymond shops across the country, there is still a need to travel, a spokesperson said.

At the FMCG giant, Hindustan Lever Ltd., too, while the company has embraced technology readily, it also recognises the importance of face-to-face interactions with customers and clients, so everyone from the Chairman downwards travels when necessary, a spokesperson said. Interactions within the company are done mostly by way of teleconferences and videoconferences; in fact, even interviews are conducted by way of videoconference. "They are a good alternative to physical interactions, and increase our efficiency, as well, besides cutting costs — one hour of videoconference between Mumbai and Bangalore costs about Rs 2,000, and a typical meeting lasts two to three hours," the spokesperson said. "Consider the savings made in terms of air fares, hotel stay, and the time saved."

When travel cannot be avoided, as in the case of Nirvik Singh, who heads the South Asia operations of Grey Worldwide, the schedule can be demanding.

Singh travels 20 days a month, visiting Grey offices in Sri Lanka, Bangladesh, the Middle East and the Far East. In Mumbai, where he is based, he drives himself, and uses commute times to connect with colleagues and clients — on a hands-free set, he clarifies.

For those who favour greater luxury, customised vehicles are the order of the day; Chhabria has done vehicles for the likes of Mallya, Amitabh Bachchan and Anand Mahindra, besides a host of actors.

The needs of business heads have changed as their schedules are more demanding, and they need to multi-task even while getting from one place to another, Chhabria says. Also, while there was little to choose from by way of vehicles in the past, today we are spoilt for choice. While doing up a vehicle — be it a Mercedes or a Qualis or an SUV — the owner is usually very involved in the process, approving of even the fabrics and choice of materials and accessories.

Chhabria's team of about 300 handle all requests — from minibars to replicating an office to a boardroom to even gyms, he says. With expressways taking shape, it is believed that more executives will take to the road in comfortable cars for even inter-city travel.

But alongside choosing between beige and champagne leather for the interiors, there are other concerns, as well: Mallya and four others travelling with him on a chopper had a narrow escape just recently when the chopper crashed near Navanagar. Just last month, 27 people were killed when an ONGC helicopter went down in the offshore Heera Panna Oilfield. There have also been fatal car crashes.

So, besides heeding travel advisories and keeping a close watch on the security environment internally, most corporates also have strict travel guidelines: many companies, for instance, have a ceiling on the number of senior management that can travel on the same flight. HLL discourages its employees from inter-city travel after 7 p.m. It also insists that all the vehicles it hires have seat belts, and that all employees use them and crash helmets, as well.

What does the future hold? A wider use of communications technology will take the place of some amount of travel, but business travel will continue to grow and improve, with greater choices for the commuter, say experts.

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