Business travel takes wing as India Inc unlocks

Business travel is taking off again, as Covid-19 cases are at a two-year low and companies are gradually reopening offices, but India Inc is still playing it safe.

ITC, the RPG Group, KPMG, Mphasis, Panasonic, Dabur, UpGrad and Mercedes-Benz India among many companies have resumed business travel, but only when it is essential and with strict safety protocols in place.

According to most companies ET spoke to, business travel is still at only 10-20% of pre-pandemic levels, though they expect it to rise in the coming months if the Covid situation remained under control.


"Business travel has resumed, though the emphasis remains on essential travel," said Amitav Mukherji, head of corporate human resources at tobacco-to-hospitality conglomerate ITC. "Some types of interactions are best done in-person. Hence, we will see a mix of travel and online meetings."

At IT company Mphasis, employees are travelling for client-related meetings, visas, relocations, etc., though business travel is just 15% of what it used to be pre-Covid, chief HR office Srikanth Karra said.

Business travel has returned at KPMG too - initially for client work and now also for internal meetings on a limited basis, said Sunit Sinha, head of people, performance and culture.

Companies are cautious because of the changing Covid situation and the fresh spike in infections in parts of Asia and Western Europe.

Pickup in Demand
Panasonic, despite 100% returning to office, has been slow in opening up travel. Only recently it started allowing management and key personnel to travel in domestic and international sectors, strictly for urgent business requirements. Compared with 2019, this is barely 10% now.

Mercedes-Benz India has lifted travel restrictions since March 1 to accommodate urgent business travel, managing director Martin Schwenk said. FMCG company Dabur is permitting only essential business-related travel.

Travel companies are witnessing a pickup in demand for business travel and hope it would gain further momentum in the coming months.

Thomas Cook's corporate/business travel segment has been witnessing a more than 20% month-on-month increase in demand since this January. "The recent announcement of the reopening of India's scheduled flights is already seeing a surge in positive corporate sentiment and we expect to close March at 80% of our pre-pandemic levels," said Indiver Rastogi, group head-global business travel at Thomas Cook (India) & SOTC.

At edtech company UpGrad, domestic travel was 45% higher in February compared with September 2021. But international travel increased 60% during this period.

"We are expecting an increase in the volume of travel for our mid- and senior-level employees along with senior leaders during the first half of the coming fiscal, to supplement ongoing business proceedings," co-founder Mayank Kumar said.

However, virtual and online meetings are here to stay as one of the key takeaways from the Covid times, and there could be a rationalisation in business travel and costs of companies because of this.

"Covid has taught us and brought in newer ways of doing business. So, remote connects and online meetings will continue," said Supratik Bhattacharyya, chief talent officer at the RPG Group. "However, we do see business travel starting to happen again."