Enterprise Business Travel – Why do Indian boards and corporate leadership need to focus on this opportunity?
Historically Indian corporate boards and leadership have had very limited engagement with Enterprise Business Travel (EBT). This is despite this spend category being amongst the largest controllable spends within the corporate budget.
This is radically opposed to the approach taken by Global multinational corporations including the Fortune 1000. They have invested in a very scientific approach to managing and strategizing EBT, to build global scale and leadership.
EBT can be defined as the spending, technologies, and processes directed towards travel, transportation, and meeting & incentives travel (MICE) for corporate employees & guests. EBT is a highly evolved global science and it impacts almost every key aspect of the corporation. However, with very few exceptions, Indian corporations have not invested in building a robust system that leverages global “best in class” thinking. This exposes corporations to inherent risks and liabilities, due to a sub-optimal program construct.
To give you a perspective of the scope and enterprise impact, outlined are some of the key areas of a modern corporation, that are directly impacted by EBT
Strategy: At Board & CXO levels define the long-term corporate direction: sustainability (scope 3 emissions), cost optimisation, cost minimisation, traveller well-being, or employee risk and security.
Human Resources: Impacts fulfilment, employee morale, duty of care, security, and compliance with various policy parameters. This also has a direct impact on employee well-being and concepts like “traveler friction”. A class-leading travel policy and effective management systems also impact the perception of the corporation as an employer of choice. Managing global visas and immigration have a direct impact on employee mobility and related tax liability.
Finance: Budgets, payment systems, expenses management systems, ERP reporting & analysis. A significant saving opportunity that has as yet been ignored by Indian enterprises is “Global VAT Reclaim” – the single largest savings opportunity in EBT, for corporations that have a large global travel and office footprint globally.
Technology: Self booking technology, automated fulfilment solutions , single sign-on and enterprise integration solutions
Procurement: Sourcing technology and RFP automation for air, hotels, transport, visa, MICE, groups, and possibly employee transport ( which is not traditionally regarded as a direct component of EBT )
Sustainability: Managing and effectively lowering Scope 3 emissions from the choices made in the procurement and fulfillment process, purchase of offsets, and deployment of Sustainable Aviation Fuel & certifications. Increasingly there is growing global legislation as in Europe ( and soon in the US), that will impact uncontrolled Scope 3 emissions at an enterprise level. This also presents significant ESG risks to be managed and mitigated for the future.
Corporate Duty of Care: To assess and mitigate risks to employees when traveling on behalf of the company. This is a formal legal obligation in many advanced markets across the globe but has not been implemented as legislation in India yet.
To build an effective EBT program and build a best-in-class capability, Indian enterprises need to adopt a scientific approach to EBT & target a business travel lifecycle optimisation strategy to build global set-in-class solutions.
Gaurav Sundaram
President ProKonsul Consulting
Strategic Management Consultant / Certified Independent Director & ESG Expert /CXO & Board Director. Award-winning professional. 30+ years of leadership experience. Certified Independent Director & ESG with CPD accreditation. Demonstrated success in consulting, technology & sustainability advisory, Leading complex businesses, managed profit centres, global business development & strategic account management. Established multiple start-ups and developed highly effective “Go to Market” strategies. Mentored and invested in start-ups.
