TQ3 Travel Solutions

Creating Wave For Corporates To Surf

TQ3 India is making significant inroads into Indian corporate travel market. Ajay Bali, managing director, TQ3 Travel Solutions elucidates on the company’s strategy

Ajay Bali

A segment that has grown and kept pace with the improving corporate profile of the country - India's corporate travel market, is today estimated at no less than $3 billion. Keen to account for a bigger share of this market, TQ3 India, the travel management company, made significant inroad into this strategically important market four years back. In a short span of time, as a result of active and sustained investment, the company has created a robust and comprehensive network in India.

TQ3 Travel Solutions in India was formed through an exclusive partnership between TQ3 Travel Solutions and TQ3 Travel Solutions India (earlier known as ETI Travel Solutions) in September 2001, only a few months after TQ3 was launched in Germany. Since then the company has established its presence in India through a franchisee ETI travel solutions, which was wholly owned at later stage. The first goal of TQ3 was to expand its network to enable handling of various global multinational accounts. TQ3 India has historically been a technology based corporate travel agency - ETI Travels & Technologies.

Commenting on Indian operations, Ajay Bali, says, "The market may not be of the scale that one come across in the US and Germany but in terms of significance, India is right in the middle of TQ3's radar screen."

The company believes in the strategy, 'Creativity and innovation are the only 'engines' that will drive lasting success in an ever-changing world'. Despite being relatively young, TQ3 India employs over 95 professionals, having rich experience of the travel industry and key technology expertise.

Travel is typically the third largest commodity that the company expends on preceded by HR and IT and yet until recently, it was the least controlled. Only the last ten years have witnessed the genesis of travel management as cognisable skill. Some events in the last three to four years have helped this process along.

"We want to emerge as the market leaders in the next three years. Being a global MNC we have positioned ourselves to ensure smooth delivery of services to all our global customers having presence in India and for any requests related to India. We have recently added Hyderabad, Pune and Calcutta to our existing network of Mumbai, Delhi, Bangalore and Chennai. We have maintained the growth in the top line of over 30 per cent, and introduced new products to cater efficiently to the corporate travel needs. The core focus of the company is on providing travel services to MNCs and large Indian corporations," says Bali.

According to Bali, the key differentiator between TQ3 and the competition are its technology solutions, which can help chief financial officers (CFOs) get a better understanding of corporate travel budgets.

Strategy

TQ3 India has invested a great deal in technology development and people. These are two factors, besides being part of a global network, that are attracting MNCs to opt for their solutions versus a traditional travel agent. Supported by innovative travel solutions for business travellers, a high tech platform to provide financial and travel data, TQ3 India poises itself as one of the leaders in travel management in India. "Technology has been our USP and we have developed products like Optimiser, Global Travel Secure, Online booking tools and state of the art MIS system for all customers. We will continue to develop products like these in future as well. Unlike most of our agency competitors, we are not just trying to sell more airline tickets. Rather, we are using our extensive knowledge of travel expense management processes and best practices to help our clients reduce their travel expenditures and improve their competitive cost advantage," says Bali.

Future Plans

"TQ3 will continue to expand its operations in growing metros and semi metros and increase the network from current 7 to 12 before end of 2006. The current growth of 305 crore per annum should make us easily in the top 5 companies in corporate travel segment. But we have definite plans to ensure we are in top three players in the segment before by 2007," mentions Bali.

Globally, for next one year, TQ3 will turn its sights on Asia, South America and the Pacific region in particular, whose potential for fast, comprehensive, flexible and creative solutions to travel management needs has yet to be fully realised. TQ3 will continue to place emphasis on increasing ownership stake in its key operations around the world. In line with its global expansion strategy, the company will also continue to devote resources in the emerging markets, looking to replicate the success of its well-established and proven European and North American operating regions and build upon its strong global structure.

Vision for the segment

According to Bali, future for corporate travel looks very bright as the market is huge and there is place for more players. With a growing economy and increase in BPO, IT and bio-tech industry new vista of travel opportunities will open for Indian and MNCs having presence in India.

TQ3 Travel Solutions recognises that for most companies, travel expense is becoming one of the largest controllable expenses. "Travel costs have emerged as the third largest expense for corporates, after HR and raw materials. This trend is being intensified by market conditions that are dramatically changing the way companies manage their travel expenses - from sweeping economic changes driven by commission reductions to the advent of electronic commerce, combined with the rise in strategic sourcing. As a result, companies are searching for ways to squeeze costs out of the entire travel expense process without sacrificing customer service," says Bali.

He firmly believes that leisure will be the sunrise industry in future. Europe and Far East will continue to be important destinations. But for those in corporate segment, business and new joint venture between Indian companies will drive the business and the destinations. "We are optimistic that new countries wanting to establish presence in the Indian markets will compel travellers to visit all important destinations of the world," elucidates Bali.