The trend of increased globalization, leaner companies, outsourcing to vendors, export led growth and expanding markets has meant that executives at all levels and all functions, not just sales, are travelling more frequently, sometimes on extended stays, across country and internationally.
Increased travel has lead to soaring costs of travel and hotel stays. For export oriented companies like IT services, travel cost is a major expense. The recession of 2008- 2009, followed by ‘green shoots’, has led to increased competition and customers are re-negotiating costs.
Corporates are looking at innovative ways to cut costs under all heads, including travel. Large corporates, employing over 20,000 employees across multiple locations were earlier operating own guest houses. But it not feasible to operate guest houses at all locations cost efficiently. service apartment and corporate managed residences are options that companies are switching to, especially for extended stays.