COVID 19 has injected some fresh ideas in the minds of employers on how to save money in this time of crisis. This was made easy with the success of various platforms, including zoom which enabled about a hundred people to join, meet and discuss various issues without an inch of travelling. No taxi, airline or hotel bills are generated if one uses technology to meet. It is savings but at the cost of no travel and virtual presence. However, a school of thought is also of the view that all businesses cannot be done “virtually” and human interaction is essential. “People may not travel for a certain period for safety reasons but once the vaccine for COVID19 develops, it will be business as usual. At this point, no one is willing to take a risk,” said Mr Nitin Kunkoleinker, former President of Goa Chambers of Commerce and Industry (GCCI). Mr Kunkoleinker supported his statement giving an example of virus attacks on earlier occasions and by asking, “Also, we had technology like telepresence, virtual presence etc, almost like Zoom before the Covid19 hit us and we used to travel even then, isn’t it? Technology is good and it can be used when there is no option of travel. According to me, travel will happen when the environment gets safer.”
As of now, information technology companies are now investing heavily in the collaboration tools and the stigma around virtual meetings has diminished. However, to acquire new customers, signing of contracts etc companies have to rethink travel in the long-term.
Presently, a majority of the business is coming from the existing customers and clients and less than 20 per cent of income accrues from new consumers. To grow the business, new customers have to roped-in by the companies. With the travel ban in place, business travel was destined for a halt. Some countries like USA has already suspended the immigrant visa temporarily until normalcy restores. All this would further restrict travel a little longer, by as long as few months to a year, analysts have pointed out.
Noted Chartered Accountant of Goa and immediate past President of the GCCI, Mr Sandip Bhandare is of the opinion that use of technology to “meet” started only when people felt that they could not travel and are under lockdown. He cited the example of Tata Consultancy Services (TCS) which has asked 30-40 per cent of their staff to work from home and is planning to raise it to about 85 per cent, which means they will save on real estate, fuel, travel cost, electricity bills and several other facilities cost which is normally attached to any office.
“Technology is moving in a way that it would help people to meet virtually and interact without even travelling and meeting physically as physical proximity has become a big issue with this Coronavirus attack. In fact Covid19 has given a boost to digital technology. People are realizing that personal contacts in physical form may not be essential. Digital contact has all the advantages as against physical contact as of now. This digital communication will also lead to a lot of savings in the real estate and other expenses attached to an office set-up,” said Mr Bhandare.
Travel industry happens to be the most adversely affected and is worried about the future. They are also aware that with the spring in technology, physical travel is likely to reduce unless it becomes absolutely necessary.
Mr Ernest Dias, President of SKAL International Goa, an international association of travel agents and hoteliers believes that it is still too early to judge but at the same time expresses concern that if the business does not start soon then corporate houses will look at cost-cutting.
“If this situation continues, corporates will prefer to do webinars etc and travel cost will play a huge factor. Since people are now working from home, corporate houses are getting ideas on making the work cheaper in the future post lockdown and save on rentals of their office, fuel bills, electricity bills etc. I am worried as person from the travel industry. The situation is too fluid now,” said Mr Ernest Dias. The writing is clearly on your computer screen. Real work will happen virtually in the future.
Quoteroom:
“People may not travel for a certain period for safety reasons but once the vaccine for Covid19 develops, it will be business as usual. At this point, no one is willing to take a risk. Technology is good and it can be used when there is no option of travel. According to me, travel will happen when the environment gets safer,”– Nitin Kunkoleinker, Ex President GCCI
“Technology is moving in a way that it would help people to meet virtually and interact without even travelling and meeting physically as physical proximity has become a big issue with this Covid19 attack. In fact Covid19 has given a boost to digital technology. People are realizing that personal contacts in physical form may not be essential. Digital contact has all the advantages as against physical contact as of now. This digital communication will also lead to a lot of savings in the real estate and other expenses attached to an office set-up,” — Sandip Bhandare, immediate past President GCCI
“If this situation continues corporates will prefer to do webinars etc and travel cost will play a huge factor. Since people are now working from home, corporate houses are getting ideas on making the work cheaper in the future post lockdown and save on rentals of their office, fuel bills, electricity bills etc.” — Ernest Dias, President, SKAL International Goa
