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Ratan
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India's
Globalization
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contents
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20 Tata
Ratan Tatas business practices helped dene the concept
of BRIC long before the acronym was coined.
24 BRIC
Brazil, Russia, India, and China are lands of opportunityand
challengefor todays business travel planners.
communiqu
We Hear You
BEATLES IN THE SKY
The Letter from Mike page in the
March/April issue says that the Beatles
rst ight to the USA was on TWA. I
guess Im old enough to remember
that the group came over on Pan Am
into Kennedy. I saw the TWA picture
and knew it didnt look right.
Bob Gotthart
Business Travel Manager, Kohler
1964
1965
Taj. Forever seductive, forever trusted, forever enchanting. From authentic Indian palaces to landmark
c it y hot e l s , f r om d a z z l i n g r e s or t pr op er t ie s t o p a s t or a l s a f a r i lo d ge s , enjoy a t hou g ht f u l blend of
t rad it ion a nd moder n it y in t he d ist inct ive a nd h ig h ly persona l Taj ma n ner. Fabu lous su ites, splend id
d i n i n g , a nd t r a nq u i l Ji v a s p a s a w a it . D i s c ov er t he Ta j d i f fer enc e at ov er 10 0 hot e l s a r ou nd t he w or ld .
For r e s er v at ion s a nd s p e c i a l of fer s ple a s e v i s it t a j hot e l s .c om , em a i l r e s er v at ion s @ t a j hot e l s .c om ,
c a l l 1. 8 6 6 . 9 6 9.182 5 i n t he U. S . a nd C a n a d a , 1. 8 0 0.111. 82 5 i n I nd i a a nd 0 0. 8 0 0.45 8 8 .182 5 f r om a l l
ot her c ou nt r ie s t ol l f r e e or c ont a c t y ou r t r a v e l c on s u lt a nt .
Ind ia
New York
Boston
Sa n Fra ncisco
L ondon
Ma r ra kech
Cape Tow n
Za mbia
Duba i
Ma ld ives
Sr i L a n k a
L a ng k aw i
Bhuta n
Syd ney
travel
GLOBAL BUSINESS
BRIC by BRIC
Editor in Chief
Sheila F. Buckmaster
Art Director
Bob Gray
Editor at Large
Peter Greenberg
Editorial Contributors
Margie Goldsmith, Barbara Noe,
Irene Rawlings
Image Consultant
Sabine Meyer
Researcher
Husna Haq
ADVERTISING
President
Kevin Maguire
Vice President
Donna Kelliher
Chair/Past President
Craig A. Banikowski
G B TA B O A R D O F D I R E C TO R S
Tim Graham/Corbis
SPOTLIGHT ON
TRANSFORMATION
whats YOUR story?
Stories of change. Stories of technological wizardry. Stories of
incredible traveler service delivered in exciting new ways.
They help change our industry and improve our profession.
Now, you dont have to keep them all to yourself.
Join the voices of business travel transformation with the
GBTA Spotlight on Transformation, sponsored by Concur. Stories
that shape our world and lead to enduring change will be featured
in these very pages.
Sponsored by
like a local
So Paulo
Mercado Municipal
>'d
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www.orbitzforbusiness.com
800.861.2779
like a local
Your favorite cultural outpost?
Museu de Arte de So Paulo (MASP)
possesses Latin Americas most comprehensive collection of Western art.
Hovering above a concrete plaza that
turns into an antiques fair on Sundays,
the museum, designed by architect
Lina Bo Bardi and completed in 1968,
is considered a classic of modernism by many and an abomination by
a vocal few. The collection is unimpeachable, ranging from Goya to El
Greco to Manet. The Impressionist
collection is particularly impressive.
Dont miss the museums great Brazilian paintings, including Cndido
Portinaris powerful, haunting canRua Oscar Freire
like a local
ying-saucer-like building that showcases worthwhile traveling art installations.
Favorite street for a stroll?
That would be Oscar Freire. Besides
the high-end stores (the likes of Cartier,
Louis Vuitton, Versace), you will nd
a great number of excellent bars and
restaurants. And its a great peoplewatching venue.
Place of choice for a cup of coffee
and a chat with a colleague?
Santo Gro on Rua Oscar Freire, open
from breakfast until the wee hours. Or
Starbucks at Alameda Santos.
What spot would you choose for a
romantic evening?
Riding high atop Edifcio ItliaBrazils
second tallest buildingthe restaurant
Terrao Itlia is romance central, with
candlelight and stunning city views setMuseum of Modern Art
Ibirapuera Auditorium
Cut costs
like a local
dishes, including palmitos (hearts of
palm) and feijoada (traditional black
bean stew).
Can you describe a perfect night on
the town.
I usually start with dinner at Figueira
Rubaiyat, which is known for gentried
country dining (great beef!) and a
bring-the-outside-in decor that features
a fat-limbed tree. The restaurant is centrally located, a block from tree-lined
and shop-lled Rua Oscar Freire. After a
leisurely meal, the night continues with a
show at one of the citys more than 50
theaters. Theater Renault is currently
staging the rst Brazilian Lion King proBar in Vila Madalena
Churrasco at Barbacoa
s Logistics Planning
s Material Handling Services
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research + developments
China is poised to
become the largest
business travel
market in the world
in 2015. (The U.S. business travel market is
expected to grow at
roughly one-third
Chinas rate over the
next few years.)
According to the
latest forecasts for 2013
business travel spending, China comes in at
$226 billion
(USD) and the
United States at
$269 billion (USD).
Biz travel
spend for
BRICs other
three-quarters
Between 2012
and 2016, Russias
business travel
spending is forecast
to increase an average
of nearly 8 percent a
year, from $22 billion
(USD) to $30 billion
(USD), making it one
of the fastest growing
markets in Europe.
16May | June 2013
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T
A
T
A
of bureacracy.
of Commerce. You see evidence all over the world: the Jaguar, the Pierre in New York City. But India is still largely a
domestic growth story.
In fact, one can say that the trajectory of Tatas growth
parallels the story of India.
In order to grow the company he had to go against some
longstanding, ingrained opposition to global growth. Ive
never believed protectionism will lead us anywhere, Tata has
said. I think you can have certain specic rules for engaging
with India. . .but there is not a shred of doubt in my mind that
when you open an economy you should do it in totality.
In 2000, Tata Tea Limited bought out all the brands of
UK-based Tetley Tea for $431.3 million, the largest acquisition of an international brand by an Indian-owned company.
In 2006, Tata Steel beat out Brazils Companhia Siderrgica
Nacional to take over Corus Group, shelling out more than
$12 billion. The auto world was taken aback in 2008 when
Tata Motors bought out two British icons, Jaguar and Land
Rover, for $2.3 billion. If that wasnt a shocker, Tatas next
auto move clearly was.
Tata had always enviA Tata property, the
Taj Mahal Palace hotel
sioned manufacturing a
in Mumbai earns high
car that was affordable
marks from business
travelers.
for his nations growing middle class. In the
same year Tata took
over Jaguar and Land
Rover, the company
introduced the Nano.
The tiny vehicle, measuring a mere 10 feet by
5 feet, came with sticker
shock. It was unbelievably inexpensive: just
$2,200 for the base
model, making it a viable option for millions of Indians.
Tata also made great strides in embracing information
technology in the 1990s, and today Tata Consultancy Services is Indias largest IT giant.
Over the course of a decade, the group acquired 22
companies for nearly $18 billion. Group sales have grown
nearly 57 times since Tata took over in 1991, and group
prots have increased almost 40 times. Perhaps most signicant in all of this? Nearly 65 percent of Tatas revenue
now comes from overseas.
Today, the Tata group is comprised of more than 100
companies, accounting for 7 percent of the stock market
and paying for 3 percent of all Indias corporate tax. It
employs more than 450,000 people and generates more
than $100 billion in revenue.
Tata himself holds about a 1 percent share of Tata Sons,
with a personal holding of about $1 billion. And yet Tata is
not one of the richest people in India. Thats not because
he isnt capable, emphasizes Gunjan Bagla, author of
Doing Business in 21st Century India and managing director
Jason Edwards/Getty
of Amritt, a California-based management advisory service. Its because of the very structure of the Tata group.
They are stewards of a charitable trust. Bill Gates and Warren Buffet were not the rst to think about charity on a
massive, global scale.
Today, the Tata trusts control 66 percent of the shares
of Tata Sons, the promoter holding company of the group.
It is responsible for funding a number of projects and
research institutions, and each individual Tata company
puts a percentage of its income into those trusts.
Theres enviable history here. The Tata group created
one of the worlds rst charitable trusts back in 1892, with
the J.N. Tata Endowment for Higher Education. And in
1898, Jamsetji Tata pledged half of his personal wealth
to what is now the Indian Institute of Science in Bangalore. Ratan Tata was recognized in 2012 with a Lifetime
Achievement Award by the Rockefeller Foundation for
innovation in philanthropy. He may be ofcially retired,
but he remains active as the chairman of the Sir Ratan Tata
Trust, a philanthropic
institution established
in 1919 that has a bigger
endowment than many
of the top Fortune 500
companies have on their
balance sheets.
It could be said that
Ratan Tata has gone from
acquiring companies to
building communities.
A few examples: The
Central India Initiative
is working toward alleviating poverty in the
nations tribal belt; Himmothan Pariyojana is focusing on rural development in a
Himalyan region through watershed conservation, water
sanitation, sustainable agriculture, and other programs;
and Kharash Vistarotthan Yojana is working to protect the
coastline of Gujarat. In 2012, Sir Ratan Tata Trust joined
forces with First Solar on a pilot project to provide safe
and clean drinking water and irrigation to rural communities in the state of Uttarakhand.
The key, Tata says, is not what we produce or what
we generate for the bottom line. For us, and for me, the
important thing is what we leave behind.
In the ever-changing denition of global businessand
global business travelTata is a cutting-edge model of
behavior for the BRIC countries, for those doing business with the BRIC countries, and for those on the outside
looking in.
Global Business Travel Editor at Large Peter Greenberg, also
travel editor for CBS News, can often be found in India
when hes not in Russia, China, or Brazil.
Global Business Travel23
B
R
I
C
by Peter Greenberg
Illustrations by Mark Stutzman
Global Business Travel25
Brazil
Fast fact
Nearly 8 out of 10 Brazilians live in cities.
Global Business Travel27
Russia
Fast fact
Russia spans 11 time zones.
28March | April 2013
India
Fast fact
The game of chess was invented in India.
Global Business Travel29
China
Fast fact
The Chinese were the rst to use natural gas as fuel.
Global Business Travel31
UK5.4 percent
India10.8 percent
U.S.3.8 percent
Russia7.1 percent
France3.3 percent
Brazil7.0 percent
Germany2.9 percent
nations, Russian outbound travel is the highest of all: In 2011, Russians took 1.3 times as
many trips as the Chinese, 3.4 times as many
as Indians, and 4.6 times as many as Brazilians. The number of international trips in 2011
was approximately 23.8 million for Russia, 18.3
mastercard.com/acceptance
*The Nilson Report, February 2012. MasterCard, Priceless, and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated. 2013 MasterCard. American Express is a registered trademark of the American Express Company.
ser
vicein japanese?
by Christine Negroni
Logan, a base manager of ight attendants and a former manager of training for
American. JAL, for example, taught the
Americans that sometimes little things like
presenting that newspaper right side up
and with both hands can mean a lot to the
passenger.
But the differences between Asian and
American service are about much more
than simply whether the chopsticks are
delivered with one hand or two, something that was was eye-opening for the
JAL trainers who viewed Americans
strength in cabin service as being rooted
in personality characteristics that are
identiably American.
They are strong at friendly service and
conversation, Kambe said. These are
behaviors he wanted to see on his own airplanes. We can teach, and they can learn.
Japanese people are good about studying.
Yes, they can memorize the process and
master the skills, but we want them to
touch the naked heart of the customers.
The Japanese as you know are huge
when it comes to presentation. Everything you observe is more of a silent presentation, Logan said.
It is done beautifully, but there is no
real verbal communication with the passenger.
For all the enviable tradition infusing the JAL mindset, the airline has new
realities. When it led for bankruptcy in
2010, JAL was 25 billion dollars in debt. Saving the airline
required cutting one-third of the workforce.
This is key, according to Kambe, to understanding the
identity of the airline today. That was an unfortunate experience, but it was the luckiest experience we could have, he
said. People left the company to save it, he explained, and
those who remained realized they would become the new
airline.
Everybody who is working at JAL chose to stay at
JAL, and they are responsible now. They know they need
Global Business Travel35
BEST WESTERN
GDS code: BW
bestwestern.com | 1-800-WESTERN
*Some amenities not available at all locations. **Numbers are approximate and can uctuate. Best Western and Best Western marks are service marks or registered service marks of
Best Western International, Inc. 2013 Best Western International, Inc. All rights reserved. Each Best Western branded hotel is independently owned and operated.
R
I
C
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training, partnering with The Wharton School of the University of Pennsylvania.
gbta.org/academy
best practices
by Laurie Werner
Endless Summer
Redening time off in todays hyperconnected world.
Imagine youre interviewing for a job
at ARC, the travel product transaction
processing company, and when you ask
about their vacation policy, the answer
is take whatever you want? If that
interview took place sometime after
the rst of January, that is exactly what
you would have heard.
ARC CEO Mike Premo had been
looking for a way to make vacation
policy more exible as part of a sixyear plan to change the culture of
the company. Midway through 2012,
he announced that come 2013, staffers could take time off as they saw t,
doing work along the way.
It was a plan borne out of frustration with the traditional ways.
Accrued vacation time was a headache for us, says Premo. Under federal law, we had to allow employees
to carry over three weeks of vacation
time to the next year, and we had to
have the right amount of money on
our books to cover thatabout half
a million dollars a year. Plus, if
there were more than ve
weeks accrued, a staffer
would have to take a month
off at the end of the year
(putting the manager in a
tough spot when he or she
had to say no) or simply
lose it. And thats a morale
buster.
Under ARCs very new
plan, says Premo, We ask
employees to be exible,
to answer email throughout the day, to be sure to
regularly check in with the
ofce when theyre away.
While investigating
the possible vacationpolicy change, Premo
looked around and found that companies such as Adobe and Motley Fool
had take-what-you-need policies.
Its about 1 percent of all companies. . .greater than zero, is how he
explained it to his somewhat
traditional airline industry
personnel board.
But not all employees immediately
warmed to the idea.
The longer
tenured folks had
the most difcult
time with it, says
Premo. They feel
theyve earned vacation time off, so why
should someone just
coming in be entitled to
the same amount of time off?
So were still discussing how to recognize service in different ways.
Time off is not fully elastic, however.
Any requests over six weeks have to be
approved by HR; some long stints
have already been approved for
expats from China, India, and
Pakistan for long-delayed
trips home.
Premo expects some of
the companys 60 moderateto-heavy business travelers
to add on to business trips if
its a great destination,
in the same way they did
with the previous policy.
Ninety percent of ARC
biz travel is domestic,
with a T&E spend of $1.5$2 million a year.
If Premos program
evolves in the same manner as Motley Fools
(whose executives he
Accrued
vacation
time was a
headache
for us, says
ARC CEO
Mike Premo.
Knowing China
Canadian by birth, Gerald Hatherly was nudged as a child into an
obsession with China when he read about Marco Polos journey to
ancient Cathay. That inspired him to learn Chinese and pursue Asian
Studiesand eventually led him to Taiwan, Hong Kong, and China.
Fluent in Mandarin and Cantonese, he joined the
th upmarket tour
company Abercrombie & Kent in 1986,, rst
rst as a tou
tour guide and later
as business development director.
tor.
as simple as a baseball cap.
c
commemorate
the meeting or visit.
foun
foundly
important.
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