New Delhi-based Rao Travels is steadily increasing its fleet size. It added a 53-seater, multi-axle Volvo bus to its entourage, swelling its fleet size to 100. Of these, there are 27- and 41-seater Tata buses, and 15 Volvo buses. Considering the fleet mix, it does not come as a surprise when Srinivas Rao, the owner of Rao Travels, announces that they cater to the middle and upper-middle class segment of the market. “We also serve the volume market,” he adds. The new addition, according to Rao, is in-line with the early revival of the travel industry that he anticipates. “Expansions are cyclical in nature. We add buses at regular intervals to boost our image, and also engineer an all encompassing business that ranges from transportation, tour operation, and as travel agents. We want to offer end-to-end solutions under one roof,” avers Rao.

In the year 1977, S Subbarao establish Rao Travels by purchasing a Tata mini-bus and commenced tour operations. Business grew, and Subbarao expanded the size of his fleet. Over the years the company came to play host to both, Indian as well as international travellers. S Rao took over the reigns of the business in 1990, and has been laying new building blocks ever since. Rao Travels thus operates tours ranging between one day and four days. It also serves the travel needs of corporate companies like Airtel and GMR. For this purpose the company, says Rao, has aligned 25 mini-buses apart from the existing fleet of 100 buses. The mini-buses are of Force, Tata and Toyota make.

Leveraging its experience spanning over three decades, S Rao says, that the emergence and rising popularity of online and app-based travel players has helped private players like them to further increase their business. Speaking about competition from State Transport Undertakings (STUs), he opines, that their AC bus services does not pose much of a threat. “STUs function as point-to-point operators. Operators like us provide an end-to-end tour solution, which covers rail, air and hotel bookings too,” he reasons. With a firm belief that it is his company’s meticulous approach, that has led to growth, and in the wake of the rapidly morphing travel industry, Rao explains that they survey the market before expanding their fleet. Even if it is just one bus. “The vehicle has to prove its mettle in the market before we decide to invest in it. Everything is accounted for, right up to the look and feel of the vehicle,” says S Rao. The logic behind this is simple, he says. “It should add up to the expectations of the customer, and satisfy his needs”, he adds. “A customer on a holiday wants a return on every penny he or she spends. If left stranded during the course of the tour due to inefficiencies in vehicles deployed by us, it will not only ruin his or her plan of an ‘ideal’ holiday, it will also ensure that he or she will never return,” Rao opines.

To deliver quality fleet services, Rao Travels’ buses are serviced at the authorised service stations of the respective bus manufacturers. GPRS and fleet management systems have been incorporated to allow for better route movement, as well as to track any route deviations. These are monitored from the company’s headquarters at Delhi. The company also conducts a two-day refresher training on quarterly basis for all its fleet drivers to ensure that they deliver the best quality of service possible. With a presence in Southern India as well, with offices in Hyderabad, Bangalore and Chennai, Rao Travels has adopted an organic growth model. It owns the offices rather than opt for a quick-bolt, franchise model. “Over the last two years, like the rest of the industry, we too were affected by the slowdown. The number of both, domestic and international tourists declined substantially. However, with signs of the economy reviving, we expect to grow at 20 per cent in the coming years,” Rao states.

The company actively engages with current and prospective customers through SMS and e-mail burst, offering tour package updates and offers. “Given the rapid flow of information in social media and the Internet, we believe it is important to maintain a connect with the consumers,” asserts Rao. While the company is doing all it can to stay ahead of the curve, S Rao believes that there is a pressing need for a higher involvement from the government in order to bring about the much talked about boom in the travel and tourism sector. “Inter state taxes are high and need consistency. There should be a greater ease of payment, particularly when it comes to vehicles that are continuously on move like buses for instance. Policies like GST can take note of various such factors. Additionally, multi-level taxes which are implemented on international tourists also need looking into, as this is one of the reasons why such tourists shy away from India,” concludes Rao.