Chase Travel grew sales last year at a pace on par with Booking Holdings and far ahead of Expedia Group.
08.05.2024 - 02:47 / skift.com / Dennis Schaal / Paul Abbott
Much of the discussion about business travel revolves around large corporations that have strict managed-travel policies. They require employees to book trips through sanctioned tools and at hotels and airlines that give corporations volume discounts.
In the first quarter, those corporations delivered significant gains for American Express Global Business Travel, the world’s largest travel-management company.
AmexGBT saw strength in transactions from global multinational corporations — tech companies in particular, with 30% growth. Other sectors turned in double-digit growth too, including pharmaceuticals, mining, energy and utilities.
But there was a downside: Small- to medium-sized businesses offer the largest opportunity in winning new business and they showed a decline in transaction growth of 3 percentage points in the fourth and first quarters.
These smaller businesses spend $30 million or less on travel annually and mostly let their employees book wherever they want.
They may not need a travel management company like Amex GBT. What’s more, they’ve been hit hard in recent months by higher inflation and interest costs, leading to tighter travel budgets.
Amex GBT CEO Paul Abbott told analysts during the earnings call Tuesday that of the $900 billion in total transaction value in play in business travel annually, “$300 billion sits with, if you like, professional managed-travel programs, and $600 billion in unmanaged.”
The entire business travel market is worth $1.4 trillion, he said, and “SME is the biggest opportunity within that.”
The earnings call took place with some unfinished business on the agenda — the $570 million acquisition of CWT, which officials said is poised to close in the second half of 2024.
Abbott said the companies’ integration teams are “established.”
He said the acquisition would increase company revenue by one-third and it would have the potential to be a “significant” contributor to earnings in the long run. There would be $155 million in “annual run rate cost synergies,” Abbott said. Meaning layoffs and trimming other redundant operations.
American Express Global Business Travel stated that a recent survey of its top 100 customers found they expect their travel spend to rise 8% in 2024.
In the first quarter, the company narrowed its net loss to $19 million from a loss of $27 million in the year-ago period.
Revenue rose 6% in the first quarter to $610 million.
One of the brighter metrics was that free cash flow hit $24 million in the first quarter, up from minus $109 million a year earlier.
Chase Travel grew sales last year at a pace on par with Booking Holdings and far ahead of Expedia Group.
Jamaica showcased the best of its heritage in food, dance and music last night (May 20) to over 1,000 delegates from more than 45 countries who are attending the 42nd Caribbean Hotel and Tourism Association’s (CHTA) Caribbean Travel Marketplace (CTM42), being held at the Montego Bay Convention Centre.
Connecting Travel Marketplace, formerly Global Travel Marketplace, is set to expand with new editions in the UK and Italy, enhancing its role in connecting high-spend travel industry professionals. This evolution aligns with Jacobs Media’s 15th anniversary and aims to boost global travel business opportunities.
Landal GreenParks UK reports a 100% rise in overseas bookings for Q1 2024, showcasing robust growth from Northern European guests and strong off-peak season performance.
Anxiety, stress, and exhaustion are common; travelers want more support from employers.
The premier travel agency is expanding into luxury transportation with addition of Lenox VIP Global.
Aruba Tourism Authority introduces myAruba Assistant, an AI tool enhancing travel planning, alongside significant sustainability initiatives and developments to improve the visitor experience on the island.
Cindy McCabe. (Source: Cindy McCabe)
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With things looking up for tourism in The Bahamas, representatives of the country’s Ministry of Tourism, Investments & Aviation (BMOTIA) are set to build on their success at the 42nd edition of Caribbean Travel Marketplace. Hosted by the Caribbean Hotel and Tourism Association (CHTA) and scheduled for 20 - 23 May 2024 at the Montego Bay Convention Centre in Jamaica, the Caribbean’s largest tourism marketing event will offer opportunity for The Bahamas to shine as buyers and sellers of tourism products and services from countries across the region convening for business. In 2023, The Bahamas saw record-breaking tourism growth accounting for 9.6 million visitors, up 38% from 2022. While foreign air arrivals rose 17% to record 1.7 million in 2023, cruise arrivals surged 43.5% to record 7.9 million. The country’s 16 islands all enjoyed significant increases, with visits to New Providence, for instance, up 36% in 2023, to Grand Bahama up 44%, and the Out Islands up 40%.