American Express sells its business travel arm
3/20/2014 4:47:43 PM
As one of the credit card companies that offer business programs, American Express has been hurt by the ongoing decline of the travel management industry. To cut its losses, the organization has announced that it will sell half of its Global Business Travel division to Certares LP investor group for $900 million.
The company's Global Business Travel option offers consumers consulting and research services to help companies save money when they send workers out of town for business. With more companies requiring their workers to make their own travel plans, these services are becoming largely obsolete. It's a hard hit to take, considering that the credit card company accounts for more business travel sales than any other travel management company in the world.
American Express will use the $900 million it makes on the sale to fund research into technological advancements, such as in mobile services, and analytical developments that will benefit corporate customers as well as other travelers. Consumers who utilize the Global Business Travel services may notice great changes to the program in the near future.