Amex Aims For "Every Single" Customer In Rosenbluth Deal
If American Express' planned acquisition of Rosenbluth International (BTN, Aug. 11) passes regulatory review, "Both companies will have separate integration teams, and there will be no change in account management or other customer-facing teams," said Amex executive vice president and general manager for North America corporate travel Pam Arway. "Integration teams on HR, technology, products and services, real estate, et cetera, should not be disruptive to our clients." Seeming exasperated by speculation about the deal, Arway said, "We will have a thorough and open-minded review of products and services. We will take the best of both, and we really mean that. If you don't take the best of both, why would you do this?" In the end, she said, "It is our intention not to lose a single customer, definitely as a result of any integration disruption. People are saying there will be a culture clash. Well, of course the cultures are different, but will they clash? I don't think so. We believe we have a creative, inventive, entrepreneurial organization, and that's exactly the culture they have at Rosenbluth."
Fed Contract Goes To Carlson, Northrop Grumman
The federal government's General Services Administration awarded Carlson Wagonlit Government Travel Inc. and Northrop Grumman Mission Systems contracts to provide an integrated travel and expense management system for 56 federal agencies. Carlson and Northrop beat a number of travel vendors to fulfill the government's e-travel initiative. The Feds envision an end-to-end solution, including such travel management functions as pre-trip authorization, online booking and expense reporting, as well as integration into financial systems. The 10-year e-travel contracts are valued at $450 million and are expected to cut federal travel management costs up to 50 percent. The government in February released a request for proposals to a wide variety of travel vendors. GSA planned to select a vendor by midyear, with a year-end implementation target. The initiative was modeled, in part, after travel management programs in the commercial sector. "E-travel program manager Tim Burke has told us that the government is just like a big commercial business so there's no reason that it couldn't work," Bob Lichtman, a consultant for the Corporate Solutions Group who is working on the initiative, told BTN. "It's already in place in the commercial environment." Travel buyers have noted mixed feelings about the e-travel initiative and its implications for corporate travel. While some have said that strides in developing an end-to-end solution will benefit the industry, others are skeptical that a fully interfacing travel management system will be realized.
Amex, Qantas Co-brand Corporate Card
American Express and Australia-based Qantas Airways are releasing a co-branded corporate card that offers airfare rebates to small and midmarket Australian companies—bringing the concept that Amex developed with American Airlines (BTN, June 23) to the land down under. The American Express Qantas Corporate Card offers "cash rebates on Qantas air travel" and an "exclusive Qantas Club Business membership rate," according to an Amex statement. The card will rebate up to 5 percent of annual Qantas spend that totals more than A$20,000 (US$13,073). Qantas in April—to cover the cost of charge card merchant fees—began charging a 1 percent fee on all credit card transactions when the point of sale was in Australia. While Qantas' initiative irked American Express, the two parties moved forward with the co-branded relationship. "That did bother us a little," said an Amex spokesperson. "We'd like to see credit cards treated as any other form of payment." American Express said other such corporate co-branded cards with airlines will follow.
Hotels Make RevPAR Gains, Trail Conference Centers
Revenue per available room for U.S. hotels rose in seven of the eight weeks up to mid-August, according to Smith Travel Research. For the week ending Aug. 16th, for example, RevPAR jumped 2.7 percent year over year. The industry's positive summer performance has given hotels hope that the momentum will continue into the fall, when crucial business travel picks up. JPMorgan lodging analyst Harry Curtis, however, questioned whether the nascent turnaround is sustainable. Buyers, meanwhile, are nervous that hoteliers' optimism will make them less flexible in negotiations for 2004 rates, which also go into high gear in the fall. Meanwhile, a study released last week found that executive conference centers last year generated 51 percent more RevPAR than hotels, though that revenue amount was basically the same as was generated in 2001. The study, released jointly by PKF Consulting and the International Association of Conference Centers, showed that full service hotel revenues, meanwhile, declined by 5.3 percent from 2001 to 2002.