Amex, Accor To Launch Co-Branded Credit Card
<H1>Amex, Accor To Launch Co-Branded Credit Card</H1><H3>By Stefani C. O'Connor</H3><I>Paris </I>- In its latest stab at brand-name linkup, American Express last week formalized an agreement with European hospitality giant Accor to have a co-branded payment card in place by the end of September.
While part of an initiative by Accor to build customer loyalty on a global basis, the move also is in sync with Amex's own global outlook. Where once the exclusivity of its name determined cachet and buying power, Amex has realized the economic advantages of sharing top billing on its card with partners who can deliver loyal customers and help drive its bottom line.
The Accor agreement is the most recent in a string of overseas alliances the financial and travel services giant has implemented, including issuing bank cards in Turkey, Israel, Portugal and Greece.
From a U.S. perspective, the most significant among these pairings since last autumn has been Amex's co-branded revolving credit cards with Hilton Hotels and Delta Air Lines. Similar to frequent flyer and frequent guest programs, the cards provide users with rewards via a points system-an incentive that's helping to boost the corporation's profitability. Amex's recent reporting of a 2.9 percent increase in its year-to-date first-quarter net revenues was derived, in part, from card-member spending at higher levels to take advantage of rewards program benefits (BTN, May 6).
Accor customers who use the card will earn points toward rewards, accumulating additional points for using the card within Accor's businesses, which include the Sofitel, Novotel and Motel 6 chains.
Card members will not be earning any points from one of Accor's holdings, however: Carlson Wagonlit Travel, in which Accor has an ownership interest, has been excluded from the deal. Its position as American Express' number-one travel agency rival aside, Carlson Wagonlit recently completed a joint-equity venture on the corporate side with a division of Household International for a MasterCard credit instrument (BTN, April 8).
The card will be launched in France, which is Accor's home base. The company then expects to roll it out in 1997 in Belgium, Germany, the Netherlands, Australia and the United Kingdom.