<B>Amex Makes Booking Play</B>
By Jay Campbell
American Express this week will unveil a new corporate booking system called Corporate Travel Online, a modified version of GetThere.com's Global Manager product, following beta tests with four clients.
After about eight months of development on CTO--and virtually none on the American Express Interactive (AXI) product designed with Microsoft--Amex plans to offer buyers both products. Several AXI users are less than pleased.
CTO features American Express's proprietary Speedy Low Fare Search, its Preferred Rate Database Services and parts of Aero, Amex's quality assurance tool. Amex also integrated its MIS and GDS back-office systems to ensure the proper flow of passenger name records from booking through to fulfillment.
CTO's user interface is distinct from Global Manager, streamlining navigation and cutting down on required clicks. "So far, the feedback from betas and demos has been very positive," said Scott Daube, director and general manager in Amex's Interactive Travel Group, Corporate Services Interactive. He said there are also some new client-driven features, such as the ability to display not only preferred vendors, but to rank them by preference even down to the city pair level. CTO also incorporates new features in the latest release of GM, such as the "supersite" functionality that allows the creation of a master site with subsites for different divisions
CTO offers additional content as well, from weather forecasts and airport delays to passport and visa requirements.
American Express will provide users with service and support, including implementation. The product stems from Amex's strategic partnership with, and 15 percent investment in, GetThere.com, last September (<I>BTN</I>, Sept. 20, 1999).
Daube would not reveal CTO's pricing information, but said it would resemble AXI's pricing. "I can't say whether there will be bundled pricing," Daube said, when asked whether the product would be packaged with agency or card services. "We haven't configured it as a bundle."
While they're happy to hear more about Amex's new product, existing AXI clients--of which there are nearly 300 in total--told BTN they couldn't help feeling a bit left behind despite Amex's assurances of continued support for AXI.
"They've had no direction," said one travel manager who is on AXI's Client Advisory Council. "We've pulled away from using the product altogether and we'll be reevaluating it in three to six months."
Another council member said, "When we go up for renewal, I'll be researching other vendors." Still another board member said, "I feel like they've been neglecting it. I'll be looking to see what's available."
The big questions for AXI customers are "How long will Amex support it?" and "Will there be any new versions?"
According to Daube, "Support is not uncertain. It's just a matter of how much more we build AXI out above where we think it's really good right now. We released version 5.0 at the end of last year, and we're still talking with [Microsoft spin-off] Expedia about what we want to do for this year. We can't say whether or not there will be another release."
Microsoft's manager of global travel and events, Zoe-Ann Bartlett, said, "Microsoft is still using AXI and we have 25 percent migration, but given the fact that the product really is not going for further development, we will be looking at alternatives that we can replace AXI with, as well as deploy further in international markets."
Amex does not own the code for AXI, meaning it must seek Expedia's help for new versions. Amex said Expedia is still under the original contract for development, but it would not reveal how long that contract lasts. An exclusive agreement between Amex and Microsoft expired last year (<I>BTN</I>, June 7, 1999), allowing Microsoft to sell the system on its own.
But Expedia is focusing on the consumer market through its Expedia.com site.
"It's still a product that can be sold, but we have not sold it," said John Pollard, Expedia's director of business travel and mobile services. "We have been focused on the consumer product. That doesn't mean we won't get into corporate again. We have a ton of interest and a bunch of inquiries."
Pollard said Expedia cut the number of staff focused on the corporate product. Sources said the company was asking for too much money in attempting last year to sell the product to other travel suppliers.
Daube said Amex continues to consider AXI a "robust" product that saves clients money, and indeed some clients supported the system. He said AXI has signed "a number" of new clients this year.
McGraw-Hill Cos. general manager of corporate travel Mona Jageman said she "just signed a letter of intent to continue" with AXI. "We're very happy with it," she added.
Thomson Corp. director of corporate travel Chris Staal plans to hang on to AXI, if only to continue changing traveler behavior and reach a goal of 25 percent penetration. "By next year," he said, "Amex should have a handle on how they're putting their face on it and we will understand whether they will continue to support AXI. I have more to gain than lose by maintaining this."
Answering Amex's critics, Daube said, "We've met with what we consider our key AXI clients about CTO and talked to them about why we're launching it. From what we hear, people feel fine. We have increased our communication efforts and just sent a monthly update, but that's something I would love to improve because it's a driver of satisfaction."
Even so, key buyers remained critical. "Communicaton with American Express is very difficult," said one AXI Advisory Council member.
"Of all the megas, Amex's opportunity to be leaders and deliver an unparalleled level of services is tremendous," said one longtime customer. "I'd like nothing more than to say, 'You're my partner, and that should make me sure that your product is credible, otherwise you wouldn't bring it to me.' But they don't do it. They build it up and just drop it. You can't keep doing that and not suffer the consequences.