American Express in January began "a small test" in Manila to identify whether offshore customer servicing is an option for corporate managed travel, said executive vice president of North America Corporate Travel Pamela Arway.
"We're big believers in the 'follow-the-sun' concept where you should be able to service clients 24 hours a day," Arway said. "They want options. It won't be for everybody, especially one who likes an onsite." Other agencies also have explored offshore options
(BTN, Feb. 10). Arway said, "it remains to be seen" whether the low-wage labor offered offshore turns out to be less costly than automation at home. In terms of interactive travel operations like Amex's e-fulfillment centers, she said, "We've invested a lot of money and at some point it will pay off."
Meanwhile, to manage costs at a time when corporate travel volumes are flat at best, "We've begun to implement plans like offering furloughs in the travel business, delaying hiring relating to open positions in some areas, delaying certain non-critical technology expenditures and other discretionary areas," said American Express executive vice president and CFO Gary Crittenden last week. Arway described the furlough program as ranging between two weeks and five months for volunteers. "I don't know how long it will last," Arway said. "I want a good, highly motivated workforce ready to go when it's over. This allows employees to take some time off and we pay a portion of their salaries and all benefits, and they retain their tenure. It's very attractive."
Amex last week announced record first-quarter net income of more than a half-billion dollars, up 25 percent, at its Travel Related Services division--which includes the company's consumer travel businesses, as well as its corporate travel division.