Bill Glenn
Los Angeles - American Express Global Business Travel president and CEO Bill Glenn took the stage here last month during the Global Business Travel Association's annual convention. During his speech he discussed the ambition to "create the curve." The BTN Group editorial director David Meyer and executive editor David Jonas later sat with Glenn to discuss that point, as well as development of the new Amex GBT, following the creation of a joint venture with outside investors. Excerpts follow.
We are curious to hear you talk more about "creating the curve."
Technology is going to play such an important role in the future. Consumerization, a global footprint and changing patterns ... it's going to require more and more technology, global scale, information and insight. Over the last couple of years there has been disruption from a technology standpoint. But I don't know if the disruption has added value across all the players and corporations. The disruption with the technology has been [targeted at] the business traveler because they are adopting in their business life what they want in their personal life. It doesn't necessarily meet the needs of the corporation [and the program administrator]. Why can't we address all three? If I managed ahead of the curve, it would be the next greatest technology for the business traveler. If I created the curve, it's more about end-to-end solutions for the corporation, for the program administrator and for the traveler.
Managed travel should be a foundation to build on. People haven't recognized the benefit principally because there has been new technology. We are in a great position to capitalize on our history, what we do every single day and our breadth of customers. With our investments in technology and information, that's what I mean by creating the curve for our industry.
What is the timeframe to get to that point?
I do not think there is a point of arrival. Next year when we're sitting here there will be some evidence that we have started to create the curve and not just manage it.
You have laid out four key strategic areas: investing in technology, information management and insight, international expansion and partnerships. Will you make progress on all of them within the next year? There seems to be plenty to do.
It's not iterative; there are some things we are going to do at the same time on a parallel path. On global scale, we have that today. And we are going to make some acquisitions. The question is: Are they the right ones, and what is the right timeframe? You'll see some things on the technology side probably faster. Those will be more apparent. We are now showcasing AX Connect [for travel disruption management] and linking that for mutual customers to card swipe data. That's probably leading because no other company can do that, given the relationships we have between the two businesses [the Amex corporate card and the Amex business travel JV]. You'll see us aggressively move on the information and technology side.
And the acquisitions will come for what is right for the business. I'd love to do it sooner rather than later, but we have time because we have a global footprint right now. Our capital position puts us in a unique position, but we are not going to sit on it forever.
In terms of acquisitions, are other TMCs the sole focus or other kinds of companies as well?
A combination. Scale matters in the business. It will be scale and acquisition that continues to add value to suppliers and customers. Seventeen percent of companies with over $1 billion today are in emerging markets. Within 10 years it will be 50 percent. So for our multinational customers, we have to be where they are expanding. And in the same vein, companies are starting up from those areas and moving out.
Now that American Express Global Business Travel is a separate company, is there still an opportunity for prospects that are neither business travel nor corporate card clients to negotiate for both in a package?
The question is, what is a package? One of the things we did was preserve in operating agreements the synergies. The working relationship between the two large acquisition teams and the two large customer teams, where we have joint customers, is wonderful. We'll do what is in the best interest of Global Business Travel as a standalone company, but Amex is a 50 percent owner and they should feel great and be supportive. We have had some success in the past six months. We want to bring to market what the customer wants and at the same time, the $900 million [injected by outsider investors] is ours and not Amex's. The things we really need to invest in and create the curve in are our business decisions.
Back to technology, and specifically for agents, is there work needed to bring point-of-sale tools up a notch?
Absolutely.
What is missing that they need?
I've told the organization to focus on the front line. We need to provide our salespeople, client management and travel counselors—our customer-facing organization—the best tools available. It's no secret that having access faster to more content is critically important. And it can't be static. Tools and platforms have to work for customers and for [travel counselors]. The more we innovate on the customer side, the more we have to make sure it integrates for our travel counselors as well.
In terms of systems integration, what else do you need to do to ensure your systems work well with any other related systems that clients are using?
That will come when I announce our CTO. But integration is critical; it has to work.
Any work underway to reconsider how Amex handles sales and account management?
There is a level of sophistication that we need to keep ahead of. Customers are more sophisticated because they have access to more information. They have access to technology as well. They have access to more competitors and disruptors telling them what they should be doing. On a parallel path our folks have to be continually more informed than they were 10 years ago about the changes, and aware of the fact that we're going to do a lot of investment in information management and insights. We have an advisory group and a consulting group, and powering that up is critically important, and that goes to the capabilities of the sales and client management organization. It's not enough to penetrate a customer and know the folks there; we have to bring products and services.
What are your thoughts on meetings management?
What has changed over the past few years is the regulatory and compliance environment. You have organizations that have decentralized meetings, and it's a bear to get after because you have to go to 15 different executive assistants. This is where I think consolidation is coming: They are trying to consolidate for costs and also for regulatory reasons, regardless of if they are in the pharma space or some other space. We have a pretty good meetings and event business.
Is that a priority?
It's an avenue of growth.
Regarding the open-booking model, we have heard from proponents and critics. Is there a happy medium, and what does it look like?
To me, that's part of creating the curve. Some companies—not many—allow their employees to do whatever they want [regarding travel]. Yet those same companies probably will not fire people but censure them because they bought pencils out of policy. There is something missing in the dialogue with those customers. What's missing is somebody stepping in to create value for all the constituents. We are in a position to do that.
If you think about [Hurricane] Sandy, [the 2010 volcanic] ash cloud or flights delayed this past winter, [travelers] want service and they want to talk to somebody. The companies who allow employees to do whatever they want probably stopped a little during [those events] and said, "Where are my people?" Who are they calling? Do they have a TMC ready to take those calls?
Open booking has been more about spending money on sales, marketing and advertising and not necessarily solving a problem that corporations are tackling, or an issue that corporations have across the board. We'd love people to figure out how they want to book but have the same safety and controls that they would if they just booked through the regular channels.