Carlson Wagonlit Travel claims it has surpassed American Express as the world's largest travel management company by handling $21.3 billion in sales from the fourth quarter of 2006 through the third quarter of 2007, and CWT CEO Hubert Joly last month told BTN he expects the TMC to report $22 billion in 2007 global corporate travel sales.
American Express Business Travel late last month reported $20.5 billion in global corporate travel sales in 2007, an 11 percent increase over $18.5 billion in 2006.
"Since Q4 2006, our sales volume has exceeded American Express' and for four consecutive quarters we have been ahead of Amex," said Joly, prior to the release of Amex's most recent earnings report. "This is not a goal in and of itself, but it does confirm the very strong momentum that CWT has accomplished over the last several years, so we are indeed the largest travel management company in the world."
Amex officials were unavailable for comment, but a spokesperson said Amex disagrees with Carlson's numbers. "We do not support Carlson's claims that they are larger than us in 2007. When you factor in joint ventures and small business travel that is managed through the consumer business, we are significantly north of $22 billion," said the spokesperson. Like CWT, Amex doesn't include partner or joint venture travel sales in its report.
According to CWT, its sales claim only includes travel sales of booked travel from wholly owned locations and excludes transaction and service fees. In 2006, CWT claimed $20.5 billion in travel sales, which includes its joint ventures.
Amex financial reports historically have not broken out global corporate travel sales from international consumer sales, but began the accounting practice in the third quarter of 2007, in which it reported $4.9 billion in sales. During the same period, CWT claimed $5.4 billion in sales. In the fourth quarter of 2007, Amex reported $5.5 billion in corporate travel sales, up 20 percent from the same period in 2006.
Amex late last month announced that it garnered $6.3 billion in new and renewed corporate contracts in 2007, which includes a global retention rate of 98 percent and new global business sales increasing 55 percent. The company attributed the growth to strong regional new business sales, penetration of the Rearden Commerce-based Axiom online travel procurement platform, which claims almost 1,000 clients, and the launch of AX Hotel Hub and the Axis @Work information management platform.
New business sales in Japan, Asia/Pacific and Australia more than doubled from 2006, the TMC said, and new sales in the North American midmarket increased 25 percent. Europe's new business sales increased nearly 20 percent.
President of global travel services Charles Petruccelli said Amex in 2008 would focus on "exploring new opportunities and innovations that provide the next generation of end-to-end total travel and expense management, including continued expansion and upgrading of Axiom and the introduction of a Web-based meetings management solution."
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