According to travel industry forecasts, Americans are spending more on business trips in 2014 than the year before. Above is the first class cabin of an American Airlines airliner in March 2006.
With business travel spending expected to increase this year, American Express Co. has announced plans to sell half of its business trips and start its own business.
American Express will drop its 50% interest in its global travel business in exchange for a $ 900 million investment from a group of investment companies based in New York, Certares.
The shares will be distributed to Certares, the Qatar Investment Authority, BlackRock and Macquarie Capital, according to American Express.
The company is run as a separate corporation under the American Express Global Business Travel brand. Bill Glenn, former president of Global Commercial Services at American Express, will serve as president and chief executive officer of the company.
The company offers travel services – including airline, hotel, and rental car bookings – to business travelers.
In a statement, Glenn said the investment “will accelerate our growth by delivering significant advances in technology, analytics, and service excellence that will benefit suppliers, partners, and our customers.” global customer “.
According to Global Business Travel Assn, business travel spending in 2014 is expected to continue as the US economy recovers. Foundation, the non-profit branch of the national business travel group.
Business travel spending in the United States is expected to increase 6.6% to $ 289.8 billion in 2014, the travel group announced in January. The largest increase in spending – 12.5% - will come from international travel, which was only 1.8% last year compared to 2012, the group said.