Consolidation continues on the global business travel scene. And as might have been expected when the joint venture with Certares four years ago, American Express GBT plays a leading role in the market. With an envelope of 900 millionAmex had already acquired the services of the technology publisher KDS in 2016. Now it's the turn ofbusiness travel agency HRG, as announced on 9 February. On the agenda: synergies, complementarity and innovation.
" The complementary geographical locations of each company will improve the global reach of our activities, enabling us to achieve greater efficiency (...) and accelerate our growth. "explains Doug AndersonCEO of American Express GBT. " Each company's technology roadmap provides a powerful platform from which to drive innovation. We will offer customers and travellers a better experience through fully integrated travel management solutions, including booking and expense management tools. "adds Doug Anderson.
use the best talent and technology from both companies
According to David Radcliffe, CEO of HRG, American Express is committed to " use the best talent and technology from both companies to create a truly world-class, cutting-edge organisation that will bring benefits to our customers, employees and supplier partners ".
The acquisition of HRG by American Express GBT would be worth between €426 and €465 million. It is expected to be finalised during the second quarter of 2018, subject to approval by the relevant authorities, particularly the antitrust authorities. By acquiring a member of the top 5 global TMCs, American Express GBT is sending a strong signal to the competition and to the various players in the business travel sector. It remains to be seen whether the other business travel agencies will reorganise accordingly to ensure that they do not fall behind in this race for consolidation in an increasingly competitive market.
