Industry chatter is picking up about American Express Global Business Travel’s (Amex GBT) Monday announcement to acquire industry competitor CWT, with many concerned about disrupted services in the lead up to the conclusion of the acquisition in 2H2024.
In response to TTGmice’s query about the follow-up impacts on its staff, brand presence, and customers, a CWT spokesperson said on Tuesday that the process was “still at an early stage”, and no information could yet be revealed about “changes… with regards to the CWT brand, products, and teams (until) after the transaction has been completed”.
The spokesperson also echoed CWT CEO Patrick Andersen’s expectations that were expressed in the earlier Amex GBT statement. “We believe that joining forces with Amex GBT will bring exciting new opportunities and positive outcomes for our colleagues, customers, and other stakeholders,” said the spokesperson.
Kishore Rames, travel programme manager with National Oilwell Varco, based in Singapore, said the acquisition was a “big one” and was eager to see how it would play out.
“Will CWT be around, or will it be all Amex GBT only in the future? As far as we know, as we are working with CWT, it is still business as usual,” said Rames, adding that corporate buyers like himself should be concerned about monopolisation by a single big player.
“As a big agency, it can dictate the price and transaction fees, and it can choose the types of services that it will offer. We are watching this with a lot of interest,” he told TTGmice.
While Rames predicted stiffer competition for smaller TMCs, he said there would still be corporates that prefer dealing with smaller agencies.
“If (the smaller agencies) play their cards right, if they are well organised, they can still do very well because some companies may not want a large TMC servicing them. They may not have that much of travel spend to commit Amex GBT,” he reasoned.
Ani Tom, senior manager – administration with VA Tech Wabag in Chennai, India, said the acquisition could give Amex GBT a stronger presence in Southern India, where CWT has a good reputation for its “latest technology” and good sourcing network.
He, too, expects more intense competition in the managed travel marketplace, but said other TMCs could face off the giant by ensuring reliable technology, good prices and good service for their corporate clients.
Morgann Lesné, an expert in travel technology M&A from Cambon Partners, said the deal was “further proof that 2024 will turn out to be the biggest ever year for M&A in the travel technology space”.
“A wave of inevitable consolidation following Covid needs to take place while, at the same time, high interest rates have stalled start-up fundraising, leading to people having to merge or face closing. Meanwhile, record tourism figures for 2023 and a very positive outlook for 2024 are leaving many players feeling confident that now is the right time to acquire competitors,” he said.
Amex GBT had earlier acquired DER Business Travel in 2006, 30SecondsToFly in 2015, HRG in 2018 and Egencia from Expedia Group and Ovation Travel Group in 2021. – Additional reporting by Rosa Ocampo
