If it proceeds as planned, HRG’s acquisition by American Express Global Business Travel would give the latter new proprietary operations in Austria, Italy and Russia. As if integration of acquired companies isn’t difficult enough, GBT also would need to sort out a complicated array of relationships the two travel management companies hold in markets where they don’t own… Read More »
Achieving economies of scale is a big part of the proposed American Express Global Business Travel acquisition of HRG. More influence on airline distribution evolution is a bonus. GBT also might gain pricing power on some client bids. Another big driver? Greater clout to generate more revenue from suppliers. While that’s always a motivator for TMCs to get bigger, is that all… Read More »
There will be winners and losers if the proposed acquisition of Hogg Robinson Group’s travel management company unit by American Express Global Business Travel happens. One of the wounded is neither person nor company. It’s a program: the New Distribution Capability. Don’t blame NDC. It’s just a messaging standard. The real loser is the method in which certain… Read More »
Now that’s a mega. American Express Global Business Travel today announced plans to acquire Hogg Robinson Group in an all-cash deal. Both are among the top four global travel management companies. Publicly traded HRG also announced it would sell its Fraedom software business to Visa for 142 million pounds ($198 million). Depending on conditions related to the Fraedom sale,… Read More »
The new, Amadeus-endorsed model for airline distribution with International Airlines Group may or may not take hold among more travel management companies or even other GDSs. For now, it’s constructive to review the role of IATA’s New Distribution Capability. When IAG announced a GDS surcharge in May, NDC was the industry’s ticket to fee-free British Airways and Iberia… Read More »
There are three weeks to go before a surcharge takes effect on global distribution system bookings with British Airways and Iberia. Big travel management companies are revealing that they’re avoiding the fee on bookings through Amadeus thanks to the GDS company’s agreements with the airlines. Following a related Hogg Robinson Group announcement last week, American Express Global Business Travel… Read More »
American Airlines will pay participating travel agencies $2 per net segment booked and ticketed using certified NDC connections at all points of sale on AA-marketed flights. The program requires agencies to cover distribution costs, but comes with a near-term content parity commitment. It also enables new possibilities for corporate bundles, waiver-and-favor management and risk management data. They’re not up and… Read More »