The 2016 Power List marks the first time that the American Express brand has been split into two entries: American Express Global Business Travel and American Express Travel. The two groups were combined on the 2015 Power List at No. 3.
American Express Travel retains the group of leisure-oriented agencies and franchised network. Privately held Global Business Travel is a joint venture for business travel operations owned 50% by American Express and 50% by an investor group led by Certares.
American Express Travel, today a $5 billion operation, will now be able to do what it has always done in a more focused way, said executive vice president Claire Bennett. "We are now a global team that manages all consumer and small-business volume for American Express," she said.
Bennett said Amex Travel never had much of a link to the business-travel division other than supplier relations. The rationale behind the separation, she said, was that "the consumer and small-business segment is just different. It's more experience-based and built around cruises, tours and premium lodging. We have a globally integrated system that is not only travel but also lifestyle. We offer lifestyle consultants who can assist with ticketing, dining and other travel needs."
Though now a much smaller company, Bennett said American Express Travel has several differentiators, especially with regard to agencies its size. For one, it is the only card issuer with a dedicated global, full-service travel organization. It has a presence in over 130 countries.
And while it no longer has retail offices, Bennett said the company "functions as both a traditional travel agent and an OTA. We have call centers, a franchised network of representatives, websites customized to different markets and mobile. We do substantial volume on our website, some of which does not even represent cardmembers."
The impact of the separation on employees and customers has been "minimal," she said, while enabling the firm to focus in a more targeted way on core customers.
"Our goal is to ensure that customers can be serviced by anyone in our company at any time, anywhere in the world," she said.
"If you are a U.S. cardholder in Japan, you have the option of calling back to the U.S. or you could call someone in Japan for options on restaurants or activities. We are not 100% there in all markets, but ultimately we will be."