AmEx: We Are Committed to Travel

NASHVILLE – American Express Travel executives sought to reassure members of its representative agency network on Sunday that the financial services giant is not pulling back from travel.

The organization devoted the better part of the two-hour opening session of its 2013 National Summit to convincing travel agent affiliates that the recent momentous changes at American Express are aimed at strengthening its travel business.

“Consumer travel is in American Express’ DNA,” Tony Gonchar, vice president of the American Express Travel U.S. Representative Network, said at the session. The event was held at the newly-opened Omni Nashville.
 
Complex changes
Gonchar recapped the “series of complex changes” at American Express that took the travel industry by surprise this year.

These included the closing in September of 20 corporate-owned consumer travel offices; the announcement, also in September, of a plan to sell off 50% of American Express’ Global Business Travel division, and the sale earlier this year of tour operator Travel Impressions.

“There’s a lot of chatter about whether any of this is a signal that American Express is getting out of travel. The answer is simple – absolutely not,” said Gonchar, who in August 2012 left his post as ASTA’s CEO to join American Express.

Some agents, including one longtime American Express rep agent, told Travel Market Report that the organization was merely putting a positive spin on things.

But Gonchar said the changes were “all rooted in creating opportunity.”

“These changes, while hard, are good for the network, your business and American Express,” he said.

Strong business
Gonchar cited positive performance indicators as evidence of the strength of the company’s travel business. They include a projected 5.8% year-end increase for agency sales, a strong customer referral program and growth in American Express’ charge card market share.

He also outlined a number of enhancements to programs for representative agencies, including investments in technology.

Claire Bennett, executive vice president of American Express Travel, framed her discussion of the recent changes in the context of “change and transformation.”

“It is the legacy of our brand to continue to think about disruptive innovation, which is the concept of when you’re doing well, you continue to look at opportunities for growth,” she said. Bennett assumed leadership of American Express’ U.S. consumer travel and international consumer travel and lifestyle servicing business in May.

New opportunities
Bennett said she is particularly enthusiastic about the opportunities created by the integration of domestic and international operations at American Express Travel.

“The reinvention is creating an integrated global network. That’s where we’re going.”

She outlined a vision, supported by a new online networking tool for travel advisors, in which American Express employees around the world provide their local knowledge and insights for agents to pass on to their customers.

Bennett later told Travel Market Report that none of the changes at American Express Travel have surprised her.

“This is a planned strategy to optimize the assets we have,” she said. “I think they’re all very positive changes. Change is hard for people.”

Travel Market Report asked Gonchar if the changes at American Express will cause agency affiliates to leave the company’s representative network?

“I would say any company is going to see growth and attrition,” Gonchar replied.

“The expectation is that what you’ve got is the best fit. We want the people that fit best within our organization; that can ultimately represent our brand.”

More than 900 people are attending the American Express Retail Travel Network conference, which runs through Wednesday. Attendance is up 20% over last year, and 98% of member agencies were represented at the conference, according to Gonchar.