The proposed merger between American Express Global Business Travel Group and CWT has raised questions about the implications for existing relationships, particularly with regards to other players in the industry such as Expedia Group and Booking.com. With Expedia holding a significant stake in Amex GBT and a lodging supply agreement in place, and Booking.com partnering with CWT, the potential merger could have far-reaching effects on these partnerships. Amex GBT CEO Paul Abbott highlighted CWT’s ties to Booking.com as a benefit of the merger, particularly in reaching small businesses.
Analysts have differing opinions on the potential impact of the Expedia-Booking.com relationship in light of the merger. While some, like Henry Harteveldt of Atmosphere Research Group, believe that Amex GBT may have to choose between the two partners, others such as Richard Clarke of AB Bernstein see no issue with maintaining relationships with both. Amex GBT already has a supply relationship with Booking.com, but the strategic relationship with Expedia Group is much more significant. However, Expedia expects its partnership with Amex GBT to continue regardless of the outcome of the merger.
Expedia Group’s equity stake in Amex GBT and its lodging supply agreement stem from the sale of its Egencia corporate travel business to Amex GBT in late 2021. Despite this, Expedia still provides transition services to Amex GBT related to the deal. Amex GBT has seen significant success in winning SME clients, defined as businesses with less than $30 million in total transaction value per year. With the potential addition of CWT through the merger, Amex GBT expects to further expand its SME business.
The potential merger between Amex GBT and CWT has raised concerns about the impact on existing partnerships and relationships, particularly with Expedia Group and Booking.com. With Expedia having a significant stake in Amex GBT and Booking.com partnering with CWT, the merger could have implications for the hotel supply chain and other aspects of the corporate travel industry. Analysts have differing opinions on how this relationship could play out, with some believing that Amex GBT may have to choose between the two partners while others see the possibility of maintaining relationships with both.
Expedia Group’s equity stake and lodging supply agreement with Amex GBT stem from the sale of its Egencia corporate travel business to Amex GBT in late 2021. Despite this, Expedia continues to provide transition services to Amex GBT related to the deal. Amex GBT has seen success in winning SME clients, with plans to further expand this segment through the addition of CWT through the merger. The relationship between Expedia and Amex GBT is expected to continue despite any changes resulting from the merger.
Overall, the potential merger between American Express Global Business Travel Group and CWT has raised questions about the impact on existing partnerships in the industry. With Expedia Group holding a stake in Amex GBT and Booking.com partnering with CWT, the potential merger could have significant implications for the hotel supply chain and other aspects of corporate travel. Despite differing opinions among analysts, the relationship between Expedia and Amex GBT is expected to remain intact, with both parties expressing interest in continuing their partnership.
