AmEx GBT acquisition shakes up business travel

A shake-up in the world of business travel has seen American Express Global Business Travel (GBT) make a binding offer to buy Egencia, the corporate travel arm of Expedia Group.

GBT operates in more than 140 countries, and the proposed deal (for an undisclosed sum and subject to consultation) would see GBT and Egencia offer technology and customer solutions across every segment of business travel.

Paul Abbott, CEO of GBT, described Egencia as: “the industry’s leading digital business travel platform,” and said GBT will continue to invest in the Egencia brand, its employees and its technology.

“Egencia would be strengthened by GBT’s complementary technology, enterprise capabilities and cutting-edge content,” said Abbott.

As part of the deal, Expedia Group will become a shareholder in GBT, and Expedia Partner Solutions will enter a long-term, strategic accommodation supply agreement with GBT’s Supply MarketPlace.

The pandemic has hit business travel hard. Last year, Expedia Group’s B2B revenues fell by 64% to $942m, from $2,579 in 2019, but Ariane Gorin, President of Expedia Business Services, said the Expedia Group: “Strongly believes in the robust return of travel, including in the corporate space.”

She added, however, that Expedia is seeking to simplify its business.

“The combination of GBT’s leading solutions with Egencia’s great technology and team would help create the world’s best business travel offerings for customers and suppliers,” she said.

Image: GBT