All articles tagged with #business travel
Upticks in corporate travel are lifting United Airlines’ holiday-quarter revenue prospects as the carrier prepares to report results, with Citi noting a meaningful early-2026 rebound in business travel that could benefit United and its peers.
American Airlines reported record third-quarter revenue, but the increase was minimal and largely driven by non-passenger sources, while passenger revenue actually declined. The airline's efforts to revive business travel by increasing sales efforts and incentives have not resulted in significant growth, raising questions about the effectiveness of their strategy. The overall business travel market remains subdued, and American's focus on managed business travel may not deliver the expected benefits, prompting a reassessment of their approach.
BlackRock has implemented new policies restricting employees from using company devices during trips to China, reflecting increased concerns over security and geopolitical tensions affecting international business operations.
Wells Fargo has suspended business travel to China after one of its executives, Chenyue Mao, was barred from leaving the country due to an exit ban, highlighting increasing restrictions on foreign nationals and raising concerns about operating in China amid rising international tensions.
Chase is launching the Chase Sapphire Reserve for Business on June 23, 2025, a premium credit card targeting business owners with a $795 annual fee, offering high travel rewards, travel perks, statement credits, and additional business-related benefits, aiming to compete with established business credit cards like Amex and Capital One.
American Airlines has reversed its plan to eliminate mileage-earning from some travel agency tickets due to confusion. The airline still aims to move to new distribution capability (NDC) over time. The change was initially set for May 1, then delayed to July, and now canceled following Chief Commercial Officer Vasu Raja's departure. The decision comes as American Airlines struggles to capture business travel upticks seen by competitors like Delta and United.
Delta Air Lines expects robust demand in 2024, driven by sustained interest in leisure travel and a significant rebound in business travel. The company reported a modest profit in the first quarter and anticipates a strong summer season, particularly for international flying. Despite concerns about the impact of the Paris 2024 Olympics on business travel, Delta remains optimistic about its future plans. The airline also highlighted its robust partnership with American Express and its focus on expanding its presence in core cities while addressing industry safety concerns.
American Express has made significant changes to its Hilton Honors American Express Business Card, including a substantial increase in the annual fee from $95 to $195, removal of free night rewards, introduction of a new quarterly statement credit of up to $60 for eligible Hilton purchases, complimentary National Car Rental® Emerald Club Executive® status, and changes to the earning rates. These changes have been met with overwhelming negativity, with existing cardmembers expressing disappointment and considering options such as seeking retention offers or downgrading or canceling the card.
AmexGBT has acquired rival travel management company CWT for $570 million, signaling a significant move in the business travel industry. The acquisition reflects AmexGBT's confidence in the eventual recovery of business travel despite the current challenges posed by the pandemic.
American Express Global Business Travel (Amex GBT) has entered into a definitive agreement to acquire CWT, a global business travel and meetings solutions provider, in a transaction valued at approximately $570 million. The acquisition is expected to close in the second half of 2024 and will be funded by a combination of stock and cash. After the acquisition, CWT customers will have access to Amex GBT’s proprietary software and services, and the combined company is expected to generate significant synergies. Amex GBT will hold an investor conference call on March 25, 2024, to discuss the acquisition.
United Airlines is raising the price to check bags for economy passengers on domestic flights, with the cost of a first checked bag increasing by $5 to $40 at the airport or $35 if prepaid online, and a second checked bag costing $50 at the airport or $45 in advance. This follows American Airlines' recent fee hike, as airlines seek to boost profits amid rising costs, with JetBlue and Alaska Airlines also raising bag fees this year. Certain travelers, such as credit card holders and frequent flyers with elite status, are still eligible to check a bag for free.
Airbnb reported a $349 million loss in the fourth quarter due to an income tax settlement with Italy, but saw a rise in bookings and revenue, with strong demand expected ahead. The company plans to expand its rental platform in countries where it is not as strong as the United States, and its board approved a share-repurchase program of up to $6 billion. CEO Brian Chesky mentioned plans to go beyond its core business, but gave no details about the "multiyear journey," promising news later this year.
TravelPerk, a business travel management platform, has raised $104 million in a financing round led by SoftBank’s Vision Fund 2, giving the company a valuation of $1.4 billion. The funding, part of a Series D round, reflects a flat post-money valuation compared to two years ago. Despite the pandemic's impact on travel, TravelPerk has seen growth and plans to invest in its core product. SoftBank's investment signals potential ramp-up in funding activities, and TravelPerk's CEO emphasizes a long-term company vision over immediate IPO plans.
The Biden-Harris Administration is taking action to accelerate America's clean transportation future by announcing new commitments from both the public and private sectors. The federal government is leading by example with new guidelines directing the use of sustainable transportation for official and local travel, including prioritizing electric vehicle use, expanding rail travel, and increasing public transit use. Private companies in the travel and hospitality sector, rental car and rideshare companies, and other organizations are also making commitments to boost electric vehicles and sustainable travel options. These efforts align with President Biden's goal of having at least 50% of all new vehicle sales be electric by 2030 and contribute to job creation, healthier communities, and a reduction in carbon emissions.
Delta Air Lines President Glen Hauenstein stated that recent strikes by Hollywood talent and United Auto Workers union members have negatively impacted business travel demand, particularly in Los Angeles and Detroit. Delta, with a significant market share in both cities, is the most affected carrier. While business travel is recovering overall, the strikes have caused a dent in demand. However, demand from technology and financial services customers has shown double-digit growth in the third quarter, and a majority of corporate customers expect their travel to remain the same or increase in the coming months.