Paul Abbott does not expect travel management companies’ (TMCs) merits to decline as artificial intelligence (AI) reshapes the corporate travel sector.
“I am very, very bullish about the value proposition,” the CEO of American Express Global Business Travel (Amex GBT) said at The Beat Live event on Tuesday.
“I think it will be maintained. I think it will strengthen and strengthen,” he said in response to a question from Jeff Klee, CEO of AmTrav.
While he recognized AI is a disruptor, Abbott said the technology poses opportunity for TMCs and Amex GBT.
Instead of a drop like other sectors may face, Abbott said he expects demand for travel to continue to grow—and Amex GBT is already seeing AI-related improvements.
“These are not sort of conceptual, futuristic statements,” he said.
The company is using AI and machine learning through products like Egencia to personalize users’ experience, but agentic AI can take that further. In October, Amex GBT announced it is launching an upgraded version of Egencia with agentic search.
Abbott also said that with generative AI, the company can effectively integrate “things that were tough to tackle within the software stack,” namely restaurant and destination information or alternative sources of content.
“We can now really address those issues and transform the traveler experience and make it hyper personalized,” he said.
Amex GBT is currently testing an agentic AI pilot with an unnamed company that accesses Amex GBT through Slack, and Abbott noted that the company is launching another agentic AI experience with a customer that accesses via Teams.
“Accessing our services through new channels is going to make our value proposition even stronger than it's been in the past,” he said.
Enhancing the customer experience
Improving customer experience goes beyond optimization and personalization, according to Abbott.
“It's got to be things like real-time disruption management,” he said. “It's got to be things like the intelligent trip, where literally the whole trip is being monitored in real time, and problems are getting solved before you've even encountered them. It's got to be things like bringing in new data sources that we just haven't been able to integrate into the software stack.”
He expects things will—and need to—become materially better. In corporate travel, specifically, Abbott said that AI can integrate with employee workflows, understand their preferences and simplify the process for employees who are booking for the first time.
While it’s early days still, Abbott said that’s starting to happen now with projects such as Amex GBT’s agentic trial in Slack.
“All of these things are going to make the managed travel experience better and better and better and better,” he said. “And that has to be good for our value proposition.”
Productivity is another area where Abbott sees benefit, stating that a business’ economic model is more profitable when it’s automated.
We know [AI] can improve productivity, and we know it can improve the experience for travelers and travel managers. So, why would we not be incredibly excited about that?
Paul Abbott, Amex GBT
He cited Amex GBT's data as an example: Five years ago, 62% of Amex GBT’s transactions were digital. Today, 82% of transactions are digital. Five years ago, 15% of transactions happened on Amex GBT’s software platforms. Today, 60% of transactions happen on Amex GBT’s software platforms.
“Our profit margins have increased every single year,” Abbott said. “So, we have an economic model that we know strengthens as the business is automated. We know [AI] can improve productivity, and we know it can improve the experience for travelers and travel managers. So, why would we not be incredibly excited about that?”
While many were curious about reports that Amex GBT is exploring a sale, Abbott would not comment on the situation when asked during his onstage interview.
AI and supplier value
Following Abbott’s statements, Klee asked about TMCs’ value from the supplier side versus the traveler side.
“You're an intermediary, so you have to provide value to both sides,” Klee said. “Are you worried that even though you can deliver all these great things to the customers, the suppliers won't see enough value in [the] long term to want to continue partnering with you?”
Abbott remained undeterred, stating that many of the same factors apply to the supplier conversation.
“If we can distribute their products and services in a way that's more cost effective and also more profitable in terms of the revenue performance, that has to be good for suppliers,” he said.
The combination of New Distribution Capability (NDC) and AI can help to scale ancillary services, for instance. Abbott said that right now, Amex GBT does not play in that “multi, multibillion dollar market,” but he expects the company can provide more support in that area with NDC and AI.
Personalization and better targeting are also valuable to suppliers.
All that said, Abbott couched his optimism with a word of caution.
“I'm not sitting here naively saying there are no risks. It's going to introduce new entrants; it's going to introduce new competition. It's going to create new models,” he said.
“That makes us get up every morning and think we better get [it] together. We better go faster. We've got to improve.”