American Express designed the new program in response to the growing difficulty facing travel managers in keeping travelers from making rogue bookings on random Web sites. Similar to the issues companies faced last year with Web-only airfares, travel managers are struggling to convince travelers that the company pays a heavy price in negotiating and tracking ability for every rogue traveler who books a hotel room outside the designated channel.

Most Web-only hotel rates are no bargain for business travelers, as they typically require pre-payment, entail full or partial penalties, or are only valid with a minimum number of room nights. By contrast, the new American Express program offers these travelers consistently low rates – with no strings attached – compared with those offered through any other channel. The program will launch with thousands of properties representing the leading business hotel brands in 1,500 cities in 85 countries.

“We’re taking our corporate hotel discount program in a bold new direction - by moving to a dynamic program based on best available rates, we’re enlisting hotels’ support in keeping travelers within their company’s travel management program, not surfing the Web in the hopes of finding a bargain, usually with strings attached,” said Andrea Levine, vice president of Strategic Resources Management for American Express. “As hotel pricing fluctuates with increasing frequency, American Express is the first travel management company to recognize that static-rate discount programs will not meet clients’ needs in 2004.”

In beta tests this fall, the new program consistently provided lower or competitive rates compared with other unrestricted rates available through travel industry reservations systems, the hotels’ Web sites or other travel Web sites.

Participating hotels, including many leading business brands, will offer their best available unrestricted rate, with no strings attached. Unlike rates offered through various Web sites, the American Express hotel program rates will be completely unrestricted, requiring no prepayment, penalty or day-of-week restrictions. In most cases, participating hotels will offer additional amenities, such as free breakfast, parking, local calls or access to a fitness center.

The American Express rates will be updated as needed, in some cases daily, as market conditions change to achieve best available rate pricing at time of booking. The program will be available to American Express Corporate Travel customers based in the U.S. and Canada, using any channel: dedicated office, call center or online booking system. The new program replaces the Worldwide Select Hotel program, and will go into effect January 1, 2004. American Express Corporate Travel customers are automatically enrolled; there is no additional cost or effort required.

About American Express Corporate Services
American Express operates one of the world’s largest travel agencies, recording $15.5 billion in worldwide travel sales in 2002. Its Corporate Services group counts nearly 70 percent of the Fortune 500, along with tens of thousands of mid-sized companies, as customers of its Corporate Travel, Corporate Card, Corporate Purchasing Card and Consulting services. For more information on expense management tools from Corporate Services, click here.

The American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking.