The new centers, which will open in the first half of next year subject to regulatory approvals, will support the growing volume of American Express' interactive travel bookings in that region. Five E-Fulfillment Centers — in Miami, Phoenix, Montreal, Sophia Antipolis (France) and Stockholm — already support the rapid growth of interactive travel reservations in the U.S., Canada, Europe and Latin America.

“As we've seen in the U.S., once companies see the drop in average ticket prices and transaction cost savings that come with corporate online booking tools, they're very eager to grow usage,” said Rich Miller, vice president and general manager, American Express Global Interactive Travel Group (ITG). “Our new centers in Sydney and New Delhi will help us support the expansion of online bookings that we're seeing now in companies in the Asia/Pacific region.”

Specialized Customer Support
While the exact locations of the centers have yet to be finalized, American Express plans to staff the new facilities with Interactive Travel Specialists, who are trained to provide technical help to callers using a host of online booking tools, including American Express' Corporate Travel Online (CTO) and RezPort products, as well as major third-party systems.

For instance, these specialists offer assistance with password and ID requests, as well as how-to advice on navigating the tools. Via Internet access and e-mail, American Express' travel specialists are equipped to use Web information resources to assist customers.

In addition, if needed, they can offer traditional travel services, for example, changing a flight or hotel reservation for corporate travelers who are en-route and without laptops to make the changes themselves.

But the vast majority of reservations initiated online can be processed without agent assistance, thanks to the sophisticated automation American Express has developed for its EFCs.

In the U.S., about 84 percent of all American Express' Interactive Corporate Travel bookings are processed in a completely automated fashion — requiring no manual intervention. As a result, companies can shave 50-70 percent off transaction processing fees. Typically, a company's average ticket price is 15 to 20 percent lower online.

Online Booking Adoption Accelerates Globally
American Express' announcement of two new E-Fulfillment Centers comes as the company records new milestones in the global growth of online corporate travel booking. More than 2,500 American Express clients worldwide are using one of its online booking tools, and the global network of E-Fulfillment Centers is supporting clients from 21 countries in multiple languages. Another 13 countries will be supported by the middle of next year.

In the U.S., one in four of American Express corporate customers' reservations is made online today. The rate is double what it was in 2002, after doubling over 2001 levels. Online corporate travel booking systems have been available since 1997, but widespread adoption accelerated after the first E-Fulfillment Center opened in Miami in 2000, offering greatly reduced fees by streamlining the process.

American Express opened its first European E-Fulfillment Centers in Stockholm and Sophia Antipolis last fall, and adoption rates are already starting to rise. Nearly a thousand American Express clients in Europe have embraced online booking tools and are being serviced through these centers.

“Since we opened our European E-Fulfillment Center in Sophia Antipolis last November, we are servicing more than 50 large customers, and over a thousand smaller organizations across Europe,” said Miller. “Furthermore, since we launched American Express One in the U.K., our dedicated travel service for small and mid-size companies, four out of five of these customers are opting for our interactive travel service along with offline servicing.”

In the U.K., online transactions now make up about 5 percent of American Express Corporate Travel bookings, about where the U.S. market was 18 months ago. The Nordic countries are close on the U.K.'s heels, followed by Germany and France.

“While each regional market is different, what we're seeing now in Britain closely resembles what happened in the U.S. in terms of how companies adopt online booking,” added Miller. “First, you have some experimentation, then, as companies realize savings on average ticket prices, they begin to change travel policies to encourage-and often to mandate-travelers to book via these new tools.”

Online booking is growing in certain countries in Latin America as well. Usage in Mexico rose to 5.4 percent at mid-year, from nearly 1 percent at the end of 2002, with several companies already using the tools and being serviced from the Miami E-Fulfillment Center. Argentina and Brazil are next in line.

In Asia-Pacific, Australia is also seeing a dramatic increase in interactive adoption rates — rising to 8 percent at mid-year, from 4 percent at the end of 2002 — while New Zealand, Singapore, Taiwan, Hong Kong and China show strong potential. While technologically oriented, companies in these markets face some hurdles in terms of the high percentage of more complex international itineraries and a low penetration of electronic ticketing.

High Achievers
Some large U.S. companies are routinely using the technology for more than 98 percent of their transactions, and the average adoption level for the top 20 heaviest users in the large market customer segment is 85 percent. But U.S. companies are not the only ones hitting high adoption rate targets.

In the Nordic countries, Philips (Nordic) has achieved a 25 percent adoption level within the first five months since implementation, and is aiming for a 60 percent adoption level by the end of the first year. It's already saving 50 percent on transaction fees.

In Mexico, a large industrial company is sending 60 percent of its headquarters' transactions through the online booking tool, with an ambitious goal of 100 percent adoption and a 25 percent reduction in travel costs. It is already seeing 20 percent savings.

In Australia, The Thomson Corporation hit 100 percent last month, using CTO for literally every transaction, domestic and international, including senior executives. Strategic Sourcing Head Sue Thaler cites not only 25 percent hard-dollar savings, but also reports 10-20 percent productivity savings for travelers and travel arrangers.

New Frontiers in Online Booking
A fast-growing new application for the technology is in the area of meetings. In the U.S., American Express this year created a new Meetings Solutions group devoted to helping companies select and implement online meeting management and meeting-travel booking tools, which have been specially adapted for meetings-related trips.

Another development designed to help companies further streamline the online booking process are Interactive Management Reports, which detail both the fully automated transactions and those that needed agent intervention. These reports highlight for travel managers those specific travelers and types of transactions that elude the fully automated process. In conjunction with American Express' usage experts, travel managers can use these reports to adjust policies, user options and training to reduce the need for manual intervention to only those transactions that truly require it.

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. Through its Corporate Services group, the company 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 Solutions and Consulting services. More information on expense management tools from Corporate Services can be found 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.