AMERICAN EXPRESS TO PROVIDE TRAVEL AGENTS CHOICE IN HOW THEY USE COMPANY'S TRAVEL PROGRAMS FOR THEIR CUSTOMERS
NEW YORK, December 09, 2004 -- American Express Consumer Travel Network (CTN) today announced that it will give independent travel agents a choice in how they pay for usage of CTN's proprietary travel programs for Platinum Card® and Centurion® Card members – including Fine Hotels & Resorts (FH&R), Cruise Privileges and Platinum Destinations® Vacations and Centurion Destinations(SM) Vacations – through its Agency Services Desk.
Beginning in the second quarter 2005, agents will be able to select either an annual usage fee or a per transaction fee when they book the American Express travel program benefits for American Express® Card members. Independent agents will continue to earn 100% of the travel commissions on these bookings, as well as full credit with suppliers for the sales.
“We talked to a number of travel agents and determined it made sense to offer independent agents who book FH&R, Cruise Privileges and Platinum and Centurion Destinations Vacations a choice in how they pay for the ability to access these programs,” said Audrey Hendley, Marketing Vice President for CTN. “By adding flexibility, our aim is to make sure any travel agent who wants to offer these benefits to their customers can do so.”
The new model updates CTN's plan to implement an annual fee to help defray the cost of making the travel benefits available to independent agents. In order to put the necessary systems in place, implementation will now occur in the second quarter of 2005. Until then, CTN will continue to fund the cost of making these programs available for booking through independent travel agents. As before, the American Express International Airline Program will not be subject to this fee.
The American Express travel benefits are relevant primarily to agents who focus on the upscale travel market. As such, only a small percentage of independent agents utilize these benefits.
For more than a century, American Express has partnered with travel agents and industry associations to help build a strong travel and tourism industry. The Company helps promote travel on a global basis through its active sponsorship of industry associations, including the American Society of Travel Agents (ASTA), the Association of Travel Marketing Executives (ATME), Cruise Lines International Association (CLIA), Interactive Travel Services Association (ITSA), The Travel Institute, Travel Business Roundtable (TBR), Travel Industry Association of American (TIA) and the World Travel and Tourism Council (WTTC).
In 1987, American Express established the Academies of Travel & Tourism in the United States, a program that helps train high school students for careers in travel and tourism. Since 1995, American Express has contributed $10 million to the World Monuments Watch, an ambitious program the company launched with the non-profit World Monuments Fund to identify and save the world's most endangered monuments. Additionally, American Express promotes choice in how customers book travel benefits – whether through American Express Consumer Travel or another travel agent.
About American Express
American Express entered the travel agency business in 1915 and today is one of the largest global travel agency networks, with more than $16 billion in global travel sales in 2003. The company has more than 1,700* Travel Services locations worldwide in more than 130 countries.
American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.
*Not all services available at all locations.
Contacts:
Melissa Abernathy
212.640.5060
Melissa.Abernathy@aexp.com