Corporate travel buyers may have some ※big decisions§ to make on the future of their programmes, following the announcement of a ※strategic alliance§ between business travel giants American Express Global Business Travel (GBT) and Concur.
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After months of speculation, the TMC and technology provider are launching a co-developed travel and expense platform, called Complete, which promises to provide booking, servicing, payments and expensing in one platform.?
The move marks a shift in Concur*s previous strategy of working with?multiple TMCs and stakeholders within a wider ecosystem, as it looks to ※move faster§ by working with a preferred TMC partner. Although it has vowed to continue to "support and innovate" on the new Concur Travel platform and the current system of reselling and servicing other TMCs.
But industry commentators said the move may lead to corporates moving away from ※the old guard§ when it comes to choosing their travel partners.
Consultant Caroline Strachan, from Festive Road, called the partnership a ※key strategic move§ by Amex GBT and Concur.
※Now to see how this plays out for all concerned: the customers, suppliers and more. [Amex GBT*s] Evan [Konwiser] uses the term &future proofing*. Buyers have some future proofing decisions to take on behalf of their organisations - are they in or out?§
Jeff Klee, CEO at US-based travel management firm AmTrav, said he was ※intrigued and impressed§ by the Amex GBT-Concur partnership and described it as a ※gutsy call§.
※Whether we're talking SMB or enterprise or anywhere in between, the era of serving travellers and companies with multiple disconnected systems and expecting travellers to tolerate the consequences isn't good enough anymore,§ wrote Klee in a LinkedIn post.
※For GBT, this is a coup and an opportunity, but also a challenge. At the same time they are integrating CWT, they'll now also be collaborating with Concur on an ambitious platform. Getting two giant companies to align on a tech buildout won't be easy. But if they can pull it off, the prize will be worth it.§
Klee remained optimistic about the ultimate impact of the deal for corporate buyers and their travellers.
※I don't know exactly how it will shake out but I am pretty sure travellers and their companies will be winners,§ he added.
Martijn van der Voort, who is now a consultant after spending 15 years with CWT, said:?※Strip away the branding and this is what it looks like: two legacy giants doubling down on each other as neither can evolve fast enough alone.
※For progressive corporates, this moment is clarity: a chance to step away from closed ecosystems and legacy booking tools and players,§ added van der Voort in a LinkedIn post.
※The idea that this fragmented ecosystem will suddenly become streamlined through this alliance is optimistic at best.§
Marne Martin, CEO of rival expense specialist Emburse, said: ※Partnerships should accelerate innovation, not restrict it. At Emburse, we believe customers shouldn*t have to choose between flexibility and progress; they deserve both. True innovation happens when you expand possibilities, not when you limit them.§
Andrew Clarke, commercial director at the UK-based Business Travel Association, added: ※If this signals Amex GBT prioritising integration over growth, innovation may take a back seat to the heavy lift of combining two complex ecosystems - a test of execution more than creativity.
※It*s a smart consolidation move, but meaningful innovation will depend on what follows once the integration dust settles.§
Meanwhile, Scott Davies, CEO of the Institute of Travel Management (ITM), said: "Evolving industry partnerships are generally welcomed by buyers if they bring efficiencies, harness evolving technologies, add and aggregate content, and simplify an ever more complex industry landscape.
"Buyers also greatly value choice and a competitive marketplace, so will consider this considerable development alongside other solutions."