By C. Perera, JadeTimes News
Patrick Andersen, president and CEO of CWT, the world's third largest travel management company, spoke with BTN Europe at the GBTA Convention in Atlanta. This conversation took place just before the UK's Competition and Markets Authority decided to deepen its investigation into the company's impending acquisition by American Express Global Business Travel , the largest in the sector. The discussion, which has been lightly edited for clarity and brevity, sheds light on various aspects of the merger and CWT’s operations.
BTN Europe How is the merger progressing, and what actions is CWT taking currently
Patrick Andersen:* We are proceeding with the regulatory approval process and anticipate its completion by the end of the year. For now, it’s business as usual, although Amex GBT expects to finalize the acquisition in the first quarter of 2025 following the CMA’s investigation escalation. Our approach is cautious and respectful of the process. We are making plans for the future but without any immediate actions, as pre approval activities are limited.
BTN Europe What kind of preparations are being made
Andersen Our planning mainly revolves around envisioning the transition on day one and beyond. However, our actions are restricted by regulatory guidelines. We are mindful of our limits and are focused on following them diligently. Amex GBT’s past acquisitions, like those of Ovation, Egencia, and HRG, have provided a roadmap that informs our current planning.
BTN Europe: How are CWT’s customers reacting to the merger?
Andersen: Overall, customer sentiment is neutral to positive, with clients looking forward to the potential benefits of the merger. We haven't received any negative feedback, and clients seem interested in the opportunities the merger might bring.
BTN Europe: How do you address the concerns of customers who have previously chosen CWT over Amex or vice versa?
Andersen: Whenever companies merge, there is a chance that clients might reconsider their options. However, we hope that clients will view the merged entity as a new, potentially improved service and reassess any past experiences.
BTN Europe: What impact does the merger have on CWT's investment and innovation strategies?
Andersen: We continue to operate under the assumption of business as usual, which includes launching new innovations. Recently, we introduced a special assistance service and are enhancing our myCWT platform with new pricing optimization and messaging features. Time and business progress do not wait for mergers to complete.
BTN Europe: Can you discuss the future of CWT’s relationship with Spotnana post merger?
Andersen: Our relationship with Spotnana has been positive and successful. We are expanding our platform’s geographical reach and deploying it to a growing number of customers. I won’t speculate on future developments, but our current relationship is strong and beneficial.
BTN Europe: What are the current growth drivers for CWT?
Andersen: The corporate sector is performing well this year, and we’ve experienced natural growth aligned with GDP trends. While we haven’t returned to the same growth correlation seen pre pandemic, we are making steady progress.
BTN Europe: The GBTA report indicates record-high business travel spending driven by inflation. Is this reflective of CWT’s experience, and are transaction volumes back to 2019 levels?
Andersen: Inflation is a significant factor in our total transaction value, but we also see an increase in transaction numbers. While some segments and regions have returned to pre-pandemic levels, overall, we haven't fully rebounded.
BTN Europe: What additional services or capabilities are clients seeking?
Andersen: Clients consistently desire a seamless booking experience across all channels, with easy access to content. We strive to meet these demands and invest in both hotel and air travel content. Additionally, clients require support during unexpected disruptions, emphasizing the importance of after sales service and consistency across all touchpoints.
BTN Europe: How did CWT manage the post CrowdStrike outage days?
Andersen: The disruption tested the resilience of all travel management companies due to the surge in traveler volume. It's a challenge to anticipate and manage such high demand levels. The incident highlighted the critical role of TMCs in supporting and guiding travelers through disruptions.
BTN Europe: How is CWT leveraging AI in its operations?
Andersen: We have a long history with AI and machine learning, and the recent focus on generative AI has amplified discussions around these technologies. AI helps us curate travel inventories based on past behaviors and preferences, enhancing the booking experience. We are also exploring AI's potential in conversational interactions, aiming to streamline communications between travelers and agents. Internally, AI driven process automation is improving our operational efficiency.
BTN Europe: Do you foresee the development of a conversational style booking tool?
Andersen: Yes, that’s a possibility. We previously developed a virtual assistant named Carla, which was innovative at its time. The advancement of AI could enable a tool that suggests itineraries based on a traveler’s schedule, bringing more proactivity to the booking process. Our latest price optimization tool, powered by AI, is already helping us determine the best timing for bookings and rebookings.
