New Research Reveals American Express Offers the Most Comprehensive, End-to-End Savings for Online Business Travel
NEW YORK--(BUSINESS WIRE)--June 15, 2004--American Express In a Side-by-Side Comparison With Orbitz, Expedia and Travelocity, Results Show American Express is the Cheaper, Better Online Provider When Looking at Total Costs Per Trip
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On the heels of an airfare analysis recently released by Harrell Associates, American Express today announced the results of an additional, side-by-side comparison study demonstrating that, in addition to offering greater savings on flights booked online, American Express is up to 11 percent cheaper than Orbitz, Expedia and Travelocity when comparing total trip costs, including air, hotel and car rental.
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The comprehensive, total trip analysis was conducted by Harrell Associates, a leading airline and travel consultancy, on behalf of American Express Corporate Travel. When examining complete business traveler itineraries, including airfare, hotel and rental car rates, the results indicate American Express is:
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-- 7% - 8% lower than Expedia(R) ($106 - $114 per trip on average)
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-- 9% - 11% lower than Orbitz ($153 - $163 per trip on average)
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-- 9% - 11% lower than Travelocity(R) ($153 - $170 per trip on average)
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"When looking at the total trip, or even any of its individual components, online travel agencies do not guarantee you the best rates in air, hotel or ground transportation," said Rich Miller, vice president and general manager, Interactive Travel Group, American Express. "American Express is the clear choice when booking all facets of your business trip. Beyond the cost of the trip, American Express offers unparalleled customer service and support to ensure that our travelers arrive in the most secure and convenient fashion possible, along with the reporting and infrastructure that companies need to manage an effective travel program."
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Harrell Associates conducted an airfare, rental car and hotel rate analysis that identified the top 43 destinations (36 domestic/7 international) for small business travel customers, and determined the most frequently utilized hotels and car rental services in these destinations. 440 complete itineraries consisting of airfares, hotel rooms and car rentals were tested simultaneously across the following booking sources:
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-- American Express' online corporate travel booking tool
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-- Orbitz "leisure" site and Orbitz For Business site
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-- Expedia "leisure" site and Expedia Corporate Travel site
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-- Travelocity "leisure" site and Travelocity(R) Business site
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In direct comparisons to Expedia, American Express returned total costs of travel that were on average 8% lower than the Expedia "leisure" site and 7% lower than Expedia Corporate Travel, resulting in savings of $106 - $114 per business trip on average.
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In direct comparisons to Orbitz, American Express returned total costs of travel that were on average 9% lower than the Orbitz "leisure" site and 11% lower than Orbitz for Business, resulting in savings of $153 - $163 per business trip on average.
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In direct comparisons to Travelocity, American Express returned total costs of travel that were on average 9% lower than the Travelocity "leisure" site and 11% lower than Travelocity Business, resulting in savings of $153 - $170 per business trip on average.
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In addition to this total trip analysis, Harrell Associates also conducted a total ground cost study that examined American Express hotel and car rates in comparison to Orbitz, Expedia and Travelocity. The total ground cost study found that American Express online hotel and car rates are:
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-- 5% lower than Expedia(R) ($38 - $39 per trip on average)
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-- 9% - 11% lower than Orbitz ($71 - $90 per trip on average)
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-- 7% - 10% lower than Travelocity(R) ($54 - $76 per trip on average)
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"The online agencies may be the newest entrants to the corporate market, but they continue to come up short when measuring the all-important total trip cost," said Bob Harrell, founder and principal of Harrell Associates. "Our study confirms that American Express has the least expensive choices when booking your total trip online. American Express' size and experience negotiating business travel costs gives them a clear edge over the competition."
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Methodology
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A detailed analysis was conducted of the booking habits and travel patterns of small business travelers to determine their travel characteristics and identify the top routes traveled. Based on this research, testing variables including advance purchase, trip length, use of alternate airports and connections were then established in the comparison shopping model so that the testing mirrored the actual traveling population and the variables were tested in proportion to their actual occurrence in the base travel data.
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Comparison shopping was then conducted in the tradition of a consumer reporting approach. Route by route, simultaneous comparison shopping was conducted across all 7 systems: Rezport and 2 versions of each of the 3 alternate systems - retail and business.
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About American Express Corporate Services
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American Express operates one of the world's largest travel agency networks, recording $16 billion in worldwide travel sales in 2003. 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, and Corporate Purchasing Solutions services. More information on expense management tools from Corporate Services can be found at http://www.americanexpress.com/corporateservices.
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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.
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About Harrell Associates
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Harrell Associates focuses in two areas: Airfare and Airline Industry Consulting and Travel Industry Public Relations. Harrell Associates is currently providing benchmarking and media relations consulting on the travel and airline industries to a number of major financial institutions including: American Express, Goldman Sachs and Merrill Lynch. Harrell Associates also engages in ad hoc consulting and market research projects in the travel industry. For more information, please visit: http://www.harrellassociates.com/index.htm
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Contacts
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American Express
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Alicia Klosowski, 212-640-0820
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alicia.l.klosowski@aexp.com
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John Hartz, 212-446-1872
jhartz@sloanepr.com
