Global Business Travel American Express has raised its revenue forecasts for this year as the recovery in business travel has shown “strong momentum”, CEO Paul Abbott said in a conversation about revenue.

For the first quarter of 2022, Amex GBT reported revenue of $ 350 million, an increase of 179% compared to the first quarter of 2021 and a half of pre-pandemic levels in 2019. Transactions for the quarter were at 46% of levels before the pandemic, but they began to gather quickly in April, according to Abbott. For the last three weeks of April, transactions reached 72% of the levels for 2019, an improvement of 11 percentage points compared to the recovery levels in the last week of March, he said.

The comparisons include adjustments that take into account the acquisitions of Amex GBT by both Egencia and Ovation Travel Group.

Small and medium-sized companies are leading the recovery, but travel from larger customers has also begun to “really accelerate”, says Abbott. In April, the recovery among large global customers improved by 8 percentage points compared to March.

The resumption of international travel is also catching up with the recovery of the domestic market by lifting restrictions, Abbott said.

The demand for smaller meetings is “particularly strong”, which Abbott attributes to a workforce that remains more dispersed rather than concentrated in headquarters. “More distributed teams increase the need to bring people together to collaborate, innovate, motivate and learn,” he says.

Amex GBT has reported a 95% customer retention rate over the past 12 months, and Abbott notes that since 2015, the company has averaged $ 2.50 in new customer earnings for every dollar lost in business. Recent new customer profits include Honda Motors Europe, Novum, Raytheon Technologies and The Ferraro Group, Abbott said.

Given the pace of recovery, Amex GBT has added $ 150 million to its total expected revenue for 2022, which is now expected to be around $ 1.75 billion. Amex GBT reported a net loss of $ 91 million for the quarter, compared to a net loss of $ 135 million in the first quarter of 2021.

Amex GBT also said it expects its merger with special purpose vehicle company Apollo Strategic Growth Capital to be completed later this month, at which point it will begin trading on the New York Stock Exchange.

* This article originally appeared on BTN

https://www.phocuswire.com/amex-gbt-reports-large-client-travel-demand-accelerating

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