Two Cents from Company Dime 8/20

Supplier Bankruptcies, Consolidation Begin, ​OBTs Adapt, Travel Management Consultancies Power Up, Remember NDC? And Time To Finally Skip the Hotel RFP?
Supplier Bankruptcies, Consolidation Begin
As the effects on the pandemic wrecked the travel industry and pushed economies into recession, a first wave of industry supplier bankruptcies and M&A activity hit travel management companies and car rental firms. Changes to the competitive set mean travel buyers may need to reassess strategies.

Two of the four largest rental companies in North America, Hertz and Advantage Rent a Car, filed for Chapter 11. Hertz said it would be business as usual across all divisions. Travel managers in early summer corroborated that Hertz had maintained operations and responded to RFPs. Advantage, however, shed several branch locations, including 10 US airport operations that Germany-based Sixt acquired.

Houston-based Frosch International Travel agreed to acquire CorpTrav of Naperville, IL, which had been part of the Radius Travel network. Frosch operates in dozens of locations around the world. It bought TCG Consulting last year and then acquired Luxe Travel, an Irvine, CA-based TMC, in January.

In the global corporate card space, American Express soon may have fewer competitors, according to CEO Steve Squeri. "This market is not as fruitful as it once was,” he said during a Bernstein conference in late May. "You may see others exit the market as they did a number of years ago." It was about five years ago that JPMorgan Chase abandoned the international corporate card market. That left Amex, Bank of America and Citi as key global players. Duty of Care and Risk Management (Staci)

Duty of Care and Risk Management

Categories: Special ReportDuty of Care And Risk Management

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