Skift Take
Pressure from travel suppliers who want better merchandising tools and lower costs are compelling travel management companies to consolidate.
The big players in the world of managing corporate travel are gearing up to get bigger: Amex GBT’s $570 million bid for CWT and the sale of Direct Travel to an investor consortium are two of the latest examples of the race to bulk up through mergers.
The trend is driven largely by two factors: Travel suppliers – primarily airlines – seeking greater efficiencies in their distribution channels and the enormous capital required to invest in the technology to sell to and service travelers around the world.
“I think fundamentally customer needs are driving consolidation in the industry,” Amex GBT CEO Paul Abbott told Skift. “I think supplier needs are also changing. Suppliers want their distribution channels to deliver a modern retailing experience,” he said.
For example, airlines are moving a grow