Business travelers are making a comeback after freezing for two years following a collapse during the first days of the corona plague, according to credit card company American Express.
Travel expenses for S&P 500 customers in March were “well over 50 percent” of its level in 2019, the year before the plague hit, Jeff Campbell, Amex’s CFO, told the Financial Times.
Business travel recovery came to a brief halt earlier this year as the Omicron virus version soared across the U.S. But travel and entertainment spending – including flights, hotels and restaurants – rose 156% in the first quarter compared to 2021 among Amex’s corporate customers.
Last year, American Express said a Full rebound Business travel may take years, but the recovery so far has been faster than expected, Campbell said.
“People are looking to go out and not only get together with their colleagues, but they are also looking to go out and meet with clients,” said Stephen Scurry, CEO of Amex in a conversation with analysts. “.
So far, consumers have led the renewed growth in travel expenses, while larger companies have generally been more cautious. U.S. consumers across the Amex network spent 120 percent more on travel during the first quarter of the year than in the same period in 2019. Travel expenses for large global corporations at the time, however, were only 38 percent of the pre-epidemic volume.
Total spending volumes jumped 30% in Amex’s network, and total revenues jumped 29% to $ 11.7 billion, ahead of Wall Street expectations. Business spending is likely to become a bigger back wind for the company as non-travel consumer spending mitigates the burden of spending released last year as the economy began to reopen, senior executives said.
Amex has confirmed this Long-term bullish forecast On Friday when it reported first-quarter earnings, dismissing concerns the economy is heading for a recession.
Sad demand and an increase in business customers using debit cards for wine and dining customers and booking business class seats were bigger factors in spending growth than inflation, Campbell said.
“There is certainly a lot of uncertainty in the world, but when you look at everything we see in our results, you just can not see any sign of weakness,” he said.
Amex says business travel rebound is gaining momentum Source link Amex says business travel rebound is gaining momentum