Buyers face ‘decisions’ following Amex GBT-Concur alliance

This article was first published on Monday 6 October and updated on Wednesday 8 October to incorporate further reaction and feedback.

Corporate travel buyers may have some “big decisions” to make on the future of their programmes, following the announcement of a “strategic alliance” between business travel giants American Express Global Business Travel (GBT) and Concur.

After months of speculation, the TMC and technology provider are launching a co-developed travel and expense platform, called Complete, which promises to provide booking, servicing, payments and expensing in one platform. 

The move marks a shift in Concur’s previous strategy of working with multiple TMCs and stakeholders within a wider ecosystem, as it looks to “move faster” by working with a preferred TMC partner – although it has vowed to continue to "support and innovate" on the new Concur Travel platform and the current system of reselling and servicing other TMCs.

But industry commentators said the move may lead to corporates moving away from “the old guard” when it comes to choosing their travel partners.

Consultant Caroline Strachan, from Festive Road, called the partnership a “key strategic move” by Amex GBT and Concur. “Now to see how this plays out for all concerned: the customers, suppliers and more. [Amex GBT’s] Evan [Konwiser] uses the term ‘future proofing’. Buyers have some future proofing decisions to take on behalf of their organisations – are they in or out?”

Jeff Klee, CEO at US-based travel management firm AmTrav, said he was “intrigued and impressed” by the Amex GBT-Concur partnership and described it as a “gutsy call”.

“Whether we're talking SMB or enterprise or anywhere in between, the era of serving travellers and companies with multiple disconnected systems and expecting travellers to tolerate the consequences isn't good enough anymore,” wrote Klee in a LinkedIn post.

“For GBT, this is a coup and an opportunity, but also a challenge. At the same time they are integrating CWT, they'll now also be collaborating with Concur on an ambitious platform. Getting two giant companies to align on a tech buildout won't be easy. But if they can pull it off, the prize will be worth it.”

Klee remained optimistic about the ultimate impact of the deal for corporate buyers and their travellers. “I don't know exactly how it will shake out but I am pretty sure travellers and their companies will be winners,” he added.

Martijn van der Voort, who is now a consultant after spending 15 years with CWT, said: “Strip away the branding and this is what it looks like: two legacy giants doubling down on each other as neither can evolve fast enough alone.

“For progressive corporates, this moment is clarity: a chance to step away from closed ecosystems and legacy booking tools and players,” added van der Voort in a LinkedIn post. “The idea that this fragmented ecosystem will suddenly become streamlined through this alliance is optimistic at best.”

Marne Martin, CEO of rival expense specialist Emburse, said: “Partnerships should accelerate innovation, not restrict it. At Emburse, we believe customers shouldn’t have to choose between flexibility and progress; they deserve both. True innovation happens when you expand possibilities, not when you limit them.”

Andrew Clarke, commercial director at the UK-based Business Travel Association, added: “If this signals Amex GBT prioritising integration over growth, innovation may take a back seat to the heavy lift of combining two complex ecosystems – a test of execution more than creativity.

“It’s a smart consolidation move, but meaningful innovation will depend on what follows once the integration dust settles,” he added.

Meanwhile, Scott Davies, CEO of the UK’s Institute of Travel Management (ITM), said: “Evolving industry partnerships are generally welcomed by buyers if they bring efficiencies, harness evolving technologies, add and aggregate content, and simplify an ever more complex industry landscape.

“Buyers also greatly value choice and a competitive marketplace, so will consider this considerable development alongside other solutions.”

Corporates and TMCs 'must stay agile'

David Bishop, managing director, Europe, at travel management company Gray Dawes, questioned the rationale of the move, pointing out that the leading 30 TMCs in the US alone have double the turnover of Amex GBT and CWT combined.

“The fact that Concur will recommend only GBT only shouldn't cause too much of an issue as most clients should have a reasonable awareness of the market players as a whole,” Bishop told BTN Europe. “The challenge, however, is if there is a technical 'moat' around new developments that disadvantages partners who have been long-term supporters of SAP Concur.”

He continued: “Concur has struggled with the pace of development required in OBT booking technology and we can't see this move improving that materially, albeit there is a ring-fenced team to support this.  It could, however, open up opportunities for other OBT platforms, just as it will for TMCs who are seen as credible alternatives to GBT following the CWT acquisition.”

Ian Flint, founder and managing director of Inform Logistics, said the development was part of a broader trend towards tighter ecosystems combining booking, expense and reporting.

“For corporates, that could simplify the user experience and strengthen data visibility if the integration genuinely delivers,” said Flint. “At the same time, it does concentrate a lot of influence in a few big players, so it will be important for clients and TMCs to stay agile and make sure technology continues to serve their needs – not the other way around.”

Writing on LinkedIn, Johnny Thorsen, VP of strategic development at booking platform Serko, congratulated the companies for “trying something new” but said announcing a new product “is the easy part”.

“Now they have to find a way of changing the mindset and operational procedures of two giant organisations – and not only add a new product to an already complex environment, but also start moving much faster in terms of product development cycles, implementation and ongoing support. I truly hope they succeed in doing so as the combined customer base is so big that any wobbles quickly become an avalanche of problems.”

Thorsen said the development should be seen as an opportunity for buyers to “review your programme strategy and determine which world you belong in” – a “walled garden” model with high level of control” or an open ecosystem model with high levels of flexibility.

“There is certainly plenty of business to support both models, and thankfully you [buyers] have access to an increasing number of alternative products, so it is a perfect time for you to take some time and investigate the potential solution providers before making any decisions.”

With a vested interest, Thorsen asked if TMCs can “remain competitive knowing your biggest competitor has exclusive access to a unique product from your current OBT solution provider, or is it time to look around and perhaps reconfigure your tech stack?”