american express global business travel (Amex GBT) has an increasing number of multinational customers around the world. their Business travel during the first quarter.
Travel growth by these companies outpaced small and medium-sized business (SMB) travel growth for the first time since the recovery from the pandemic, the travel and expense B2B software and services company said in its quarterly results on Tuesday (May 7). Announced. income phone.
In the first quarter, Amex GBT saw 11% year-over-year growth in transactions for multinational customers around the world. of According to one study, small businesses increased by 5%. presentation It was released on Tuesday in conjunction with the call.
“Global multinationals saw very positive same-store sales growth in several areas, particularly in technology, up approximately 30% in the first quarter,” said Amex GBT CEO. Paul Abbott I said during an incoming call. “We also saw double-digit growth in professional services, pharmaceuticals, mining, energy and utilities.”
Among the company’s small and medium-sized customers, growth has slowed by 3 percentage points over the past two quarters due to a slowdown in same-store sales, Abbott said on the conference call.
“We believe this is being driven by higher interest costs and persistently higher inflation, resulting in stronger regulation.” [SMB] It’s an expense,” Abbott said during the call. “This is a broader trend in the United States.” [SMB] American Express is another customer we highlighted in our first quarter results. ”
American Express and AmEx GBT believe that rising inflation and continued price increases are tightening spending among small businesses.said Mr Abbott..
“As confidence improves, macroeconomic conditions improve, and perhaps the inflation outlook becomes a little more clear, we do I hope that changes,” Abbott said. “We will certainly still see [SMB] It will become the company’s growth engine in the medium to long term. ”
Amex GBT looks to the future and expands the SMB segment Biggest Abbott said on the conference call that 70% of small businesses are not currently participating in managed travel programs, so there is an opportunity for growth.
“As our progress clearly shows, increasingly [SMB] “Customers recognize the value of our cutting-edge software and services and professionally managed travel programs,” said Abbott. “as a result, [SMB] Total new acquisitions in the past 12 months reached $2 billion. ”
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