The UK Competition and Markets Authority (CMA) has shed light on the competitive landscape of the corporate travel market, revealing that BCD Travel and American Express Global Business Travel (Amex GBT) are the clear leaders. The findings were part of an interim report on Amex GBT’s proposed $570 million acquisition of CWT, a deal the regulator provisionally approved, citing no significant risk to competition.
The CMA’s report, released Tuesday, highlighted the financial struggles of CWT, which filed for bankruptcy in 2021. Despite its challenges, CWT remains a notable player in the market, though it lags behind BCD and Amex GBT. The regulator noted that FCM Travel is a smaller but meaningful competitor, while other firms like CTM and Navan are also gaining traction in the corporate travel sector.
A Competitive Marketplace
The CMA described the corporate travel market as highly competitive, with multiple players vying for lucrative contracts.
Using bidding data from Amex GBT and CWT for global corporate travel contracts worth at least $25 million, the regulator outlined the market shares of key players:
From Amex GBT’s data (2021-2023):
- BCD and CWT each secured 10-20% of total transaction volumes.
- FCM captured 5-10%.
- Navan and CTM each won 0-5%.
- Smaller players like Spotnana, Blockskye, Kayak, and Gant Travel collectively accounted for 5-10%.
From CWT’s data (2021-2023):
- BCD dominated with 40-50% of transaction volumes.
- Amex GBT and FCM each secured 10-20%.
- CTM won 5-10%, while Navan captured 0-5%.
- Other travel management companies, excluding smaller firms like Amadeus, combined for 0-5%.
Growth Trends in 2024
The report also analyzed year-over-year growth in transaction volumes for 2024 compared to 2023.
Key findings include:
- Amex GBT, BCD, and FCM saw increases of 10-20%.
- Navan’s transaction volumes surged by 30-40%.
- CTM experienced the most significant growth, with a 40-50% rise.
- CWT was the only major player to see a decline, with its transaction volumes dropping by 0-5%.
Implications of the Amex GBT-CWT Deal
The CMA’s provisional approval of Amex GBT’s acquisition of CWT is largely based on CWT’s declining market position. The regulator concluded that the merger is unlikely to harm competition in the corporate travel sector. However, the deal still faces a hurdle in the form of a U.S. Department of Justice lawsuit seeking to block the merger.
The final decision from the CMA is expected by March 9.
Conclusion
The corporate travel market remains dynamic, with BCD and Amex GBT leading the pack. While smaller players like Navan and CTM are gaining ground, CWT’s struggles highlight the challenges faced by even established firms. The CMA’s findings underscore a competitive environment that continues to evolve, with significant implications for the future of corporate travel management.
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