The cost of travel outside the US is on the rise

Travel and entertainment (T&E) spending by credit card company American Express’ international corporate customers increased 19% year-over-year in the second quarter of 2023. The company reported increased spending outside the US. In the US, the increase was only 2%.

Amex President and CEO Stephen Scarry said in a conference call that international spending “has come back a little quicker than we thought it would in our three-year horizon.” International spending by SMBs and large corporations accounts for 7% of Amex’s total business. Large corporations in the US contribute 5%, while US-based SMEs contribute 25%.

Squeri said business with large U.S. companies is “in decline” as companies continue to work to get their employees back into the office. “You’ll see a little less one-stop trips, a quick trip to London to meet a client or a quick trip across the country for an internal meeting,” added Skerry.

“I think that’s going to continue. We’ll continue to work hard to retain these customers and actively acquire new customers, but I think it’s going to be slow.”

Amex’s total network volume grew 8% year-over-year to $426.6 billion in the second quarter, a record for the company. Amex reported net income of US$2.17 billion for the quarter, up 11% from the second quarter of 2022.

(Business Travel Tip)

Press