American Express Global Business Travel expects to complete its acquisition of Hogg Robinson Group on July 19 after European Union regulators cleared the deal on Friday.
Client wins inspired by early global leadership in New Distribution Capability will help Hogg Robinson Group reverse long-term revenue declines in the coming months, CEO David Radcliffe claimed during the group’s half-year results presentation last week.
Two of the world’s largest travel management companies are set to merge after American Express Global Business Travel offered up to £410 million to buy Hogg Robinson Group.
At first blush, it may come as a surprise that the owner of BCD Group and the single largest shareholder of Hogg Robinson would let HRG fall into the arms of BCD Travel rival American Express Global Business Travel. But the time was right for BCD Group founder and owner John Fentener van Vlissingen to cash out.
Two of the world’s largest travel management companies have become one. American Express Global Business Travel Thursday completed its 410 million British pound takeover of Hogg Robinson Group to create a TMC that handles a combined $36 billion in annual transaction value. The mega of all megas now has mega integration work ahead.
Several sources discussing the pending acquisition of HRG by American Express Global Business Travel anticipate the deal to close as designed. Yet, the door is open for another player with sufficient capital and a strategic rationale to make a competing offer.
Sister airlines British Airways and Iberia have announced a "New Distribution Capability related agreement" that exempts Hogg Robinson Group from their distribution surcharge of €9.50 per fare component set to take effect Nov. 1.
Girding for a shakeup in the way major airlines distribute content to the corporate market, travel management company HRG is advancing efforts to facilitate direct connections between airlines and corporate clients.
Hogg Robinson Group reported a year-over-year decline in revenue for its fiscal year ending March 31, but it reduced debt, increased cash on hand and grew profits on leaner operations. The brightest spot came from its Fraedom software-as-a-service business, which posted solid results but represents a small portion of overall revenue.
Lufthansa Group and Hogg Robinson Group are working on a direct connection so the travel management company's clients can avoid the airline group's €16 fee on global distribution system bookings. The agreement extends to Hogg Robinson Group's travel and expense technology division, Fraedom, Lufthansa announced.