Amex acquires leading HK TMC
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The joint venture between American Express and Farrington Travel was initialized in October 1999 and fast became the leading Hong Kong travel services provider and constantly achieved double digit growth in revenues and earnings year after year.
American Express’ purchase is a testament to the Company’s globalization strategy of organic growth, direct acquisition and joint venture or licensed partnership across all key markets in the world. This multi-pronged strategy has propelled its rapid growth in mainland China and India, a leadership position in Singapore and Australia, and strong partnerships in Japan, the Philippines, and New Zealand.
Global Travel Services President, Charles Petruccelli said, “This acquisition confirms our leadership position in the Asia-Pacific region. With Farrington American Express Travel Services fully integrated, our business volume from the customer base we serve across Greater China (out of Beijing, Shanghai, Guangzhou, Hong Kong and Taiwan) will reach nearly one billion U.S. dollars of business travel volume this year, with a solid double-digit growth rate year-over-year.”
Mr. Petruccelli added, “We are delighted to welcome the Company’s talented management and staff into American Express” as the existing resources will bring remarkable experience and expertise to the JAPA organization and the evidence is illustrated by the recognized leadership position they have built in Hong Kong over the years.
American Express Business Travel has already capitalized on the strong economic growth in the JAPA region, reporting a 10% increase in year-over-year sales for the first five months of 2007. This growth can be attributed to increased client retention rates coupled with a significant number of new business wins totalling US$135 million including global brands such as ABN Amro in Australia and Symantec Corp. in India.
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