CWT to invest $100M in technology and innovative products as business travel continues to recover
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CWT, the Business-to-Business-for-Employees (B2B4E) travel management platform, announced it will invest $100 million in the myCWT travel management platform and innovative product offering as it moves forward to implement its previously announced recapitalisation plan.
The plan was approved by a court in an expedited legal process with the overwhelming support of CWT’s financial stakeholders. The recapitalization plan provides CWT with $350 million of new equity capital to reinvest in the business, eliminates approximately half of the Company’s debt and provides for all business partners and other providers of goods and services to CWT to be paid in full.
Michelle McKinney Frymire, CWT’s Chief Executive Officer, commented: “Having reached this important milestone, we are now able to move beyond the pandemic and accelerate investments that create innovative programs and industry-leading experiences, including an enhanced myCWT platform. As business travel continues to recover, we look forward to building on our momentum, continuing to advance our strategic priorities for the benefit of our customers, partners and other stakeholders, and delivering exceptional experiences for our customers, travelers and attendees.
Technology and Sustainable Product Investment Plans
CWT’s initial $100 million investment in myCWT and its innovative product offering, including the further enhancement of its sustainable proposition, will be focused on augmenting CWT’s existing omni-channel experience, enabling it to continue its pre-pandemic track record of strong growth, and enhancing the existing sustainable solutions it provides for its customers and their travelers. This will include expanding CWT’s breadth and depth of omni-channel content, travel comparison capabilities, analytical reporting, and choice and availability of sustainable travel solutions to further enhance the point-of-sale experience for travelers and carbon footprint details to enable better-informed decision-making.
As the recovery in business travel and meetings and events gains momentum, the targeted investments build on the Company’s strategic development plans implemented during the pandemic, which have enabled customers to benefit from:
- Patented algorithm search applications
- A true omni-channel experience
- More efficient follow-the-sun servicing capabilities
- An enhanced digital hotel booking experience
- Refined data analytics for greater insight and improving ROI
- Dedicated resources and services to enable a safe and secure return to travel
Recapitalisation Plan
Key terms of the recapitalisation plan approved today, include:
- Adding $350 million of new equity capital into the business
- Eliminating approximately half of CWT’s $1.6 billion in debt
- Providing CWT with substantial long-term liquidity
- Providing for CWT’s financial stakeholders to become the Company’s new owners
- Providing for all business partners and other providers of goods and services to CWT to be paid in full
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