Microsoft, American Express in Online Deal
Microsoft Corp. and American Express Co. are developing an online reservation system for corporate travelers, the companies said Monday.
The service will let executives make airline, hotel and rental car reservations and buy tickets using personal computers. It will also let companies monitor employees’ spending habits to make sure they conform to company policy.
Financial terms of the agreement, which gives American Express a two-year exclusive right to use the system, were not disclosed.
“We think it’s going to greatly reduce the hassle of making travel plans and it’s going to help companies save money,” said Mike Mulligan, senior vice president of American Express’ Interactive Travel Group.
The companies said they have already started testing the system and hope to introduce it in the first half of next year.
Mulligan said American Express hopes the venture will lure new customers to its corporate card and travel businesses.
The system will use the same technology as a consumer travel service called Expedia that Microsoft is developing, said Greg Slyngstad, Microsoft Travel Technologies product unit manager.
“We really needed a partner in the corporate travel arena,” Slyngstad said.
The system will be compatible with “any and all” airline computer reservation systems, American Express spokeswoman Christine Levite said.
American Express shares lost 12.5 cents to close at $43.375 on the New York Stock Exchange; Microsoft lost $2.25 to close at $116.875 on Nasdaq.
American Express already licenses Internet security software from Microsoft, as well as software that lets companies tabulate data about employee spending patterns based on their corporate card spending.
Other companies already offer or are developing similar corporate electronic services. Competitors will include Travelocity, jointly owned by AMR Corp.’s Sabre Group and Worldview Systems Corp. Worldview is a joint venture of Advance Publications Inc.’s Random House and Ameritech Corp.
The new service will also compete against the closely held Internet Travel Network.
American Express has already sought to expand its travel business through a retail service called ExpressNet, which is available through America Online Inc.’s online service and through the Internet Travel Network’s World Wide Web site.
