Domestic and International Airfare Increased in 2008 as Hotel Rates Decreased; Sliding Economic Conditions Definitively Shift Business Travel to a Buyers` Market in 2009

-- Purchase of Economy Class Air Seats Surged in First Quarter 2009 as Companies
Implement Tighter Travel Policies and Cost Savings Strategies --

-- 2010 Hotel Negotiation Promises New Opportunities for Buyers as Rates Drop 12
percent in Q1 2009; Leading Hotel Suppliers and Experts to Discuss the Changing
Landscape During Live Event on BusinessTravelConneXion.com --
NEW YORK--(Business Wire)--
American Express Business Travel today released data and analysis of its North
American-based domestic and international air, hotel, and car rental prices paid
for the full 2008 year and first quarter of 2009, as economic conditions heavily
impacted a change in average prices paid for business travel.

Data from the company`s Business Travel Monitor (BTM), the industry`s pricing
benchmark, revealed that international and domestic airfare prices ended 2008 up
year-over-year and hotel rates down slightly. Looking at Q1 2009 data, signs
point to the effect of a weakening economy, belt tightening by corporations, and
falling consumer demand noticeably impacting travel rates across the board.

* Average domestic and international airfares paid increased 7 percent and 6
percent respectively in 2008 as a whole, but began to slide in Q4
2008,continuing into Q1 2009.
* Q1 2009 domestic average airfares paid are down 9 percent compared to the
first quarter last year.
* Q1 2009 international average airfares paid are down 12 percent versus Q1
2008.
* Average international and domestic booked hotel rates both showed
year-over-year decreases of 12 percent in the first quarter 2009.
* International business class air travel fell from an average of 50 percent of
all bookings in 2008 to 39 percent in Q1 2009.
* Economy class international air travel surged 13 percentage points to 56
percent of all travel in Q1 09 versus a steady 43 percent throughout 2008.

"While upward pricing pressures challenged companies to control travel and
related costs throughout 2008, a buyers` market emerged at the end of the year,
and is in full force today," said Frank Schnur, vice president, Global Advisory
Services, American Express Business Travel. "Close tracking of travel prices is
paramount as companies focus on optimizing their travel activities and savings
as they navigate this unprecedented time of price cutting and corporate contract
renegotiations."

Average International Airfares Paid Increased Six Percent Year-Over-Year in
2008:

2003 - $1,469

2004 - $1,514

2005 - $1,614

2006 - $1,707

2007 - $1,836

2008 - $1,955

Quarterly 2008 and Q1 2009 International Average Airfares Paid:

Q1 2008 - $1911

Q2 2008 - $1980

Q3 2008 - $2010

Q4 2008 - $1918

Q1 2009 - $1680

Average Domestic Airfares Paid Surged in 2008 but Recession Took Hold Late in
the Year

In line with international trends, domestic airfares also surged in 2008 as a
result of fuel volatility. Base fares began to level off as airlines chose to
charge separately for in-flight meals, choice seating, and other services to off
set intolerance to base fare increases. Airfares then fell victim to a drop off
in demand as economic conditions further deteriorated toward the end of the
year. Similar to international fares, a fall in price was seen in Q4, but the
most dramatic drops were in the first months of this year.

Annual Average Domestic Airfares Paid Increased 7 Percent Year-Over-Year in
2008:

2003 - $243

2004 - $225

2005 - $216

2006 - $231

2007 - $230

2008 - $246

Domestic Average Airfares Paid:

Q1 2008 - $233

Q2 2008 - $260

Q3 2008 - $253

Q4 2008 - $237

Q1 2009 - $213

Average International and Domestic Booked Hotel Rates Decreased Year-Over-Year

New hotels expanding globally increased supply and drove international average
booked rates in 2008 down by five percent. Slowing demand for domestic hotel
bookings and increased availability pushed prices down nearly three percent in
North America last year. So far this year, average room rates are down 12
percent for both categories from the first quarter of 2008. Of note, the highest
price decreases in North American hotels fell within the budget and deluxe
categories as both tiers reduced prices to attract travelers looking for
cost-conscious alternatives.

International Average Booked Rates Paid Decreased Five Percent Year-Over-Year:

2003 - $195

2004 - $197

2005 - $212

2006 - $230

2007 - $266

2008 - $252

Q1 `09 - $228

Average Domestic Booked Rates Paid Decreased Three Percent Year-Over-Year:

2003 - $127

2004 - $132

2005 - $137

2006 - $141

2007 - $157

2008 - $153

Average Domestic Booked Q1'08 Q2'08 Q3'08 Q4'08 Q1`09
Hotel Rate by Price Tier
Deluxe $231 $246 $240 $253 $216
Upscale $202 $208 $204 $208 $178
Mid-Price $192 $205 $203 $209 $166
Economy $175 $182 $189 $184 $149
Budget $169 $185 $186 $174 $138
Overall $203 $215 $212 $218 $180

"The economic environment is fueling proactive off-season communication between
travel buyers and suppliers as they work together to secure the best rates and
ensure credit for volume. Those willing to be pragmatic and proactive on both
sides of the table can reap the rewards. For the first time, we are seeing
buyers renegotiate greater reduced rates for a longer period of time, in some
cases two years. Hoteliers are taking advantage of these rates by reaching out
to potential new clients to compete for business," said Mr. Schnur.

Looking Ahead to 2010 Negotiating Season:

On April 30th at 2:00 pm EDT, American Express Business Travel is hosting and
moderating a live online event with industry leaders representing Hilton Hotels,
InterContinental Hotels Group, Omni Hotels and WORLDHOTELS to discuss the impact
of the current economic environment on the hotel industry, mid-year
renegotiations, as well as provide insight on the best methods to support both
travel buyers and sellers through the upcoming summer travel season. The event
will take place on BusinessTravelConneXion.com, an online community that brings
together the collective intelligence of business travel industry players in a
collaborative environment.

Car Rental Rates Post Modest Increase in 2008 but Ease in Early 2009

In 2008, the overall cost of car rental increased slightly as demand increased
and buyers saw the impact of fuel costs over the course of the year. Taxes and
local fees on car rental transactions also continued their steady increase.
However, slightly weaker demand in the first quarter of the year has stabilized
costs so far this year. There was also increased interest in intermediate and
hybrid cars versus larger cars for overall cost control and fuel savings. This
reflects adherence to new policies surrounding ground transportation and eco
policies. Advisory Services is predicting the overall daily cost of car rental
will remain flat for 2009.

Average daily cost of car rental:

2003 - $65

2004 - $65

2005 - $66

2006 - $69

2007 - $72

2008 - $74

Q1 `09 - $73

About the American Express Business Travel Monitor, North America

The American Express Business Travel Monitor is a key deliverable of American
Express Business Travel Global Advisory Services` Research practice. It
benchmarks the average prices for air, hotel, and car rental service by major
cities and classes of service through aggregate analysis of American Express'
extensive global database of purchase information.

The BTM includes both average published and purchased air fares captured across
hundreds of domestic and international routes, including unrestricted first
class, business, economy, and discounted, restricted economy air fares. The
methodology for the average air fare paid is the one-way price paid by all
travelers booked through American Express Business Travel, including taxes and
fees, for all routes.

Average booked hotel rates, both international and domestic, represent the total
spending of all American Express Business Travel clients, excluding taxes,
divided by the total number of room nights confirmed. The full BTM includes
hotel averages by major city neighborhoods and category of hotel by price range.
The average daily cost for car rentals is drawn from American Express Corporate
Card data and includes all charges incurred, including mileage, gas, tax and
insurance, divided by the average length of rental. Data for the distribution of
rental class categories is drawn from all rentals booked by the entire American
Express Business Travel customer base.

About American Express Business Travel

American Express Business Travel (www.americanexpress.com/businesstravel), a
division of American Express Company, is committed to helping its clients
maximize the greatest return on their travel investment through program
optimization support, world-class customer service, and greater spending
control. With clients ranging from small businesses to multinational
corporations, American Express Business Travel provides a combination of
industry-leading technology, travel management consulting, strategic sourcing
and supplier negotiation support, alongside global customer service available
online and offline. The Company also provides a dynamic online community
(www.BusinessTravelConneXion.com) harnessing the collective intelligence of
those in the business travel industry offering a variety of perspectives, best
practices, current research, and industry information.

American Express operates one of the world`s largest travel agency networks with
locations in over 140 countries worldwide. The Company processed $25.4 billion
in global travel sales in 2008.

American Express Company (www.americanexpress.com) is a leading global payments,
network and travel company founded in 1850.

For American Express Business Travel
Tracy Paurowski, 212-640-8409
tracy.j.paurowski@aexp.com
or
Emily Porro, 212-446-1874
eporro@sloanepr.com

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