American Express Corporate Travel - Corporate Scammers?

To keep the story short: I have been recently required to travel to Singapore on a business class. For whatever reasons, for the same trip I can EASILY find WAY WAY WAY cheaper flights ticket than Amex - my company corporate Travel booking agent. We are required by policy to use them ONLY.

The Qantas business class was $2100+ but when trying to booked via Amex - it becomes $5500+ for the same flight.

While my company claims that they get kick backs etc, I"m not sure if that's worthwhile if that's the kind of margin they're making. Eventually I have to settle for another airline which their markup wasn't super unreasonable - still there were.

Anyone's company run the same kind of policy where you must go through a certain agency and literally gets slaughtered just to pay their markup?

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Comments

  • Not my company, but I do have a velocity platinum card, which has 2-for-1 business class offers (from the way I read it).

    They want $12,700 incl taxes for 2 people return to LA. You can book these flights directly from their website for $12900ish. If you purchase virgin vouchers from entertainment, then you get 5% back, which makes it cheaper.

    Regardless, $12,700 is no where near 2-for-1, when you can book return business class on their site for $6450k ish p/p

    So putting this in relation to your story, if it is truly 2-for-1 on their end, then a flight that you can readily book on the virgin website for $6450, suddenly increases to $12,700 when you book via AMEX.

    • pretty much. 100% markup.

      Though I agree with @edwinlin88 that, money is to be made by business. Just trying to understand the logic of signing of something that slaughters you.. :/

  • here are the benefits of AMEX's corporate travel service:
    https://www.amexglobalbusinesstravel.com/au/
    https://business.americanexpress.com/au/business-travel-acco…

    no, i dont think it's a scam. it's just a service.

    PLUS your company probably passes on the cost to your clients. would you consider that a scam?

    everyone's in business to make a profit

    also, as you said your company gets kickbacks so those numbers you see arent the true value of what your company is paying

    • I understood but markup at 100% of cost of flight ticket is not something that makes much financial sense.

      If I buy a ticket at 1000 bucks and get a kickback of 100 bucks, the net effect is that I paid 900 bucks for a ticket that I can get for 500 bucks somewhere else. that's 400 bucks markup after kickback.

      I do however agree, everyone is there to make money and my company is the same; just still to work out the benefits of using Amex's 'travel managers'

  • Maybe the QF special had expired or was unavailable by the time you booked it through Amex? Did you ask them to compare what they were offering with what you could see on the QF website?

      • possibly limited seats at that price. quite often sale tickets are a different "class" of ticket as well (with different terms)
      • Arguably, I didn't ask about the comparison as we have only one choice and that's via Amex. What i did however, was opening Webjet and Zuji at the same time while trying to book with Amex. that's where I see the obvious markup.

        • What i did however, was opening Webjet and Zuji at the same time while trying to book with Amex.

          You may have inadvertently caused Amex to get a higher price by doing this. Often when you check a price on an online travel agent or airline website the seats are temporarily placed on hold so that the price doesn't change while you are in the process of completing your booking. So if you were holding the last sale fares on Webjet/Zuji then Amex may have only had access to the higher fares.

          I would also expect Amex to be a little higher in price regardless as they offer a different level of service to online travel agents.

        • @donga100: That should not cause the price to fluctuates by 100% ;). I do agree your view, but don't agree on the amount that changes.

          Just lucky that I'm not involved in paying for that ticket

  • Is this a fraudulent dishonest scheme?

    • Don't think it being dishonest scheme, rather corporate knowingly agreeing to be slaughtered

  • My work is the same for everything. I wanted to get headsets for my team. Through the only mob I could go through the headsets cost $150 each. Online I could buy the same brand and model headset for $20.

  • guys, companies are not getting "slaughtered". if they were they wouldnt be paying it…

    availability and reliability are also very important factors.

    if you purchased a ticket from Webjet, the fare agreement for the ticket would be between yourself & Webjet. this in itself is a problem in itself for your company.

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