In the news: Abacus’ BSP certification in China, HICAP acquires AOCAP, American Express’ new JV for business travel
Abacus is first foreign GDS to gain BSP certification in China
Abacus has become the first foreign Global Distribution System (GDS) to secure IATA Billing and Settlement Plan (BSP) certification for China.
The BSP is designed to simplify the selling, reporting and remitting procedures of IATA accredited passenger sales agents. With the latest development authorised travel agents on the mainland are now able to fulfil the entire retailing of travel products offered by foreign BSP airlines.
Abacus has been a part of BSP since its inception, and China is its newest BSP-certified market.
Abacus CEO and president, Robert Bailey, said, “We are grateful to IATA for their support in providing BSP to new Abacus users in China, and to the Civil Aviation Administration of China for its inclusive approach to technological innovation on the mainland. It comes just as we are testing foreign airlines’ schedules and fares for live booking. BSP integration will ensure that transactions are equally seamless.”
The benefits of BSP for participating mainland travel agents include:
- Consolidated reporting and remittances
- Electronic ticketing, billing and collection
- Improved quality control
Foreign airlines, 90 of which operate services to China, will also gain from BSP’s efficiencies and financial control.
The BSP certification for Abacus in China follows CAAC’s licensing of the company earlier this year to promote its proprietary travel technology on the mainland. Abacus has operated in China since 1995, recruiting specialist teams in Beijing, Shanghai, Guangzhou, Shenzhen and Chengdu to work with suppliers and travel agencies on a customized booking platform for foreign travel brands.
HICAP expands reach into APAC with acquisition of AOCAP
Hotel Investment Conference Asia Pacific (HICAP) is set to stamp its footprint in the Asia Pacific region with the recent purchase of the Alternative Ownership Conference Asia Pacific (AOCAP) from the Absolute World Group.
Financial details of the deal were not disclosed.
AOCAP, which was launched in 2009 in Phuket by the Absolute World Group, serves the alternative/vacation ownership sector of the lodging industry. It was conceptualised to plug the gap in the region for a conference focused solely upon mixed use resort development and recreational real estate, and to bring together regional players to stimulate dialogue on industry issues and facilitate networking opportunities.
The most recent AOCAP was held in October 2013 in Hong Kong. As part of the transition, the next AOCAP will be held in March 2015 in Singapore in conjunction with HICAP UPDATE. The dates and exact location of these two back-to-back events will be announced shortly.
Bryan Lunt, chairman & CEO of Absolute World Groupm said, “The region currently offers international developers business opportunities more significant than any other markets on the planet. AOCAP has rapidly developed through participation and collaboration with some of the most respected international experts within the industry, as well as carefully considered programming, which has been educational, topical and highly stimulating for our attendees.”
Added Jim Burba, president of BHN and a HICAP partner, “The alternative ownership sector of the lodging industry is becoming an increasingly important part of the growth of our industry in Asia Pacific, and placing this timely program adjacent to HICAP UPDATE will be extremely beneficial to traditional hotel developers, as well as the broader real estate development community.”
American Express creates JV for business travel in partnership investor group
American Express Company has entered into an agreement with an investor group led by Certares to create a joint venture for its Global Business Travel (GBT) division.
Under the agreement American Express will have a 50% ownership stake in the joint venture. It will also separate its GBT operations into a dedicated holding structure, which will include certain assets and liabilities that currently comprise GBT.
In exchange for an investment of US$900 million in the joint venture, the investor group will hold the remaining 50%.
The Certares-formed group includes Qatar Investment Authority through its wholly-owned subsidiary Qatar Holding LLC, funds managed by BlackRock, Certares itself and Macquarie Capital. The business will continue to operate under the “American Express Global Business Travel” brand following the closing.
American Express expects to execute comprehensive commercial agreements with the joint venture to provide uninterrupted service and close coordination for the benefit of mutual customers of GBT and American Express’ other business units, such as Global Corporate Payments, which issues the American Express Corporate Card and provides business-to-business payment solutions.
The joint venture will build upon GBT’s technology innovations to support digital and premium servicing capabilities, mobile applications, improved reporting tools and itinerary management solutions, as well as the customer service expertise.
Bill Glenn, formerly president of global commercial services at American Express, will be president and chief executive officer of the joint venture, while Certares founder, Greg O’Hara, will serve as its chairman.
The closing of the joint venture transaction is subject to the receipt of requisite regulatory approvals and the satisfaction of other customary closing conditions. Assuming these conditions are met, American Express would plan to close the transaction in the second quarter of 2014.
