CEO of credit card giant discusses consequences of shifts in work patterns on travel.
Despite the rising cost of jet fuel and continued pandemic worries, business travel looks promising in 2022.
Steve Squeri, chairman and CEO of American Express (AXP) – Get American Express Company Report, told Jim Cramer on a recent episode of “Mad Money” that a new category of business travel is contributing — remote workers.
Squeri said that consumer travel has already started to return, and with so many remote employees these days, he expects a new segment of business travel to emerge as remote workers meet with their teams in person from time to time.
In addition, Squeri said that technology and great customer service have been driving the growth at American Express. The company has been investing in its customers and its brand throughout the pandemic, he said, which has led to the 18% to 20% revenue growth it is forecasting this year.
Squeri added that millennials and Gen Z consumers have been flocking to American Express both for the prestige of the brand and the many rewards they offer.
“The up-and-down swings of AXP the past few months are making it difficult for me to feel confident in recommending purchase of the shares,” Real Money Columnist Bruce Kamich wrote recently. “I would stand aside for now until the patterns become clearer.”
Russia’s invasion of Ukraine has “not really” affected travel volumes for American Express, according to Squeri.
The payments company announced it was suspending business in Russia on March 6, becoming one of the hundreds of other companies who also pledged to suspend or curtail business in the country because of its invasion of Ukraine
