American Express 1998 Annual Report Download - page 14

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12
and for bankcards in some parts of the world.
We have launched an aggressive campaign in key
international markets to curtail this behavior,
similar to the successful program we have used in
the United States.
We strengthened our corporate travel business
during the year with the acquisition of Havas
Voyages, the largest travel agency in France, and
a joint venture with BBL Travel in Belgium and
Luxembourg. In addition to bolstering our posi-
tion as the world’s leader in travel, these alliances
provide a good platform for Corporate Card
sales and further increase the importance of
our customer base to key travel suppliers. This
leverage is important in the current travel agency
business environment, with ongoing pressure
to reduce commissions by major airlines and
other suppliers.
Difficult economic conditions top the list of
disappointments for our international card and
travel businesses. Corporate and personal travel
declined if you net out the benefit of various
the United States during the year, including
a Small Business Corporate Card in the United
Kingdom and Blue Cards in the United King-
dom, Germany, Canada and Singapore. The Blue
Cards, a revolving credit product targeted to
young consumers, have proven very popular. We
also launched Platinum Cards in Argentina,
Taiwan, Malaysia, Brazil and Singapore and
co-branded cards with Aeromexico in Mexico,
Thai Airways and the Dusit Group in Thailand,
and Air France, Accor and Credit Lyonnais
in France.
We continued to expand our merchant net-
work during the year. As noted earlier, spending
coverage reached 83 percent. Key merchant sign-
ings included Woolworth’s in Australia, C&A
department stores in Germany, Lojas Ameri-
canas in Brazil and the Liquor Control Board
of Ontario.
Suppression — when merchants that accept
American Express encourage a customer to use
another card or cash — remains an issue for us
In keeping with its commitment to increase
its businesses outside the U.S., American
Express continues to introduce cards with
customized benefits designed for specific
markets. During 1998, we launched new cards with AirMiles
in Canada, Aeromexico in Mexico, Thai Airways and the Dusit
Group in Thailand and with Telepiu in Italy.