American Express 1998 Annual Report Download - page 18

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16
business, we concluded that this would not be a
viable business for us going forward and therefore
did not pursue the bidding process. The account
represented approximately 1.6 million cards and
approximately $3.5 billion in annual billed busi-
ness. Largely as a result of our decision not to
pursue bidding for the government account, the
total number of cards-in-force in the United States
declined for the year. We believe our energy and
resources will be better spent expanding our core
corporate business, where returns and growth
opportunities are more attractive.
We did, however, sign or expand several large
accounts during the year, including United
Technologies, PricewaterhouseCoopers and
Compuware Corporation.
During the year we acquired Travel One, one
of the nation’s fastest-growing travel agencies. Just
as it does in the international arena, bolstering
However, we believe focusing on the fast-changing
electronic commerce arena will help us craft
solid, interactive strategies for the Company.
CORPORATE CARD AND TRAVEL SERVICES
The American Express Corporate Card is the
recognized leader for business travel and enter-
tainment throughout the world.
While it was a good year overall, our
Corporate Card business did not meet the aggres-
sive targets we had set. As we said, economic
slowdowns outside the United States dampened
corporate spending and travel. The ongoing trend
of commission rate reductions from airlines
resulted in decreases in revenue from our Business
Travel operations and price increases for travelers
and corporations.
Moreover, after reevaluating the earnings
potential of the United States Government Card
American Express helps companies
manage their travel, entertainment
and purchasing expenses through a
growing family of products.During 1998,
we introduced a new Corporate Card in France in con-
junction with Air France, Accor and Credit Lyonnais.
We expanded our Internet-based travel reservation
system, AXI, which helps corporate travelers reduce
cost and save time. We also began piloting Corporate
Purchasing Cards in France, Germany and Sweden.