American Express Co. this week announced the expansion of its Open Savings program through a new partnership with AirTran Airways, a subsidiary of AirTran Holdings Inc. designed for business travelers.
AmEx Open Savings enables small-business owners to receive automatic savings of 3% to 25% on AmEx small-business card purchases made at any Open Savings partner, including Barnes & Noble, Hyatt and Marriott hotels, and FedEx. Cardholders also may transfer Membership Reward points to their AirTran frequent-flier account.
AmEx executives were not immediately available to comment on the expansion.
Airline rewards have been a natural ally for credit card companies, and linking miles flown and dollars spent is a natural connection, notes Brian Riley, resource director for bankcards at TowerGroup Inc., a Needham, Mass.-based research and advisory firm. Moreover, the alignment with AirTran adds depth to AmEx’s focus on the small-business market, and it builds loyalty, he adds.
Through the partnership with the Orlando, Fla.-based low-cost airline, AmEx small-business cardholders receive a 5% discount on direct ticket purchases on all flights. And from March 13 to 27, they may use on-board Wi-Fi service for free, the companies note in a news release. Eventually, AmEx could “build ancillary reward kickers that can link air travel on AirTrain, paid for with the card, to other related expenses such as hotels, auto rental and dining, Riley surmises.
Airline travel rewards “spawn high-ticket and low-risk transactions, which are well suited for business cards,” Riley says. “Plus, credit card merchants can benefit because a well-run program will bring in incremental transaction volume.”
