Businessweek

operate under the American Express brand). American Express U.S. Consumer Travel Network has distinguished itself in the luxury space through its Platinum Travel Services and Centurion Travel Services, which service the needs of the company’s premium Cardmembers and support the travel benefits that it provides for them. These travel benefits include the International Airline Program, which offers an international first- and/or business-class companion ticket offer on qualifying tickets with 26 airlines, and the Fine Hotels & Resorts program, which is a luxury hotel program offering value-added amenities. In addition, the company operates a wholesale tour operator business in the United States through Travel Impressions, a wholly-owned subsidiary of TRS. As a tour operator, Travel Impressions secures inventory from suppliers, such as airlines, hotels, auto rental companies, and ground operators, which it then packages and sells to consumers through travel agencies and travel agent consortia in the United States. Travel Impressions also manages and operates American Express Vacations, selling tour packages direct to consumers through the AmericanExpressVacations.com Website, which could be accessed through the Consumer Travel Website and internationally through travel agents who work for the American Express international travel business. Travel Impressions is recognized by its customers for services, including being named Travel Weekly’s ‘Best Tour Operator, Sales and Service’, for eight years in a row. The company’s Consumer Travel Website, amextravel.com, which is powered by Orbitz Worldwide, was redesigned and improved during 2012. The Website offers a range of travel rates and discounts on airfares, hotels, car rentals, cruises, and full vacation packages, with customer service for the Website offered 24/7. The Website also provides travel planning resources, and for American Express Cardmembers, benefits, such as earning one extra Membership Rewards point when booking travel using a Card enrolled in the Membership Rewards program. In addition, Cardmembers are able to Pay with Points by redeeming Membership Rewards points for some categories of travel through its Consumer Travel Website, as well as through its call centers and American Express-owned travel service offices. Regulation The American Express U.S. Consumer Travel Network is subject to domestic and international laws applicable to the provision of travel services, including licensure requirements, laws, and regulations regarding passenger protections, such as the Enhancing Airline Passenger Protections rule issued by the U.S. Department of Transportation; and laws and regulations regarding passenger screening and registration, such as the Secure Flight Rule issued by the U.S. Transportation Security Administration. Additionally, the American Express U.S. Consumer Travel Network is subject to certain applicable U.S. state and federal Privacy, Data Protection, and Information Security Laws, including certain requirements related to breach notification, and as a result of the company and TRS each being bank holding companies, its business is also subject to certain activity restrictions under the Bank Holding Company Act of 1956, as amended (the ‘BHC Act’) and certain provisions of the Currency and Foreign Transactions Reporting Act and the accompanying regulations issued by the U.S. Department of the Treasury (collectively referred to as the ‘Bank Secrecy Act’), as amended by the USA PATRIOT Act of 2001 (the ‘Patriot Act’), with regard to maintaining effective anti-money laundering (AML) programs. Strategy Core elements of the company’s strategy are focusing on acquiring and retaining high-spending, creditworthy Cardmembers; designing Card products with features that appeal to traditional and newer customer segments; using strong incentives to drive spending on its various Card products and generate loyal customers, including its Membership Rewards program and other rewards features; using loyalty programs, such as Delta SkyMiles, sponsored by its co-brand and other partners, to drive spending; developing and nurturing relationships with co-b