In a bold move to expand its services, Ramp, the renowned expense management company valued at $7.65 billion, has entered the domain of business travel through a strategic collaboration with Booking Holdings’ Priceline. With the rise of corporate spend platforms seeking to enhance customer retention and attraction, Ramp Travel is set to revolutionize the way companies manage their travel expenses. By leveraging AI and automation, Ramp aims to streamline the booking and expense process for business travel, with Priceline granting Ramp users access to a wide array of airline, hotel, and other travel options.
Ramp CEO Eric Glyman emphasized the increasing trend of businesses utilizing Ramp cards and budgets for travel purposes, accounting for 20% of annual card spend, compared to just 10% in 2021. This surge in corporate travel expenditure paved the way for Ramp to forge a partnership with Priceline and introduce a dedicated travel feature. Glyman noted that a significant portion of spending on Ramp cards is directly associated with flights, hotels, and entertainment related to travel, highlighting the necessity to integrate all these components seamlessly.
As a two-time CNBC Disruptor 50 company, Ramp has made a conscious effort to differentiate itself from other expense management software providers. Apart from tracking spending, Ramp distinguishes itself by aiding companies in cost-saving endeavors, such as identifying duplicated expenses and facilitating contract negotiations. Glyman affirmed that the same meticulous approach to financial controls would be extended to the realm of travel, underscoring the company’s commitment to providing comprehensive solutions to its clients.
Priceline CEO Brett Keller characterized traditional corporate travel practices as archaic, attributing inflated costs to the restrictive contracts negotiated by larger companies with specific suppliers. Keller argued that modern travelers are more empowered and savvy, warranting access to a broader inventory of options at competitive prices. The Ramp-Priceline collaboration promises to challenge the status quo in corporate travel, offering enhanced transparency and cost-effectiveness to businesses of all sizes.
In addition to the introduction of Ramp Travel, Ramp has introduced several innovative features in the past year, including Ramp Intelligence and Ramp Plus. Ramp Intelligence provides valuable insights for finance teams and identifies potential cost-saving opportunities, while Ramp Plus offers a suite of tailored services for enterprise clients like Shopify. With the competitive landscape of spend management becoming increasingly crowded, these additions play a pivotal role in sustaining Ramp’s growth trajectory and disrupting the market.
CEO Glyman expressed optimism regarding the expansion into travel and the introduction of new services, foreseeing an expansion in Ramp’s client base. Despite the majority of Ramp customers operating without venture capital, the platform has witnessed a significant increase in the average company size over the past few years. Glyman articulated that the strategic diversification of services not only strengthens Ramp’s existing client relationships but also unlocks opportunities to cater to a broader range of clients effectively.
The collaboration between Ramp and Priceline marks a significant milestone in the realm of business travel management. By harnessing cutting-edge technology and industry expertise, Ramp is poised to redefine corporate travel practices and empower businesses to optimize their travel expenses effectively. As the demand for comprehensive spend management solutions continues to grow, Ramp’s strategic initiatives underscore its commitment to innovation and client-centricity in a rapidly evolving market landscape.
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