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American Express Travel Related Services (continued). We also explored the role of incentives in improving service quality. The service delivery employee is a major factor in service quality, and he or she may not be driven by the company's objective of maximizing profits. The employee has his or
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1. American Express Travel Related Services We examined American Express Travel Related Service's Call Center and made recommendations based on our findings which resulted in: increase customer satisfaction reduce operating cost increase revenue The world’s largest travel agency wanted to improve quality, reduce costs, and increase revenue at its Business Travel Centers (BTC) which make travel arrangements for its corporate business customers. Each corporate client is very important to American Express, since it is a major source of revenue generation. In addition to commissions earned through the travel business, American Express also increases the charge volume on its Corporate Card via the BTC since most travelers charge their expenses to their American Express Cards. The corporate travel industry is very competitive, so any advantage gained through the use of technology is very brief, since the large competitors react quickly to adopt the same technology. As a result, American Express also focuses heavily on operational excellence and personal service to drive their business. We were asked to examine the service delivery process in their call centers and make recommendations based on our findings. To evaluate service quality, statistically valid service quality measures were developed and a survey instrument was designed based on these measures. To understand the corporate traveler’s perception of American Express’s service we monitored telephone calls and conducted follow-up telephone surveys. The survey data was analyzed using factor analysis and multicollinearity tests. The results were used to select variables based on survey data. These variables, along with operational service encounter data, were used in multiple regression analyses to define a model of service delivery process quality. This model was used along with optimization techniques to examine how to maximize service quality while minimizing costs. This model was useful for identifying which changes to the service delivery process improve quality.