American Express experienced a significant boost in the last quarter thanks to the strong appetite of cardholders for dining out at restaurants. According to Chief Financial Officer Christophe Le Caillec, restaurant spending across the American Express network grew by 11% in the fourth quarter, outpacing the overall 6% growth seen across other categories. Additionally, spending on travel and entertainment also saw a healthy increase of 9%.
In a significant milestone for the company, American Express surpassed $100 billion in cardholder spending on restaurants for the first time in 2023, as revealed by Le Caillec.
To further enhance the value for diners, American Express is actively focusing on providing more benefits through credit card point accelerators specifically targeted at restaurant spending. By doing so, they aim to create a more rewarding experience for their customers.
One way American Express is delivering on this objective is through its acquisition of Resy in 2019. By leveraging this platform, the company now offers exclusive benefits to cardholders with a preference for dining out. For example, individuals who sign up for premium American Express cards gain early access to reservations at popular eateries, enhancing their overall dining experience.
According to Le Caillec, the Resy platform has been successful in establishing stronger connections with both cardholders and the restaurant industry. He expressed his satisfaction with its growth and its ability to fulfill their intended objectives.
While acknowledging that overall spending is normalizing after the significant surge witnessed during the post-pandemic travel boom, Le Caillec expects spending to remain consistent with the growth seen in 2023.
In conclusion, American Express has experienced remarkable growth in restaurant spending, driven by its commitment to delivering exceptional value and benefits to its cardholders. With a focus on enhancing the dining experience and strengthening relationships within the industry, American Express is poised to maintain its positive trajectory moving forward.