Priceline and Ramp sign deal to revolutionize the business travel booking model.

• Booking Holdings' Priceline has partnered with Ramp, the $7.65 billion expense management company, to expand into business travel.
• Nearly one in every five dollars spent on Ramp corporate cards is related to travel expenses such as flights, hotels, and travel entertainment, according to Ramp CEO Eric Glyman.
• Often, corporate travel platforms charge high fees to maintain control over employees' accommodations and flight options, as Priceline CEO Brett Keller described it as an "outdated business model."

Booking Holdings' Priceline has partnered with Ramp, the $7.65 billion expense management company, to expand into business travel.

Ramp Travel, a new product that employs AI and automation, simplifies the process of booking and managing expenses for business travelers. Priceline offers access to travel inventory, including airlines and hotels, to Ramp users.

Ramp CEO Eric Glyman stated that the platform has experienced a substantial increase in businesses utilizing cards and budget for travel, accounting for 20% of annual card expenditure, up from approximately 10% in 2021. This led to the Priceline partnership and the introduction of a new platform feature.

"Glyman stated that nearly every 5 dollars spent on Ramp cards is related to travel-related expenses such as flights, hotels, and entertainment. This is a significant way to connect all the expenses together."

Ramp said it now has more than 25,000 businesses using its platform.

Ramp, a two-time CNBC Disruptor 50 company, has distinguished itself from the increasing number of expense management software providers by not only monitoring spending but also assisting companies in saving money through identifying duplicated expenses or negotiating contracts. Glyman stated that the same approach to controls will be applied to travel.

Corporate travel providers are facing competition from companies looking to reduce costs by offering alternative travel options with lower fees.

Brett Keller, CEO of Priceline, characterized corporate travel as an outdated business model where large corporations negotiate directly with a limited group of suppliers, leading to higher rates due to the customer support and service provided.

Keller stated that modern travelers are more intelligent and self-sufficient, therefore they should be entitled to a wider selection of products at lower prices.

Ramp has recently introduced travel as a new feature, along with Ramp Intelligence, which provides finance teams with insights and savings opportunities, and Ramp Plus, a suite of services for enterprise clients such as Shopify.

The crowded spend management space is home to several disruptors, including Brex, Navan, Expensify, Mesh Payments, Airbase, and Center, as well as traditional players like SAP's Concur. Ramp's new additions are crucial to its growth and continued disruption in this competitive market.

Glyman stated that the expansion into travel and other new services would aid in increasing the customer base. Although most Ramp clients have not raised venture capital, the average size of companies utilizing the platform has more than doubled in the past three years, he added.

Glyman stated that not only does it expand [Ramp], but it also allows us to reach new clients that we couldn't serve before.