Do you have to call AMEX for alt travel air fare?

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Yes. They will do a comparison and give you the evidence you'll need when doing the alt travel. Or some people just book the destination if it's cheaper, and don't say anything. Never done the latter but it sounds like it works.

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Technically yes, calling them is the safe way. Because if they somehow (rarely) realize that you're not going to your home city, they might want to see a fare comparison

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I always screenshot my standard fare and then book the cheaper fare to my alt city. Saves time, money (cheaper booking fee) and hassle. I assume they'd still reimburse if it came down to it, but they technically don't have to.

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There is an entire expense policy for your review

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