Skift Research’s latest deep dive report looks at the rise of the credit card companies in travel. Below we present three key takeaways, with accompanying charts.
1. Banks and Credit Cards Are Going it Alone
Travel loyalty programs have become dull and overcrowded, with increasingly brand-agnostic consumers who prioritize discounts and perks over traditional loyalty. Time for something new.
New entrants such as banks and credit cards are capitalizing on the opportunity and are entering the travel space through the launch of their own dedicated travel booking platforms. They’re moving from simply facilitating other brands’ loyalty programs through co-branded credit cards to becoming their own channel for buying travel.
For example, JP Morgan Chase noted in a 2022 investor presentation that an oversaturated market had heightened “competition for the scale and distribution of strategic co-brand relationships.” It said it saw “an opportunity during the pandemic to own our own destiny in travel.”
2. Banks Are Quickly Gaining Share
In 2022, JPMorgan Chase & Co officially launched Chase Travel, an end-to-end travel and rewards program for its U.S. customers. Its supply was originally powered by Expedia, but is now predominantly led by companies cxLoyalty and Frosch, which Chase acquired in 2020 and 2022, respectively.
Business is growing fast. Chase Travel made roughly $8 billion of gross bookings in 2022, $10 billion in 2023, and expects around $15 billion this year.
Chase Travel highlights a roughly $140 billion addressable spend opportunity for travel expenditure on Chase cards, so it had already captured 7% by 2023. If it hits its target for this year, that would rise to 11%.
Credit card companies are rapidly capturing market share in the travel industry, with platforms such as Chase Travel likely ranking as the third-largest business-to-consumer leisure online travel agency after Booking Holdings and Expedia Group in the U.S. We present market share analysis in the full research report.
3. Banks Are Growing Through B2B Deals With OTAs
Online travel agencies such as Expedia, Booking and Hopper are increasingly leaning into a business-to-business model where they share their travel inventory with partners (such as banks) looking to launch their own travel booking platforms.
Why are online travel agencies doing this and powering the inventory of potential new competitors? The B2B model gives them access to a huge pool of potential new customers and is a driver of revenue growth. It also – crucially – acts as a new distribution channel that allows them to be less reliant on Google to acquire customers.
While business-to-business might be one avenue to diversify revenue streams, this clearly comes at a cost, as banks start taking market share from the same online travel agencies that powered them.
For example, Skift’s survey data show high customer satisfaction for credit card booking platforms, particularly among Gen Z and millennials, who are increasingly choosing these bank portals over traditional online travel agencies for their travel bookings.
Read the full report for further insights and analysis.
What you’ll learn from this report:
- Why banks and credit card companies are becoming a bigger part of travel
- Why banks and credit card companies could pose a threat to incumbent online travel companies
- Why online travel agencies are powering the travel inventory of banks and credit card companies
- What the business-to-business (B2B) model looks like
This is the latest in a series of research reports, analyst sessions, and data sheets aimed at analyzing the fault lines of disruption in travel. These reports are intended for the busy travel industry decision-maker. Tap into the opinions and insights of our seasoned network of staffers and contributors. Over 200 hours of desk research, data collection, and/or analysis goes into each report.
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