Chase to launch a new travel portal, expand travel business — here's what we know
According to Chase, $1 out of every $4 of leisure travel is charged to one of its credit cards. However, only a "small percentage" of that travel was actually booked through Chase. To that end, the credit card giant accurately ascertains that its "assets were not differentiated."
To capitalize on that massive volume of travel purchased by its cardholders, Chase just announced the creation of ChaseTravel.com, a new stand-alone consumer travel portal, coming later this year. This announcement was made at the company's 2022 annual Investor Day, as first reported by Skift.
Here's why Chase is going deeper into the travel booking business -- and what this will mean for Chase customers.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
Chase has been moving toward this for a while
Chase expects to have $8 billion in travel sales volume by the end of the year and is hoping to nearly double that to $15 billion by 2025. That's no small amount of money and something that Chase is clearly hoping to capitalize on as travel rebounds from the coronavirus pandemic.
Right now, the company estimates that it's a top-five travel provider. Its impending move to expand Chase Travel to be a leading travel booking platform shows that it has ambitions to move even higher in the ranks.
This announcement isn't too out of left field, as Chase made two key travel-related acquisitions during the coronavirus pandemic: CxLoyalty and Frosch.
CxLoyalty is a technology company that provides travel booking, gift card sales and other transactions to loyalty programs, and currently runs the Chase Ultimate Rewards travel portal.
Meanwhile, Frosch is a leading travel agency that specializes in the corporate and luxury travel segments.
A new Chase Travel could help Chase catch the competition
Growth and innovation are important for Chase's travel efforts, especially as competitors like American Express and Capital One continue to make their travel offerings more robust.
Chase shares that this product "will deliver distinctive content and experiences and become a full-service travel agency to our small business and premium leisure travelers," according to Marianne Lake, the co-chief executive officer of consumer and community banking at JPMorgan Chase.
As an example of the catching up and differentiation that Chase has to do to really compete in this area, Capital One's new travel portal will monitor flight prices and let you know when it expects the cost of airfare to go down. Likewise, the program will actually refund you the difference if it tells you to book a flight and the price later drops. This is a hallmark feature of the Capital One portal and one that the TPG staff has used on a number of occasions.
Capital One also made a handful of travel acquisitions, including Freebird, a travel insurance company, and Lola, a travel management company.
Likewise, Amex Travel has a slew of features offered to premium cardholders. For example, travelers with The Platinum Card® from American Express or The Business Platinum Card® from American Express can take advantage of discounted premium-cabin airfare with the International Airline Program and hotel perks with Fine Hotels + Resorts. The catch is that you must book through Amex Travel to take advantage of these benefits.
What could ChaseTravel.com offer consumers?
Details are still sparse, but we can make a couple of assumptions about Chase Travel based on Chase's current offerings, recent acquisitions and competitor analysis.
First off, Chase Travel is likely to focus on high-end luxury travel. In its Investor Day presentation, the bank specifically stated emerging affluent and high-net-worth individuals as key focus areas when expanding its reach.
Chase currently runs the Luxury Hotel & Resort Collection, which offers exclusive perks when staying at select luxury hotels to Chase credit card holders. But right now, you cannot redeem Chase Ultimate Rewards points on LHRC hotel stays, and they must be booked using a separate portal.
With a renewed focus on Chase Travel and the luxury travel segment, I think we're likely to see LHRC integrate directly with the Chase Travel booking portal. This is similar to how Fine Hotels + Resorts is baked into Amex Travel. Likewise, the bank could use its Frosch acquisition to provide curated luxury experiences and trip planning in its portal.
We're also likely to see Chase add travel content to Chase Travel. This is in large part due to the bank's recent acquisition of The Infatuation, a major dining publication. The bank could leverage this acquisition to create travel guides and upsell Chase Dining reservations throughout the Chase Travel booking process.
It would also not be surprising if Chase completely reworked the airfare booking process to keep up with the competition. This could mean adding similar price tracking and protection features and adding optional cancel-for-any-reason coverage, similar to what we see with the newly revamped Capital One Travel portal.
When Chase Travel does launch, it will first open to Chase credit card holders, and later open up to Chase's other banking customers.
Bottom line
We now know that Chase is planning to launch a new Chase Travel by the end of the year. The details of this launch are still forthcoming, but the bank seems set on massively expanding its travel business over the next few years. It's a big business for the bank and one that will help it diversify away from traditional banking activities.
TPG has reached out to Chase for comment and more details. As always, we'll keep you updated when we know more about the program.
Top offers from our partners
How we chose these cards
TPG featured card
Rewards
5X | Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year. |
5X | Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
Sometimes it's worth a large investment to reap the benefits of a great credit card. That's exactly the case with the Amex Platinum card. In exchange for the annual fee, you'll unlock access to the Amex Membership Rewards program that let you access airline and hotel transfer partners, along with new lifestyle and travel credits. This card is also incredibly rewarding for travel purchases, helping you rack up a ton of Membership Rewards points for your next award trip.Pros
- The current welcome offer on this card is quite lucrative. TPG values it at $1,600.
- This card comes with a long list of benefits, including access to Centurion Lounges, complimentary elite status with Hilton and Marriott, at least $500 in assorted annual statement credits and so much more. (Enrollment required for select benefits.)
- The Amex Platinum comes with access to a premium concierge service that can help you with everything from booking hard-to-get reservations to finding destination guides to help you plan out your next getaway.
Cons
- The high annual fee is only worth it if you’re taking full advantage of the card’s benefits. Seldom travelers may not get enough value to warrant the cost.
- Outside of the current welcome bonus, you’re only earning higher rewards on specific airfare and hotel purchases, so it’s not a great card for other spending categories.
- The annual airline fee statement credit can be complicated to take advantage of compared to the broader travel credits offered by competing premium cards.
- Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®.
- $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, The New York Times, and other participating providers. Enrollment required.
- $155 Walmart+ Credit: Cover the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax.
- American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. Now there are even more places your Platinum Card® can get you complimentary entry and exclusive perks.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Card.
- $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only.
- $300 Equinox Credit: Get up to $300 back each year on an Equinox+ subscription, or any Equinox club memberships when you pay with your Platinum Card. Enrollment required. Learn more.
- $189 CLEAR® Credit: Breeze through security with CLEAR® Plus at 45+ airports nationwide and get up to $189 back per year on your membership (subject to auto-renewal) when you use your Card.
- $695 annual fee.
- Terms Apply.
- See Rates & Fees
Rewards Rate
5X | Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year. |
5X | Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel. |
Intro Offer
Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.Earn 80,000 PointsAnnual Fee
$695Recommended Credit
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.670-850Excellent/Good
Why We Chose It
Sometimes it's worth a large investment to reap the benefits of a great credit card. That's exactly the case with the Amex Platinum card. In exchange for the annual fee, you'll unlock access to the Amex Membership Rewards program that let you access airline and hotel transfer partners, along with new lifestyle and travel credits. This card is also incredibly rewarding for travel purchases, helping you rack up a ton of Membership Rewards points for your next award trip.Pros
- The current welcome offer on this card is quite lucrative. TPG values it at $1,600.
- This card comes with a long list of benefits, including access to Centurion Lounges, complimentary elite status with Hilton and Marriott, at least $500 in assorted annual statement credits and so much more. (Enrollment required for select benefits.)
- The Amex Platinum comes with access to a premium concierge service that can help you with everything from booking hard-to-get reservations to finding destination guides to help you plan out your next getaway.
Cons
- The high annual fee is only worth it if you’re taking full advantage of the card’s benefits. Seldom travelers may not get enough value to warrant the cost.
- Outside of the current welcome bonus, you’re only earning higher rewards on specific airfare and hotel purchases, so it’s not a great card for other spending categories.
- The annual airline fee statement credit can be complicated to take advantage of compared to the broader travel credits offered by competing premium cards.
- Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®.
- $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, The New York Times, and other participating providers. Enrollment required.
- $155 Walmart+ Credit: Cover the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax.
- American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. Now there are even more places your Platinum Card® can get you complimentary entry and exclusive perks.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Card.
- $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only.
- $300 Equinox Credit: Get up to $300 back each year on an Equinox+ subscription, or any Equinox club memberships when you pay with your Platinum Card. Enrollment required. Learn more.
- $189 CLEAR® Credit: Breeze through security with CLEAR® Plus at 45+ airports nationwide and get up to $189 back per year on your membership (subject to auto-renewal) when you use your Card.
- $695 annual fee.
- Terms Apply.
- See Rates & Fees