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Take and change
– Dennis Scale
In the year Is it the right place and moment for Chase Travel, which claims to have $8 billion in sales by 2022?
In an investor update Monday, JPMorganChase said its travel arm is targeting the “core leisure traveler” and argued that Chase Travel’s addressable market is $140 billion spent on Chase cards.
All this comes at a time when airlines, hotels and car rental companies are targeting big-spending leisure travelers or people taking combo business and leisure trips; Because business travel is still below pre-pandemic levels.
That means Chase will have more competition, as well as partners among airlines, hotels and car rental companies. Loyalty plans often score highly in Chase’s favor and have a large captive user base among cardholders, many of whom have difficult-to-satisfy roaming. As shown in the following graphic, Chase says 25 percent of leisure travel dollars in the U.S. come from tapping or swiping Chase credit cards.
Among the founders of Chase Travel’s success is Expedia Group, which manages its hotels and some vacation rental inventory.
In the update, Chase said its strategy includes “reaching new customers through premium service and content.” Chase Travel It is on track to generate $10 billion in sales by 2023, the company said, and forecasts $15 billion by 2025. Chase also envisions enhanced dining and shopping options, as well as travel, as additional services.
Chase Travel’s growth in travel has been achieved in part through acquisitions. After buying travel and loyalty company CX Loyalty Group a year ago, it acquired luxury and corporate travel agency Frosh in 2022. Numbers are included in sales numbers.
Photo Credit: Pictured are Travelers in Asia. Chase Travel is chasing luxury vacationers. Source: davidf/Getty Images
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