Fortune 500 company JP Morgan Chase is breaking into the travel business. For the past year and a half, JP Morgan Chase has been accquiring assets in order to prepare its customers for a full-service travel business.
“Its customers make up one in every $3 spent on leisure travel in the country, which is just an enormous number going through its systems. So they’ve been, with their Sapphire credit cards and their Sapphire Reserve, they’ve been heading ever more into travel. They now have to book the travel for their customers, and they needed their customers to come onto their website to book travel, to cash in those rewards,” stated David Benoit, a journalist for the Wall Street Journal.
In an effort to make longer-lasting relationships with their customers, JP Morgan Chase has recognized from their data that their rewards program develops loyalty among their card holders. The profits from offering experiences, hotel deals, and flight miles during the pandemic inspired the organization to provide these services in-house. They also seek a relationship with customers that assists them with big life purchases, such as their first homes, cars, and other very personal financial decisions.
“They think credit cards are commoditized, and they want customers to feel like the reason they have a Chase credit card is because it gives me access to this awesome travel booking site and these travel ideas, and it helps me have the best vacations I ‘ve ever had. That’s their dream scenario, that’s what customers think. And the thing is, if they succeed here with travel, bringing customers in, they’re talking about, they can do this with other places.” as per David Benoit.