The recent acquisitions of JP Morgan demonstrate the desire of this bank to become a travel agency. Indeed, the institution has acquired many players in the sector, from guides to holiday reservation systems, the giant is beginning to establish itself in the sector.
In 18 months, JP Morgan has made numerous acquisitions in the world of travel and business trips. As indicated by the Wall Street Journal, the one that became the first world bank (excluding China) bought: a reservation system, a restaurant guide and a luxury travel agency. JP Morgan is even building its own private lounges in many airports around the world. A site should also come out of the ground in early 2023 to highlight this travel offer by JP Morgan.
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JP Morgan, future travel agency?
Why is JP Morgan getting into the travel business? Quite simply because the bank has identified this item of expenditure as one of the most important among its customers. She already had a foothold in this universe with the Sapphire Reserve, a card that allowed you to obtain rewards for each trip.
JP Morgan Chase wants its share of the pie and therefore presented its strategy to its investors a few weeks ago. Senior bank officials estimate that getting into the travel agency business might bring in $15 billion in 2025. The company’s goal is really to position itself in the luxury sector. This is manifested in particular by the acquisition of Frosch International Travel, a high-end travel agency.
JP Morgan also hopes that its partnerships with airports will allow it to attract new customers, in addition to retaining those who already have a bank card. It also wants to differentiate itself with a more interesting rewards system than a traditional travel agency. However, it is not the only giant in the banking world to get into banking. American Express also acquired a travel agency.
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Automotive, real estate… JP Morgan’s diversification strategy
The world of travel is only the first brick of JP Morgan’s strategy, which wishes to diversify its activities and cover all of its customers’ expenditure items. The bank wants to build loyalty and be present throughout the life of those who have a JP Morgan card.
The WSJ thus indicates that the executives of the bank evoke the automobile and the real estate as food for thought, following having stabilized the activity dedicated to travel. ” These are huge expense items where we have a real opportunity to make a difference with Chase products. », explique Allison Beer, Head of Cards et Connected Commerce.
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