JPMorgan would have built a travel agency


JPMorgan Chase is setting up its own full-service travel business, the Wall Street Journal wrote on Saturday (July 30).

JPMorgan bought a reservation system, a restaurant review company and a luxury travel agency. The bank, one of America’s flagship financial institutions, has also built its own airport lounges and hired thousands of travel agents. And a new website will also be launched.

It’s all happening as the travel industry becomes increasingly important to banks and credit card issuers.

The WSJ report says JPMorgan executives believe the bank may be able to capture $15 billion in bookings in 2025, five times what it handled before recent purchases. That would make it the third-largest travel agent in the country, based on 2021 volumes, according to statistics from Travel Weekly.

The report notes that this is still much smaller than the parent companies of the two major travel agencies, Booking.com and Expedia, which both manage more than $70 billion.

JPMorgan’s goal is to turn travel customers into “lifetime Chase fans” who will spend more with the bank.

JPMorgan also already has a stake in travel, with its credit cards allowing customers to accumulate travel rewards and cash them out through the bank’s Ultimate Rewards booking site.

See also: JPMorgan says US consumer in ‘great shape’ but macro deteriorating

PYMNTS wrote that JPMorgan CEO Jamie Dimon said on a recent earnings call that U.S. consumers are “in great shape” even as the economy slips into a recession.

“Even if we go into a recession, they come into this recession with less leverage in much better shape than they were in 2008 and 2009 and in much better shape than they were even in 2020,” he said.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

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