Chase Travel Exec On How InHouse Agency And Tech Provide An Edge
Chase Travel has at least one asset that CapitalOne doesn't: Chase has its own technology, and CapitalOne is somewhat dependent on Hopper.
Meanwhile, Chase Travel is battling American Express Travel to reach its goal of $10 billion in travel sales by 2023. List of powers.
“So we're right on that number, and we're growing,” Jason Wynn, head of travel at JPMorgan Chase, told Skift. “So I am confident that we will grow to $15 billion by 2025.”
In a wide-ranging interview, Wynn discussed Chase Travel's acquisitions of cxLoyalty in 2021 and Frosch Travel Group in 2022, and the advantages they offer Chase over its competitors.
He also discussed Chase's partnership with Expedia Hotels, why Chase feels the need to open money-losing airport lounges with free benefits, and the benefits of card partnerships with partners like Southwest, United and British Airways.
The following interview has been edited for clarity and length.
Where is Chase Travel today?
Jason Winn. I think we are still one of the top five vacation destinations in the US (including Expedia, Priceline, American Express and Flight Center). Our growth continues. I think we said at Investor Day in 2022 that sales in 2023 would be around $10 billion. We have reached this milestone or expect to reach it within a few weeks before the end of the year. So I am confident that by 2025 we will grow to $15 billion.
How did the cxLoyalty and Frosch acquisitions work out for Chase?
Win. The reason for both of these particular acquisitions was the idea that we want to be at the intersection of high-tech and high-tech. And we did it. Well, there are a number of entities that we would classify as high-tech and others as high-tech. We haven't seen anyone do both really well. So the acquisition approach obviously gives us a keen sense and the ability to use highly qualified and experienced agents who focus on the unexpected, which is why cxLoyalty has provided us with a booking platform.
So the end-to-end retail experience is something that, if you look at our set of direct competitors, is something that is unique to us. We own it completely. This is a big expense and you have to commit to covering it. But we believe that it is absolutely necessary to provide a quality customer experience and also to be flexible.
Why do you need online travel agencies as partners when you have Frosch?
Win. You can't replicate Expedia or Priceline very, very easily with hundreds of thousands of hotels. They are great partners for us. We continue to use Expedia, especially when it comes to hotels, as our source for hotel information. We have relaunched our hotel program called
Tourist publication "Pahonia". These are just agreements that we have made. We will continue to expand where necessary to offer the right level of content. But we believe Expedia will be part of that equation in the future.
How to get airline content?
Vin. The content source for this is now GDS (Global Distribution System). We have negotiable prices. Frosch has very deep connections and relationships with the airlines. Our joint partnerships (United, Southwest and British Airways) also give us direct access to a wider range of opportunities.
What do you think CapitalOne is doing in the travel industry these days with its partnership with Hopper and its appeal to the younger generation? And how do you see competition with other credit card companies?
Win. I won't speak to any of them directly. I will say that it makes sense to target the younger generation since they make up a larger percentage of overall travel volume. That's what we're trying to do too. One of the reasons we acquired cxLoyalty was to have our own technology, the ability to get customer feedback, and the ability to iterate, test and learn more as a new customer has different needs and behaviors.
That's why if you look at some of Chase's other acquisitions, like The Infatuation, our restaurant discovery platform aimed specifically at Gen Z and millennials.
How about getting into fintech and freezing prices like Hopper and CapitalOne did?
Win. I wonder how this will work in the industry. Airlines have done many things. Exchange fees are gone and you now have credits for unused tickets. So I know others have had success with this. I would like to look and see. See if they stand the test of time.
Some analysts say online travel agencies are making a mistake by partnering with banks and others and that they are promoting competition. I'm sure you agree with this, right?
Win. Look, they make decisions based on their business model. I think it's true that affiliates, at least for Expedia, are a fast-growing business. The profit they make from this company allows them to reinvest in their core business, which I think is a good thing.
How do you think Chase will compete with other credit card companies?
Win. The real advantage is that having our technology is a huge advantage in building the store that the customer will need in the future. Also our availability. we have over 80 million customers in the US, 63 million digital customers. This gives us a huge advantage and allows us to use our own data, which we have much more than other competitors. Additionally, the power of our reward currency is an incredibly valuable asset to us.
What are the advantages and challenges of constructing airport pavilions?
Win. If you want to compete for the title of top travel client, this is what's at stake in the map area. So it's important for us to make sure we can meet those expectations and also try to stand out. That's why we place great emphasis on creating showrooms that reflect local flavor.
A great example is Boston, where we work with a local chef who supplies all the food. The bar serves local Boston beer. And we will strive to expand on these concepts as we develop our strategy in the future.
I think we've already announced the locations that will be there in the next few years. Our main floors will be located in New York's LaGuardia. We've announced Phoenix, Philadelphia, Dallas, Las Vegas, San Diego, and we also have an office in Austin. One of the experiences is the experience of persecution. And then we will look for other opportunities.
