JPMorgan Chase using travel playbook to build lifestyle product

JPMorgan Chase is eyeing travel sales volume of $15 billion in 2025.

The bank, which launched ChaseTravel.com last year, said travel sales volume was about $8 billion in 2022 and estimated it will be $10 billion this year.

During an investor day this week, the company said it is a “Top 5 consumer Leisure Travel Provider” and that 1 in 4 leisure travel dollars are spent on Chase cards.

It also said it has seen 24% growth in transactions through Chase Travel year over year and approximately 40% growth in consumers purchasing travel on Chase.

The company has ambitious plans to further grow its lifestyle business through shopping and dining experiences by building on the existing travel business.

Targeting “affluent” consumers through its lifestyle products is one of three key areas of growth for the business, where it sees a “unique competitive advantage and outsized opportunity for growth.”

It has already opened three airport lounges with another two to open this year and five more in the pipeline.

Allison Beer, CEO of card services and connected commerce at JPMorgan Chase, said the products “resonate across generations” and the bank said about 70% of fee-based card demand is driven by millennials and Gen Z.

She shared that the plan is to create a “high-tech, high-touch” business through its acquisitions, which are already profitable excluding the respective deal costs.

“Now we’re taking this winning travel playbook and using it to innovation on other high-spend categories like shopping and dining.”

The bank is among a number of financial institutions partnering with or acquiring travel companies in a bid to launch travel products and boost loyalty.

Capital One integrated Hopper Cloud to power its booking platform for its travel rewards credit card customers.

Meanwhile, in July 2021 United Kingdom-based banking app Revolut launched accommodation bookings powered by Expedia, and on the business travel side, U.S. Bancorp acquired travel and expense platform TravelBank in November.