JPMorgan Chase, a leading issuer of credit cards that earn travel rewards has now become one of the top five U.S. sellers of travel, with over $8 billion in sales this year and a plan to reach $15 billion within three years.
The bank issues co-branded cards with many airline and hotel chains as well as its own line of cards that earn Chase Ultimate Rewards. While those points can be transferred to other loyalty programs Chase works with, it has increasingly pushed users to buy through its travel portal, where points may be worth more than as transfers.
Until recently, Chase, like most card companies, contracted out its portal operations, in Chase's case to Expedia. That relationship has now ended, with Chase's acquisition of cxLoyalty, a company that supplies technology and search systems for travel and Frosch, a luxury travel agency with a large core of trained agents and extensive corporate travel connections.
Chase's ambitious growth plan is based on its existing size and strength. It says that for U.S. leisure travel, 25% of all spending is on Chase-branded cards, and one-third of all such spending is by people who have Chase connections of some sort. It plans to launch its portal later this year as ChaseTravel.com, aimed at the 66 million U.S. households in its orbit.
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