JPMorgan (JPM, $115.44) wants to be more than one of the world’s biggest banks; it now wants to be a full-service travel agency too.
For the last 18 months, JPMorgan has quietly acquired a booking system, a restaurant review company, and a luxury travel agency. The bank is currently building its own airport travel lounges, a workforce of travel agents, and a new website.
Travel is one of the biggest spending categories for banks and credit card issuers, and JPMorgan wants to be better positioned to take advantage of this. The bank is hoping that by integrating its existing travel rewards program with future travel agency services, will turn its traveling credit card users into lifelong customers.
According to executives, the plan is to own and control the entire shopping and buying experience for its traveling customers.
Why it matters
Should JPMorgan's strategy pan out, the rewards would be huge. According to executives, the bank could capture up to $15b in bookings in 2025, five times what it's been previously handling. This would also make it the third-largest travel agent in the United States.
