A surprising twist has emerged in the ever-evolving online travel landscape: financial behemoths are increasingly leveraging technology to elbow their way into the bustling online travel agency (OTA) sector. This revelation comes from Phocuswright, the globally recognized travel research titan.
Stepping back, it was primarily travel suppliers that strategically aligned with OTAs to amplify their primary offerings. But times have changed. “Today’s narrative sees non-travel brands, including financial powerhouses and retail giants, embedding themselves in the OTA domain,” explained Lorraine Sileo, a distinguished analyst with Phocuswright. “They’re not just looking for a slice of the travel revenue pie, but more to fortify customer loyalty – think increased card usage or enhanced loyalty point schemes.”
While these external companies are leveraging online travel platforms, it’s predominantly the established OTAs positioned to capitalize substantially. Key examples include:
- Citi’s Collaboration: March 2023 witnessed Citi, in partnership with Booking.com, unveiling ‘Citi Travel’. The venture is tech-backed by Rocket Travel and employs Agoda’s advanced systems. Citi’s clientele now enjoys an enriched array of travel options with flexible payment methods, including Citi credit cards and their coveted ThankYou Points.
- Capital One’s Calculated Move: Capital One, discerning the value of early customer engagement in travel planning, integrated Hopper Cloud into its booking mechanism specifically for its travel rewards patrons in September 2021.
- JPMorgan Chase’s Ambition Unleashed: Standing out in its assertiveness is JPMorgan Chase & Co. Their strategy is to integrate and operate an exclusive OTA platform. Their alliance with global brands ranging from airlines like Southwest and United to luxury hotels like Marriott and Hyatt speaks volumes. Their acquisition streak further cements their commitment: 2021’s procurement of the unique travel platform, cxLoyalty, and 2022’s integration of the influential travel agency, FROSCH.
Sileo further elucidates, “Considering the surge of plug-and-play platforms, and the easy access to white-label offerings and API integrations, it’s almost a siren call for finance companies. These integrations allow them to provide added value with minimal initial investment.” She hints at the horizon brimming with more such offerings, especially as AI continues to redefine boundaries and unlock unprecedented potential.
All these insights set the stage for this year’s eagerly anticipated Phocuswright Conference, christened ‘You, Me & the Machine’. Slated from November 13-16 at the opulent Diplomat Beach Resort in Ft. Lauderdale, Florida, it promises a deep dive into how transformative artificial intelligence is reshaping every travel segment, with a special spotlight on generative AI’s role in the traveller’s journey.
Written by: Don Power
