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Chase is partnering with Expedia on travel rewards (JPM) https://ift.tt/2MQrYvw This story was delivered to Business Insider Intelligence "Payments Briefing" subscribers hours before appearing on Business Insider. To be the first to know, please click here. JPMorgan Chase is partnering with travel booking website Expedia to upgrade the Chase Ultimate Rewards travel hub, its credit card travel rewards redemption feature online and in the Chase Mobile app. The partnership will give Chase cardholders access to Expedia’s network of flight, hotel, car rental, and activity options, allowing them to redeem Chase rewards for Expedia options within the Chase hub. Business Insider Intelligence Cardholders will also have access to discounts, seasonal offers, online cancellation, and budgeting tools at checkout. The feature will initially be available to Freedom and Freedom Unlimited cardholders and will extend to Sapphire and Ink cardholders in the coming months. Chase can benefit from this partnership in several ways: First, this partnership can encourage more card sign ups and boost volume. Rewards are a major driver of card adoption, and travel rewards, specifically, can drive engagement and make cards extremely popular. Sixty-three percent of respondents cited flexible rewards redemption — or the ability to choose which type of rewards they redeem — like cash back, airline travel, hotel discounts, and more, as a top driver of primary card status, according to a Business Insider Intelligence survey of US consumers. Bolstering its redemption offerings by extending the number of travel options could bring more users to Chase, or incur more spending from customers who want to keep the card top-of-wallet as a way of redeeming Expedia or other travel-related benefits. Second, it could ultimately allow Chase to offer popular rewards in a cost-effective way. Rewards are a major investment and can be expensive for issuers — Chase, for example, recently cut some of the rewards from the Sapphire Reserve card, likely as part of a push to trim $200 million in costs associated with the card after headwinds hurt the firm's results. Partnerships and cobrand deals can be a more cost-effective way for firms to offer robust rewards. Chase has been pursuing that: It recently expanded its cobrand partnership with Hyatt, launched a cobrand prepaid card with Starbucks, and upgraded its cobrand with United Airlines. Partnering with Expedia can help it continue to offer rewards that are in-demand without bearing the sole burden of the cost. See Also:
Business via Business Insider https://ift.tt/1IpULic August 15, 2018 at 09:51AM
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