JPMorgan Chase Is Entering Travel Business Full Force
Coinspeaker
JPMorgan Chase Is Entering Travel Business Full Force
American multinational investment bank and financial services holding company, JPMorgan Chase & Co (NYSE: JPM) is making its way into the travel and booking business with a series of targeted acquisitions over the past 18 months. As reported by the Wall Street Journal (WSJ), the banking giant has been assembling the items it needs to float a full self-serviced travel business such that its future prospective customers can plan a domestic getaway or even a luxurious holiday anywhere in the world.
Just like most mainstream financial institutions, diversifying its business prospects remains at the top of the agenda for JPMorgan considering how uncertain the current global economy is. The pivot into the travel business has been marked by the acquisition of a reserving system, a restaurant evaluation firm, and a luxurious travel agent.
In addition to all of this, the financial institution plans to start building its own lounges for its prospective clients in some of the most popular airports in the country. According to sources familiar with the deal, JPMorgan Chase is on track to launch a new website for the service in the next couple of months.
The travel business remains one of the most pivotal segments for banks over the years as many issues the credit cards that are used to finance these lifestyles. With the proposed launch of the full traveling self-service, JPMorgan Chase aims to gain a bigger share of the market across the board.
The bank has a minimal presence in the travel industry as it launched its Sapphire Reserve unit back in 2009. The Sapphire Reserve offshoot helps JPMorgan Chase grant benefits to subscribers, and it has proven to be very successful over the years. The entire travel business plunge is billed to add as much as $15 billion to the firm’s revenues by 2025.
The newly projected business unit is on track to bolster the $750 million in annual profits the travel unit currently adds to the company, a figure that pales when compared to the $48 billion in revenue generated over the past financial year.
JPMorgan Chase and Position in the Travel Industry
Despite the efforts it is putting to bolster its presence in the travel industry, JPMorgan Chase is on track to occupy just the third position in the ecosystem after the likes of Booking Holdings Inc (NASDAQ: BKNG) and Expedia Group Inc (NASDAQ: EXPE).
Compared to the projected $15 billion estimation in revenue that JPMorgan Chase has planned to gain in revenue for its travel business offshoot, the duo of Booking and Expedia rakes in as much as $70 billion according to the Wall Street Journal.
The exact timeline for JPMorgan Chase’s travel business to hit the ground is yet unknown, but per the reports, the interest it is garnering has been impressive. That JPMorgan already has customers through the Sapphire Reserve offshoot is also a boost as it can easily convert these customers into lifelong clients.