Travel is one of the most aspirational and big-ticket spending categories for consumers. By providing an exceptional in-house booking experience where customers can spend their credit card points, banks are building loyalty while also carving out additional travel spend for themselves.
Capital One is the latest bank to step up its bid to build out travel services and entice credit card customers.
It just invested $96 million in travel app Hopper, which powers the bank’s booking portal, as a follow-on to its $100 million investment last year.
Capital One Travel includes price drop protection and easy cancellations for hotels and flights, as well as exclusive experiences and premium benefits at a curated selection of resorts and hotels. By investing fresh funds into Hopper, Capital One aims to accelerate the technological progress that will help further differentiate its travel products. Ultimately, it sees its robust travel offerings as a way to appeal to – and draw more spend out of – its credit card customers, as well as rope in new ones.
Other big banks have been beefing up their travel products through partnerships, acquisitions, and investments as well. Here’s a non-exhaustive run-down of recent moves: JPMorgan bought luxury travel agency Frosch, Citi is partnering with Booking.com and just invested in car rental startup Kyte through its VC arm, and US Bancorp bought travel platform TravelBank.