Young Americans are favoring credit card travel portals like Chase Travel and Capital One over online travel giants like Expedia and Booking.com, according to a Skift Research survey. The survey found that a third of Gen-Zs and Millennials book trips through credit card portals, compared to only a quarter who use online travel agencies. This behavior is the opposite for older travelers, who are more likely to use online travel agencies over credit card portals.
The survey of 1,001 U.S. travel credit card holders who had taken at least one long-distance, overnight trip in late 2023 found that between 32% and 36% of travelers aged 18-34 booked through credit card reservation portals, while 24% to 25% booked through online travel agencies. In contrast, travelers over the age of 55 booked through online travel agencies about 27% of the time and credit card platforms only about 11% to 12% of the time. Additionally, between 40% and 60% of travelers of all ages said they booked directly.
Bank-led programs like Chase Travel and Capital One Travel have seen significant growth in recent years. For example, JPMorgan Chase & Co. processed roughly $10 billion in transactions through Chase Travel last year, comparable to established players like American Express Travel. However, the credit card travel booking portals source most of their inventory through contracts with online travel giants like Expedia and Booking Holdings, who still earn commissions from providing white-labeled plane tickets and hotel reservations.
The rise of credit card travel portals could pose a threat to online travel giants if a generational shift in booking patterns continues long-term. Companies like Expedia, Booking Holdings, and Hopper make less from commissions when customers book through banking partners’ portals compared to booking directly on their platforms. This shift could eventually undermine the margins of online travel companies if young travelers continue to favor credit card portals over traditional online travel agencies.
Overall, the survey highlights a changing trend among young American travelers, who are increasingly turning to credit card travel portals like Chase Travel and Capital One over traditional online travel agencies like Expedia and Booking.com. While older travelers still prefer online travel agencies, the rise of bank-led programs could disrupt the industry if they continue to gain customer loyalty and habits among younger generations. This shift could potentially impact the margins of online travel companies in the long run.
