Lenders vs. OTAs: How Credits Cards Took Over Travel

There is a significant change in how banks and, especially, credit cards interact with the travel sector. See what studies from Skift Research has to state.
Seth Borko and Pranavi Agarwal, both of whom work for Skift Research, recently held a LinkedIn Live conference to debate the changing roles of credit card companies in the travel sector. Their discussion expanded on a previous Skift Research article on finance and travel loyalty. The conversation, which you can view in full below, starts with an overview of how credit card travel programs became but important – especially post- pandemic. Borko identifies key factors driving this tendency, including competition for immediate orders, prices, and the financial rewards for vacation companies and banks. Agarwal examines the implications for the future and points out that younger consumers are increasingly booking travel through credit card platforms as opposed to traditional online travel agencies ( OTAs ). She cites data showing that bank-branded go platforms, with high consumer satisfaction and a sizable user base, are becoming more and possibly outperforming OTAs. Additionally, the conversation touched on the advantages for banks, including utilizing the ring effect of travel and acquiring useful demographics. For Closed Caption exposure, please watch on YouTube. Seth Borko:” Credit cards are now probably in many cases, the largest issuers of many hotel and airline mile and point currencies “.Pranavi Agarwal:” ]B2B deals are ] a very important source of revenue for]online travel agencies ]. However, I believe it’s crucial to keep in mind that it does come at a price. It’s never free, nothing’s free” .Seth Borko:” Had businesses become poised to stir up the travel business? In my opinion, travel loyalty may be able to reach a certain point in its present form.