Chase used to offer travel bookings via their Ultimate Rewards site through cxLoyalty. cxLoyalty booked the lowest rates from a range of online travel agencies, which resulted in lower prices.
In 2018 Chase switched to Expedia, which generally led to higher prices. That mattered as cards like Ink Preferred and Sapphire Preferred offer a 25% bonus when redeeming for travel through Chase and Sapphire Reserve offers a 50% bonus when redeeming for travel through Chase.
Chase wasn’t happy with the outsourced travel though and they will now bring it in house by purchasing cxLoyalty’s travel and rewards business. It will be a new division of Chase consumer lending and card services.
That means the Expedia days are numbered, though the transition won’t happen overnight.
As a travel agent, Chase will also be able to negotiate more deals with hotels and airlines, which may lead to more co-brand cards and transfer options and lower redemption costs.
cxLoyalty also serves Citi, Capital One, USBank, and more, so it will be interesting to see if those banks will continue to use cxLoyalty or if they will bail to the likes of Expedia.
What do you think of Chase purchase of cxLoyalty’s travel and rewards business?