Booking never stops making moves – it never has. Now it’s entering the credit card business in the United States, a market as juicy as it is competitive.

NB: This is an article from mirai, one of our Expert Partners

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For hotels, this isn’t just another piece of news: it’s a reminder that every new move from Booking is designed to capture more customers and more market share. What does this mean for your hotel? To what extent is it a threat?

Only in the United States for now… what about the rest of the world?

Booking has much more market share in Europe and Latin America… So why start in the U.S.? The answer lies in the culture of credit and therefore, consumer adoption.

 U.S.EuropeLATAM/Mexico
Credit penetration>75% of adults have at least 1 card; average of 3 per person; higher segments up to 7–8 cards20–30% in countries like Spain or ItalyModerate, lower than U.S., higher than Europe
Social perceptionDaily tool, aspirationalRisk, debt, uncommon outside travelAspirational in middle/high segments, risky in others
Financial marginsVery high (strong interest and fees)Much lower due to regulation and competitionHigh, though lower than the U.S.
Perks beyond creditStrong cashbacks, airline/hotel status, improves credit scoreFew. Mostly miles or points.Miles, points mainly

Although it may sound new in Europe, Booking is not a pioneer here. On the contrary, it’s entering a very competitive space. Airlines (American Airlines, Delta, Iberia), hotel chains (Hilton, Marriott), retailers like Walmart, tech companies like Apple or Amazon, and even gas stations like Exxon or Shell have their own cards. And all compete for a highly coveted segment: frequent travelers, who are the most profitable and desirable.

That’s why, although Booking’s move is smart, success is not guaranteed – at least not in the short term. It’s jumping into a field where others have been building loyalty for decades. Perhaps in a more generalist, non–frequent traveler segment, it could capture share (since the card has no annual fee), but even then it would be competing against major banks like Bank of America or Chase and their lucrative cashback programs.

Read the full article at mirai