South Korea: Seoul-based credit card issuer Lotte Card has reached an agreement with Hopper Technology Solutions [HTS] to develop a travel loyalty portal for Lotte Card cardholders.
According to a press release, the portal on Lotte Card’s ‘Digi-LOCA’ app will provide users in Korea with a “world-class” travel booking experience. The loyalty portal will cover a variety of verticals, ranging from accommodations to flights and car rentals, and will be powered by HTS.
Dakota Smith, CEO of HTS [formerly known as Hopper Cloud], said: “The partnership between HTS and Lotte Card is perfectly suited to create a curated and highly personalised travel offering for their millions of cardholders. HTS’ leading travel technology will enable Lotte Card to create synergies with its existing verticals and offerings.”
As the B2B division of online travel agency Hopper, travel brands partner with HTS to optimise their own direct channels by leveraging HTS’ travel and fintech offerings. According to Hopper, HTS now accounts for two-thirds of its business and reaches millions of travellers around the world.
Established in 2002, Lotte Card aims to be the best companion in customers’ lives, and as a leading credit card company in Korea, it claims to have the largest distribution and service network in the country. It currently services 9.35 million credit card members and around 3.13 million affiliated merchants.
With a focus on developing lifestyle financial services that maximise customer value, Lotte Card offers benefits which can be used at department stores, hypermarkets, in home shopping, cinemas and coffee shops – and soon travel.
James Cho, CEO of Lotte Card, said: “I’m very excited to have a partnership with HTS which has experience in providing global travel services and various fintech base ancillary. Through solid collaboration, we’re going to create a digital platform that gives customers optimal travel experience and maximise the enjoyment of travel.”
Lotte Card is not the first credit card issuer to expand beyond traditional credit card operations and expand into the travel vertical.
HTS already powers Capital One Travel, which launched Capital One Travel Vacation Rentals in February this year to expand its lodging inventory and add vacation rentals to its Premier and Lifestyle Collections, for the benefit of eligible cardholders. Capital One is also an existing investor in Hopper, having invested $96 million in the online travel agency and app in November 2022.
Meanwhile, Booking.com is powering a new travel booking portal with global investment bank Citi – known as Citi Travel – with Booking.com – that was announced last year. The new portal will enable cardholders to book accommodation, flights, car rentals and attractions, as Booking.com works towards facilitating a “connected trip” to drive loyalty for its users.
Last year, Booking.com was rumoured to be preparing to launch a credit card in the United States that would be co-branded with an unnamed company. Jonathan Rossman, whose LinkedIn profile highlighted previous roles as a VP in commercial card product management and rewards at JPMorgan Chase & Co., posted that he was hiring for employees interested in “helping to build and grow a unique and differentiated cobrand product for one of the largest travel companies”.
Now in a bid to create a new future-oriented model that maximises convenience and benefits for customers, Lotte Card wants to introduce various curation services in its ‘Digi-LOCA’ app, helping customers make more valuable choices easily and quickly in their consumption decisions.
STRz held a webinar earlier this month on ‘The blurring of travel, hospitality and retail’ with speakers from Capital One and Inhaven – watch the recording back now at this link.