JP Morgan to acquire luxury travel agency Frosch
This deal would break the mold of so many tech games we’ve seen to date, giving JP Morgan an edge in supporting bookings with experienced consultants.
JP Morgan Chase has signed a definitive agreement to buy a business and luxury travel agency Frösch.
The deal represents a new “line of business” for the bank, according to Bryan Leibman, the agency’s president and CEO.
“It should give us all tremendous pride to be recognized for our achievements and excellence in the industry and to become a foundation for JP Morgan Chase as they enter a new line of business,” he said. he said this week in an internal memo seen by Skift.
However, like Capital One, JP Morgan has already made significant inroads into the travel industry in recent years, takeover of the global loyalty division of cxLoyalty Group Holdings in December 2020. The deal included cxLoyalty’s full-service travel agency, as well as technology platforms, gift cards, merchandise, and points banking business.
Taking over the family business Frosch and its experienced travel advisors gives it more opportunities to better manage its travel bookings, with a human touch rather than the artificial intelligence required in high-end corporate and retail sectors. luxury. The agency, which is headquartered in New York and Houston, has offices in more than 40 locations around the world. It was founded in 1972 and has over 2,000 employees.
Banks and credit card company Capital One helped online travel agency Hopper raise $170 million in new funding last year. Other notable Capital One deals include buying startup Freebird in 2020, and last year it acquired most of the employees and technology of Lola, a business travel booking app and expenses.
US Bancorp bought travel platform TravelBank, backed by Will Smith, for $200 million in November last year.
For now, Frosch and other brands, including Plaza Travel, LUXE Travel, Mann Travels and Valerie Wilson Travel, which it acquired in May last year, will remain intact and continue “under the JP Morgan Chase,” according to Leibman. Frosch also received a minority investment from private equity firm EagleTree Capital in February last year.