Revolut Enters Travel Booking With 10% Cash Back Product
The news: british neobank Revolution will take care of the travel reservation with a product called Stays. The company predicts that users will save on average Â£ 69 ($ 88.48) per year if they book through Stays, which offers ten% cash back.
More on this: Revolut has made the Stays available from Wednesday. Customers will not have to pay a usage fee for the product, but they may need to pay a fee to the hosting providers.
The neobank sees stays as an opportunity to capitalize on pent-up travel demand from consumers after facing more than a year of restrictions imposed due to the coronavirus pandemic. In an internal investigation, Revolut found that 72% of Britons want to travel abroad as soon as possible, while 51% said they only wanted to go to countries with good health systems, and 48% want to stay in hotels that meet COVID-19 safety requirements. In contrast, Revolut found that only 6% of Britons do not plan to travel abroad.
Travel costs were expensive items before the pandemic: In 2019, Revolut said average user spending included around Â£ 690 ($ 884.83) for accommodation and Â£ 149 ($ 191.07) for flights. Now the neobank sees a big pot of cash ready to be tapped for the holidays, noting that its clients’ savings almost doubled during the pandemic.
The opportunity: Stays also gives the neobank the opportunity to market its existing travel products to a travel-hungry audience. These products include currency exchange, SmartDelay for access to the airport lounge, and Assurance. The resumption of tourism could prompt Revolut users who joined the neobank during the pandemic to consider features that until now may not have been a priority for them.
Because Stays provides ways for users to buy and save on expensive vacation items, Revolut might try to persuade its customers to make it a center of their financial lives. This strategy would be consistent with the company’s objective of building a great financial app.