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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. 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. | Europe | LATAM/Mexico | |
| Credit penetration | >75% of adults have at least 1 card; average of 3 per person; higher segments up to 7–8 cards | 20–30% in countries like Spain or Italy | Moderate, lower than U.S., higher than Europe |
| Social perception | Daily tool, aspirational | Risk, debt, uncommon outside travel | Aspirational in middle/high segments, risky in others |
| Financial margins | Very high (strong interest and fees) | Much lower due to regulation and competition | High, though lower than the U.S. |
| Perks beyond credit | Strong cashbacks, airline/hotel status, improves credit score | Few. 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.
Will the card reach Europe or Mexico?
Unlikely in the short and medium term due to:
- Lower credit culture.
- Lower financial margins, making the business less attractive.
- Limited adoption of multiple cards.
The most realistic scenario, if it ever arrives, would be as a “plus” debit card, with limited cashback or occasional perks.
Booking’s objectives
What is Booking aiming for with this move? Several things at once:
- Steal share from Expedia and from the direct channels of big chains, especially in the U.S. outbound market, usually the most profitable.
- Strengthen its consumer proposition with more perks and discounts, as cardholders automatically receive Genius Level 3 status.
- Diversify revenue by tapping into high U.S. credit margins, which could give it up to 1% of card spend.
- Branding and marketing in a country where the credit card is an icon.
- Compete with Expedia for U.S. market leadership.
- Gain customer data beyond travel (shopping and consumption habits). Once again, data as the invisible yet powerful long-term goal.
What impact could this have on hotels if it becomes established?
Although the card’s success is not guaranteed, it’s worth anticipating the consequences if it takes off:
- Greater OTA appeal: for a customer with the card, booking on Booking will be even more attractive than on your website.
- More dependence: the more perks they accumulate on Booking, the fewer incentives they’ll have to book direct.
- More aggressive competition: if Booking earns additional income from the card, it could reinvest it into discounts (causing rate disparities) or increased marketing muscle.
- Uneven impact by typology: large groups (Marriott, Hilton) have their own programs that will be hard to beat. Independent hotels and small groups, however, could feel the impact.
- Markets most affected: if you receive a lot of U.S. customers, this initiative could hit you sooner than others.
What can you do as a hotelier?
It’s not easy to compete with Booking’s financial muscle, but you have something they’ll never have: control over your rooms (inventory and pricing) and the ability to build unique relationships with your guests. That’s where you can make the difference:
- Exit Genius 2 or 3: remember that with the card, Booking already gives direct access to Genius 3. Staying there only weakens your direct channel. If Genius 2 or 3 was already a poor strategy, now it’s even worse.
- Strengthen your direct channel: offer better prices and conditions than Booking, especially in high season, when you need them least.
- Make guests feel special: it’s not all about price. Human touch, flexibility, a welcome detail—no card can provide that.
- Create a simple loyalty program: you don’t need something like “Marriott Bonvoy.” Just a clear, immediate reward: a discount, better payment or cancellation terms, or perks in your restaurant, bar, spa, or other facilities.
- Communicate better: many hotels already offer advantages for booking direct but don’t make them clear enough. Highlight them on your website, emails, and at reception.
- Offer local benefits Booking can never replicate: experiences, gastronomy, destination activities.
Conclusion
Booking will keep inventing new initiatives to grow. The question is: what will you do? Because if you don’t move, others will move for you—and end up taking your customer.
The good news is that the future remains in the hands of hoteliers who make bold decisions. If you invest in your direct channel, communicate your advantages clearly, and build authentic relationships with your guests, you’ll always be in the best position—regardless of what Booking does.
