The news: Two major US credit card issuers are enhancing their travel portfolios:

• US Bank added a commercial travel card and platform for mid-market businesses. The Commercial Rewards Card, designed for businesses with $10 to $150 million in annual revenues, uses US Bank’s 2021 acquisition of TravelBank. It automates businesses’ travel and expense platforms and offers things like rebates, cash flow management, preferred rates, and waived booking fees.
• Capital One is trialing a location-specific sign-up bonus for its mid-tier Venture Card, per Thrifty Traveler. Customers who apply from QR codes at select airport kiosks (with location services on) can earn 100,000 miles after spending $5,000 in the first three months. The incentive is a 25,000-mile increase over the standard bonus.

What’s behind the moves? Travel spending is buoying issuers’ businesses.

• While business travel’s return has been slow, international business bookings for fall 2023 are just 10% below 2019 levels, per ForwardKeys data published by Reuters, with a full recovery projected in 2026. This gives providers that invest in travel now a potential early mover advantage.
• On the consumer side, travel spending is outperforming sectors like luxury goods. And with many consumers planning to travel and increase their travel spending, it should propel issuer growth.

Why it matters: Amid an overall slowdown in credit card spending growth as a response to macroeconomic conditions, developing new travel services could help providers stand out to boost customer acquisition.

• Sign-up bonuses are a top reason customers apply for cards. Targeting travelers—and then serving them differentiated features, like Capital One’s enhanced travel platform and concierge service—could create a runway for growth.
• Mid-market businesses require efficiency more than ever. Pairing commercial card programs with other features so businesses can access more from a single provider could drive appeal and bring in business.