Expedia Group, Wells Fargo, and Mastercard announce new suite of One Key credit cards

Rhea-AI Summary

Expedia Group has partnered with Wells Fargo and Mastercard to launch two new co-branded credit cards: One Key Card and One Key+ Card. These cards are designed to enhance Expedia's One Key loyalty program, offering U.S. travelers increased flexibility, savings, and perks.

The One Key Cards will allow users to earn OneKeyCash rewards, which can be used across Expedia, Hotels.com, and Vrbo for booking hotels, vacation rentals, car rentals, activities, and flights.

One Key+ Card holders will enjoy benefits such as earning $600 in OneKeyCash after spending $3,000 in the first three months, earning 3% in OneKeyCash on various purchases, and an annual fee of $99. One Key Card holders can earn $400 in OneKeyCash after spending $1,000 in the first three months, also earning 3% on similar purchases but with no annual fee.

Both cards offer tier upgrades, with One Key+ Card holders achieving Gold tier benefits and One Key Card holders reaching Silver tier benefits.

Applications for the new cards will start nationwide later this summer, with existing Hotels.com cardholders transitioning to the new program by September.

Positive

• Expedia partners with Wells Fargo and Mastercard to launch new co-branded credit cards.
• One Key+ Card offers $600 in OneKeyCash after spending $3,000 in three months.
• One Key Card offers $400 in OneKeyCash after spending $1,000 in three months.
• One Key+ Card and One Key Card members can earn up to 9% and 5% on VIP Access properties and Vrbo bookings respectively.
• Automatic tier upgrades for cardholders enhance loyalty benefits.
• No foreign transaction fees on both cards.
• Additional perks including trip protections, cell phone protection, and statement credits for Global Entry or TSA PreCheck.

Negative

• None.

Insights

Financial Analyst

Expedia Group's new co-branded credit cards with Wells Fargo and Mastercard represent a significant move in the financial and travel industry. These cards are designed to increase customer loyalty and expand user engagement within the Expedia ecosystem by providing attractive rewards and benefits. The $600 and $400 introductory offers for the One Key+ and One Key cards, respectively, are competitive incentives that could drive significant cardholder growth and increased spending.

From a financial perspective, the potential for increased transaction volume is substantial. As cardholders use these cards for everyday purchases and travel-related expenses, it could lead to higher merchant fees, benefiting both Wells Fargo and Mastercard. Additionally, the annual fee on the One Key+ card creates a steady, recurring revenue stream.

For Expedia, integrating the OneKeyCash rewards into their loyalty program means that they can retain customers within their ecosystem, encouraging repeat bookings and higher spending across their platforms.

However, the long-term success will depend on the uptake of these cards and how well the rewards resonate with their target audience. There could be concerns about the sustainability of such generous offers if the expected increase in customer engagement and spending does not materialize. Investors should monitor the card adoption rates and any subsequent financial disclosures from these companies to gauge the effectiveness of this strategy.

Market Research Analyst

The launch of these new credit cards comes at an opportune moment when consumer spending on travel experiences is on the rise. With post-pandemic travel demand surging, the timing is right for these companies to capitalize on renewed interest in travel. The One Key loyalty program, which already combines rewards across multiple Expedia platforms, becomes even more attractive with the new credit cards that offer immediate tier upgrades and substantial rewards.

The integration of OneKeyCash rewards that users can utilize across Expedia, Hotels.com and Vrbo is likely to enhance customer loyalty by providing a seamless reward experience. This cross-platform usability differentiates Expedia's loyalty program from traditional ones that may limit reward redemption.

However, the competition is fierce in the co-branded credit card market and the success of these cards will depend on the perceived value among consumers. While the travel perks and automatic tier upgrades are attractive, how these cards compare to existing travel rewards cards from competitors like Chase Sapphire or American Express Platinum will be crucial. Market penetration and consumer feedback in the coming months will provide better insights into the cards' standing in the market.

Instant One Key tier upgrades, OneKeyCash™ introductory offers and generous earn rates on everyday purchases for cardholders

SAN FRANCISCO--(BUSINESS WIRE)-- Expedia Group, Inc. (NASDAQ: EXPE), one of the world’s largest online travel platforms, has finalized a multiyear agreement with Wells Fargo (NYSE: WFC) and Mastercard (NYSE: MA) to launch two new co-branded credit cards. Designed to complement One Key™, Expedia Group’s groundbreaking loyalty program, the One Key™ Card, and One Key+™ Card, will offer more flexibility, savings and perks for U.S. travelers.

(Photo: Wells Fargo)

Launching with all types of travelers in mind, the One Key Cards offer a host of benefits, including the ability to earn rewards as OneKeyCash™, which can be used across Expedia®, Hotels.com®, and vacation rental site Vrbo® to book eligible hotels, vacation rentals, car rentals, activities and flights.*

“As we celebrate one year of One Key launching in the U.S., we are excited to offer travelers the new One Key credit cards, further delivering on our mission to make travel more rewarding and flexible, and helping travelers achieve higher tiers for more rewards, faster,” said Katrina Lane, SVP, Traveler Engagement & Loyalty, Expedia Group. “The new credit cards will enhance our unique travel rewards program that lets members earn and redeem OneKeyCash across eligible Expedia, Hotels.com, and Vrbo bookings.”

In addition to earning OneKeyCash rewards, the currency used across Expedia, Hotels.com, and Vrbo apps, on Expedia Group purchases and everyday purchases, One Key and One Key+ cardholders will instantly jump to One Key Silver tier and One Key Gold tier, respectively. With these automatic tier upgrades, travelers can unlock savings of 15% and 20% or more on over 10,000 hotels worldwide, as well as receive priority travel support and in-stay perks, such as food and beverage extras or complimentary room upgrades when available at select VIP Access properties.

One Key cardholders will enjoy the following features and benefits:

One Key+ Card (terms apply)

One Key Card (terms apply)

$99 Annual Fee Earn $600 in OneKeyCash after spending $3,000 on purchases in the first three months Earn 3% in OneKeyCash on Expedia, Hotels.com, and Vrbo. When combined with One Key benefits, Platinum tier members earn 9% on Expedia and Hotels.com when booking VIP Access properties, and 5% on Vrbo** Earn 3% in OneKeyCash at gas stations, grocery stores, and on dining Earn 2% in OneKeyCash on all other purchases Automatic Gold Tier Path to next tier: Unlock Platinum when you spend $30,000 per calendar year Get $100 in OneKeyCash each cardholder anniversary Receive a statement credit of up to $100 for Global Entry® or TSA PreCheck® No foreign transaction fees Cell phone protection Trip protections: Trip Cancellation and Interruption Auto Rental Collision Damage Waiver Common Carrier Travel Accident Insurance Additional Mastercard World Elite benefits include: advanced security features including Mastercard ID Theft Protection, Zero Liability Protection and Global Services for emergency assistance

No Annual Fee Earn $400 in OneKeyCash after spending $1,000 on purchases in the first three months Earn 3% in OneKeyCash on Expedia, Hotels.com, and Vrbo. When combined with One Key benefits, Platinum tier members earn 9% on Expedia and Hotels.com when booking VIP Access properties, and 5% on Vrbo** Earn 3% in OneKeyCash at gas stations, grocery stores, and on dining Earn 1.5% in OneKeyCash on all other purchases Automatic Silver Tier Path to next tier: Unlock Gold when you spend $15,000 per calendar year No foreign transaction fees Cell phone protection Trip protections: Trip Cancellation and Interruption Auto Rental Collision Damage Waiver Common Carrier Travel Accident Insurance Additional Mastercard World Elite benefits include: advanced security features including Mastercard ID Theft Protection, Zero Liability Protection and Global Services for emergency assistance

“We’re excited to enter a new era with Expedia Group and Mastercard to bring the One Key Cards to market,” said Krista Phillips, EVP, Head of Consumer Credit Cards and Consumer Lending Marketing, Wells Fargo. “The program is uniquely designed to offer immediate value to our customers through instant discounts, enhanced perks, and accelerated rewards.”

Both cards start accepting applications nationally later this summer. Existing Hotels.com cardholders will be notified of the changes to their card beginning today, and should use their current card to continue earning OneKeyCash until they receive their new no-annual-fee One Key Card in September.

Consumers who apply for the One Key Card can earn $400 in OneKeyCash after spending $1,000 on purchases in the first three months; approved One Key+ cardholders can earn $600 in OneKeyCash after spending $3,000 on purchases in the first three months (terms apply).

“Consumers are continuing to prioritize experiences over material goods, and with that, have a growing desire to travel,” said Chiro Aikat, Co-President, U.S., Mastercard. “We’re delighted to partner with Expedia Group and Wells Fargo to help consumers unlock meaningful travel opportunities. With the launch of both One Key Cards, we’re helping consumers make the most of their trips through enhanced loyalty benefits and choice.”

*OneKeyCash is not redeemable for cash

**Excludes taxes and fees. U.S. vacation rentals only. Earn rates will not apply in conjunction with any other OneKeyCash offers

For more information about One Key, visit www.expedia.com/welcome-one-key.

For more information, visit www.expedia.com/one-key-cards-launch.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 34 on Fortune’s 2024 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com

LinkedIn: https://www.linkedin.com/company/wellsfargo

About Expedia Group

Expedia Group, Inc. (NASDAQ: EXPE) brands power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, we help people experience the world in new ways and build lasting connections. We provide industry-leading technology solutions to fuel partner growth and success, while facilitating memorable experiences for travelers. Our organization is made up of three pillars: Expedia Brands, housing all our consumer brands; Expedia Product & Technology, focused on the group’s product and technical strategy and offerings; and Expedia for Business, consisting of business-to-business solutions and relationships throughout the travel ecosystem.

Expedia Group’s three flagship consumer brands includes: Expedia®, Hotels.com®, and Vrbo®. One Key™ is our comprehensive loyalty program that unifies Expedia, Hotels.com and Vrbo into one simple, flexible travel rewards experience. To enroll in One Key, download Expedia, Hotels.com and Vrbo mobile apps for free on iOS and Android devices. One Key is currently available in the U.S. and will become available globally soon.

For more information, visit www.expediagroup.com. Follow us on Twitter @expediagroup and check out our LinkedIn www.linkedin.com/company/expedia.

About Mastercard

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

For more information, visit www.mastercard.com.

News Release Category: WF-PS

View source version on businesswire.com: https://www.businesswire.com/news/home/20240711334943/en/

Media

Nicole Dye-Anderson

Nicole.Dye-Anderson@wellsfargo.com



Laura Lopez

Laulopez@expedia.com

Source: Wells Fargo & Company

FAQ

What new credit cards has Wells Fargo launched with Expedia?

Wells Fargo has launched two new co-branded credit cards with Expedia: One Key Card and One Key+ Card.

What are the benefits of the One Key+ Card?

The One Key+ Card offers $600 in OneKeyCash after spending $3,000 in the first three months, 3% in OneKeyCash on various purchases, automatic Gold tier, and no foreign transaction fees, among other perks.

How much OneKeyCash can One Key Card holders earn initially?

One Key Card holders can earn $400 in OneKeyCash after spending $1,000 in the first three months.

What loyalty program do the new Wells Fargo credit cards enhance?

The new Wells Fargo credit cards enhance Expedia's One Key loyalty program.

When will applications for the One Key Cards be available?

Applications for the One Key Cards will start nationwide later this summer.

What are the tier benefits of the One Key Cards?

One Key+ Card holders will automatically receive Gold tier benefits, while One Key Card holders will receive Silver tier benefits.

Do the new Wells Fargo credit cards have foreign transaction fees?

No, both the One Key Card and One Key+ Card have no foreign transaction fees.