Sumitomo Mitsui Card Company and Hopper announced a basic agreement for a strategic business alliance to launch a travel booking service. This initiative represents the first non-financial service offering within the comprehensive financial services provided by the SMBC Group to individual customers through “Olive,” which began in March 2023. The specifics of the services will be discussed further between the two companies, but they plan to utilize HTS’s advanced digital services to offer solutions that cater to diverse travel needs.
Details of the Partnership
Starting around the spring of 2025, Sumitomo Mitsui Card will launch a new travel portal site targeting primarily its credit card members. Through this portal, customers can book travel easily, conveniently, and cost-effectively. The new service will leverage HTS’s unique fintech services, which are based on big data from accumulated customer behavior and purchase data, modeled using machine learning. Combined with the strong customer base and mobile-first digital service expertise of the SMBC Group, and integrating data from both companies, they aim to deliver innovative travel services to users.
In addition to providing a travel portal site, Sumitomo Mitsui Card and HTS will explore offering services that meet diverse travel needs by utilizing each company’s assets and expertise. By integrating transaction data from both companies, they aim to deliver personalized travel offers, necessary travel information before, during, and after trips, and functions like additional V points for travel savings used through the travel portal site, offering customers an unprecedented travel experience.
Regarding services for V point members, discussions will be held with CCCMK Holdings, the operating entity, to consider service offerings.
Background and Objectives of the Partnership
With the widespread use of smartphones and the diversification of customer needs, digitalization and mobilization are progressing across various services, including financial services. The SMBC Group has been offering “Olive,” a comprehensive financial service for individual customers based on digital platforms, since March 2023. Olive, which allows management and transactions of bank accounts, card payments, securities, and insurance within a single app, has been well received as a “NEW STANDARD” in financial services, achieving over 2 million account openings within a year of its launch.
As the core company driving the SMBC Group’s cashless payment strategy, Sumitomo Mitsui Card has been advancing Olive beyond the realm of a financial app by enhancing collaboration with various SMBC Group services and strengthening alliances with top companies across different industries. Olive Flexible Pay has also been continuously updated with new features, such as adding family cards and payment mode options.
Despite a temporary decline in Japan’s domestic travel market due to the COVID-19 pandemic, it has since recovered steadily, with domestic travel spending by Japanese consumers reaching approximately 22 trillion yen in 2023. Moreover, online bookings account for nearly 80% of all travel reservations, indicating a significant shift towards online transactions in the travel market.
Recognizing the synergy with the seamless digital-first services provided by Olive, Sumitomo Mitsui Card aims to enter the travel market as the first non-financial service under Olive, offering a new travel service that excels in convenience and profitability.
