Permission to Exist: Rethinking the Role of the Industry

The Decision Brief Kenneth Chenault, Chairman & Managing Director, General Catalyst Moderated by Rafat Ali, CEO/Founder, Skift THE VERDICT Travel companies are trying to figure out membership. Chenault’s lesson from transforming the Amex Platinum card: build on experiences across the full hospitality journey, and segment by services and needs. PATHS FORWARD Win younger customers with experiences. Chenault said Amex went after customers in their late 20s and early 30s for Platinum when the conventional wisdom was that they should earn their way up. He said Amex “created services and experiences for young people, events, live events, entertainment, sports, getting perks on tickets.” Within two years, roughly 35% of new Platinum customers were 35 or under. The lesson: win loyalty once the value is proven. Build brands around both rational and emotional value. Chenault said the most powerful brands have “a cluster of values that are rational … and emotional values. And the great brands have this balance.” Travel companies building membership around points and discounts alone are missing the emotional half of the equation. Use AI to grow service businesses. Chenault described General Catalyst’s backing of Long Lake, which has increased revenue growth rates from 5% to 15–20% using a proprietary AI platform called Nexus. The first acquisition took six months to integrate; by the fifth, it took three weeks. WHAT TO WATCH The Long Lake model — acquire legacy service businesses and transform them with AI — is being tested at the largest scale yet with the $6.3 billion Amex GBT acquisition. Chenault said the question he asked Long Lake was “take me through how you’re going to grow this business and grow the business more than its current growth rate.” Whether the 15–20% revenue growth rate Long Lake achieved at smaller companies holds at enterprise scale is the proof point travel investors are watching. Chenault, an Airbnb board member, signaled that Airbnb is working on new ways to segment customers. He said the membership model has to be “authentic to Airbnb” and built around what it means to be a member and a host. Whether Airbnb can turn belonging into a membership, and whether other travel companies can follow, will test whether Chenault’s Platinum model travels beyond a credit card. Access all the Skift Takeaways from this event, as well as full session videos, presentation documents, and more editorial coverage at our Skift Global Forum attendees hub.