In recent news, American Express has made headlines with its recent acquisition of Tock, a booking app for over 7,000 restaurants, bars, and other venues. The credit card company reportedly purchased Tock for $400 million, expanding its reach in the hospitality industry.
This acquisition adds to American Express’s portfolio of Resy, a rival restaurant booking app, which already offers exclusive reservations to Amex customers. Particularly, American Express Platinum cardholders ($695 annual fee) and Delta SkyMiles Reserve customers ($650 a year) receive priority access to hard-to-get reservations and cancellations.
Rajesh Bhardwaj, owner of Junoon in New York City, expressed his support for Amex’s involvement in the restaurant industry, stating that it has helped his eateries connect with new customers and create tailored experiences for specific Amex cardholders.
However, critics argue that this acquisition gives American Express more control over access to popular restaurants, potentially excluding customers who do not hold Amex cards. With the difficulty of securing reservations at trendy restaurants in major cities, the role of credit card companies in determining access to dining experiences is a topic of concern.
As businesses continue to target customers based on loyalty and spending habits, the integration of technology, data analytics, and exclusive perks for cardholders is transforming the hospitality industry. The ability of credit card companies to influence where customers dine represents a new form of segmentation based on financial resources.
While some experts view American Express’s move positively for restaurants in attracting high-spending customers, others raise concerns about the company acting as a middleman in the customer-restaurant relationship. Additionally, there are worries about potential fee increases for businesses as credit card companies expand their influence in the industry.
Overall, American Express’s acquisition of Tock signals a shift in the dynamics of the restaurant industry, with implications for customers, businesses, and the overall dining experience.
