T-Mobile to launch a new travel service for users: How does it fit into the company’s long-term plans
Tech giant T-Mobile US Inc TMUS teamed up with Reservation Holdings Inc BKNG throw T-Mobile TRAVEL, Newswire reports.
What happened: The new partnership comes as T-Mobile seeks to expand the business beyond simple wireless connectivity as part of its “Un-carrier” initiative of investing in its customers by expanding consumer benefits.
In November 2018, T-Mobile partnered with BM Technologies, Inc. BMTX and Bancorp Inc. Customers CUBI to provide T-Mobile MONEY, which offers customers online banking services free of charge by the FDIC.
T-Mobile TRAVEL will feature two of Booking Holdings’ technologies, rocket travel and Priceline offers. The combination of the two technologies will allow users to access a huge inventory of hotels, flights, cars and more while getting the best possible deals.
During the pilot testing of the service, customers were able to save more than $17 million in hotel rates alone in one year. Many users have saved over $500 on a single trip and up to 40% on hotels and “pay now” rental cars.
Why it matters: T-Mobile has established itself as a wireless leader as America’s largest and fastest 5G network.
Now as an established company, it has the power to branch out into new areas.
The nature of the wireless industry limits a company’s ability to grow. Yet, with its Un-carrier initiative, the company will be able to continue to expand its reach.
Consumer Benefits like the ones mentioned earlier will encourage more people to sign up for a wireless plan, which will generate revenue.
And after: As CEO of T-Mobile mike sievert continues to push this initiative, the company will continue to introduce new benefits for its users.
When Asked about the Un-carrier initiative, Sievert said, “The Un-carrier strives to be the best at keeping our customers connected to their world.”
Also see: JetBlue won’t take no for an answer, makes another offer for Spirit Airlines