(Bloomberg) -- Bank of America Corp. is adding a commercial credit card for on-the-go businesspeople in a bet that work travel will eventually return.
The new Executive Explorer card will offer statement credits for travel perks such as expedited security clearance at airports and enhanced insurance for lost or delayed luggage, the lender plans to announce Wednesday. As much as $5,000 in baggage claims will be covered, compared with $2,000 for competitors' cards, Bank of America said. The company also expanded its mobile offerings with an app that lets customers to check their balances, temporarily lock their cards and access other information from their smartphones.
Though it's been disrupted by the pandemic, “business travel will return -- consumer trends are pointing in that direction,” Jennifer Petty, the bank's head of global card and comprehensive payables in global transaction services, said in a phone interview. “We wanted this to be the right product for executives and road warriors” who travel a majority of the time.
Corporate travel will probably return to 2019 levels during next year, Petty said in a separate interview on Bloomberg TV.
The Executive Explorer cards will be available to Bank of America's corporate and commercial clients in North America, Europe and Asia, the bank said. Insurance benefits will include ride-share and cell-phone protection, and the new card will provide increased airport-lounge access and a specialized customer-service line for “travelers who are in a bind,” Petty said.
Still, with the rise in Covid-19 cases across the country and many companies delaying return-to-office plans, business travel could be far off. Card programs were hit hard at the peak of the pandemic, which curtailed travel and, as a result, reduced spending on flights, hotel stays and meals. Lenders including American Express Co. responded by beefing up non-travel rewards to keep customers.
The latest offering for commercial customers follows the debut earlier this year of the Bank of America Complete AP, or accounts payable, platform to help companies navigate challenges that resulted from the pandemic.
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