Known for being the card of choice for business types, American Express is delving deeper into the competitive reservation space with a $400 million deal that could benefit its cardholders.
The company, which bought reservation app Resy in 2019, struck an all-cash deal to acquire Tock, another reservation app, previously owned by Squarespace. The latest acquisition will give Amex influence over a portfolio of 7,000 restaurants and other bookable entertainment experiences listed on Tock.
The company already gives cardholders special table access not available to the general public through Resy. Some of its highest-paying customers, including those with American Express Platinum and Delta SkyMiles Reserve cards, are eligible for the company’s Global Dining Access program that can get them exclusive reservations at the best times, preferential notifications when tables open up, and access to special dining experiences from notable chefs.
With the new acquisition, American Express wants to offer more choices to its cardholders, who spent $100 billion at restaurants in 2023, according to the company.
“Now, we can connect even more premium customers with the most exciting restaurants, while providing merchants and restaurants more technology to help their businesses thrive,” American Express president of U.S. Consumer services, Howard Grosfield, said in a statement announcing the acquisition.
In recent years, Amex has moved beyond its stuffy reputation as the credit card of the business elite by reaching out to younger generations like millennials and Gen Z. The effort has largely been a success, with these younger customers making up about 75% of new cardholders for Amex’s Platinum and Gold cards last year, Grosfield told Coins2Day last month. Compared with their older counterparts, younger cardholders are more actively engaging with Amex perks like travel, dining, and special events.
“Until about 10 to 15 years ago, we thought that no-fee cards were the entry point to bring in younger customers to the franchise,” he said at the time. “We’ve learned that that’s not the right strategy for millennials and Gen Zs. They like the brand affiliation. They like to travel and eat out, and they like the special access and experiences that come with our premium cards.”
American Express did not immediately respond to Coins2Day’s request for comment on the Tock deal.
Created in 2014 by restaurateur Nick Kokonas, Tock helps restaurants cut down on no-show diners by “selling” reservations for a small deposit. Tock’s technology is also used by other non-restaurant businesses such as wineries, breweries, and museums, that could expand Amex’s network.
Amex’s reservation moves come as it has grown increasingly difficult to reserve tables at some of the best restaurants in big cities. Some of this difficulty is thanks to online booking as well as a flourishing alternative market for reservations secured through bots and fake phone numbers.
One of the people helping sell reservations to the highest bidder is Jonas Frey, who created the platform Appointment Trade r in 2021 to let people sell their existing reservations on a virtual marketplace. Over the past 12 months, more than $6 million in reservations have been sold through the site, and Appointment Trader takes a 20% to 30% cut each time, Frey told the New York Times.
Another notable seat slinger is Brown University undergrad Alex Eisler, who said he made $70,000 from his reservation side hustle last year.