May 3 2013  |  Inflight Entertainment

New company offers perks to passengers and revenue to airlines

By Maryann Simson

PointsHound’s Co-Founder, Pete Van Dorn, says that his company will purchase proprietary mileage currencies from airlines

PointsHound is a company which has positioned itself as a new kind of hotel booking service that rewards frequent travelers with airline miles, hotel points and now new, retail rewards. Having recently added American Airlines AAdvantage and Virgin America Elevate to its roster, the firm is happy to report steady growth.

For airlines, this partnership could equate to a new means of collecting ancillary revenue through the sale of miles. According to PointsHound, sales of miles to third-party partners accounted for US$3 billion in revenue for United Airlines in 2010, with a trend towards rapid growth.   

“We sign contracts with participating FFPs to purchase their mileage currency at a pre-negotiated price per mile. In addition to awarding miles to users to book hotels on PointsHound, we also run promotions that award additional miles for non-booking behaviors such as signing up, referring friends, sharing content in social networks, and participating in contests like Sweepstakes,” said PointsHound’s Co-Founder, Pete Van Dorn. “In addition to generating revenue for partners through the purchase of their proprietary mileage currencies, we also serve as a promotional platform that drives traffic to our partners other ancillary partners, such as their cobranded credit card partners to which we can be a source of new enrollments.

By connecting frequent travelers with over 150,000 hotels worldwide, as well as leading frequent flyer programs, PointsHound is a solution for travelers looking to get the most out of their travel dollar in as stress-free a way as possible.

PointsHound currently has nine airline customers in the U.S. and abroad and is focused on growing this customer base by promoting its value proposition for airlines, which they hope to help make money from their own existing loyalty programs.

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