Points International expects '08 revenues to more than double to $65-$75 million

Published: 13 Dec 2007

Points expects that 2008 revenue will more than double over 2007 to the range of $65-$75 million, and that it sees significant expansion of positive EBITDA above 2007 levels.

"2007 has been a breakout year for Points as we experienced record transaction volume across our platform, transacting more than 10 billion miles and points. We also shifted a number of key partnerships to a principal-based model that offers substantial benefits to our partners and enables us to be more actively involved in the success of our products. We are forecasting dynamic growth for 2008 as we focus on adding new partners, selling additional products into our current base and expanding our Book With Points and AirIncentives programs," said Rob MacLean, CEO, Points, which also owns Points.com portal.

"Many of the world's largest travel companies and marketers are benefiting from Points' industry expertise to create unique programmes to drive revenue and provide monetisation options for their best customers. We expect that our transaction and audience growth in 2008 will enable us to continue to drive innovation and create new products for the loyalty industry globally," said MacLean.

Points also announced that the public beta launch of its Global Points Exchange (GPX), the world's first peer-to-peer mileage and points marketplace will begin early next week.

In this initial phase of the product, users visiting www.points.com can actively transfer their frequent flyer miles between five different programmes, including American Airlines AAdvantage, Alaska Airlines Mileage Plan, Aeroplan, Frontier Early Returns and IcelandAir Saga Club Rewards points.

The exchange is designed to create more customer engagement in these leading frequent flyer programmes and to be a very user-driven experience. For the first time ever, user-driven trading between loyalty programs is allowed, with trade rates being set by users.

"Last year, the Economist estimated that the total retail value of all the miles in frequent travel programme accounts worldwide was more than $700 billion, making airline miles and hotel points the world's most valuable currency," said Christopher Barnard, President, Points.

"We are delighted to partner with our launch partners to offer a completely new way for frequent flier customers to manage this valuable asset much like they are able to manage their other financial assets. GPX offers a unique, community-based approach to facilitating this secondary market that also represents significant economic potential for our participating partners. This is only the beginning for GPX, as we have a detailed rollout plan for throughout 2008 that will encompass the inclusion of new partners, new features, and a strategic marketing programme."

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