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TWST: We'd like to begin with a brief historical sketch of Points International
and a picture of the things you're doing at the present time.
Mr. MacLean: Points International was started in 2001, working with the concept
of helping the world's largest loyalty programs and their hundreds of millions
of members to release the value that is inherent in these various loyalty
currencies that we've been collecting. Over the last couple of years, we have
really been focused on working and building relationships with these large
loyalty programs and are very pleased to say that we have about 60 partners
around the world & very familiar brands such as American Airlines, American
Express, British Airways, Delta Airlines, and others that are working with us to
bring value to their various programs.
We work with those programs to do two things. First, we run a variety of
private-branded applications that assist these loyalty programs in helping them
merchandise their loyalty currencies to their millions of consumers. An example
of an application would be allowing consumers to purchase the miles that they
are short when they are looking to create value by taking a reward trip. So,
for example, if you went on to American Airlines at AA.com to book a reward
flight on your AAdvantage program and you needed to purchase an extra 4,000 or
5,000 miles to take that free trip, we would enable that. Those various
applications have been doing phenomenally well. They represent about 80% or 85%
of our business today, and we would transact anywhere in the neighborhood of $80
to $90 million per year on behalf of these large loyalty programs.
The second side of our business is Points.com, a consumer portal where we work
with those same loyalty programs to help their consumers and their members
consolidate and manage their various loyalty currencies. A typical American is a
member of seven or eight different loyalty programs, so there is an interesting
opportunity to assist those consumers in managing these non-cash assets.
Tickers included in this excerpt: PTS:TSX
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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