Where does AirMiles gets their revenue?

Hi guys… I was just wondering where does airmiles gets their revenue? How do they make money? One way I think is that they sell consumer information to other companies… like what 25 year old males buy along with skis… but do they have other ways of getting revenue?

Thanks!

sllik, could you please provide a link to this website/software?

What really is airmiles? do you mean airmiles.ca?

Thanks

It could be that businesses pay to give out Air Miles as an incentive for customers.

Companies will pay them to join the AirMiles scheme in my opinion, because it helps the companies to make sales.

Rgds

AirMiles is a well known rewards program in north America… When you shop (in participating stores), you can swipe the airmiles card and get points to redeem them for rewards later.

So you think that the companies actually pay for the airmiles that are collected? Hmm…

In Ontario the sale of alcohol is controlled by the goverment… so private owners cannot sell alcohol you can only buy it at the store that is called the LCBO. The LCBO accepts airmiles… but they have no reason to do so since they are the only store that sells alcohol

I’m working on a similar incentive program. The “stores” in my case will have a monthly fee, but the real money potential is in the list. Not in selling their information, but giving them offers, upsells, etc.

i don’t know how they are making money in the current climate!

First participating stores pay a certain amount per point when you purchase. For example let say you receive one point for every 20$ you spend in the store, the store is charge a certain amount (let say 0.10$ ) per point it gives out. Ex. You buy 100$ and receive 5 points and the store gets charged an additional .50$ to give out the points.

AirMile take care of all the backend and fulfillment, they also provide datamining of your client base.

They also provide more indepth data and build promotions for an additional fee.

And lastly (I’m not 100% sure of this point) chains probably pay a certain amount to start in the program since they get exclusivity for their category and geographic region.

Found a cool article about AirMiles if anyone is interested:

http://www.cnn.com/2006/TRAVEL/07/10/airmiles.court/index.html

I was talking to an executive of British Airways some time back and asked him the self same question because it has puzzled me how they make their money too. It seems companies such as, American Express and Texaco for example purchase miles from Airmiles at a set price per mile. Airmiles then buys airline miles and holidays at a rate that is less than the amount American Express etc pay Airmiles. But the real money is made from the Airmiles that are never redeemed because seemingly there are millions of dollars worth out there that are out of date and now unredeemable.

thanks for your reply… What is the reason companies buy Airmiles in the first place? Is it just to offer rewards to customers?

I think incentive is the more appropriate word. If you were thinking of buying something that was being offered by several retailers at the same price but one was offering to contribute something towards your holiday it might be enough to sway you.