FlyerTalk Forums - View Single Post - What do merchants in airline shopping malls pay per mile?
Old Aug 25, 2011 | 5:00 pm
  #3  
MightyTravels
Used to be highman123
 
Join Date: Jul 2011
Posts: 3,541
Ok thanks for the clarification - but I'm still hunting for numbers here.

Let's use some (not so exact) examples:

- Verizon Wireless provides 2 miles per dollar for shoppers

- Cartera Commerce runs the mall and buys miles

- American Airlines provides the brand and sells miles

Workflow:

Consumer buys for $100 at Verizon Wireless.

Now Verizon provides an affiliate fee of say 3% per order to Cartera. This would mean $3 go into the Cartera account.

Cartera in turn credits/provides 200 miles to the consumer.

Cartera before has bought 1 billion miles from AA for one cent each. This means it has paid $2 for 200 miles.

So Cartera makes $1 in profit on this transaction?

Can you all please help me with better (more realistic numbers) in such an example.
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