I’ve explained previously how to use the US Airways holiday shopping promotion to buy miles at about 7/10ths of a cent (or less..) per mile, for instance here.
There’s no doubt been an uptick in purchase transactions over at TrackItBack as a result of all this. What do they think about the whole thing? They love it!
Their President writes to me, “[T]he main reason that people are making such transactions is to secure Dividend Miles. This is great and we’re pleased that we can provide them a conduit to do so.”
We’re pretty pleased as well, so thank you TrackItBack!
Any indication from their President how much more revenue they are seeing from this promo? Mighty curious!
Services like Trackitback mark up their service so much that they can afford to provide US Airways with a large chunck of what the public is paying for the miles. For every $300 that a customer spends, they need only $30 to be profitable with a 90% profit margin. This means that everyone who is “purchasing” asset labels is essentially purchasing mile directly from US Airways. They are passing along the majority of the cash you are spending right back to US Airways.
I’m sure they Trackitback is making a little money, but not as much as US Airways!