This morning Points International announced that Midwest Airlines has joined the GPX. It is a modestly sized program representing 2.5 million members. As of today, 16% of the trades posted on the system included Midwest Miles.
Over the past few weeks, the total number of trades posted daily has been been between 100 and 110. However, it is difficult to understand the trading liquidity at this point. Does a trade typically stay posted for week? day? or hour before it gets executed?
Notwithstanding, more parters represent more liquidity, which can only contribute to the ultimate success of the concept as it leaves the beta phase, likely at the end of this year, or at the beginning of 2009. I believe that there are few more GPX partners that have been announced including Taca and Mexicana which have yet to launch. There is good possibility that the Company can exit 2008 with double-digit partner base for the GPX. This is ahead of my expectations going into the year. I have not attributed any Global Points Exchange revenue into my 2008 forecast of sales at $75.2 million. It looks like the Company could be poised to beat my, (and consensus) sales forecasts for the year.
Showing posts with label GPX. Show all posts
Showing posts with label GPX. Show all posts
11/13/08
PTS Signs Middle East Partner for GPX
Deal with Turkish computer distributor Hitit is designed to establish extensions into the Middle East. Local partnerships are integral to success in the region. Management at both Guestlogix and Vendtek Systems can attest to that. However, it could take several months to see the first GPX partnership to come to fruition.
Success with the GPX rollout notwithstanding, I am hopeful that more outsourced principal deals continue to come on stream to offset the margin contraction of the Delta Airlines relationship. Over 90% of this Software as a Service (SaaS) provider's current revenue is derived from managing consumer solutions for approximately 25 major loyalty programs in the world.
The bottom line is that as long as PTS continues to execute (and doesn't give away margin), the world economic conditions should continue to benefit performance.
Success with the GPX rollout notwithstanding, I am hopeful that more outsourced principal deals continue to come on stream to offset the margin contraction of the Delta Airlines relationship. Over 90% of this Software as a Service (SaaS) provider's current revenue is derived from managing consumer solutions for approximately 25 major loyalty programs in the world.
The bottom line is that as long as PTS continues to execute (and doesn't give away margin), the world economic conditions should continue to benefit performance.
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