SkiftX SkiftM&A

Hotel-Booking Site PointsHound Acquired by Points International


Apr 23, 2014 3:00 am

Skift Take

Whether PointsHound decided not to seek venture capital funding or simply couldn’t, the startup has executed a soft landing, and will be absorbed into the much larger Points International.

— Dennis Schaal

Free Report: The Megatrends Defining Travel in 2015

Come Attend the Best Conference in Travel

John Decker  / Reuters

PointsHound enables users to book certain hotels and earn miles from airline loyalty programs, including Virgin America, for example. Pictured, the first Virgin America flights land in San Francisco, California, August 8, 2007. John Decker / Reuters

PointsHound, a San Francisco startup that enables travelers to earn airline miles from hotel bookings, made what appears to be a modest exit as it was acquired by Points International.

Points International, a Toronto-based public company that operates loyalty program solutions for airlines and hotels, including Southwest, Wyndham and Melia Hotels, and also operates consumer site Points.com, said the acquisition is not expected to have a material impact on its financial results.

Points International said it stood to gain from PointsHounds’ loyalty relationships, following, and San Francisco base.

Backed by former Expedia, Hotwire, and Travelocity executives and founded in 2013, PointsHound had raised just $550,000 in seed funding.

Co-founder and CEO Pete Van Dorn said the three-member team will stay on, and there are plans to add seven employees to its San Francisco office in the next few months.

“We decided to join forces with Points instead of raise more venture capital funding because we saw a unique opportunity to grow the business with the leaders in the loyalty program e-commerce space,” Van Dorn said.

“In addition to providing resources to grow the business, the deal gives our angel investors a solid return with continued upside for the PointsHound founders,” Van Dorn said.

Tags: , ,

Follow @denschaal

Next Up

More on Skift

Daily Travel Startup Watch: Charged Concepts, Jambo and More
The Secret to a Successful Airline Customer Service Twitter Account
New Shopping Magazine Targets Chinese Tourists Returning to the U.S.
How Singapore is Building the City of the Future