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Consolidation among the numerous loyalty tracking companies is under way as Traxo acquired the assets of GoMiles, and transitioned users to the Traxo mileage-tracking platform.
“This is the start of the fire sale for the group of frequent flyer tools that all came on the scene about the same time,” says Randy Petersen, the founder of FlyerTalk.
GoMiles CEO Michael Komarnitsky will stay on with Traxo. He becomes Traxo’s head of strategy and marketing. Financial terms of the deal were not disclosed.
Traxo did not purchase GoMiles’ back-end technology, but bought the GoMiles brand, content, and user base.
The GoMiles site this morning had a headline across the homepage indicating: “GoMiles has joined forces with Traxo.com.”
Founded in 2007, Traxo competes with TripIt as an itinerary management service for travelers, and offers loyalty program tracking services, as did GoMiles, for free.
Traxo has raised $1.2 million in a seed round and the company says it “is currently seeing strong interest from West Coast VCs in its recently launched $5 million Series A round.”
Petersen, who is a member of Traxo’s board of advisors, spoke for himself about his view that the bevy of loyalty-tracking sites in existence likely will be weaned down to three or four, especially because Delta, American and Southwest have stymied the efforts of the larger sites to track these airlines’ programs.
“Free was never a really good model, and investors got jumpy seeing that three of the five largest programs [Delta, American and Southwest] have stated they want to wind this practice down in deference to security and other concerns,” Petersen says.
“GoMiles wasn’t among the strongest and really did not stand out among all the other competitors, Petersen says, arguing that its base of active users was relatively low.
It is believed that Traxo didn’t have to pay much to acquire the GoMiles assets.
Meanwhile, in announcing the acquisition, Traxo also publicized a new feature, Traxo Express Access, which streamlines linking to all of a users’ loyalty account information.