Rocketmiles raises $2 million to turn hotel stays into airline miles

Rocketmiles, a Chicago-based startup that offers travelers airline miles for hotel bookings, announced it raised $2 million in its first round of external funding today.

Atlas Venture led the round and was joined by Link Ventures, Peterson Ventures, and several angel investors in the travel and loyalty industry.

TripIt co-founder Scott Hintz and Jetsetter co-founder Drew Patterson are among the startup's advisors, but Rocketmiles CEO Jay Hoffmann is no stranger to miles business. He managed partnerships for three years at United Mileage Plus.

His startup's business model is one that supposedly benefits all involved. Travelers earn miles for their hotel stays, airlines earn revenue for selling miles, and hotels fill rooms with frequent business travelers.

Users can currently earn miles for American, Delta, Hawaiian, United, and US Airways at hotels in 23 North American cities.

"Rocketmiles will use the funding to invest in marketing and customer acquisition as well as to expand its airline and hotel partnerships," a spokesperson says.

Rocketmiles publicly launched earlier this month after a two-month private beta.

Rocketmiles' closest competitor PointsHound raised a $425,000 seed round in March.