• The New York Times, Tuesday, December 5, 2006 11:46 AM

Online malls operated by airlines and hotel companies are becoming increasingly popular among online shoppers looking to earn bonus miles. At the same time, the malls provide ancillary revenue to the companies that host them.

The online retail malls are entered through the Web site of the airline or hotel loyalty program. Participants can then link directly to the site of the retailer where they want to shop. When they make their purchase--paying the same price they normally would--they receive loyalty program miles or points.

The retailers pay the airline or hotel company a fee for every mile or point given to the loyalty-program participant upon purchase. These can then be redeemed for free plane tickets or hotel stays.

The malls are an example of airlines' ggressive efforts to "increase the amount of ancillary revenue, which is a crucial part of their business strategy to become or remain profitable," according to Henry Harteveldt, a travel analyst at Forrester Research.

Read the whole story at The New York Times »