Loyalty Register glossary
Partner award
A reward a member gets with program points that is supplied by another company, such as a partner airline, hotel or retailer.
A partner award is a reward that a member pays for with program points but that another company supplies: a flight on a partner airline, a night at a partner hotel, a gift card or goods from a retailer. The program charges the member points and pays the partner, either per reward or under a settlement agreement.
Updated · By Loyalty Register Editorial TeamRelated terms
How does a partner award work?
The member redeems points in the home program, and the partner delivers the reward. Behind the scenes, the program pays the partner an agreed price, and the partner usually controls availability. This differs from a points transfer, where the member converts points into the partner’s own currency and redeems under the partner’s rules. With a partner award, the member stays in the home program from start to finish.
Why do programs offer partner awards?
They widen the catalog without the program holding inventory. An airline can offer routes it does not fly, a retailer can offer travel, and a bank card program can offer almost anything. Wider choice gives more members a reward they actually want, which supports redemption and engagement. Partner awards can also relieve pressure on the program’s own inventory on busy dates.
What do partner awards cost?
The cost is the price the program pays the partner, plus fees and service costs, and it is set by contract. That makes the cost per point of a partner award different from that of an owned reward, and often higher, because the program pays close to the partner’s price instead of its own cost. In a hypothetical program where an owned hotel night costs the business 0.6 cents per point and a partner flight costs 0.9 cents, a shift in member choices toward partner awards raises the cost of rewards even though no points prices changed. Model the reward mix, not only the average cost.
What should you check in a partner agreement?
The price per reward or per point, and how and when it can change. Availability commitments and blackout rules. Who handles customer service when a booking or delivery goes wrong. Data sharing and consent, since the partner needs some member details to deliver. Settlement timing and currency. And exit terms: if the partner leaves, members who were saving for its awards need notice and a fair alternative.