CA2379148A1 - System and method for global generic mileage loyalty program - Google Patents

Abstract

A system and method for providing generic miles for a variety of behaviors that are redeemable for tickets for world-wide travel on any airline preferably comprises: a web server, an application server, a database server, and a disk array. The application server further comprises various modules including a mileage transfer unit (704), and account balance unit (706), a fraud detection unit (708), a transaction history unit (710) and an account status unit (712). These units are operable on the application server to provide a loyalty reward system for providing generic miles that provides much of the functionality electronically. In particular, the system allows generic miles to be transferred electronically, for the detection of fraudulent mileage transfers, for members and partners to check mileage account balances electronically, for the automatic generation and transmission of notification of mileage balance levels (720), and for the automatic maintenance of mile awards and redemption (716).

Description

t System And Method For Global Generic ytilea~e Loyalty Program CROSS-REFERENCE TO RELATED .APPLICATION
_ This application is a utility application of ~~.5. provisional patent application 6 serial no. 60, 1-13,>j9. enntled "Global Generic Mileage Lovaltv System and Viethod,"
filed on Julv 1.. 1999, which is incorporated herein by reference.
p B~Ci~GROUND OF THE INVENTION
'o 1. Field of the Invention t t This invention relates Venerallv to systems and methods for generating customer 1z loyalty and rewarding behaviors. More specifically, the present invention relates to 13 customer loyalty programs that offer miles as a loyalty reward. Still more particularly, t-t the present invention relates to a system and method for providing generic miles for a variety of behaviors that are redeemable for tickets for worldwide travel on any airline.
t~ '_'. Description of the Background Art There are a variety of incentive and loyalty programs that have been developed is and continue in existence today. For example, incentive programs include rebates, 19 discounts and coupons where incentives are offered in the short tetmt to motivate a .o particular purchase. In contrast. loyalty programs attempt to uevelop loyalty to a t particular product or service over a longer term. Vtost loyalty programs are based on a ~2 premise that if you perform a specific behavior (most often purchasing foods or services 1 From a particular source), then you are awarded some unit that when accumulated may be redeemed for carious foods. For example, frequent slyer miieaoe award programs _ administered by airlines are well known. These frequent flyer mileage award programs .t include a frequent slyer member and an airline as shown in Figure 1 a.
Miles are awarded _ by the airline for each segment traveled on the airline. Miles are awarded based on the 6 distance traveled on various tliahts. These frequent flyer mileage award programs also sometimes allow awarding of mileage purchased by third parties from the airlines. Miles s are awarded and accumulated by the member. Once the member has accumulated o sufficient miles. the member may redeem the miles in exchange for a ticket for travel on the airline.
t t Variations on these frequent flyer programs have been developed such that if you ~2 use a credit card from a particular bank, you can also earn frequent flyer miles. ~n t3 exemplary prior art system is shown in Figure 1B. The prior art system includes a a-t member, a bank or company, and an airline. The member is awarded miles based on t ~ usage of the member's credit card. .~ typical scenario is that the member is awarded one 16 mile for each dollar spent. Miles are awarded by the bank and accumulated by the 17 member. Once the member has accumulated sufficient miles, the member may redeem 18 the miles with the bank, and the bank purchases a ticket from the airline.
The airline delivers the member a tree airline ticket to the destination of choice, which the airline ?0 serves.
t Unfortunately, there are number of problems with the existing loyalty programs.
First, the attractiveness of the loyalty incentive is significantly diminished once the user

2; learns of all the restrictions and lack of seat availability for the free ticket that is awarded

3 PCT/US00/40343 1 under many frequent fiver award proerams. Most all existing airline frequent dyer award 2 programs impose restrictions on the number of seats available for each flight, the times when the tickets for free travel can be used, the class of travel for which the ticket can be used, and geographic areas to which the user may travel. .-~s the number of participants in such programs has increased. the seat restrictions on suc:~t programs has reduced their 6 effectiveness as a lovaltv tool since there are few if any times during peak travel time when the user can use awarded tickets. Furthermore. the complicated rules for usage and s awards make existing programs even less attractive. Therefore. there is need for a generic 9 mileage loyalty program that is not subject to the restrictions of the prior art.
o Furthermore, the Lovaltv effectiveness is inherently limited because the awarded 11 miles are only valid for the particular airline with which the bank is affiliated. This is a 12 restriction in two ways. First. the awarded miles may only be used for a particular airline.
13 Secondly, since no airline flies to every location in the world, the destinations to which the user can travel with the awarded ticket are limited to the destinations in the carrier's 15 routing system. For smaller airlines, this presents a particular problem.
Vtore generally, 16 this limits the value of the awards because much international travel and travel to exotic 17 locations are not possible. Basically, this forces the user to a choice of traveling on one 18 or a limited number of airlines. Therefore, there is need for a generic milease loyalty 19 program that does not restrict travel to a single airline or selected airlines, and that allows 2o redemption of mileage for travel on any airline.
21 Yet another shortcoming of the prior art is that the overall value of the rewards 22 (free tickets) is diminished by their difficulty to earn them. More specifically, the prior ~3 art provides very limited ways to eatn miles such as: 1 ) by travel on the airline, or 2) by _3_ t purchase using the credit card of the bank. Therefore, it is very difficult, and takes a considerable amount of time to earn a free ticket for travel. Thus, there is need for a _ system that allows for the earning of miles through a variety of different behaviors.
Therefore. there is a need for improved system and method for providing generic miles for a variety of behaviors that are redeemable for tickets for worldwide travel on 6 any airline.
3 SL'~t:~IARY OF THE INVENTION
The present invention overcomes the deficiencies and limitations of the prior art to with a unique svstem~and method for providing generic miles for a variety of behaviors 1 t that are redeemable for tickets for worldwide travel on any airline. The system of the 12 present invention is preferably a loyalty reward system for providing generic miles. The 13 system preferably comprises: a web server, an application server. a database sever and a t~ disk array. The application sender further comprises various modules including a mileage 15 transfer unit. an account balance unit, a fraud detection unit, a transaction history unit and 16 an account status unit. These units are operable on the application server to provide a 17 loyalty reward system for providing generic miles that provides much of the functionality 18 electronically. In particular, the system of the present invention allows generic miles to t9 be transferred electronically, for the detection of fraudulent mileage transfers 20 electronically, for members and partners to check mileage account balances 21 electronically, for the automatic generation and transmission of notification of mileage ~2 balance levels, and for the automatic maintenance of mile awards and redemption. The t present invention also includes a plurality of methods for transferring miles. for checking ? account status and for redeeming mileage rewards.
_ The present invention is particularly advantageous in a number of respects.
First, the system provides genenc miles that can be earned throush a variety of unrelated _ different behaviors and from a variety of different sources. second, the generic miles 6 accrue to a reward that is an airline ticket to any location in the world.
on any airline, at any time. Finally, the earning of miles, accounting of miles, account monitoring and redeeming of rewards can be done entirely electronically.
These and other features and advantages of the present invention may be better 1o understood by considering the following detailed description of preferred embodiments of 1 t the invention. In the course of this description, reference will frequently be made to the 12 attached drawings.
t.t BRIEF DESCRIPTION OF THE DRAWINGS
15 Figure 1A is a diagram of a first prior art mileage loyalty award program.
16 Figure 1B is a diagram of a second prior art mileage loyalty award program.
1', Figure 2A is a diagram of a first and preferred embodiment of a global generic t 8 mileage loyalty system according to the present invention.
19 Figure ZB is a diagram of a second embodiment of a global generic mileage 'o loyalty system according to the present invention.
1 Figure 3 is a high-level block diagram illustrating sources from which a member ?? can receive miles in loyalty reward system of the present invention.
;_ 1 Figure 4 is a hieh-level block diagram of the system of the present invention 2 coupled to other systems by the World Wide Web.
Figure ~A is a block diaeram of a preferred embodiment of the system of the present invention coupled to the 'World Wide Web.
Figure ~B is a block diagram of a second embodiment of the system of the present 6 invention coupled to the World Wide Web.
Figure 6 is a high-level block diagram of a preferred embodiment for the 8 application server of the present invention.
Figure l is a block diagram of a preferred embodiment for the memory of the application server of the present invention.
11 Figure 8 is a tlowchart of a preferred method for operation of a loyalty program 12 for providing, awarding and redeeming generic miles.
t3 Figure 9 is a flowchart of a preferred method for transferring miles tiom the to system to a partner in accordance with the preferred embodiment of the present invention.
Figure 1 UA is a flowchart of a preferred method for detecting an account balance 16 of miles for a partner in accordance with the preferred embodiment of the present 17 mvennon.
l8 Figure l OB is a flowchart of a preferred method for detecting an account balance t9 of miles for a member in accordance with the preferred embodiment of the present ?o mventton.
21 Figures 11 A and 11 B are a flowchart of a preferred method for detecting fraudulent mileage transfers in accordance with the preferred embodiment of the present 23 mvennon.
-"-WO 01/04823 PCT/tJS00/40343 1 Figure 12 is a flowchart of a preferred method for communicating with the system of the present invennon to determine mileage account status for a partner or member.
Figure 13 is a flowchart of a preferred method for redeeming miles for travel ~t awards in accordance with the preferred embodiment of the present invention.
6 DET AILED DESCRIPTION OF THE PREFERRED EMBODL~IENTS
7 Referring nuw to Figures 2A-13, the preferred embodiments of the present s invention will now be described. A first and second embodiment will first be described 9 with reference to Figures 2A and 2B. Then the system X02 and its couniing to other to systems will be described with reference to Figures 4-7. Finally, the method for 11 operation of the system 402 will be described in detail with reference to Figures 8-13.

13 System Architecture 14 Referring now to Figure 2A, the architecture for a first and preferred embodiment 15 of a global generic mileage iovaltv system 200 according to the present invention is t6 shown. The global generic mileage loyalty system 200 is a loyalty system that offers 17 miles as a reward. The miles may be accumulated and exchanged for free travel in the 18 form of airline tickets. rental cars, hotel rooms and cruises. It is useful first to define 19 some of the terms that will be used in the remainder of this specification.
The global ?o generic mileage loyalty system 200 preferably includes a mileage tracking and reward 1 system (WebMiles system) 202a, a plurality of miles-awarding partners 204, a plurality 22 of members 206, a plurality of airlines 208 and a redemption agent 210.
_;_ 1 The mileage tracking and reward system 202a controls the transfer of mileage to ? and from partners, to and from members, and authorizes ticket purchase and delivery, as _ will be discussed in more detail below. The mileage tracking and reward system 202a also provides account information to partners, members and others as requested. For each partner 204. member ~06. redemption agent 210 and airline 208, the mileage 6 tracking and reward system ?0~'a provides a unique identincation number and account 7 which can be accessed by the respective party for tracking the number of miles available.
S The mileage tracking and reward system 202a is preferably a nluraiitv of web-enabled 9 computers, as will be described in more detail below with reference to Figures =~-.. to ensure that the tracking and reward system 202a is continuously accessible to members 11 X06 and partners 204.
12 The par<ners 204 are any individuals or companies that want to generate loyalty 13 and to do so offers miles in conjunction with particular behaviors, most often purchasing to behaviors that the partner 204 wants to encourage. These behaviors can both be on the Internet (e.a., electronic interactions) or off the Internet (e.g., conventional business t6 transactions). A partner 204 for the purposes of this application is also defined to include 17 a computing device with access to the Internet. The present invention is particularly is advantageous because it provides for a plurality of partners 204. In fact, the value and 19 usefulness of the system 200 only increases as the number of partners 204 increases.
The members ''06 are potential customers and users whose loyalty the partners 1 ''04 want to engender. :vlost often the members 206 will be consumers of goods and '2 services. Like the partners 206, the members 204 are also be defined to include a -s-1 computing device with access to the Internet, or are users with access to a computing 2 device that provides Internet access.
_ The redemption agent 210 is preferably a travel agent or travel service. The -t redemption agent .10 is responsible for interfacing with the airlines 208 and purchasing ticket for memoers 206. :~ne redemption agent 210 communicates with the mileage 6 tracking and reward system 202a to receive authorization and other security information for a particular member 206, and the redemption agent 210 also communicates with the s member 206 to secure information on the desired travel or tliaht information. While the 9 present invention will be discussed below in the context of airline tickets as the incentive or reward provided by the redemption agent 210, the present invention could be extended 11 to include other travel related services such as hotel & lodging, rental cars, entertainment tZ and meals. The redemption went 210 communicates with the airlines 208 to obtain the 13 ticket and arrange for its delivery to the member 206. The redemption agent 210 includes t-t a computing device with access to the Internet for communication with the member 206, the system 202a, and the airline 210, however, the communication may also be done by 16 human operator and a telephone in an alternate embodiment.
t7 The system 202a works with a plurality of airlines 208. The airlines 208 1s preferably include all airlines worldwide. Thus, the user may travel to any destination at 19 any possible time. The present invention is particularly advantageous in the tlexibility ?o offered for travel. While the present invention will be described with reference to airlines '' 1 208 and tickets for air travel, the present invention could be expanded to include any or all of the common carriers such as trains, buses, ships. The present invention could be further expanded to include cruises, tours, hotels, resorts, car rentals and entertainment _g_ 1 providers. The airlines 208 are of a conventional type including the ability to provide 2 resewations, electronic ticketing, and flight information to a human went.
The system 202a is particularly advantaeeous to these partners 206 and airlines 208 because is -t provides an incremental ciZannel to a block of additional customers.
_ .-~s show~rt in r:iaure ?.~. there are a variety of interactions between the mueage 6 tracking and reward system 202a. the plurality of partners 204, the plurality of members 7 206, plurality of airlines ~08 and the redemption agent 210. These interactions will be described in more detail below in Figures 8-13, however. it is important to note that with 9 the present invention the interactions and transactions are preferably performed o electronically using web browsers and the World Wide Web. For greater understanding 11 of the present invention the various interactions are summarized here. The interactions in 12 the system 200 include:
13 1 ) providing account information from the mileage tracking and reward system 202a to a partner 204;
t5 ~) sale of miles from the mileage tracking and reward system 202a to a 16 partner 204; .
t7 3) providing award information from the partner 204 to the mileage tracking t g and reward system 202a;
19 .~) awarding miles from a partner 204 to a member 206; this is preferably 30 done electronically, however, in alternate embodiments this could be done t by paper coupon, electronic coupon or certificate. Further, it may include confirmation by some type of physical receipt or record.

1 ~l providing account information from the mileage tracking and reward system 202a to a member 206;
6) awarding miies from the mileage tracking and reward system 202a to a member ? 06;
-) requesung or redeeming miles by a member 206 to the mtieage tracking 6 and reward system 2U2a for the award of an airline ticket:
S) sending an authorization to purchase an airline ticket from the mileage S tracking and reward system 202a to the redemption went ? 10;
9 9) sending flight and other travel information from tree member 206 to the redemption went;
11 10) purchasing the ticket from the airline 208 by the redempnon agent 210;
12 11 ) delivery of the ticket from the airline 208 to the redemption agent 210;
13 12) delivery of the ticket from the airline 208 to the member'_'06: and 1~1 13) delivery of the ticket from the redemption agent 210 to the member 206.
This is an alternative to 1 1 and 12. The delivery of the ticket is preferably t6 done by providing an electronic ticket.
17 The above functionality provides a generic mileage loyalty award program that is 18 particularly advantageous because through the use of electronic transactions. much of the 19 administrative cost associated with a program is eliminated. The program is also '0 advantageous because it allows the reward to be travel on any airline, at any time, and 1 moreover provides several partners that each has the flexibility to provide multiple ways for members to earn miles.

t Referring now to Figure ?B, a diagram of a second embodiment for the global generic mileage loyalty system 200 of the present invention is shown. The second embodiment of the system 200 is similar to the first embodiment. thus, like reference -t numerals are used for like components in Figure 2B. The most notable difference between the :.rst embodiment _'02a and the second embodiment 202b is that the 6 redemption anent 210 is eliminated in the second embodiment, and is integrated as part of 7 the mileage tracking and reward system 202b. In this embodiment, the mileage tracking 3 and reward s~.~stem '?02b includes modules or units to communicate with the airlines 208.
9 This is preferably done by way of application programs that interface the mileage 1o tracking and reward system ~~_nb to the computers for ticketing and reservation. of the 11 airlines '?08. Thus, the interactions 8-11 and 13 noted above are replaced by interactions 12 where the mileage tracking and reward system 202b communicates with the member 206 t3 to provide airline ticket. In particular, the second embodiment includes such interactions W as: 1 ) sending flight and other travel information from the member 206 to the mileage t ~ tracking and reward system ~0'_b; '_) purchasing the ticket from the airline 208 by the 6 mileage tracking and reward system 202b; 3) delivery of the ticket from the airline 208 to t7 the mileage tracking and reward system 202b; and 4) delivery of the ticket from the 18 mileage tracking and reward system 202b to the member 206. While preferably the 19 processing within the mileage tracking and reward system 202b is electronic, some of the 0 interactions may be done manually and combined with the web interfaces with the 1 members 206 and partners 208.
22 One of the key aspects of the system 200 of the present invention is that the 23 member loyalty reward is very attainable. This is accomplished in two ways as illustrated 1 by Figure 3. First, with the system 200 of the present invention, there are is a number of _ partners 204a-f from which miles can be received. In contrast. the prior art typically provides very limited sources or partners for earning miles. Figure 3 illustrates by way of example some broad categories of partners 204x-f. ffhoiesaie or channel parmers 204a _ are parmers tnat purchase smniticant numbers of miles and then m turn provide them to 6 other retailers or merchants for use in completing, increasing or generating sales. ~ retail partner 204b is a partner that uses the miles as a loyalty tool to motivate the purchase of Goods or services from that retailer as opposed to other retailers. and as a motivation to 9 come back and by more. .W employer partner 204c is an example of an employer that uses miles as a tool to motivate the performance of certain activities or behaviors or as a 11 reward for accomplishment of goals. An off line partner 20~d is a partner that awards or 12 dives miles to a member 206a primarily for off line (non-Internet activities such as in ~3 store purchases or other various activities. The on-line partner 204f in contrast is a m partner that awards or gives miles to member 206a primarily for on-line 1 Internet) activities such as clicking on an icon, reading an advertisement, sending e-mail.
purchasing on-line, etc. The credit card partner 204e is a partner that provides the l7 member 206a with miles for using a particular credit card they issue.
Finally, the 18 member 206a can also receive miles from other members '_'06b. For example, one 19 member 206b may give miles to another member 206a for a special occasion such as an birthday, anniversary, etc. Also, the system 202a may give miles away to members 206a 21 for other activities such as signing up as a member, referring another who signs up, ?2 completing surveys, taking a particular airline flight, or signing up for special 23 promotions.

1 Second. the system 200 of the present invention provides a number of activities other than just purchasins goods or traveling on a flight as ways to earn miles. This is significant because it increases the likelihood in the mind of the member that the a incentive. a free airline ticket, is attainable. By offering rewards with a high perceived _ value, the lovaity program of the present invention motivates the members 206 to 6 perform a variety of behaviors. The prospect of earning miles entices the members to perform as many of the miieaae-earning behaviors as necessary to reach the desired 8 redemption levels. The system ?00 of the present invention advantageously rewards a y number of behaviors on the Internet and even for Intranet activity. :~
sample fist of to Internet and Intranet behaviors that are rewarded with the present invention include:
11 Internet - read articles, send e-mail, perform click-throughs, purchase ~2 subscriptions/renewals, order product information, place ad on home page, refer t3 merchants. refer friends, purchase products, purchase services. enter contests or t~ sweepstakes, register sofz<vare or products, complete surveys, download software, accept 15 web browser cookies, join clubs. participate in chat groups, reward a preference bookmark, reward a preference home page, purchase gift certificates. Intranet -read an 17 on-line employee manual, complete surveys, take classes on-line, read articles, take tests, 18 complete reports, conduct on-line interviews, conduct on-line chat sessions. conduct 19 company evaluations, perform routine tasks, write government on industry issues, contribute to employer-sponsored charities, read company memos. The behaviors that 1 can be rewarded with the present invention are limitless and ever expanding.
Thus, with ~2 number of ways to earn miles, the system 200 of the present invention is much more 23 attractive to members 206 than any existing system in the prior art.

t System Hardware Referring now to Fi~~.ire :~. a high-level block diagram of the system 200 constructed according to the present invention is shown. The system 200 preferably .t comprises the miieaVe tracking and reward system 202, a piuraiitv of workstations 404, a _ plurality of oersonai computers 406, and a plurality of servers =X08 coupied to 6 communicate with each other via the Internet or world wide web 410. T he workstations 404, personal computers 406 and servers 408 are used by partners 204, members 206. and 8 the redemption went ? 10 to access and communicate with the mileage tracking and reward system 202. The workstations 404 and sewers 408 are of a conventtonai type to known to those skilled in the art, and are web enabled to include a browser such as 11 Internet Explorer by l~ticrosott or Navigator by Netscape. Similarly, the personal 12 computers .~06 are of a conventional type such as the IBM compatible based on an X86 t3 processor from Intel or a multi-processor system using a CINIX operating system.
t:~ Referring now to Figure ~A, the mileage tracking and reward system 202 is 15 shown in more detaii. The preterred hardware architecture for the mileage tracking and 16 reward system 202 includes a first web server 502, a first application server X06, a 17 database server ~ 10 and a disk array S 14. The first web server X02 is preferably a l8 conventional type for providing access to the Internet 410 including the hosting of web 19 pages and providing for the retrieval of data from connected users. The tirst web server 30 X02 preferably has an independent connection to the Internet 410. The first web server Zt X02 is, for example, a Sun E'_'~0 server including web sever software from Netdvnamics.
The first web server X02 is coupled to a respective application server X06.
The z3 first application sender X06 is responsible for running application software that provides -t5-1 the functionality of the system 202 described above with reference to Figures 2:~-3 and 2 that will be described below particularly with reference to Figures S-13.
The first application server 506 is a conventional type of server, but includes the novel so~vare of

4 the present invention. For example, the first application server 506 may be a gun Ultra Enterprise 450 sender. Essentially, the first application se-~,~er 506 is connected and 6 operates under the control of business logic that provides the funcnonalitv for 7 maintaining the generic mileage loyalty program and processing transactions and 3 interactions that have been noted above. The first application server 506 is also coupled to a database server 510.
to The database server 510 is also a conventional server and may be a dun L;ltra 11 Enterprise 450 server. The database server 510 controls the storage ; rid retrieval of 12 information to and from the database on the disk array 514. The database sewer 510 13 preferably also includes database software such as Oracle 8 database software for creation of a conventional database. The database server 510 maintains transactions records, and 15 user profiles in response to instructions received from the applications servers 506, 508.
t6 The database server 510 may also include additional software to perform data mining on t7 the database.
18 Referring now to FiUure 5B. a second and alternate embodiment of the hardware 19 architecture for the mileage tracking and reward system 202 is shown. The second alternate embodiment includes a second web server 504 and a second application server 21 508 in addition to the components identified above for the first embodiment. The first '2 and second web servers 502, 504 are preferably conventional types for providing access ~3 to the Internet including the hosting of web pages and providing for the retrieval of data ! from connected users. Each of the first and second web servers 502. 504 preferably has an independent connection to the Internet 410. The first and second web servers 502, 504 are preferably aiso counied to each other for load balancine purposes r'or times when one .I server 502. 504 is handling a higher volume of traffic than the other. T he first and second _ web servers ~u2. 504 are. for example. dun E250 servers including web sever software 6 from Netdynamics. Those skilled in the art will recognize chat while only two web 7 servers 502, 504 are shown. the system 202 may be modified as need to provide 3 additional web servers. each vroviding another connection to the Internet =X10. In this 9 second embodiment, each or the first and second web sender 502. 504 is coupled to a !o respective application server 506. 508. The first and second application servers 506, 508 11 are responsible for running application software that provides the functionality of the Iz system 202 described above with reference to Figures 2A-3 and that will be described I~ below with particularity in Figures 8-13 below. The first and second application servers !.t 506, 508 are each a conventional type of sever but include the novel software of the IS present invention. For exampie. the first and second application serv:~ers 506, 508 are Sun 16 Ultra Enterprise 450 servers. Essentially, the first and second application servers 506, 17 508 are connected and operate under the control of business logic that provides the I s functionality for maintaining the generic mileage loyalty program and processing 19 transactions and interactions that have been noted above. Each of the first and second zo application servers 506, 508 is also coupled to a database server 510.
I Figure 6 shows a high-level block diagram of a preferred embodiment for the application server 506/508 of the present invention. While the following description will ?3 focus on the first application sever 506, those skilled in the art will recognize the that 1 second application sender X08 preferably has a similar hardware and software configuration. The application server X06 preferably comprises one or more central processing units or processors 602 that connect with a memory 604. an output or display device 606, a data storage device 612, an input device 61=1 and a network interface 616.
The processor 602. memory 604. output device 606. data storage device 612.
input device 614 and network interface b 16 are preferably coupled in a yon Neuman type architecture via a bus 608 such as a personal or mini computer. The processor ti02 is preferably a g microprocessor such as a Sun L-ltraSparc. PowerPC or an Intel Pentium III:
the output 9 device 606 is nreterablv a video monitor; and the input device 614 is preferably a to keyboard and mouse-type controller. The memory 604 preferably includes random l 1 access memory (R.~'~I) and read-only memory (ROM). The processor 602 is coupled to 12 the data storage device fi 12 such as a hard disk drive in a conventional manner. The l3 processor 602 is also coupled to the network interface 616 such as Ethernet in a m conventional manner for connection to a network via line 618 and other computers such as via a local area netlvork. wide area network or the Internet. Those skilled in the an t6 will realize that a variety of different networking configurations and operating systems 17 including token ring, Ethernet, or Arcnet may be used and that the present invention is 18 independent of such use. 'Vhile the first application server X06 has been noted to t9 preferably be a Sun Ultra Enterprise 450 server, those skilled in the art will realize that ?0 the first application server X06 could also be implemented as any one of a variety of other 1 computers such as those made by Apple, Digital Equipment Corporation, IBM, or IBM
~2 compatibles. The processor 602 operates under the control of the memory 604 to process ?; the transactions and interaction as will be described in more detail.
-ig-t Referring now to Figure l, the preferred embodiment of the memory 604 ofthe 2 first application server X06 is shown in more detail. The memory 604 is preferably a _ random access memory (RA:'~Il, but may also include read-only memory (ROM).
The -t memory 604 oreferaolv comprises an operating system 7 02. a mileage transfer unit 704, a _ account balance detection unit %O6. a fraud detection unit 708. a transaction history unit 6 710, an account status unit 71 '_', an advertising unit 714, a redemption unit 716. a unit for system administration and security 718, and an award notification umt 720. The memory g 504 may also include a variety o~ different application programs including but not limited O to web paUe processing, c:ata processing, sender interface and communication programs.
The routines of the present im~ention control the interaction of the partners 204 and the 11 members 206 with the mileage tracking and reward system 202.
t2 The operating system 702 is a conventional type such as Sun Solaris. Those skilled in the art will realize how the present invention may be readily adapted for use 14 with other operating systems such as UNIX, Macintosh System Software, DOS .
15 Windows or Windows ~T.
16 The mileage transfer unit 704 preferably comprises the routine for transferring 17 miles from the system 202 to a partner 204. The operation of the mileage transfer unit t8 704 is described below in more detail with reference to Figure 9. The mileage transfer 19 unit 704 also processes transactions to transfer miles from a partner 204 to a member 206 '0 as described in more detail with reference to Figures 8, 11A and 11B.
1 The account balance detection unit 706 includes routines for processing mile transfer transactions, and determining whether additional notifications should be z; generated. The account balance detection unit 706 preferably generates electronic 1 notifications in two instances: 11 if a partner has a mileage account balance iess than a 2 preset threshold: and 2) if a member has accumulated miles sufficient to redeem the miles for an award. the open ation o r the account balance detection unit 706 is described below -t in more detati with reference to Figures 10A and IOB.
The fraud detection unit i08 includes the routines to control the processor 602 to 6 detect fraudulent transactions. As mileage transfers are processed, the system 202 7 performs tests to verify the accuracy of the transactions and ensure trat miles are g correctly awarded to the proper members 206 as the transactions are received from the 9 partner 204. The operation of the fraud detection unit 708 is described in more detail 1 o with reference to Figures 1 1 _-~ and 11 B, below.
11 The earning notification unit 720 includes routines for notifying the members 206 Iz of opportunities to earn miles. The earning notification unit 720 preferably includes ~3 routines for proactively directing members ''06 to partners 204 and to perform specific t:l behaviors to earn miles to reach an award level. This can include both identification of 15 the behavior as well as notification of possible travel destinations that are possible with a 16 given award level. The earning notification unit 720 includes the generation of emails 17 and other communications with the members 206. For examples, such communications 1s may include last minute deals, offers of bonus miles, specials. sales or other incentives 19 provided based on partner inventory or partner input on behavior the partners are 20 interested in motivating. The earning notification unit 720 can also generate and 21 maintain a chat room, and provide messages on an automatic basis listing various strategies to earn more or the maximum number of miles, as well as what other members ~3 206 have done to earn miles.
-'o-t The transaction history unit 710 includes routines for capturing all transactions processed by the system 202. The transaction history unit i 10 creates a record of all processed transactions that can be used at a later time to identity abnormalities in -t transactions. and also as a confirmation records in response to inauiries from either partners 204 or members.
6 The account status unit 712 includes the routines and templates for presenting 7 account status data to a requesting partner 204, member 206 or the redemption agent 210.
s The account status unit 71'_' inciudes routines for quervine the database server 510 for 9 data and the using the returned data by inserting it into HTVtL web panes for presentation to to the requesting partner 204, member 206 or the redemption agent 210. The operation of t t the account status unit 712 is described in more detail with reference to r figure 12, below.
1z The advertising unit 714 includes modules and routines for processing 13 advertising. Such processing includes storing and updating advertising stored in the to database 512. It also includes the presentation of such advertising such as banner 15 advertising in a conventional manner, but in conjunction ~.vith the presentation of other 16 information to the partners 204 and members 206. The advertising unit 714 also includes 17 a correlation or target unit (not shown) so that particular advertising may be targeted to a t s particular partner 204 or member 206 based on their profile in the database ~ 1 ~ or based t9 on the interaction or activity for which they are communicating with the system 200. The 3o advertising unit 714 performs selected steps in the methods of the present invention such 31 as in Figure IOB.
22 The redemption unit 716 includes software modules and routines for controlling 23 the first application server 506 for processing requests from members 206 to redeem 1 accrued miles for airline tickets. The redemption unit 716 includes routines for handling the redemption of miles in an entirely electronic process, where the system 202. the member 206 and the redemption went 210 interact by electronic means such as via the a Internet and browsers. The redemption unit 716 also includes routines for handling the redemption of miles in a hybrid environment where some of the steps of the method are 6 performed electronically and some of the steps are performed by a human operator or user. The operation of the redemption unit 716 is described in more detail with reference 8 to Figure 13. below.
9 Finailv, the memon~ bU.~ includes a unit for system administration and security 1o X18. This unit 71S includes the routines necessary for maintenance of the system, back 11 office operations, and monitorinU. This unit 718 also handles the initialization of 12 accounts, the addition of new members 206 and partners 204, and the security such as the 13 maintenance of passwords. This is generally performed in a conventional manner as will 1.~ be understood to those skilled in the art.
l5 16 Methods and Sofhvare 17 Referring now to Figure 8 through Figure 13, the preferred methods for operation l8 of the above mileage tracking and reward system 202 will be described in more detail.
t9 Figure 8 illustrates the general method for operation of a loyalty program for ?o providing, awarding and redeeming generic miles. The process begins in step 802 with a ' 1 partner 204 purchasing miles from the mileage tracking and reward system 202. The 22 present invention advantageously requires that a partner 204 purchase the miles prior to '_3 awarding them to any customers or members 206. Still more particularly, the present _22_ t invention requires that the miles be purchased in bulk, in predefined amounts. This will - be described fiirther below with reference to Figure 9. Once the partner 204 has established an account and has miles, the partner 204 may distribute or award the miles as -t desired in step 804. T'ne partner ?04 has complete discretion to award miles 11 to _ -.vhomever, 21 in whatever amounts. 3) for whatever behavior the partner Z04 wants to h promote. The parmer X04 awards the miles to a particular member 206 in step 804.
Exemplary such behaviors have been described above with reference to Figure 3.
Then in g step 806. the member's account is updated by the system 202 to retlect the awarded 9 miles. In step 808, the method tests whether the member 206 has sufficient miles to to redeem them for an award. The system 202 sets thresholds of miles that are required for 11 redemption for travel to different geographic areas at different classes of travel. If the 12 member 206 does not have sufficient miles to redeem them for an award, then the method 13 is complete, the user must do additional things to earn miles. However, if the member 1-t 206 does have sufficient miles to redeem them for an award, then method continues in 1 ~ step 810. In step 81 U. the member requests an airline ticket and provides the preferred 16 destination. travel times and carrier. Then in step 812, the system 202 purchases the t7 ticket for the member 206 and in step 814 delivers the ticket (identification number. if t8 electronic ticket) to the member 206. In the preferred embodiment. steps 802-81=1 are preferably performed electronically, thereby eliminating much of the paperwork and 'o administration associated with loyalty programs. However, certain steps of the method 21 may be perfotmted manually without departing from the spirit and scope of the present 22 mventton.
-?3-1 One particulariv advantageous feature of the present invention is the transfer of miles from the mileaee trackine and reward system 202 to a parmer 204. Since it is done _ electronically, this enables the system 202 to accommodate many partners 204. thus.
a enhancine the overall value of the loyalty program. Figure : shows the preferred method for transierrin~ miles prom the mileage tracking and reward system Z02 to a partner 204 6 in accordance with the preferred embodiment of the present invention. The present 7 method assumes that the partner 204 has already created an account in the mileage 3 tracking and reward system ~0? usinU conventional methods. The account creauon 9 would include the assignment of a unique identification number ( Web~(iles identification to numbed and a user-defined password. The method begins in step 902 with the partner t I 204 establishing a communication link with the first application server X06 ( W~I server) 12 including the identification and verification of the partner 204. This is performed by 13 having the partner ?0=~ provide its WebMiles identification number and password which 1-t are compared to the information in the database ~ 12. While the method is described in t5 terms of actions taken by the first application server X06 or V ivl server X06, it should be t6 understood, that the partner ?04 or member 206 may alternatively interface with the 17 second application sewer X08 in an identical manner. Then in step 904, the partner 204 18 sends a request to the W iV server ~06 for the purchase of miles. This may be done with 19 user interaction via a computer and web browser at the partner site, or it may be done ?o automatically in response to a routine running at the partner site. Next, the method 21 continues with the WM sever X06 presenting a plurality of options for purchasing miles ?2 in step 906. The present invention preferably does so by presenting options for ~3 purchasing miles in bulk lots of pre-defined numbers of miles. For example, bulk lots of 1 100,000 miles are preferred. Tile present invention advantageously provides volume Z discounts based on the number of miles purchased. VText. in step.908, the parmei 204 selects one of the pre-defined bulk amounts and submits the selection electronically.
.t Then in step 910, the WVI sever X06 determines the price for the miles by accessing a _ schedule in the database s l.. Different prices may be provided for different parmers 204 6 based on their relationship with the system 202. Thus, the present invention accesses the 7 information in the database ~ 12, and then sets the price for miles based on the 3 information returned. Then in step 912, the partner X04 confirms the purchase of the 9 number of miles at the price presented in step 910. In step 914, the partner pavs for the miles. This can be done using anv number of conventional funds transactions such as 11 credit card, wire transfer or company check. Finally, after the funds for payment are 1z confirmed as received, the WvI server X06 credits the partner's account with the 13 requested number of miles, and the process is complete.
1-t Referring now to Figures 10A and IOB, the nvo forms of mile balance detection provided automatically by the mileage tracking and reward system 202 will be described.
15 Figure 10A is a flowchart of a preferred method for detecting an account balance of miles l7 for a partner 204 in accordance with the preferred embodiment of the present invention.
1s When detecting the mileage account balance for a partner 204, the purpose is to ensure t9 that the number of miles does not fall below a minimum, guaranteeing that any awards zo the partner 204 provides will not be rejected. Therefore, the test is whether the account 1 balance is above a preset threshold.
The method begins in step 1002 with WebVliles and the partner 204 setting an ~3 account balance threshold below which they do not want the partner's balance to fall -'S-1 from one of a plurality of thresholds provided by the system 202a. This is preferably done upon creation or the partner account, however, the threshold could be modified by _ the partner 204 at any later time. After some indeterminate time after the parmer 204 sets 4 a minimum balance threshold in step 1002, the partner 204 will use the account in a _ normal and expected Fashion. Part of that usage is the awarding of miles to members 206, 6 and thus, requesting that miles be transferred to a member 206 in step 1004.
In the 7 preferred embodiment. the request is in the form of the processing of a batch the by the WM server 506. The batch tile has a plurality of miles transfer transactions from the 9 partner 204 to various memoers 206. In response to the request. the LV1,2 server 506 deducts miles from the partners account in step 1006. Then in step 1008. the WZVI server 11 506 credits miles to the member's account. In step 1010, the WIvI server 506 then 12 compares the balance of the partner's account to the threshold preset in step 1002. In step 13 1012, the method tests whether the partner's account balance is above the threshold. If 1~t so, the method is complete and ends. If partner's account balance is not above the threshold, the method proceeds to step 1014. In step 1014, the LVM server 506 extracts 16 the e-mail address, the account balance and the number of pending miles from the 17 database 512. The pending miles are a list of miles marked for transfer to a member's 18 account, but that have not been deducted from the partner's account. In essence, the 19 pending list provides the partner 204 with an indication of the number of miles that will ?o be deducted from their account in the near future. Finally, in step 1016, the WM server 21 506 uses the information from step 1014 and inserts it into a template for an e-mail and ''? sends the e-mail to the person at the partner company responsible for maintaining the 23 account of the partner. In an alternate embodiment, step 1016 could be replaced with the -z 6-1 automatic generation of the purchase of miles similar to the description for Fieure 9, but automatically generated and having pre-authorized purchase levels.
_ The second fctm of mile balance detection provided automatically by the mileage tracking and reward system ?02 is the accumulation of a pre-defined level of miles by a _ member 206. :~.utomatic account balance detection for members 206 tests whether their account balance is above a predefined threshold, thus entitling the member to an award, 7 or flee airline ticket. In an alternate embodiment, the account balance detection unit 706 s also provides account information to the earning notification unit i?0 for use in 9 suggesting ways of earning more miles to reach an award level. and provide bonus miles ;o for various behaviors. Figure l OB is a flowchart of a preferred method for detecting an 11 account balance of miles for a member 206 in accordance with the present invention. The 12 method begins in step 1050 with the mileage tracking and reward system 202 setting the 13 number of miles needed to exchange the miles for various rewards. One of the key to advantages of the loyalty system of the present invention is that it is structured to offer s simple and t~exible with rewards that are attractive and attainable. .-achieving mileage balances will inspire behavior modification in customers resulting in a successful and 17 profitable program. The sample rewards matrix shown in Table I is structured to entice 18 the consumer to respond and become a loyal customer in order to reach the redemption 19 levels as quickly as possible.
_»_ '~VebMiles Reward WebMiles Needed for Reward i Coach Business 1'' Class S 100 credit towards anv tliQht 8,000 -; I

Free round trio within .~8 connJuous25,000 ; - i -states or Canada . r From US f481 to MexicoiCentral 35,000 X0,000 ?0.000 America I

From AlaskaJHI to viexico; C :ribbearvCanada~ -10.000X5.000 -5.000 From L,TS-(501 to South America . 60,000 -5.000 95.000 ~

From Alaska,~Hawaii to Europe 60,000 100.000 120.000 ~

From US (501 to AsiaiSouth Pacific80,000 ~ 100.000150.000 i From US (50) to Australiar~wv 70,000 ~ 115.000150.000 Zealand ~

1 Table I
3 In an e~cemplarv embouiment. the mileage award levels from Table I are used as 3 the thresholds for award by the WM server 506. The Wivl server 506 can also use the -t award descri~nons from the Table I as text for generated messages as will be described below. Vext in step 105?. which is some indeterminate time after step 1050, a partner

5 204 requests the transfer of miles to a member 206. As described above, the WM server 7 506 deducts miles from the partner's account in step 1054. Then in step 1056, the WM
8 server 506 credits miles to the member's account. In step 1058, the WM
settler 506 then 9 compares the balance of the member's account to the thresholds set in step 1050. In step t0 1060, the method tests whether the balance of the member's account is above any of the t t thresholds. If not, the method is complete and ends. On the other hand, if the member's 12 account balance is above anv o f the thresholds, the method continues in step L 062. In 13 step 1062, the system 202 extracts the e-mail address and the account balance of the 1a member from the database 51'?. Then in step 1064, the WM server 506 retrieves from the database 512 a description of the free airline tickets for which the miles can be 16 exchanged. Further, the WI~t server 506 may use the advertising unit 714 to retrieve I advertising and other images that can be sent to the memoer 206 including possible use for the accrued miles. For example, the advertisements may be selected travel _ destinations, or hotels or other sen~ices at the destinations for which miles may be redeemed. Finally, in step 1066. the WM server X06 uses tree information from step 1062 _ ~; nd 1064 and inserts it into an template for an e-mail and sends the e-mail to the address

6 for the member ~'06. The e-mail preferably includes a nottncation to the member 206 that

7 enough miles for an award have been accrued, the account balance in miles, award g eli~ibilitv, advertisements. and information on how to redeem the miles for an award.
9 Those skilled in the art will recognize that various other forms of communication such as regular mail could be used in place of e-mail. In alternate embodiment. the method of I I Figure l OB could be modified to notify the members 206 when they are close to or within 12 pre-defined amounts of the ne~ct award level. This could be coupled with the presentation 13 of various behaviors, that if performed by the member 206 would put their mileage I:t account balance above the level needed for a particular reward.
Yet another feature of the present invention is that the mileage tracking and 16 reward system 202 includes a number of mechanisms to ensure that the transfers of miles 17 from partners 204'to member 206 are authorized by the party giving or awarding the 18 miles. Figures 1 1A and 11B show a preferred method for detecting fraudulent mileage 19 transfers in accordance with the present invention. The preterred method begins in step 10 1 102 of Figure 1 1A with the each partner 204 setting a maximum number of miles that 21 may be transferred in any one transaction. This is preferably set upon initialization as a 22 partner 204, but could be changed at any time. This information is preferably ?3 communicated to the mileage tracking and reward system 202, and stored in the database t ~ 12 in step 1104. .-~t some ume later, the method continues in step 1106 with the partner 204 sending a transaction tile to the w'M server X06. As noted above. the partner 204 _ transfers miles to several members 206 using a batch file that is sent to the WM server .t X06, which includes a number of transactions. Next in step 1108. V'1VI
server X06 _ determines the maximum oer transaction mileage transfer allowed by this partner 204.
6 This is preferably done by querying the database X12 using the parmer~s WebMiles 7 identification number. The method continues in step 1110 by aettina the next transaction g in the transaction tile. Then in step l 112, the ~VLt server X06 compares the number of miles being transterred in the transaction to the maximum determined in step 1108. If the to miles being transferred is greater than the maximum. the transfer is not processed, but 1 t instead the method performs step 1 114 and adds the transaction to a list of unprocessed 13 transactions, after which the method continues to step 1120 to test whether there are t3 additional transactions to process. If the number of miles being transferred is not greater t.t than the maximum, the method proceeds from step 1112 to step 1113. In step 1113, the 1 ~ method determines whether the transaction is a duplicate. T o prevent mistaken awards of t6 miles, the method of the present invention advantageously compares the transaction to the 17 existing transactions already processed. In one embodiment, this is performed by l8 comparing the transaction to the transactions in the list of pending transactions. In an 19 alternate embodiment, this is performed by both comparing the transaction to the transactions in the list of pending transactions and performing a query on the system t database ~ 12 to check for duplicate records. If the transaction is a duplicate, then the method proceeds to step 1114, and adds the transaction to the list of unprocessed ?3 transactions. If the transaction is not a duplicate, then the method continues in step 1116.

t In step 1116, the W~L server ~ 06 performs additional fraud detection on the transaction.
For example. the W\.1 server ~~36 checks to maker sure that ail required fields are in the _ transaction record. Those stilled in the art will recoenize that various other additional fraud detection steps could also be performed at this step. T hen in step 1118, the WI
server >06 adds the transaction t~ the list of pending transactions. \ext in step f 120, the 6 method test vahether there are additional transactions in the transaction pie that need to be 7 processed. If there are, the method loops back to step 1110 to process the remaining g transactions. If there are not. the method continues in step l 12'_' of Figure 1 1 B. The 9 present invention provides an additional security measure of keeping transaction in a pending list for a pre-determined about of time. This provides a window of time in which 1 l if a transaction is identified as fraudulent, then the transfer of miles can be prevented or 12 undone. In step 11 ~'_'. the transactions in the list of pending transactions are partially ?. processed. The transactions are preferably date stamped and logged in the list of pending to transactions. The miles for the transaction are debited from the partner's account by effectively placing a hold on the account for the number of miles in the pendinU list.
t5 Vext in step 1124, the miles in the pending list may be shown to both the partners 204 1~ and the members 206. Step 11?4 is completely optional and may be omitted or activated is only in response to an inquiw from a partner 204 or a member 206. In step I
1?6, the 19 transactions are delayed from further processing for a pre-determined amount of time. In '_0 the preferred embodiment, this pre-determined amount of time is set by the partner 204 1 and the WebMiles system 20?b such as thirty days. After 30 days from the date stamp '2 for the transaction provide in step 1122, step 1128 finishes processing of the pending list ?3 of transactions by debiting miles from the partner account and crediting the miles to the 1 member account identified in the transaction. Then in step i 130, the ~ZW
server X06 3 records the transaction in a transaction history log. This transaction history iog provides _ a full accounting of the disposition for all miles that have been transferred. The transaction history loa can aiso be reviewed later to prevent reoeat instances of fraudulent activities by members ~06 or partners 204. text in step 1 ? .:~2, the WM
server X06 6 retrieves the partner address and account balance from the database ~ 12.
Then in step 113.1. the method retrieves the list of all unprocessed transactions for the transaction file.
S Finally, in step i 1 36. the V'1~1 sender X06 generates and sends and e-mail notification to the partner 2u4 identifyinU any unprocessed transactions. Those skilled in the an will !o recognize that if the list of unprocessed transaction is empty, then step 11 ~?-1136 may be 11 omitted.
13 One aspect of the present invention is that many if not all the process step with the t3 system 200 may be performed electronically via the World Wide Web. One teature 1.t important to both partners 204 and members 206 alike is the ability to check the mileage 1 s in an account to ensure it is accurate and up to date. The present invention provides this 16 functionality with the W:VI server 506, the computer of the member ~r partner and a web 17 browser. The preferred process for providing this account information is shown in Figure 1 s 12. Figure 12 illustrates the preferred method for communicating with the system 202 of 19 the present invention to determine mileage account balance for a partner 204 or member .o '_'06. The method begins with the partner 204 or member 206 establishing a link with the t WM server X06 for account inquiry. Then in step 1204, the partner 204 or member 206 is identified and their password is verified. The WM server X06 next retrieves the account '_3 information from the database ~ 12 in step 1206. Then in step 1208, a web page is created t and the account information is inserted as part of the web page. Next tn step 1210, the mileage information tiom the pending list is retrieved. Then the web page is updated _ with the mileage tTOm the pending 1 ist determined in _step 1 ~ 10. In step 1 Z l4. the web page is downloaded from the ~t~I sender X06, througm a web sender X02 to the computer _ of the partner ?0~ or member ?06. Finally, all the account miormation can be viewed by 6 the requesting party at the partner 204 or member 206 site.
Figure 13 shows a preferred method for redeeming miles for travel awards in 3 accordance with the present invention. For the redemption process. in Darticular. it 9 should be understood that certain of the process steps may be performea manually in l0 person or by telephone, even though it is preferred that all the step be performed using 11 computers and the Internet. The method begins with the member 206 establishing 13 contact with a redemption a;ent ? 10. The redemption agent 210 then receives the 13 WebVIiles identification information from the member'_06. Then in step 1306. the 1.t redemption agent 210 verifies that the WebMiles identification information and the eligibility of the member 206. .-~s has been described above. the redemption agent ? 10 16 can connect to the WM server X06 and view the account status of the member 206. Then t7 in step 1308, the redemption agent 210 arranges travel for the member 206.
The t8 redemption aeent 210 must communicate with the member 206. Then in step 1310. the t9 redemption agent 210 generates a travel request record. The travel request record preferably includes the name, address, social security number, WebMiles user 't identification number, etc. The redemption agent 210 completes the travel request record and sends it to the Wi~l server X06. The AVM server X06 updates the member account to ~3 include travel and booking information so that it may be viewed on-line by the member l ?06. Text in step 1316. the WM server 506 deducts the miles from the member's account according to the award that is identified in the travel request record. Then the 'VM server _ X06 arranges ror payment of the redemption agent 210 such as through account credit, -t VISA, wire transfer or check. finally, in step 1320 the redemption agent secures airline _ ticket from airline ?OS and delivers the ticket to the member 206 or in the case of an electronic ticket, notifies the member 206 about the particulars of the ticket such as the electronic ticket identification number provided by the carrier. If a paper ticket was sent, g the tracking or reference number can be used to ensure that the member 206 receives the 9 ticket.
lo It is to be understood that the specific mechanisms and techniques that have been 11 described are merely illustrative of one application of the principles of the invention.
12 ~lumerous additional modifications may be made to the apparatus described above t3 without departing from the tme spirit of the invention.
1:l ~5 _=.t_

Claims (20)

WHAT IS CLAIMED IS:

1. A system for electronically awarding and redeeming loyalty units between a member a partner and a tracking and reward unit, the system comprising:
a member unit capable of being electronically coupled to the loyalty system for determining a number of loyalty units earned and redeeming the loyalty units for awards;
a partner unit capable of being electronically coupled to the loyalty system for purchasing loyalty units, providing information on distribution of loyalty units, and determining a number of loyalty units available: and a tracking and reward unit capable of being electronically coupled to the partner unit or the member unit for communication therewith, the tracking and reward unit maintaining accounts indicating a number of loyalty units associated with each partner unit and member unit, transferring loyalty units between accounts, redeeming the loyalty units for awards, and providing information to the partner units and the member units indicating number of loyalty units available and the number of loyalty units earned.

2. The system of claim 1 wherein the loyalty units are generic frequent flyer miles.

3. The system of claim 1 wherein the loyalty units may be redeemed for a ticket on any airline, anywhere in the world at any time.

4. The system of claim 1 wherein the tracking and reward unit further comprises:

a web server for communicating over an Internet, the web server sending and receiving web pages and data;
a database sever and a disk array for storing, retrieving and maintaining accounts indicating a number of loyalty units associated with each partner unit and member unit; and an application sender coupled to the web server and the database server fro the application server transferring loyalty units between accounts redeeming the loyalty units for awards, and providing information to the partner units and the member units indicating number of loyalty units available and the number of loyalty units earned.

5. The system of claim 4 wherein the application server further comprises a mileage transfer unit, the mileage transfer unit controlling the application server to cooperate with the database sever and the disk array for the electronic transfer of loyalty units between accounts.

6. The system of claim 4 wherein the application server further comprises an account information unit, the account information unit controlling the application server to cooperate with the web server, the database sever and the disk array for the electronic retrieval of account information, history and status and for transfer of that information to a requesting partner unit or member unit via the web server.

7. The system of claim 4 wherein the application server further comprises a fraud detection unit the fraud detection unit controlling the application server to cooperate with web server, the database sever and the disk array for electronically verifying the tracking and reward unit transfers, and detecting and nullifying fraudulent transfers.

8. The system of claim 4 wherein the application server further comprises an automatic notice generation unit the automatic notice generation unit controlling the application sender to cooperate with the web server, the database sever and the disk array for the automatic generation and transmission of notification of mileage balance levels, and the availability of awards for redemption.

9. The system of claim 4 wherein the application server further comprises a redemption unit the redemption unit controlling the application server to cooperate with the web server the database sever and the disk array and a redemption agent for the automatic generation and delivery of awards, and the transfer of miles for redemption.

10. A method for operation of a loyalty program for providing, awarding and redeeming generic miles, the method comprising the steps of:
purchasing miles from a mileage tracking and reward system by a partner;
distributing miles by a partner to a member;
updating a member account by the mileage tracking and reward system to reflect the distributed miles;

determining whether a member account has sufficient miles to be eligible to redeem them for an award;
if the member has sufficient miles to redeem them for an award, then receiving information from the member as to the award. purchasing the award for the member. and delivering information that sufficient for the member to redeem the award: and wherein the steps of distributing, updating and determining are performed via electronic communication between the mileage tracking and reward system the partner and the member.

11. The method of claim 10, wherein the step of purchasing miles is performed prior to the distributing step.

12. The method of claim 11, wherein the miles are purchased in bulk and in predefined amounts.

13. The method of claim 10, wherein the step of purchasing miles includes the step of establishing an account of miles with the mileage tracking and reward system.

14. The method of claim 10, wherein the step of purchasing miles includes the steps of:
establishing a link between the mileage tracking and reward system and a partner;
sending a request from the partner to the mileage tracking and reward system for more miles;

selecting one of a plurality of pre-defined amounts of miles by the parmer;
determining a price for the selected amount of miles:
paying the mileage tracking and reward system by the partner for the miles;
and crediting the account of the partner with the selected amount of miles.

15. The method of claim 10, wherein the step of distributive miles includes the step of awarding miles for the performance of a desired behavior by a member.

l6. The method of claim 15, wherein the desired behavior by a member is one from the group of reading articles, sending e-mail, performing click-throughs purchasing subscriptions renewals, ordering product information placing an ad on home page, referring merchants, referring friends, purchasing products, purchasing services, entering contests or sweepstakes, registering software or products, completing surveys, downloading software, accepting web browser cookies, joining clubs participating in chat groups, rewarding a preference bookmark rewarding a preference home page, and purchasing gird certificates.

17. The method of claim 15, wherein the desired behavior by a member is one from the group of reading an on-line employee manual completing surveys taking classes on-line, reading articles, taking tests, completing reports, conducting on-line interviews, conducting on-line chat sessions, conducting company evaluations, performing routine tasks, writing government on industry issues, contributing to employer-sponsored charities, and reading company memos.

18. The method of claim 10, wherein the step of updating a member account further comprises the steps of:
determining an account balance for the updated member account:
comparing the account balance to balance thresholds for an award; and notifying the member that the member has sufficient miles that can be redeemed for the award.

19. The method of claim 18, wherein the step of notifying the member that the member has sufficient miles further comprises the steps of:
extracting member address and account balance from the mileage tracking and reward system;
retrieving advertising information from the mileage tracking and reward system;
generating and sending an e-mail to the member using the member address and account balance from the extracting step and the advertising information from the retrieving step.

20. The method of claim 10, wherein the step of receiving information from the member is receiving a request for an airline ticket and provides a destination travel times and carrier; wherein the step of purchasing the award for the member is the purchase of an airline ticket; and wherein the step of delivering information that sufficient for the member to redeem the award comprises providing an electronic ticket number and flight and airline information.