Earn Airline Miles Without a Credit Card | rove

Maximizing Airline Miles: The Rise of Rove

During a year of international study, Max Morganroth visited 30 countries, frequently traveling in business and first class. This extensive travel was largely financed by strategically accumulated airline points, obtained through careful credit card applications and rewards redemption.

The Demand for Travel Hacking

Morganroth shared with TechCrunch that he was consistently approached by acquaintances seeking guidance on acquiring free flights via airline mileage programs – a practice he terms “travel hacking.” However, many individuals within his network, even those at Wharton, were either ineligible for premium airline credit cards or lacked the necessary time to optimize their mileage conversions.

Airline Rewards Programs as Revenue Streams

Frequent flyer programs have evolved into substantial income sources for airlines through credit card marketing and fee sharing with banks. Nevertheless, Morganroth points out that approximately 70 million Americans lack the credit history required to participate in these reward systems.

A New Model Inspired by Hong Kong

Morganroth’s travels led him to observe a different approach in Hong Kong, where airline miles are readily earned without credit cards. “Miles are essentially a secondary currency there,” he explained. “Purchasing even a bottle of water at 7-Eleven earns you Asia Miles. Savings accounts offer both cash interest and mileage rewards, and properties can even be sold for a combination of cash and miles.”

Identifying a Market Opportunity

Recognizing a gap in the market, Morganroth envisioned a program mirroring Asia Miles, enabling consumers to accumulate miles across various airlines through everyday purchases. He proposed to airlines that this would allow them to reach a broader consumer base, particularly Generation Z, a demographic keen on travel but often lacking established credit.

The Founding of Rove

Following graduation, 22-year-old Morganroth partnered with Arhan Chhabra, a Harvard alumnus, to establish Rove, a startup positioning itself as the first universal mile loyalty program.

Distinguishing Rove from Existing Programs

While not entirely unique – American Express offers multi-airline redemption, and platforms like Expedia provide points usable across multiple carriers – comprehensive multi-airline programs remain uncommon.

Global Partnerships and Funding

Rove participated in Y Combinator’s winter 2024 program and subsequently secured partnerships with the mileage programs of 11 airlines, including Air France-KLM, Aeromexico, Finnair, and Qatar Airways, through international travel.

These partnerships, traditionally reserved for major bank credit card issuers, facilitated Rove’s successful fundraising of $2 million from investors such as YC, General Catalyst, and Soma Capital.

Expanding Access to Airline Miles

Morganroth asserts that Rove’s loyalty program empowers airlines to extend the benefits of mileage rewards to a significantly larger consumer pool.

A New Revenue Model: Affiliate Marketing

Instead of relying on fee-sharing with credit cards, Rove generates revenue through affiliate marketing with over 7,000 merchants via its Google Chrome shopping extension. This model resembles that of Honey and Rakuten.

The Value of Points and Miles

Morganroth emphasizes that points earned through shopping can be converted into airline miles, which generally hold greater value than their equivalent in cash.

Additional Rewards: Hotel Bookings

Rove also provides miles for hotel reservations.

Maximizing Value Through Hotel Commissions

According to Morganroth, points earned from a $1,000 hotel stay could potentially cover a round-trip flight to Europe. This is particularly advantageous with nonrefundable bookings, as hotels often share up to 40% of sales as commission, all of which Rove passes on to the user in the form of miles.

Combining Rewards for Optimal Benefits

Users can consolidate Rove miles earned from hotel bookings with those from the shopping extension and existing credit card miles, if applicable.

Simplified Mileage Accumulation

While the system may appear complex, Morganroth assures users that earning miles through Rove is simple: book hotels on the platform or shop using the Rove Chrome extension.

Finding the Best Award Flight Deals

Rove’s travel portal assists users in locating the most advantageous award flight options. Furthermore, despite direct partnerships with only 11 airlines, Rove users can access award travel on approximately 140 carriers due to the frequent possibility of transferring miles between airline companies and their regional affiliates.

Targeting the Gen Z Demographic

Rove is accessible to all, but Morganroth believes it holds particular appeal for young adults.

“Gen Z exhibits a stronger desire to travel than any other generation, yet they face the greatest barriers to accessing affordable travel options,” he stated. “They no longer need to wait until they are 28, establish five years of credit history, and pay a $700 annual fee for a rewards card; they can simply download a Chrome extension, conduct their travel bookings through our platform, and immediately begin accumulating rewards.”