Travelocity has signed an exclusive agreement with reward-management portal to develop “Book with Points,” a new product that lets loyalty-program members use miles and points from their various reward programs to directly book travel services.

With this product, Points International is set to tap the estimated $15 billion North American/European reward travel industry.

“Book with Points” will allow loyalty program members access to Travelocity’s online booking engine. They will use points or miles to book and purchase the travel reward, exactly as if they were purchasing their travel with cash rather than loyalty points and miles.

On launching ‘Book with Points’ to mutual customers, Richard Harris, senior vice president, strategy and distribution, Travelocity said the Book with Points product will be available both on the consumer portal and as a stand-alone, branded product for individual loyalty program operators.

The companies expect to have the product operational on the portal in the fourth quarter of 2006. The product, fully supported by Travelocity’s customer service, will initially focus on hotels and broaden over time.

Christopher Barnard, president, Points International said Travelocity’ access to travel packages, hotel rooms, car rentals and airline seats is phenomenal.

“The most significant challenge that our loyalty program partners around the world face, as they grow their successful enterprises, is providing access to rewards for their best customers,” said Rob MacLean, Points International’s chief executive officer. “While millions of flights, hotel nights and other rewards are provided every year, there continues to be demand for even more access and availability. Our agreement with Travelocity is uniquely positioned to help loyalty programs finally follow through on the ‘any award, any time’ travel promise, and to do so using our two companies’ world-leading technologies.”