Rex Flyer to go up against Qantas Frequent Flyer, Velocity schemes

There’s more competition in the airline loyalty market that promises to make it much easier to land a free plane seat.

Rex is weighing into the busy loyalty space with its own program to reward frequent flyers.

Signing up to Rex Flyer is free, and will earn an immediate 5000 points if done so before January 2, 2024, with members then able to earn seven points for every dollar spent on flights with the airline.

Redemptions will be available from mid-November, including on unsold seats 48-hours before travel.

The number of points required for a reward seat will start from 6900, plus taxes and airline charges. Upgrades will start at 4300 points on flex fares, rising to 13,000 for promo fares.

Rex deputy chairman John Sharp said they were pleased to be able to reward passengers for the loyalty shown over many years.

“The program with its superior benefits means we can at last reward passengers for the loyalty they’ve shown up over many years as we have fought hard, often against impossible odds, to provide them with safe, affordable and reliable services,” Mr Sharp said.

Loyalty program expert Adele Eliseo from the Champagne Mile, said it was a good time for Rex to be launching its own frequent flyer program.

“The events of the past few months with Qantas are perhaps making people start to question their loyalty and look for other options,” said Ms Eliseo.

“There are still great benefits to being a member of Qantas frequent flyers and Virgin Australia Velocity but diversification is key. Certainly having another player enter the arena is welcome for all travellers.”

On expert says the simplicity of Rex’s program is a plus. Picture: Chris Kidd

She said the simplicity of Rex’s program was a plus with points only able to be earned through the purchase of flights and ancillary items, and redeemed on flights and upgrades.

But that could also work against Rex, when their competitors had “tentacles in all areas of consumer spending”.

“Obviously Rex are limited in what they can offer as part of their scheme because they don’t have an international network or long haul flights and they don’t have a number of global airline partners like Qantas and Virgin do,” Ms Eliseo said.

“They’re looking to make domestic flights as accessible as possible which is welcome in the current climate where travellers are frustrated that they’re struggling to use their points.”

Executive Traveller editor-in-chief David Flynn said Rex was addressing a “definite handicap” in the domestic airline space, after launching major city services in 2021 without a frequent flyer program.

He said the arrival of Rex Flyer would help the “country challenger level up against its big city rivals”.

Rex is the first Australian airline to adopt revenue-based points earning, which has become increasingly popular with overseas carriers including American Airlines, British Airways, Finnair, Lufthansa and United,” Mr Flynn said.

“This points-per-dollar system is simple, transparent and rewards travellers who spend the most.”

The four-tier approach being adopted by Rex would “line up against” the status levels of Qantas and Velocity, he said.

Opal was the entry level tier, followed by Sapphire, Emerald and Diamond with more benefits coming with each step up.

“Free business class upgrades and fly-ahead options are standout features at the Emerald and Diamond tiers, which line up against the Silver and Gold tiers of Qantas and Velocity,” said Mr Flynn.

As part of its loyalty program roll out, Rex was starting construction on new airport lounges at Sydney, Melbourne, Brisbane and Adelaide airports.

Ms Eliseo said regional travellers stood the gain the most from the loyalty scheme, earning points and status credits through flights they could only take with Rex.

“It’s going to take time to build up a membership base but I’m interested to see what kinds of partnerships they pursue in the financial services space, insurance and shopping,” she said.

Originally published as Rex Flyer to go up against Qantas Frequent Flyer, Velocity schemes