Huge shift in way Aussies are choosing to spend frequent flyer points
Aussies have become obsessed with collecting frequent flyer points and rather than spending them on flights, cost-of-living pressures changed how they use them.
When it comes to frequent flyer points, it’s generally advised to use points on airfares as you tend to get more bang for your buck.
However, according to a recent report from YouGov and Velocity Frequent Flyer, the loyalty program for Virgin Australia, the way Aussies are choosing to use their points has shifted.
The inaugural Velocity Points Pulse report revealed more than half of Aussies surveyed (55 per cent) feel more financially stretched than this time last year, with four in 10 (40 per cent) struggling to afford everyday essentials.
As such, nearly half of Aussie Velocity loyalty members are now turning to their airline points to help cover everyday items and travel this Christmas.
“Financial pressure is definitely influencing how people choose to use their airline loyalty
points,” Virgin Australia’s Velocity chief executive Nick Rohrlach told news.com.au.
“Household budgets are tightening, and Australians are becoming far more intentional
about maximising the value of their loyalty programs.”
According to the research, the average airline loyalty member has built up an estimated 58,000 points, contributing to a national total of almost 783 billion in unredeemed points.
“People tend to save their points for the right moment, often a big trip or special occasion,
which is why so many have built up sizeable points balances,” Mr Rohrlach explained.
“What many don’t realise is that they’re sitting on a goldmine of value that can make a real difference, from holiday flights to everyday retail purchases.”
Mr Rohrlach said cost of living is very much influencing how Velocity members choose to use their points.
“While flights continue to offer great value, we’re seeing more and more members use their Velocity Points to redeem everyday items and gifts, especially in the lead up to Christmas,” he said.
“We’ve also seen a significant shift in how members earn points, with a 40 per cent increase in members earning through non-air partners like Coles, Bunnings, Officeworks through Flybuys or topping up the car at 7-Eleven.
“And with our recent Myer announcement, more members are shopping in-store with their Velocity Points and redeeming them on bigger household items and Christmas gifts.”
Mr Rohrlach said for Aussies sitting on a bunch of points who don’t fly often, should consider using them on every day items to help ease financial pressures.
“Using points on everyday items is a practical way to ease cost-of-living pressures, and our members have the flexibility to use their Velocity points in a way that works best for them,” he said.
“Members can redeem points in-store and online at Myer, through the Velocity Rewards Store and now with ‘me & u’, allowing them to use points to help cover the bill at thousands of restaurant and dining venues across Australia.”
He added that value is “really in the eye of the member”.
“We are more than just an airline loyalty program, given the myriad of ways we offer members to earn and redeem Points on the ground, not just in the air. And the data speaks to that. We’ve had a 40 per cent increase in members redeeming points for everyday items at partners like Myer,” he said.
In September, Virgin announced Velocity members can now use their points to pay in-store at Myer.
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Previously, points could only be redeemed online, but members can now use their points across all 56 of Myer’s physical stores nationwide.
”Our data shows that air fryers, coffee machines, blenders and headphones are currently
among the most redeemed items, all great picks for Christmas gifting,” Mr Rohrlach said.
