Aussies Get The Point Of Using Points To Shop

As household budgets tighten and the festive season approaches, 55 per cent of Aussies feel more financially stretched than this time last year, with four in 10 (40 per cent) struggling to afford everyday essentials, the report adds.

The inaugural Velocity Points Pulse Report, conducted in partnership with YouGov, shows that nearly half of Australians (49 per cent) intend to use their frequent flyer points to help cover Christmas shopping, travel and everyday expenses – transforming Points from a “nice to have” into a practical budgeting tool.

And Aussies have plenty to work with. 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.

That’s believed to be roughly the equivalent of $1.9 billion in potential savings waiting to be used on flights, gifts, groceries and more.

In the past 12 months alone, members of airline loyalty programs who redeemed their points unlocked an average of $400 in value, totalling what is believed to be an estimate of $3.5 billion in savings.

Nearly three in four members (73 per cent) redeemed $100 or more – turning points into real purchasing power.

Since expanding its partnership with Myer to allow members to redeem Velocity Points in-store, Velocity Frequent Flyer has seen a surge in members using their Points on everyday retail purchases, with air fryers, coffee machines, blenders, suitcases and headphones among the most popular items.

The research also found it’s younger Australians leading the way, with Gen Z and Millennials using Points as a clever budgeting strategy:

# 79 per cent of Gen Z plan to use their points for shopping

# 83 per cent are planning to redeem points for travel rewards

Nick Rohrlach, Velocity Frequent Flyer CEO, said the new report highlights a major shift in how Australians think about loyalty programs.

“Members are no longer just thinking about flights – a 40% surge in members earning through non-air partners shows Aussies are turning everyday spending into Christmas gifts,” said Mr Rohrlach.

“With cost-of-living pressures impacting households, Points are becoming an important part of how Australians manage their spending, especially in the lead up to Christmas.

“Checking your balance, reviewing unredeemed rewards and planning ahead can make a real difference.”

www.velocityfrequentflyer.com.