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Virgin Australia’s 6.4 million Velocity frequent flyer members will be able to earn points and status credits from their supermarket shopping from today after the program linked up with the flybuys loyalty scheme.
In broad terms, the Velocity-flybuys partnership mirrors the one between Qantas and the Woolworths Rewards scheme, with shoppers earning points from purchases such as groceries and alcohol which can be converted to frequent flyer points.
One difference though is the ability to earn status credits – which determine a member’s eligibility for silver, gold or platinum tiers in the Velocity frequent flyer program – from the Velocity-flybuys partnership.
Velocity chief executive Karl Schuster said this was the only way a member of Virgin’s frequent flyer program could earn status credits outside of flying.
“Velocity and flybuys have created an unrivalled proposition in the Australian market by providing the opportunity for members to earn status credits when they do their grocery or liquor shopping and present their flybuys card, which we know is extremely valuable to our members,” Schuster said in a statement on Thursday.
Under the scheme, every $100 spent at Coles supermarkets, Coles online, Liquorland and First Choice Liquor every calendar month will earn one status credit, up to a maximum of 10 status credits per calendar month.
Therefore those looking to secure a shiny silver, gold or platinum Velocity card will still need to take to the skies – it takes 250 status credits and two eligible Virgin flights to reach silver.
As far as points are concerned, it is perhaps no surprise that the earning rates for both Velocity-flybuys and Qantas-Woolworths are identical.
That is, transferring 2,000 flybuys points will net 870 Velocity points. There is an annual transfer limit of 138,000 flybuys points, which represents 60,030 Velocity points.
Similarly, 2,000 Woolworths Rewards points equals 870 Qantas frequent flyer points.
Members have to link their Velocity account to flybuys, which has about 27 points-earning partners, to participate in the scheme.
The general manager of flybuys Adam Story said the ability to transfer flybuys points to Velocity frequent flyer points gave its members the ability to redeem their points for flights.
“Right now, flybuys members have enough points to transfer to Velocity Frequent Flyer and redeem millions of flights with Virgin Australia,” Story said.
flybuys also has an existing partnership with Virgin shareholder and alliance partner Etihad Airways.
Woolworths cut ties with Qantas in 2015 as part of efforts to revamp its Woolworth’s Rewards scheme. However, the supermarket giant re-established links with Qantas earlier in 2016 in response to a customer backlash and a lukewarm reception to its new Rewards scheme.
Thursday’s announcement means Australia’s two largest airlines have now linked up with the nation’s two biggest supermarket chains.
Red Barron
says:Ooh this now has me looking at Changing over from qantas to virgin.
Ben
says:Well done VA, a move LONG overdue ever since QF moved in with Woolies.
Anyone who knows about FF schemes knows the points are nice for reward flights, but the perks are really in STATUS. If QF/Woolies doesn’t respond many who understand the perks of status will switch to Coles/VA.
Your move Woolies/QF.
A Yamyukoltorn
says:Totes agree , I prefer VA.
BANKS
says:In my opinion, VA has the best domestic FF program compared to Qantas.
However, leave the country and Virgin really drop the ball. Because they’re not a member of Star Alliance almost all the status perks drop off either completely or to a very limited level which as a platinum level member really REALLY gets to me when i travel internationally…
HMFERN
says:I’m VA plat and have been for half a dozen years. I usually accrue 1100-1300 status credits per year. I too think VA is the best program and airline. The FlyBuys tie up is the correct and necessary move, BUT I have to say the Status Credits component is a HUGE mistake. Points use to only be earnt by flying (ie: loyalty) until the schemes diversified into points for anything. Airlines then came up with Status as the new way or measuring loyalty to the airline and doing actual flying. I don’t know of any other airline doing this, but VA has just gone and become the (?)first airline to junk this concept.
When they (or other airlines now) expand ‘Status Credits’ to other non-flying products (as they will), do they then come out with a new loyalty product (Loyalty Credits) that I have to collect for actual flying? Now that status doesn’t require actual flying and there will be an increase in ‘loyalty members’ (certainly in the lowest silver tier), does that mean there will be an ‘adjustment’ or ‘review’ of their status product inevitably meaning an increase in the number of credits (and usually a decrease in the perks) required for each tier?
This is a degrading of the product and was completely unrequired. The tie up with FlyBuys was sufficient. The status component looks like a silly add on or ‘media grab’ that wasn’t thought through. What’s the use of being loyal to an AIRline (or group), or being platinum, or gold or even silver if you just become another number. This looks like just another way the FF component of the airline can make money (ie: selling status credits to FB/Coles instead of just points) and boost its bottom line. I’m not sure what it achieves for VA other than peeving off the customers that are loyal and actually fly it.
Craigy
says:This is interesting development but I don’t see Qantas following. I think there is a difference between point accumulation vs status credit point accumulation. I believe status credit points should be accrued through flights. rather than how much you spend at the supermarket.
The reality is people will look at each program and will support the one that best supports them