Members of Virgin Australia’s frequent-flyer business, Velocity, will soon be able to trade points for petrol and snacks from BP service stations around the nation.
The Australian-first initiative will kick off next week and allow Velocity’s six million members to redeem between $10 and $60 off their fuel and in-store purchases at participating BP service stations.
The redemption offer will see 1667 Velocity points converted to $10.
BP general manager of marketing & offer development Adam Arnold said the new offer would redefine how Australians — who on average spend about $60 a week at the petrol pump — think about how they refuel.
“The cost of fuel is a significant household expense, and we want to help reduce the impact on household budgets by opening up more ways to pay, thanks to our partnership with Velocity Frequent Flyer,” he said.
Velocity Frequent Flyer chief Karl Schuster said the offer would reward the many Australians who drove more than they flew.
“We know some members drive much more than they fly, so this gives them an alternative way to use their points that will ease the pressure on their wallet,” he said.
“Nearly one million unique members have swiped their Velocity card at BP since the launch of our partnership in April 2015 and we are excited about how this new initiative will ensure the partnership continues to go from strength to strength.”
The deal expands on Velocity’s partnership with oil giant BP that currently allows members of the frequent flyer program to earn two points for every litre of petrol they purchase from BP service stations.
The alliance has helped to increase Velocity’s membership by between 40,000 and 50,000 new sign-ups a week.
Velocity remains an important revenue generator for Virgin. In the six months to December 31, its six million members helped to pull in $155m in revenue for Virgin or about 6 per cent of its total revenue base.
It is a similar story at Qantas, where in the same period its frequent flyer program — which boasts more than 11.2 million members — contributed $734m in revenue or about 9 per cent of its total income.
Extracted in full from The Australian.