New research released by Velocity Frequent Flyer and YouGov has revealed that a growing number of Australians are planning a ‘cashless Christmas’, with almost half of all respondents (49 per cent) saying they will redeem airline frequent flyer points to cover holiday spending.
The inaugural Velocity Points Pulse Report found that amid rising cost-of-living pressures, more than 55 per cent of Australians feel more financially stretched than they did at the same time last year, and 40 per cent are struggling to afford everyday essentials.
In response, many are turning to points as a budgeting tool, unlocking value that can be used for gifts, groceries, flights and more.
$3.5 billion saved in the past year through points redemption
Australians are sitting on a collective treasure trove of almost 783 billion unredeemed points — equivalent to an estimated $1.9 billion in value. In the past 12 months alone, members of airline loyalty programs who redeemed their points unlocked an average of $400 in value, resulting in estimated savings of $3.5 billion across the nation.
The report also found that 73 per cent of members redeemed more than $100 worth of points in the past year, proving that points are no longer just about flights — they’re becoming an essential part of everyday spending.
Since expanding its partnership with Myer to allow in-store redemptions, Velocity Frequent Flyer has seen a rise in members using points on popular retail items like air fryers, suitcases, headphones and kitchen appliances.
Younger Aussies leading the loyalty charge
Gen Z and Millennials are embracing points with fresh enthusiasm, not only for travel but also as a way to manage everyday expenses:
- 79 per cent of Gen Z plan to use their points for Christmas shopping
- 83 per cent of Gen Z are redeeming for travel rewards
Velocity Frequent Flyer CEO Nick Rohrlach said the findings show a significant shift in how Australians view loyalty programs.
“Members are no longer just thinking about flights – a 40 per cent surge in members earning through non-air partners shows Aussies are turning everyday spending into Christmas gifts,” he said.
“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.”
Almost $2 billion in value still waiting to be redeemed
With the average loyalty member holding around 58,000 points, Australians are encouraged to check their balances, explore redemption options, and use their points to get more out of the festive season — whether it’s for gifts under the tree or a well-earned holiday escape.
