Australians saved an estimated $3.5B in the past year by redeeming airline loyalty points, with many planning a “cash-free Christmas” as cost-of-living pressures rise. Members hold 783B unused points worth nearly $2B, and average savings reached $400. Retail redemptions are growing, led by Gen Z, as points increasingly support everyday budgets, not just travel.
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Virgin Australia04 December 2025
A new research from Velocity Frequent Flyer and YouGov highights that Australians have saved an estimated $3.5 billion over the past year by cashing in their airline loyalty points.
With the festive season approaching and household budgets tightening, the study shows that nearly half of Australiansare planning to use their frequent flyer points to help fund Christmas shopping, travel or everyday items. As living costs rise, loyalty points are fast becoming a practical money-saving tool rather than just a travel perk.
Across the country, airline loyalty members collectively hold close to 783 billion unused points, representing almost $2 billion in potential value. On average, Australians are sitting on about 58,000 points each—rewards that many have forgotten to redeem.
The first Velocity Points Pulse Report reveals that 55% of Australians feel more financially pressured than they did a year ago, and 40% say they are struggling to afford daily necessities. As a result, millions are preparing for a “cash-free Christmas” by relying on their points balances.
Over the past 12 months, Australians who redeemed loyalty points tapped into an average of $400 in savings, adding up to an estimated $3.5 billion nationwide. Nearly three-quarters of frequent flyer members redeemed at least $100worth of value, showing how rewards are increasingly supporting everyday budgets.
Velocity Frequent Flyer has also seen a surge in retail redemptions since expanding its in-store partnership with Myer, with products like air fryers, coffee machines, luggage and headphones becoming popular choices.
Younger generations are driving this shift even further:
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79% of Gen Z plan to use points for shopping
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83% expect to redeem them for travel
Velocity Frequent Flyer CEO Nick Rohrlach says the findings show a significant change in how Australians use reward programs.
“Members aren’t just saving for flights anymore—there’s been a 40% increase in earning through non-air partners, meaning everyday spending is now turning into Christmas presents,” Rohrlach said. “As cost-of-living pressures grow, points are becoming a meaningful part of how many Australians manage their finances.”
Velocity encourages members to check their balances and make use of unredeemed rewards, noting that timely redemptions can meaningfully offset seasonal spending.
For tips on maximising Velocity Points, visit velocityfrequentflyer.com.
Source: Velocity Frequent Flyer
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