Does the new Velocity rewards program offer provide value for money?
In a reversal of the norm, members of the Velocity rewards program can now use their points to fill up with fuel, but does the new scheme offer value for money?
Velocity members have previously been able to earn point on their purchases at BP fuel station but in a move that is the first of its kind, points can now be redeemed to pay for fuel at participating BP fuel stations.
To be able to redeem points, Velocity members must:
- have an active account (temporary cards are not accepted)
- have a PIN set for their Velocity card
- set the Pay with points instore redemption option on their account, and
- have enough points in their account to cover their chosen redemption.
Points can be redeemed at a rate of 1667 points for $10 credit, to a maximum of 10,000 points for $60 credit.
So, is this value for money?
Well, firstly let’s look at what it takes to earn these points. To earn enough points for $10 credit, you would have to fill up with 866.5 litres of fuel (two points earned for every litre of fuel purchased. At an average of $1.20 per litre, that's $1039.80 to be able to redeem the $10 credit.
Or if you fly with Virgin Australia, a return flight between Melbourne and Sydney will earn you approximately 1870 points (935 each way), so you will have enough for a $10 credit with a little left over.
So, where would 10,000 points take you if you redeem on a Virgin Australia flight?
Not very far. It takes 11,110 points to fly between Melbourne and Sydney on a Saturday or 7800 + $21.11. On the plus side, it will get you further than filling up your car and driving!
OK, so the comparison may be a little unfair and by all means, if you have Velocity points on your account doing nothing, it might be nice to not have to pay for your fuel for once.
If you’re interested in finding our more, visit Velocityfrequentflyer.com
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