Virgin Australia recently launched a promotion for members of its Velocity Frequent Flyer program. From November till January next year, members who transfer their credit card reward points to their Velocity account will earn 20% bonus Velocity points, which can be used for flight redemptions and seat upgrades.
But how popular are airline loyalty programs in Australia? What perks and privileges do travellers find most attractive – and how does this vary demographically? Crucially, to what extent does loyalty membership with an airline guide how Australians choose their flight bookings?
In this article, we dive deep into YouGov’s latest study on frequent flyer programs – and distill key insights on the consumer popularity, interest and influence of airline loyalty programmes in Australia.
How popular are airline loyalty programs with travellers from Australia?
Latest YouGov Surveys research shows that about three-fifths (59%) of Australian consumers are a member of at least one airline loyalty program.
About one in three (32%) are members of Qantas Frequent Flyer – by far the most popular airline loyalty club – followed, at a distance, by Virgin Australia’s Velocity Frequent Flyer (10%).
Emirates Skywards and Singapore Airlines / Scoot KrisFlyer (both 7%) are the most popular foreign airline loyalty programs, just ahead of Air New Zealand Airpoints (6%) and Qatar Airways Privilege Club (5%).
Which airline loyalty program perks do Australian travellers find most appealing?
When asked about the top two benefits they most appreciate about being an airline loyalty club member, close to half (47%) highlight being able to redeem their miles for discounted / free flights as a top perk.
About one in three (32%) value seat upgrades as a top advantage followed by airport lounge access, at one in four (25%) – rounding up the three most popular perks.
Cost-saving deals on retail purchases (17%), additional luggage allowance (17%) and hotel bookings (14%) are next most popular, ahead of priority boarding (13%) and dedicated customer service (7%).
While the relative popularity of various perks is consistent across genders, women are significantly more likely than men to prize redeeming miles for discounted / free flights (50% vs 44%) and retail purchases (19% vs 15%), while men are significantly more likely than women to prize hotel deals (16% vs 13%) and priority boarding (17% vs 9%).
Across different generations of airline loyalty club members, getting discounts / redemptions on flight tickets is the most popular perk. But, compared to other birth cohorts, Gen Z members are significantly more likely to prize additional luggage allowance (23%) and hotel deals (22%). On the other hand, airport lounge access is significantly more prized by Millennials (30%) while seat upgrades are significantly more prized by Baby Boomers (30%).
To what extent does airline loyalty membership guide the flight booking choices of travellers from Australia?
When airline loyalty program members were asked how they typically decide on international flight bookings, over two in five (44%) say they start off by searching among airlines where they are a loyalty member – with 13% saying they will typically choose between flights offered by such airlines only.
One in five (20%) say they will first search for flights that fit their travel schedule, before using loyalty membership to decide between the suitable options.
However, 30% say their airline loyalty program memberships have no influence on which international flight tickets they book.
Additionally, men are significantly more likely than women to prioritise airlines where they are a loyalty member at the outset of their search for international flight tickets (50% vs 37%).
Across generations, Millennials are most likely than other birth cohorts to start of their flight ticket search based on loyalty membership (58%), while Baby Boomers are least likely to (28%).
Notably, more than a third of Gen X (36%) and over two-fifths of Baby Boomers (42%) say that their airline loyalty memberships have no influence on the international flight tickets they ultimately book.
This article is part of a deep dive series exploring key insights on the popularity, interest and influence of travel loyalty programs in the airline and hospitality sectors. Read our companion articles in the series below:
➤ Airline loyalty programs: what perks most attract Singaporeans & do they influence flight bookings?
➤ Hotel loyalty programs: what perks most attract Australians & do they guide accommodation choices?
➤ Hotel loyalty programs: what perks most attract Singaporeans & do they guide accommodation choices?
Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online in November 2023, with a national sample of 1,052 Australian residents, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender and region to be representative of all adults residing in Australia (18 years or older) and reflect the latest Australian Bureau of Statistics (ABS) population estimates. Learn more about YouGov Surveys: Serviced.
