Why Transfer Flybuys to Velocity Points?

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Flybuys

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  melbourne guy on 13/03/2022 - 21:39

  +1

  If you want to fly with Virgin Australia or their partners, it may be worth converting to save money on flights. Otherwise just keep your points in Flybuys.

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  pandadude on 13/03/2022 - 22:03

  +1

  The only reason to transfer flybuys to Velocity is if your just short by a few hundred points for a business class redemption. You need to have a good idea what flight you want. No point is just transferring for fun.

  Other than that generally speaking it make more sense to use the flybuys points in flybuys.

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  markathome on 14/03/2022 - 08:03

  +1

  I have a different take but the same conclusion. I quite like the Virgin airline and its points programme Velocity. Recently, with $79 to Sydney and $69 to Adelaide from Melbourne, there's little value in economy rewards unless you require ultimate flexibility (rewards cancel to a complete refund; cash cancels to a 12-month credit).

  One example of where I used points was to fly to Perth. Here, Mark McGowan has a habit of closing the borders willy-nilly, so the flexibility is useful and, with no free catering in economy, the business product is a significant draw.

  The reason to transfer to Velocity is if the bonuses on transfers make it worth it. These bonuses vary every month and, as a rule, I never convert all my points at once (usually 2000 or so). One reason not to transfer your points is the financial stability of the company: I tend to view Coles as the stronger company of the two - so keep the points in Flybuys.

  pandadude is right though: don't transfer on a whim.

• 

  itx on 14/03/2022 - 12:42

  +3

  It all just comes down to maximising value for your circumstances.

  For me:
  * flybuys points have a fixed value of 0.5 cents per point (since 2000 flybuys points = 10 flybuys dollars, though you could be more precise by taking another 3-5% off it since you can get discounted gift cards, but that's just making it too complicated)
  * When you buy velocity points with flybuys points, you're effectively acquiring velocity points at 1 cent per point (since 2000 flybuys points = 10 flybuys dollars = 1000 velocity points)

  So if you can get more than 1 cent per point in value out of Velocity, that's the better option. If not, stick with flybuys points/dollars.

  Using a similar example to what @markathome gave:
  Example 1
  * Melbourne to Sydney on 29 April currently sells for $69 on a Choice fare, with luggage included
  * If using points, you'd be paying either 7800 points + $34.39 in taxes for a rewards seat, or 7000 points + $27.53 in taxes for a choice seat (note that choice seats fluctuate in points cost but not rewards seats, but rewards seats are limited in quantity)
  * This means if you were to use flybuys points converted to Velocity, you'd be paying approx $97.53 to $112.39 for a $69 fare
  * So in this case, you'd be better off just keeping the flybuys points in flybuys

  Example 2
  * Melbourne to Sydney on 29 April in business class is selling for $399
  * If using points, you'd be paying 15,500 points + $34.39 in taxes for a business rewards seat
  * This means if you were to use flybuys points converted to Velocity, you'd be paying approx $189.39 for a $399 fare
  * So in this case, you'd be better off converting to Velocity

  Note though:
  * In example 2, it's only good value if (1) you would've bought a business fare at $399 anyway, or (2) you would personally find it to be good value to fly from Melbourne to Sydney for $190 in business, knowing the economy equivalent is just $69. There could be good reasons though - e.g. a special occasion with a partner, an elderly relative who may benefit from having more room and a meal onboard, etc.
  * There are also equivalent examples in economy where it's good value- e.g. flights in regional areas where the cash fares tend to be far less competitive
  * The economics might change if you already have a lot of one points currency or the other- e.g. if you have a lot of Velocity stashed away already, will you get more utility out of having more points? For some it'll be a yes (e.g. they're saving up for a business class flight from Australia to Europe on Singapore Airlines, so every point matters), but for others the answer is no (e.g. they only fly domestically and already have too many points, so it's better to have points to spend at Coles instead).
  * Consider the relative safety of your points too - it's probably less likely that Coles will fold tomorrow than Virgin, so are you willing to risk having lots of points in Velocity?
  * Linked to the two points above, consider the risk of devaluation - points are "owned" by the companies that issue them, and the value is pretty much whatever they determine. If you're hoarding a lot of points, there's always a risk that your points could be worth less than what you were originally banking on.

  Hope this helps!

  • 

    Frunk on 15/03/2022 - 14:41

    Excellent post. Thanks itx, and also to the other commenters!