The annual points transfer limit between Flybuys and Velocity Frequent Flyer has been axed as of 1 November 2020.
In Australia, Flybuys points can be transferred to Velocity Frequent Flyer at a rate of 2,000 Flybuys points = 870 Velocity points. The conversion rate is slightly higher during Flybuys promotions when bonuses are offered, such as the current 15% transfer bonus.
But until now, there has been an annual transfer limit of 138,000 Flybuys points per calendar year. That’s equivalent to 60,030 Velocity points annually. This annual transfer limit is now gone, which is great news for Flybuys members.
There was no formal announcement about this change. But a Flybuys spokesperson confirmed to Australian Frequent Flyer that the cap has been removed. The Flybuys and Velocity websites are gradually being updated to reflect the change.
The annual cap had been a sore point for Flybuys members with large points balances, although the annual limit has been temporarily removed a couple of times during limited-time promotions since the Velocity partnership began in 2016.
Last year, Flybuys told us that the annual transfer limit was agreed between Flybuys and Velocity Frequent Flyer when their partnership began.
“We appreciate that this does impact some flybuys members, and this information forms part of our ongoing review of the offering to flybuys members,” a Flybuys spokesperson said at the time.
Well, it seems that the annual transfer limit was no longer in the interest of one or both parties. With Virgin Australia in voluntary administration since April and Velocity Frequent Flyer now so desparate for income that it’s been offering 100% bonus points to anyone brave enough to buy Velocity points, that’s hardly surprising. Velocity Frequent Flyer makes money from Flybuys “buying” Velocity points on behalf of members. It doesn’t really make sense any more for Velocity to restrict the amount of revenue it can earn from Flybuys members converting their points.
But the tables have now turned. Even though Flybuys members can now transfer an unrestricted number of points to Velocity, Flybuys members may now be hesitant to do so. Velocity points still cannot be redeemed for any international or partner airline flights, and we don’t really know yet what Bain Capital’s true plan is for Virgin Australia.
Virgin Australia will exit voluntary admistration very soon. Once this happens, we should have a clearer understanding of Virgin Australia’s future direction and when we may expect the full suite of Velocity Frequent Flyer redemptions to return.
Join the discussion on the Australian Frequent Flyer forum: Annual Velocity points transfer limit removed?