Earning Frequent Flyer points for money you are spending anyway is always an attractive proposition. Fuel has become a significant expense for many and an easy way to earn Qantas points through the Woolworths/Caltex tie up. Many of the Caltex service stations also allow you to earn Myer One points as a double dip. While over at Shell, the Coles/Flybuys alliance is a good earner for those in the scheme.
That left BP, the last remaining major oil company without a points earning alliance partner. That was until last week. Virgin have now announced they are following the lead of the nation’s retailers, and have concluded an arrangement with BP to allow Velocity points earning from 2015. The news was very much seen as positive by our members, with many having a local BP as an option, or preferring their premium products to others.
This seems positive. My local is a BP and I usually buy fuel there. In my situation, I am the office and rarely worry about discount offers on fuel, but often use Velocity AMEX on the purchase. Without seeming to be presumptuous, it appears I may be in a win/win situation (which is rare for me with Virgin Australia).
What has yet to be revealed is the actual conditions for points to be earned. The press release did indicate that total spend is likely to earn, so in store purchases will count as well as fuel purchased. With service stations increasingly seeing fuel as a lure to sell more profitable items instore, this make sense. It’s possible that points offerred for low margin fuel might be less than the points earned for in store purchases.
How you pay for that purchase can also be an opportunity, especially with certain charge/credit cards. Amex is one such provider, often providing extra points for fuel purchases on many of their card products. Last year there was a seasonal promotion where double points were offered for fuel purchases. With BP offering gift cards for purchase, smart members were able to trigger extra qualifying spend on the Amex, by purchasing these cards. They could then use the gift cards at a later date when fuel was actually needed, often well after the Amex promotion had ended. The potential for extra earn with Amex at BP could see some changes in our members spending moving forward, possibly at the expense of their employer or business.
Will be interesting…If I buy fuel at wooltex, then the office saves 8c/L… (expensed),if I buy from BP, then the office won’t save money, but I’ll make points… and presumably points on the amex purchase too Hmmmm.
Are you excited by the news, perhaps you see other opportunities with the announcement, why not share your thoughts or ideas HERE.
