Velocity Frequent Flyer looks quite different today than it did when Virgin Australia launched its first loyalty program in 2005. What began with a small network of airline and retail partners has grown into a program with international airline partnerships, multiple status tiers and more ways to earn and redeem points.
I sat down with Velocity Frequent Flyer CEO Andrew Cleary to discuss how the program has evolved, what the new CommBank Yello partnership means for members, and where Velocity is heading next.
How Velocity has changed
When Virgin Blue launched in 2000, it didn’t have a frequent flyer program. That changed in 2005 with the introduction of Velocity Rewards, which initially had a relatively small selection of airline and retail partners.
Since then, the program has expanded considerably. Its airline partnerships now include Singapore Airlines, United Airlines and Qatar Airways, giving members more options for earning and redeeming points on international travel.
Cleary sees the development of these partnerships as one of Velocity’s biggest achievements.
“For me, the thing Velocity has done really well over that growth is finding the best international airline partners out there. I mean, the roster of partners, like Singapore Airlines, United, Air New Zealand back in the day, then the transformative one really being Qatar. And that’s because, as you know, sometimes partners can come and go. That one’s cemented by equity and ownership.”
The Qatar Airways relationship is particularly significant, given the airline’s ownership connection. It gives Velocity members access to another major international carrier, including opportunities to redeem points for premium cabins.
Velocity has also expanded beyond flights. Its partnership with Flybuys, which recently marked its 10th anniversary, allows members to earn points through everyday shopping and transfer them to Velocity. But Cleary says the focus isn’t simply on adding more partners. It’s about finding businesses that fit into members’ lives.
“When you really think of the key categories where Australians spend their money and how they live their lives, it’s finding the right fit for us and partnering in a deep way.”
That approach is reflected in Velocity’s latest partnership with Commonwealth Bank through CommBank Yello.
What CommBank Yello means for Velocity
CommBank overhauled its Yello rewards program on 1 October 2026, introducing a bank-wide points system that extends beyond traditional rewards credit cards.
Eligible customers can earn CommBank Yello points based on their banking activity and tier. Those points can then be redeemed in different ways, including transfers to Velocity Frequent Flyer.
The standard conversion rate is 2.5 CommBank Yello points to 1 Velocity Point. Customers can also opt into automatic monthly transfers, with an introductory offer that includes a waived $99 annual fee for the first 12 months and a 20% bonus on eligible transfers for the first six months, capped at 20,000 bonus Velocity Points (terms and eligibility requirements apply).
For Velocity, the partnership provides another way for people to accumulate points without relying solely on flying or credit card spending. Cleary sees the broader change in banking rewards as significant.
“This redesign is not a tweak of that program. This is a completely new direction for bank loyalty in Australia.”
He believes the partnership works because it connects everyday banking with something many customers aspire to use their rewards for – travel.
“People have been speaking about this trend towards whole-of-bank loyalty, proprietary bank loyalty. What we have done here is figure out a way to partner that gives CommBank Yello what they’re looking for, which is this aspirational redemption partner. Aussies love using their points on travel. That will never go away. In fact, that demand only increases.”
For Velocity members, the partnership creates another avenue for earning points. For CommBank customers, it introduces a choice about where their rewards can take them. Cleary says that choice could have an impact beyond existing members.
“For their members, it means the best-value transfer rate from an airline perspective. For our members, it means two things. Number one, just an easier way to earn Velocity Points by that transfer for things they’re already doing. But number two, in a very real way, this is Velocity arriving on the stage in a very prominent way. I think a lot of people, members and partners, current and potential, are looking at us differently.”
A new choice for CommBank customers
The CommBank Yello changes also mean customers who previously directed their rewards towards Qantas need to reconsider their options. Cleary expects the partnership to attract new Velocity members while giving existing members another way to earn points.
“I think this will do both. For existing Velocity members, this is really about maximising your points by doing things you’re already doing in the CommBank Yello world. But, in a very real way, this is also acquisition. October 1 for us, for this partnership, is really the start of ‘time to choose’. Nine million members having to decide: ‘Where do I want to move my Yello points?’ Everyone will be looking at where they get value, what brands they want to align with. They’re having to make that active choice.”
So why should customers consider Velocity? Cleary points to its mix of domestic flights, international routes and airline partners, alongside the number of points required for certain redemptions.
“Velocity is the value program for Australia. We think that’s still a fairly underappreciated part of our value proposition. We have this lineup of some of the world’s most premium carriers, a fantastic domestic and short-haul international network, and [that] you can get there on fewer points. That is fundamentally why we believe people will choose us. And the kicker is you get the better transfer rate from Yello.”
Of course, the best choice depends on how someone plans to use their points. Travellers should compare the transfer rates, reward availability and destinations offered by each program before deciding where to direct their rewards.
You don’t have to fly frequently to earn points
One common misconception about frequent flyer programs is that they’re only worthwhile for people who fly regularly. Cleary argues that much of the opportunity lies outside the airport, through shopping, insurance, food delivery and other everyday spending.
“You know, I hear this often. I’ve worked in loyalty for a long time, and I think I say the same thing every time. People often just don’t appreciate how easy it is to earn points by doing what you’re already doing. So my barbecue chat is: Where do you do groceries? Okay, do you link Flybuys to Velocity? Where do you order food from when you’re getting takeaway?”
He has made changes to his own spending habits since joining Velocity, switching several services to partners that earn points.
“When I switched from my former world to here, I came back and said, ‘Right, I no longer Uber; I DiDi, I DoorDash. I switched my home insurance, my car insurance, my health insurance. I switched my credit card.’ Just by doing that, within four months I’d got enough points to take me business class to Europe and back. Now I’ve just got to get the husband and baby over!”
Not every member will earn points at the same rate, and switching providers only makes sense when the price and service are competitive. Still, the example illustrates how points can accumulate through a range of transactions rather than flying alone.
Small rewards still have a place
Not everyone wants to save their points for a long-haul Business Class flight. Some members prefer smaller redemptions, such as shopping vouchers. Velocity has seen demand for these options grow, according to Cleary.
“So those micro-redemptions have become more important, not less important. Myer, for us, is a really key part of how we think about that ecosystem. There’s much more that we can do with that partnership over time, but we’re seeing really attractive growth from people who just want a gifting moment. They want a $50 voucher, a $25 voucher. We think there’s a lot more we can do in future there.”
While flight rewards remain a major drawcard, smaller options give members another way to use points without saving for a particular trip. The trade-off is value. A voucher may be convenient, but members should compare its value with what they could get from a flight redemption before deciding how to spend their balance. At Point Hacks, our bread-and-butter redemption is still flight rewards, of course.
What’s next for Velocity?
The CommBank Yello partnership is one part of Velocity’s broader push into everyday spending and financial services. Cleary says more partnerships are on the way, although he stopped short of naming specific businesses.
“So when we look ahead, we’re not shy in saying: expect more from us in financial services. CommBank Yello was a fantastic and transformative partnership for us, but we’re not done. There’s more to come in that space. Expect more from us partnering deeply in the key earn and lifestyle categories where Australians spend their time and money. And yes, in the next 12 months, you’ll see some pretty exciting announcements in that space.”
For members, that could mean more opportunities to earn Velocity Points without taking a flight. The challenge will be ensuring those partnerships offer useful ways to earn and redeem, rather than simply adding more names to the program’s roster.
Velocity has come a long way since 2005. Its expanded airline network has given members more ways to travel, while partnerships such as Flybuys and CommBank Yello are making points accessible through everyday spending.
The next stage of its growth may depend on how well it brings those two sides together: giving members more opportunities to earn points, while ensuring those points remain useful when it’s time to book a trip.
Disclaimer: This article is produced in partnership with Velocity Frequent Flyer