There are plenty of ways to redeem your Velocity Points, but what is a Velocity Point worth? There’s no hard and fast rule for this, as it depends on your lifestyle and desires. But like most other frequent flyer programs, you’ll usually get far more value with flights than with gift cards, for example.
This article will help you see the potential of your Velocity Points through various redemption methods, but ultimately you should do what makes you happy!
1. Online shopping and merchandise
|Value per point: 0.51 to 0.56 cents per point
Store gift cards are a popular way to burn through frequent flyer points if you just don’t know what to do with them. Here are some options from the Velocity Rewards Store:
A $100 gift card can range from 18,000 Velocity Points to 19,500 Velocity Points, depending on the retailer. Here’s how much you’re getting per point with examples of either gift card:
- Apple $100 gift card: 0.51 cents per point
- Barbeques Galore $100 gift card: 0.56 cents per point
You can also use Velocity Points to pay for your purchases on Myer online. But this provides a similarly low value with roughly 0.52 cents per point.
2. Hotels and car hire
|Value per point: 0.6 cents per point
You can redeem Velocity Points to book hotels, starting from a minimum of 2,000 points plus a cash payment. Here is an example at The Fullerton Hotel Sydney – you can spend $499 per night or redeem 83,200 Velocity Points. This gives you a value of 0.6 cents per point.
Given that just 67,000 Velocity Points (plus fees and taxes) can get you a one-way Business Class trip between Sydney and Singapore – worth thousands of dollars – redeeming 83,200 points for a $499 hotel room is probably not the best use.
Car hire isn’t much better. 18,400 Velocity Points can cover a rental worth $110 from Europcar, also giving you an effective value of 0.6 cents per point.
3. Flights with ‘Points + Pay’
|Value per point: 0.6 cents per point
Virgin Australia lets Velocity members redeem points for any available seat under ‘Points + Pay’. While this may seem like an easy way to use up your points, you’re actually getting no better value compared to redeeming points for hotels or car hire.
With this example fare below, you can see that using ‘Points + Pay’ for cash fares will still only get you exactly 0.6 cents per point.
4. Flights with Economy Reward Seats
|Value per point: Usually more than 1 cent per point
Now we’re talking. Velocity Reward seats are the best use of points. These clearly show up as ‘Reward’ on the website and will appear before any ‘Points + Pay’ fares.
Economy reward seats usually get you at least 1 cent per point in value – sometimes a lot more. In the same Sydney-Perth example as above, an Economy Reward is 17,800 points + $30.75, while the comparable Economy Choice fare is $245.
That’s 1.2 cents per point, which is already double the ‘Points Plus Pay’ value!
5. Flights with Premium/Business/First Reward Seats
|Value per point: Usually more than 2-3 cents per point
Getting a reward seat in a premium cabin, particularly Business and First Class, is the dream for many. But unsurprisingly, this is also the hardest reward to attain. Supply is very constrained, and demand is through the roof.
But if you’re lucky enough to land a reward seat, especially on international long-haul flights, then you can be sure you’re getting excellent value for your points.
For example, I recently redeemed four Business Class rewards from Bangkok to Perth for 53,000 Velocity Points + $64.13 per person (before carrier charges were introduced). The same one-way flight retails for $1,928.50, based on a return fare of $3,965. This means I’m enjoying an excellent 3.62 cents per point.
Another trip I’ve booked with Velocity Points is Amsterdam to Perth via Singapore for 121,000 points + $92.93 in Business Class. With the equivalent cash fare being $5,193 over my dates of travel (Easter 2023), I’m getting 4.21 cents per point!
There are plenty more examples, but hopefully, you will get the idea by now.
The broad consensus is that saving your Velocity Points for Business and First Class redemptions are the best way to get value out of them. Indeed, many of our readers do just that.
As for me, I’m a traditionalist and prefer to use my points for upgrades on Virgin Australia or Business rewards on partner airlines such as Singapore Airlines.
As a guide, we value Velocity Points at 1.90 cents each. This is the baseline value you might want to aim for when it comes to redeeming Velocity Points. (And of course, it would be ideal if you earned the points at a much lower rate than that).
But don’t get swept up in all the number-crunching. If you really want to buy that iPad with your Velocity Points and don’t want to fly, then go for it! As long as you are using Velocity Points to make you happy, you’re coming out ahead.
Frequently Asked Questions
The value of a Velocity Point can range wildly from very low (e.g. 0.5 cents per point) to really high (e.g more than 3.0 cents per point). Reward seats on flights tend to offer the best value for Velocity Points.
The minimum Velocity Points you need for a reward seat is 7,800 points for a short one-way Economy Class redemption. A long-haul international Business Class redemption (e.g. from Australia to London) will need up to 139,000 Velocity Points.
You can get gift cards, merchandise, hotel bookings or flights. This article will help you work out what’s the best use for you.
You will find that Business Class flight redemptions and upgrades will be the best use for the most value. But if a gift card or hotel booking works for you, then go for it! Also, check out how to get the most out of Velocity Frequent Flyer.
Watch this video to learn more about how we value frequent flyer points: