A recent article in the Sydney Morning Herald took a look at the recession’s affect on points-redemption. The article, notes that “Australian consumers are battling the recession by using shopping loyalty schemes to buy groceries and pay off their credit cards rather than claim free overseas flights or hotel accommodation.”

The FlyBuys report noted:

The number of redemptions for credit card repayments and shopping gift vouchers had hit an all-time high of 82 per cent in the five-month period from January to May, 2009. This compares to 77 per cent for the first five months of 2008.

“In tough times ,members become shrewder about using points to pay for everyday living expenses like grocery bills and credit cards, rather than redeeming their points for perceived luxuries,” says FlyBuys General Manager Phil Hawkins. “That’s exactly what we’re seeing at the moment. . . . At a time when every dollar counts, more Australians are seeing the benefits of being members of loyalty programs.”
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Hawkins said FlyBuys offered more than 800 reward options from gift vouchers through to iPods and theme park tickets. Members can claim a $20 voucher or an NAB credit card repayment once they have 2,500 FlyBuys points. Launched in 1994, FlyBuys has more than eight million cardholders. With more than 60 percent of Australian households owning a FlyBuys card, FlyBuys is the fourth-largest coalition loyalty program in the world. Participating brands include household names such as Coles Supermarkets, NAB, Kmart, Target, Liquorland, Liquorland Direct, Kmart Tyre & Auto Service, BILO, Jetset and Travelworld.