Qantas’ frequent flyer deal with BP to get the go-ahead

Allansford, Australia - November 25, 2015: Close-up of petrol price sign with car leaving the BP service station in Allansford, Victoria. There are around 1400 BP service stations in Australia.

The proposed frequent flyer tie-up between Qantas and petrol giant BP looks likely to become a reality, with the Australian Competition & Consumer Commission (ACCC) all but approving the deal.

In a draft determination on Friday, the ACCC said it was proposing to grant authorisation allowing Qantas, BP Australia and independent BP petrol stations to collectively participate in the BP Rewards, Qantas Frequent Flyer and Qantas Business Reward programs.

The ACCC is looking to grant a five-year authorisation for these arrangements, which include allowing BP to require BP-branded petrol stations to take part in the Qantas rewards programs.

This would be a condition of new BP petrol station franchise agreements and when existing agreements are renewed.

“We consider that these arrangements will provide public benefits – for example, by giving consumers more opportunity to earn and use rewards program points,” ACCC commissioner Stephen Ridgeway said.

“The arrangements are also likely to provide cost savings to the parties by allowing BP to negotiate with Qantas on behalf of BP petrol station owners, rather than each station owner needing to negotiate individually.

Ridgeway said the ACCC doesn’t think the planned arrangements will have any significant negative impact on competition.

“Qantas has the biggest loyalty reward scheme in Australia in terms of member numbers, and BP is a major petrol retailer. However, there are many retailers, petrol and non-petrol, that could participate as partners in other loyalty programs,” he said.

“We do have some concerns about the potential for consumer harm arising from BP sharing consumer data with Qantas as a result of the arrangements, and we encourage BP and Qantas to adopt the recommendations regarding the collection and use of customer data in the ACCC’s final report into customer loyalty schemes when it is published.”

The ACCC is welcoming submissions in response to the draft determination. It is expected to release its final determination in February 2020.

The ACCC has also granted interim authorisation in relation to BP’s participation in the Qantas Business Rewards program, so that BP’s participation can commence on 1 February 2020.

Qantas announced its plans to partner with BP in September. In the meantime, the petrol giant’s partnership with Virgin Australia’s Velocity Frequent Flyer remains in place.

Latest News

  • Cruise
  • Travel Weekly Features

PROFILE: Julie Rogers MBA, Director of Sales Asia Pacific of Ponant

With increasing interest from Australians in expedition cruises, Julie Rogers MBA, Director of Sales Asia Pacific of PONANT, shares with Travel Weekly the new experiences she is excited about in cruise. Is there any significant increase in Australians/New Zealander’s heading north to the Arctic instead of the Antarctic? We have seen a steady growth in […]

  • Products

Mandarin Oriental takes a dive into swimwear with $360 board shorts

If you were inspired by The Inspired Unemployed’s Liam Moore limited-edition pair of Budgy Smugglers but want a bit more coverage, then here’s your chance. The Orlebar Brown brand has introduced an original design of the Bulldog swim short for Mandarin Oriental hotels – yours for a snip at US$242.25 (AU$360). They have been “designed […]

  • Health & Wellness
  • Luxury

Trisara showcases sustainable dining via wellspring program

Phuket-based resort Trisara is transporting guests from resort to farm to table then back again courtesy of a new limited-time program, Wellspring. The package is a collaboration with Tri Vananda, a US$182 million (AU $270 million) wellness community in northern Phuket, conceived by Montara Hospitality Group, the owners of Trisara. In addition to entitling guests […]

  • Aviation

Emirates SkyCargo expands fleet with five Boeing 777 freighters

Emirates SkyCargo announced an investment of US$1 billion (AU$1.484b) to expand its fleet with an order of five new Boeing 777 freighters. The investment follows a strong performance in the first quarter of the 2024/25 financial year. Emirates SkyCargo expects the new freighters to increase its capacity by 30 per cent. The increase enables the […]

  • Events
  • Tour Operators

ITE HCMC 2024 focuses on sustainable tourism for creating a future

The 18th annual International Travel Expo Ho Chi Minh City (ITE HCMC) will take place from 5 to 7 September at the Saigon Exhibition and Convention Center. Under the theme “Responsible Travel, Creating Future”, the expo will highlight its dedication to promoting sustainable tourism practices and showcasing innovative tourism products and services to meet rigorous […]

  • Appointments

Seasoned pro Chris Waite goes out on his own in corporate affairs & communications

Seasoned tourism and hospitality industry corporate affairs and communications professional Chris Waite has unveiled his new consultancy. Drawing on his 25 years of experience across Australia, Europe, and Asia, Chris Waite Corporate Affairs & Communications is dedicated to helping businesses build and safeguard their most valuable asset: their reputation. Waite will focus on delivering results through […]

  • News

Travel becomes the leading retirement priority in latest Equip Super research

A staggering 71 per cent of Australians are prioritising spending their retirement savings on travel, according to a recent survey by leading superannuation fund, Equip Super. Health concerns were ranked as second as the most significant priority in retirement with 56 per cent and spending on hobbies and interests takes the third spot at 54 […]