Our Operations
The Flybuys loyalty program has been running since 1994 and has approximately 8 million active members.
With no participation fees, the Flybuys program is capable of generating significant benefits for members based on points earned from their everyday shopping activities. Flybuys members take many millions of rewards each year. There are over 2,000 rewards to choose from, from around 30 suppliers. Members can redeem their points for a range of different things such as for money off shopping at participating partners, flights and accommodation, Velocity Frequent Flyer points, gift cards, merchandise and donations to selected charities. During the current reporting period, Flybuys launched the new Flybuys Rewards Store which improved the member experience when redeeming online with added features such as shopping cart functionality and rewards tracking for the majority of rewards.
Flybuys points can be collected across 21 participating brands including retailers such as Coles Supermarkets, Kmart and Target. Flybuys also allows members to collect points via its financial, insurance and travel services partners. 11 of our participating brands are also affiliates of Flybuys (i.e. either shareholders or owned or operated by shareholders of Flybuys).
Flybuys considers that a good member experience is the core of our business and is focused on providing a service that members value. We seek to achieve this by collaborating with a wide range of leading companies, ensuring members earn meaningful rewards for participation, and offering simple, transparent processes for points earning and reward redemption.
In addition to operating the Flybuys loyalty program, Loyalty Pacific Pty Ltd also has a business-to-business data arm which operates under the registered business name "Unpacked by Flybuys" and supplies data services to third parties. There is no supply of services back to Flybuys.
Our Supply chain
During the current reporting period there have been no notable changes to the nature of the Flybuys supply chain, which includes approximately 263 active first tier suppliers. Our business improvement initiative of implementing a new vendor onboarding process (as noted later in this statement) resulted in a recalibration of the active vendors list during the current reporting period. Our suppliers continue to be predominantly located in Australia, with some suppliers based in the United States, United Kingdom and Asia Pacific.
The opening of our new head office premises towards the end of the first reporting period involved onboarding new suppliers for facilities services such as cleaning and security.
While redemption of loyalty points makes up a large category of spend within the Flybuys supply chain, the majority of points redemptions are made for "money off shop". These are either redeemed directly at the point of sale of certain Flybuys affiliates or as Flybuys dollars (which can then be used as money off shop at certain Flybuys affiliates). Only a small portion of points redemptions are made for purchases of goods and services from rewards suppliers. These redemptions are generally made through the Flybuys Rewards Store, the Flybuys app and via the Flybuys Service Centre.
In order to manage and support the Flybuys Loyalty Program, Flybuys procures the services of technology suppliers and this makes up another large category of spend in our supply chain. During the current reporting period there has been an increase in our use of staff augmentation services. The majority of staff sourced via augmentation services were located in Australia and a small number based in India and New Zealand. Staff augmentation was used in relation to IT specialists and analytics specialists. New supply contracts for labour hire were based on either Flybuys' standard terms or negotiated supplier terms, which all include clauses in relation to modern slavery compliance.
Spend on marketing activity to support the Flybuys Loyalty Program also forms a large category of spend in the Flybuys supply chain and includes spend on professional marketing services as well as print and promotional goods services providers.
Flybuys has small spend categories for professional services as well as stationary and food and beverages.