European Holiday

July 1, 2019

We’ve all wondered what it would be like to turn right (or even more luxuriously, head upstairs) when we step on a plane, right? Well imagine if you could pay for your business expenses and earn a business class ticket to Europe at the same time… Sound like a dream? It doesn’t have to be!

The vast majority of builders, owner builders and architects pay for their supplies with cash, or by using a debit card; but by applying one simple rule and using a credit card backed by a frequent flyer program to pay for these expenses, you will earn points to use on business class tickets, simply by running your business.

There are a lot of frequent flyer options to choose from, some of which have extra reward programs or e-stores that you can purchase items through and earn points per dollar.

For example, Qantas has a Business Rewards Program, so you can earn points for things like printing/copying at Snap or purchasing plumbing fixtures at Harvey Norman. Virgin Australia also has a rewards program with an e-store, which partners with a variety of other stores including Myer and Appliances Online.

To optimise your point collection, it’s worthwhile having a strategy. Here are some pointers:

  • Get an AMEX card, as well as a backup Visa or Mastercard, which is tied to the business
  • If the credit card fee is 2% or less and the company accepts AMEX, it is best to use this card, as you can earn more points than a Visa or Mastercard and the points earned will outweigh the cost of fee
  • If the fee is over 2% but the business accepts Visa or Mastercard with a fee less than 1.1%, it’s best to use this card. Even though these cards earn less points, the lower fees make these cards the better choice
  • If a business is charging more than 1.1% for a Visa or Mastercard card, it’s not worthwhile using a credit card at all as you’re essentially purchasing points for more than what they are actually worth

Once you have enough points it’s a good idea to book your flights a few months in advance. This ensures you have the best chance of redeeming a business or first-class seat.

It’s also worthwhile noting that if you need points to book a seat in a hurry, you can use services like B2B Pay or Payment Logic to buy points at cost and make up the shortfall. These services charge fees to use a credit card but they also let you pay with your card, even if a company doesn’t usually accept this. You can even pay your employees through these portals.

It might seem like a lot of work just to get a business seat. Perhaps you’re thinking “I don’t have time” or “It’s just not that important to me”. That would be fair enough. Fortunately, there’s a business that can take care of all of this for you – all you have to do is to tell them where and when you want to fly, and they will do the work for you. The business is called iflyflat and is tailored to supporting other businesses.

Regardless of whether you’re having a good or bad year business wise, you still have to make business purchases, so why not earn points on those items and reward yourself with a business class seat the next time you take a holiday or business trip?