More than half of Brits get a kick out of the free luxuries in life

12 February 2024 , 08:33

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The best things in life really do come free (Image: PinPep)

The best things in life really are free - according to 59% of Brits who get a kick out of buying beauty products, clothes and groceries - without splashing the cash.

A study, of 2,000 adults, revealed 82% used loyalty points to make future purchases cheaper, with two-thirds using them to reduce cost of their food shops.

For almost three-quarters (74%), they’re using points to supplement their income and save money. In fact, nine in 10 Brits (92%) are a member of at least one loyalty programme - up by 17% from last year.

This comes as Virgin Red launches its second report, The Points Index, ‘Making Points Go Further’, which takes stock of the nation’s mood, looking at how public spending and behaviour has changed in the last year.

The report reveals that more than a third (35%) collected more loyalty points in the past 12 months than ever before, as people got more savvy in order to cope with the ongoing cost-of-living crisis. Internal data, from Virgin Red, saw a rise in redemptions across November and December, with members cashing in their loyalty points for rewards such as flights, train tickets, wine and gift cards.

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More than half of Brits get a kick out of the free luxuries in life

9 in 10 Brits are using points system apps to later bask in the rewards (PinPep)

The spike indicates a possible drive of last-minute travel and gift buying ahead of the festive period - highlighting how people are making their money work harder by using points for gifts or reducing the cost of their train travel home.

With travel firmly back on the radar, more than half (55%) plan to use their hard-earned points to reward themselves with things they usually wouldn’t be able to afford, such as holidays or flights.

Andrea Burchett, chief loyalty officer and managing director at Virgin Red, said: “For some, reward points offer a way to supplement increasing day to day costs, such as grocery bills. But for others it’s a positive way to treat themselves, be those day-to-day small wins or holding out for a big-ticket item such as international travel.

“Experiences, and in particular travel, are a clear focus for 2024, so it’s great to see people are turning to loyalty points to prioritise this, whilst being mindful of the existing economic pressures.”

The thought of high-end rewards being genuinely attainable however has shrunk, according to the research, as 27% think you can use them for big ticket items such as flights or theatre tickets - a 15% drop from 2022. For those who do claim higher reward items, flights to New York, Orlando and Los Angeles, are the most popular locations, while Paris and Amsterdam ranked as the top European destinations.

More than half of Brits feel guilty for spending their money on something expensive (PinPep)

When it comes to dream getaways, the Maldives and Tokyo topped the list.

But, more than half (52%) admitted to feeling guilt when spending money on something indulgent, knowing others are struggling financially, and only 10% of adults feeling more confident in the state of the economy compared to this time, last year.

This goes some way to explaining why 36% intend to be kinder to themselves in 2024 with small, but frequent self-gifts.

This includes coffee, meals out and wine, as well as trips to the cinema - with the release of Oppenheimer and Barbie last July seeing Virgin Red members increase cinema ticket redemptions by two and a half times more than any other month during 2023.

Andrea Burchett, from Virgin Red, added: “While we do not offer a crystal ball to see what’s in store for 2024, we hope the report helps people understand more about the loyalty programmes they’re a member of and importantly, how they can make their money go further - all that’s left to do, is decide which reward you want to go for.”