Frequent flyer points can benefit your business by allowing you to get discounts on flights, hotels, and other travel-related expenses. Many airlines offer loyalty programs that reward businesses for frequent flying with their airline. These rewards can be redeemed for travel related expenses such as airfare, hotel stays, car rentals and more. You can also use these rewards points to purchase merchandise or gift cards from the airline’s partners. By signing up for these programs and taking advantage of the rewards they offer, businesses can save money on travel expenses while increasing customer loyalty.
If you fly a lot, it’s beneficial to pay for your points with processing fees and surcharges.
However, if you bank points but never make use of them, it may be more trouble than it’s worth. You can purchase gift cards with points or share them as an employment perk. These have FBT implications (consult your accountant), yet the fees are tax deductible and often worth the payoff.
Recently I was talking to a client who agreed they would pay all ATO payments through credit cards/online payment services to accrue points. In little over a year they could be flying business class to their desired destination with the size of their business.