29 July 2004
For immediate use
Bank of New Zealand Announces Changes to GlobalPlus Products
One of New Zealand's most successful loyalty brands, GlobalPlus, is set to be enhanced to ensure it remains a leader in
the credit card and home loan loyalty market.
The changes to the GlobalPlus products will be supported by a new television and print advertising campaign that gets
underway in mid-August.
Bank of New Zealand announced the changes to the GlobalPlus products today.
The changes are effective from 16 November 2004. Most of the changes are a result of the enhancements that Air New
Zealand is making to its Airpoints loyalty programme.
The notable changes to GlobalPlus are:*
- introduction of a new loyalty currency - Air New Zealand Airpoints DollarsTM - that will replace Airpoints from 16
November (this change is directly in line with Air New Zealand's changes to its Airpoints programme)
- new earning rates, for GlobalPlus credit cards and GlobalPlus home loans, will apply from 16 November
- new redemption options for GlobalPlus customers, under which Airpoints Dollars can be spent on non-flight rewards
- new earning rates for GlobalPlus customers who are LoanCare or LifeCare policyholders (Airpoints Dollars will not be
available to new LoanCare and LifeCare policyholders from 16 November 2004)
- 10,000 bonus Airpoints, offered on drawing down a loan, will no longer be available from 16 November
- increases in annual fees for GlobalPlus credit cards applicable from 16
November
* Further details of changes set out at the end of this release.
Under the changes, most GlobalPlus customers will enjoy reward-earning rates that are either equal to or better than the
earning rates they currently enjoy. Further, the combination of the changes to GlobalPlus and Air New Zealand's
Airpoints will mean GlobalPlus customers enjoy considerably more flexibility to use their rewards.
The most important changes announced by Air New Zealand today, to its Airpoints programme, mean that:
- customers will be able to use their Airpoints Dollars to purchase every seat available for sale on every Air New
Zealand ticketed and operated flight
- each Airpoints Dollar will be equivalent to one New Zealand dollar for New Zealand-resident Airpoints customers, so
that customers will be able to work out precisely what their rewards will buy in airfares.
"Most customers will get a better all round deal from 16 November when the changes to GlobalPlus and Air New Zealand's
Airpoints are effective," said Bank of New Zealand General Manager of Cards, Pradeep Roy.
"As a result of the changes that Air New Zealand is making to its Airpoints programme, it'll be easier to get seats on
flights and it will be easier to know what your rewards are worth."
"For GlobalPlus customers specifically, there will be more ways to redeem your Airpoints Dollars."
"We recognised that it was time to review the GlobalPlus products and the position that GlobalPlus has in the loyalty
market."
"Since GlobalPlus was launched in 1998, other loyalty products have entered the market. In order to ensure GlobalPlus
remains where it belongs - which is at the forefront of the market - we're undertaking enhancements now."
Mr Roy said cards customers could enjoy double the standard earning rate under an exciting current promotional offer
involving the GlobalPlus American Express card (until 31 March 2005). "We're making it easy for customers to earn even
more points through this offer," Mr Roy said.
GlobalPlus will inform customers of the details of the changes to credit cards, home loans, and insurance in direct mail
that is being sent shortly.
Among the enhancements announced today is the introduction of a new redemption programme under which GlobalPlus
customers can spend Airpoints Dollars on non-flight rewards. The new redemption programme is being introduced in
response to demand from customers who say they want the flexibility to spend their rewards on goods and services other
than flights.
More than 300,000 customers enjoy the benefits of a GlobalPlus credit card and GlobalPlus home loan.
A new television and print campaign - featuring a series of new television commercials - will begin in mid-August. "The
new advertising campaign marks an evolution in the GlobalPlus brand, rather than a revolution. The heart of the brand -
which is adventure and aspiration - remains, but it will be articulated in a new way," said Mr Roy.
Ends
- Tables below set out new and existing earning rates for GlobalPlus credit cards and new and existing annual card fees.
New Credit Card Earning Rates:
Standard GlobalPlus Gold GlobalPlus
Standard Earning Rates Promotional Rate **
(until 31 March 2005) Gold Earning Rates Promotional Rate** (until 31 March 2005)
American Express $150 spend=AP$1 $150 spend=AP$2 $100 spend=AP$1 $100 spend=AP$2
Visa/Mastercard $150 spend=AP$1 N/A $100 spend=AP$1 N/A
** GlobalPlus American Express card offers customers the opportunity to earn double the standard rate until 31 March
2005.
Standard GlobalPlus Gold GlobalPlus
Current Fees New Fees
Effective
16 November Current Fees New Fees
Effective
16 November
American Express $17.50 half yearly $27.50 half yearly $47.50 half yearly $52.50 half yearly
Visa/Mastercard $17.50 half yearly $27.50 half yearly $47.50 half yearly $52.50 half yearly
GlobalPlus Visa/MasterCard Earning Rate
Today Earning rate is 1 Airpoint for every $2.00 spend $1000 = 500 Airpoints
Airpoints converted to Airpoints Dollars
(500 Airpoints „i 75)
= A 6.67
From 16 November Earning rate will be 1 Airpoints Dollar for every $150 spent (1000 „i 150)
$1000 = A 6.67
Gold GlobalPlus Visa/Gold GlobalPlus MasterCard Earning Rate
Today Earning rate is 1 Airpoint for every $1.50 spend $1000 = 667 Airpoints
Airpoints converted to Airpoints Dollars
(667 Airpoints „i 75)
= A 8.89
From
16 November Earning rate will be 1 Airpoints Dollar for every $100 spent (1000 „i 100)
$1000 = A 10.00
GlobalPlus American Express Card Double Earning Rate until 31 March 2005 **
Today Double earning rate is 1 Airpoint for every $1.00 spend $1000 = 1000 Airpoints
Airpoints converted to Airpoints Dollars
(1000 Airpoints „i 75)
= A 13.33
From
16 November to 31 March 2005 Double earning rate will be 2 Airpoints Dollars for every $150 spent (1000 „i 150) x 2
$1000 = A 13.33
Gold GlobalPlus American Express Card Earning Rate until 31 March 2005 **
Today Double earning rate is 2 Airpoints for every $1.50 spend $1000 = 1334 Airpoints
Airpoints converted to Airpoints Dollars
(1334 Airpoints „i 75)
= A 17.79
From
16 November to 31 March 2005 Double earning rate will be 2 Airpoint Dollars for every $100 spent (1000 „i 100) x 2
$1000 = A 20.00
- Home loans: the earning rate for GlobalPlus home loans, from 16 November 2004, will be $1,000 outstanding mortgage per
annum = 1 Airpoints Dollar. There are no longer separate earning rates for variable-rate and fixed-rate home loans; a
single earning rate applies from 16 November. Also, the 10,000 bonus Airpoints, offered on drawing a loan, will no
longer be available.
- Insurance: existing GlobalPlus customers, who are LoanCare or LifeCare policyholders, will continue to earn rewards.
The earning rate for existing insurance customers, from 16 November, will be $100 of premium = 1 Airpoints Dollar. New
insurance customers will not be eligible for Airpoints Dollars from GlobalPlus from 16 November.
- Existing balances: On 16 November, existing Airpoints balances held by
Air New Zealand Airpoints customers will be converted to Airpoints Dollars
at the rate of 75 Airpoints = 1 Airpoints Dollar for New Zealand residents.
So, for example, a customer with 100,000 Airpoints will have 1,333.33
Airpoints Dollars. Where Air New Zealand deems the Airpoints customer to
be resident in Australia, the conversion rate will be 84 Airpoints = 1
Airpoints Dollar.
Legal notes:
GlobalPlus normal lending criteria apply. Air New Zealand Airpoints Programme terms and conditions apply. A $50
Airpoints joining fee may apply. Earning and redemption rates are subject to change without notice. Bank of New Zealand
(and its related companies) do not guarantee the redemption of Airpoint Dollars or that Airpoints Dollars will continue
to be offered for products or services provided by them. Where Air New Zealand deems customers to be resident in
Australia, the earning rate may differ due to currency conversion. For GlobalPlus home loans an establishment fee of up
to $250 applies and lender's mortgage insurance may apply. Airpoints Dollars cannot be used to pay taxes, levies or
other surcharges related to your travel.
ENDS