Frequent flyer points boom: how to make the most of it

Billions of points are quickly being claimed by travel-starved frequent flyers, so how do you get the best value from airlines?

Frequent flyer point collections are bulging after Australians were largely grounded for 18 months but have still spent freely on reward credit cards and retailer loyalty programs.

And as travel reopens, there’s a growing number of options as both Qantas and Virgin increase flights and flexibility.

Points specialists say many flyers are now sitting on seven-figure points balances, and urge them to start booking.

While redeeming points has been possible through Covid in airlines’ online stores, The CEO of iFLYflat, Steve Hui, says most people prefer to use them for travel – which is what delivers the best value.

“When the opportunity came to book flights again, people went nuts,” he says. “They have been stockpiling their points to travel.”

Steven Hui says buiness class delivers good value per point. Picture: Sam Ruttyn

KNOW WHAT YOU’RE SPENDING

Hui says Qantas and Virgin also allow people to use points to book seats that are not offered by their Frequent Flyer and Velocity programs. Qantas calls it Points Plus Pay and Virgin calls it Any Seat, and in both cases it’s a potential trap.

Don’t mistakenly use these options to book flights because you may end up spending 800,000 rather than 200,000 points for the same flight, Hui says.

Focus on value. You get about 3c per point when redeeming business class, 1c per point redeeming economy class, and half a cent per point when using them for gift cards or online store purchases, Hui says.

He warns against using points for upgrades because these are only confirmed 24-48 hours before the flight. Just book a business class ticket so you have seat certainty and are “not just hoping for the best”, he says.

HESITATION CAN BE COSTLY

“Seats are changing very quickly, and if you find one that meets your needs, book it,” Hui says.

“Don’t have a family discussion because it could be gone by the time you come back to it.”

Thechampagnemile.com.au founder Adele Eliseo also suggests booking points flights as early as possible to increase your chances of getting a business class seat.

“Many airlines open up award seats up to 11 months in advance, so now is the time to book for mid to late 2022,” she says.

OTHER TRAVEL

Eliseo says using points for hotel nights instead of flights can offer good value, especially for families.

“Loyalty programs such as Hilton Honors, Marriott Bonvoy and World of Hyatt offer the ability to redeem points for properties across Australia,” she says.

“Qantas Classic Rail Rewards for journeys on The Ghan, Indian Pacific and Great Southern offer great bang for buck, as they are fully inclusive of all accommodation, dining and activities. There’s no extra cash component to pay, as these redemptions don’t attract carrier surcharges or taxes.”

COVID CANCELLATION

Australia is reopening but may would-be travellers remain worried about the impact of localised lockdowns.

“Nervous frequent flyers can take advantage of additional flexibility for reward seat redemptions,” Eliseo says.

“Both Qantas and Velocity are offering a no change and no cancellation fee policy on domestic and international award bookings. Velocity has undertaken to waive fees for any cancellations or changes for travel up to 30 April 2022, while Qantas will waive fees until 28 February 2022.”

Last month Qantas announced the largest release of extra flight reward seats in its history, and in the last two weeks of October its frequent flyers snapped up 175,000 seats costing four billion points.

Qantas Loyalty CEO Olivia Wirth says the additional seats have seen frequent flyers booking in record numbers.

“With millions of reward seats on offer throughout 2022 there is still plenty of availability for frequent flyers to book flights using their points,” she says.

Adele Eliseo from thechampagnemile.com.au says extra flexibility is available.

GET VALUE FROM YOUR POINTS

• Avoid spending points on gift cards or goods where you only get half a cent of value.

• Business class flight redemptions typically offer the best return per point, but domestic flights are also solid.

• If you’re disciplined with debt, multiply point-earning potential through reward credit cards, which are offering attractive sign-on bonuses. Many retailers also have schemes and bonuses.

• Don’t stockpile points indefinitely as there may be future devaluations on flight redemptions.

Originally published as Frequent flyer points boom: how to make the most of it