Aussies have average of 73,000 frequent flyer points but aren’t using them

Aussies have an average of 73,000 frequent flyer points sitting in their accounts but are wasting thousands of dollars in value. Here’s five tips to maximise the value held in loyalty accounts.

Australian travellers are squandering thousands of dollars due to frequent flyer failures, according to a new survey, which reveals Boomers and Gen Z Australians are most likely to be missing out on the benefits on offer in loyalty programs.

New research from TravelInsurance.com.au reveals the average Australian holds about 73,000 frequent flyer points, but many are failing to cash in on discounted flights and other loyalty program benefits.

The survey of 1000 people found that more than a quarter (26 per cent) use their frequent flyer points for travel occasionally but don’t keep track of their balance, while close to one in five (18 per cent) collect travel points regularly but rarely redeem them.

Meanwhile, 15 per cent of respondents to the survey said they didn’t understand how frequent flyer programs worked.

The survey shows Millennials and Gen X travellers are more likely to strategically earn and redeem frequent flyer points, while Boomers and Gen Z are more likely to waste the benefits of loyalty programs.

TravelInsurance.com.au chief executive Shaun McGowan said the survey revealed many Australians were failing to capitalise on the untapped value – often thousands of dollars of value – sitting in their rewards accounts, which are typically boosted by spending within airline loyalty programs and rewards credit cards.

“The average Australian holds around 73,000 frequent flyer points. If you’re putting a dollar value on that, it could be worth anywhere from $500 to $3000, depending on how you redeem them, which airline you use, and whether you fly economy or business class,” he said.

“Conservatively, that’s enough for several domestic flights or even a return trip to Asia. But it only delivers that value if you know how and when to use your points effectively.

“If you’re not tracking or redeeming them strategically, you could be leaving serious value behind. The survey found that 22 per cent of Australians don’t even know their points balance, so that’s thousands of dollars in unused travel sitting idle.”

There are thousands of points on offer with airline loyalty programs.

In a more positive finding, the survey revealed that two in five Australians (41 per cent) were maximising their points by earning and redeeming them strategically.

Millennials and Gen X travellers are leading the way in strategic redemption, with 44 per cent saying they strategically track and redeem their points. They are also likely to hold points balances above 100,000 points.

However Boomers (30 per cent) and Gen Z (27 per cent) Australians are more likely to let their frequent flyer points go to waste, saying they use their points occasionally but don’t keep track of their balances.

These groups are more likely to have balances under 10,000 points.

Mr McGowan said there were several ways to maximise the value held in frequent flyer accounts, including by reviewing points balances regularly, and by accruing bonus points by booking flights, hotels and car hire through an airline’s shopping or travel partners.

TravelInsurance.com.au’s five tips to maximise your frequent flyer points:

1. Review your frequent flyer points balance regularly

Set a reminder to check your frequent flyer points balance at least once every 12 months.

It’s a simple way to keep track of your earning rate and see how many points you’ve built up to redeem on flights or other rewards.

Keep in mind that with most travel programs, it’s a case of ‘use it or lose it’.

You need to be earning or redeeming points regularly, or your points will expire.

2. Align your everyday spending

If you have a rewards credit card, you can earn frequent flyer points on everyday purchases like groceries, fuel, insurance and utility bills – and in some cases, even when paying rent.

Just be sure to pay off the balance in full each month to avoid hefty interest charges.

Plus, some rewards credit cards offer over 100,000 travel points when you sign up – you’ll just need to pay the annual fee and meet a minimum spend within the first few months.

3. Double dip on earning

You can earn bonus points by booking flights, hotels, or car hire through your airline’s shopping or travel partners – on top of the points you earn from your credit card.

These bookings often come with bonus points promotions, and when combined with a points-earning credit card, you can effectively double-dip.

4. Compare redemption value

Not all points redemptions are equal.

Flights – particularly upgrades or long-haul routes – tend to offer the highest dollar value per point.

In most cases, using your points for flights beats redeeming them for merchandise, gift cards or cashback.

5. Link your frequent flyer number to all booking sites

Always add your frequent flyer number to your account or profile when booking flights, hotels, or car hire through third-party sites like Expedia or Webjet.

Missing out on points because you forgot to link your account is one of the most common mistakes travellers make.

Fortunately, most airlines allow you to claim missing points for eligible flights within a certain period after travel.

Just log in to your frequent flyer account and submit a claim – make sure you have your flight details handy, as they’ll be listed on your e-ticket or boarding pass.

Originally published as Aussies have average of 73,000 frequent flyer points but aren’t using them