Qantas rolls out changes to frequent flyer program
Qantas rolls out its biggest change to its frequent flyer loyalty program tomorrow, in a major sting to business class and first class fares. SEE HOW IT AFFECTS YOU
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Qantas's biggest change to its frequent flyer scheme in 32 years will be rolled out tomorrow, in a major sting to business and first class fares.
From September 18, flyers will require 15 per cent more loyalty points to book premium cabins or to qualify for upgrades.
But it's not all bad news, Australia’s largest airline has also freed up an extra one million seats to high-demand destinations for reward flights, which customers pay for with points they have earned by using Qantas services and those of its partners.
Qantas will also reduce the number of points needed for domestic and international reward flights by as much as 10 per cent and cut carrier charges — the extra costs associated with points bookings — by up to half.
The cutting of carrier charges, which has been in effect since June, is expected to save members $200 on average per return journey.
A return Classic Reward flight from Sydney or Melbourne to London saw carrier charges cut from $1080 to $700 in business class. A return economy flight from Sydney to New York saw carrier charges reduced from $360 to $180.
Carrier charges on international economy flights have already been reduced and carrier charges on premium cabin bookings will be cut from September 18.
Upgrades will still require passengers to earn up to nine per cent more in points.
The number of points required for domestic and international premium cabins will also increase by up to 15 per cent.
A new tiered Points Club program will also be introduced to better reward members who earn most of their points on-the-ground.
Members will also get more choice when travelling to destinations across Europe, New Zealand and South East Asia through new frequent flyer agreements with Air New Zealand, China Airlines, Bangkok Airways, Air France and KLM Royal Dutch Airlines.
Qantas Group CEO Alan Joyce said when the changes were revealed that they are part of the company’s $25 million dollar investment and will generally improve how Qantas Frequent Flyers near 13 million members are recognised.
“These changes are about making it easier for members to access those rewards and help to keep them highly engaged, which in turn is good news for our business as a whole,” Mr Joyce said.
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“We know the majority of our members want to use their points to take a dream trip overseas, so we are adding more reward seats including First, Business and Premium Economy to places like London, Los Angeles, Tokyo and Singapore as well as slashing carrier charges.”
The investment will go on making those seats available and reducing charges, although the airline anticipates that the increase in business it will generate will offset that within the first year.
He said the increase in points needed for premium seats was the first rise the program had seen in 15 years.
“The product has improved a lot in that time,” he said.
Qantas Loyalty, which allows customers to earn redeemable points by booking flights, shopping at retailers including Woolworths, and using linked credit cards, was founded in 1987 and has grown from 50,000 members.
It made a $372 million profit in the last financial year off revenue of $1.55 billion.
This month Qantas Frequent Flyer also will be the first Australian loyalty program to offer Lifetime Platinum status, which will be offered when a member gets 75,000 status credits.
Qantas Loyalty boss Olivia Wirth said the airline had conducted extensive research before changing the program.
“There’s a lot about the Qantas Frequent Flyer program that our members tell us they love, but there are also areas of the program that have increasingly come under pressure as a result of rapid expansion,” she said.
“What we’re announcing today is all about investing more into the heart of our program.”
Comparison website Finder.com.au’s travel expert Angus Kidman said the loyalty program makeover was a win for most members.
“The most common complaint from frequent flyers is that rewards seats are so hard to find. Making one million additional seats available will help with that, though with 13 million members, it won’t make everyone happy. Those seats are also spread over multiple carriers and we don’t have all the details yet,” Mr Kidman told News Corp.
“Lowering carrier charges is also a big win. Qantas has very high carrier charges on rewards flights, so it’s great to see those dropping.”
But he said a “major sting” was the increase in the number of points needed for business and first class fares or upgrades.
Mr Kidman said the overhaul would increase the appeal of the loyalty program, but added the airline should have revealed more details on how rapidly its points-only flight would be expanded.
“The first one this year proved popular, so it would be great to see them become more regular,” he said.
He added: “Remember, it’s always worth saving up your Qantas Points to redeem for a flight rather than buying a blender. It takes longer, but it’ll give you much better value per point.”
Originally published as Qantas rolls out changes to frequent flyer program