Qantas timing on changes to Frequent Flyer program ‘truly appalling’

QANTAS has grossly miscalculated its customers by announcing snap changes to its Frequent Flyer program, analysts say.

QANTAS has grossly miscalculated the feelings of its customers by announcing snap changes to its Frequent Flyer program and must brace for an angry backlash, analysts say.

The majority of the travelling public hoping to earn points on Qantas are likely to be worse off from changes that will see Qantas points and status credits earned based on where you fly, the fare you pay and the carrier you choose, according to Australian Business Traveller editor David Flynn.

Will Qantas’ Frequent Flyer changes make you change your travel plans? Comment below.

“I would suggest Qantas has grossly miscalculated the feelings of Frequent Flyer members over the changes to the program,” Mr Flynn said, describing the timing as “truly appalling”.

“They have said they have the honourable intention of making it simpler — the motto is ‘fairer flyer’ — but the question is “is it fairer to whom?”

“To Qantas and the small number of premium customers and not the great majority of people who travel on the cheaper seats,” he said.

The Flying Kangaroo announced the changes, which come into effect on July 1, in an email to Frequent Flyer members late yesterday.

“You will enjoy more Qantas Points on most Qantas fares in Flexible Economy, Premium Economy, Business and First,” the carrier said.

“However, our lower fares in Discount Economy and, in some cases Economy, will continue to earn points but at a reduced rate to other Economy options.”

With more than nine million frequent flyer members, this latest overhaul is already causing controversy with members lashing out at the carrier on Twitter.

Today's Qantas Frequent Flyer changes disappoint & devalue @QantasAirways . Glad I'm not a shareholder today. #qantasfrequentfailure

— David J Beitey (@davidjb_) March 27, 2014

New @qantasairways frequent flyer program will be an absolute joke. I'll just fly cheaper airlines now instead of paying more for qantas

— Courtney Rees (@courtney_rees) March 27, 2014

Wow Qantas, what possible reason do I have to fly with you now you’ve ripped your frequent flyer program to shreds?

— Sabine Wolff (@sabinewolff) March 27, 2014

Mr Flynn said the changes would complicate what was previously a very simple program, by apportioning points based on eight fare categories and a number of travel zones.

The changes will also see reductions on status credits Qantas silver, gold and platinum members are eligible for, he said, particularly when travelling on the airline’s code share partners.

“It’s very clear cheaper tickets will earn a lot less Frequent Flyer points,” he said.

“Even people sitting at the pointy end of the plane could stand to earn less.”

However, despite the backlash, Mr Flynn said Qantas was not the first airline to restructure its Frequent Flyer program along these lines.

He said a number of struggling US carriers had already made the move.

The changes come as Qantas announced last month it would shed 5000 staff, cut some routes and put off some aircraft purchases after posting a six-month loss of $252 million.

A spokesman for the carrier last night denied the changes to the frequent flyer scheme were affected by that cost-cutting announcement.

“We do make tweaks to the program from time to time, and these changes are just part of that,” he said.

However, CAPA Consulting managing consultant Ian Thomas said it was part of an attempt to increase revenue, which amounted to the same thing.

“I think it is part of a program to try to raise additional revenue, and that is the same thing, it’s just that you are attacking it from the other end,” he said.

Mr Thomas said while, in most instances, the changes in points weren’t vast, it would be interesting to see whether it will lead to a drift of lower-end Qantas passengers to competitors, notably Virgin Australia.

“There’s no incentive for those at the discount end to stick with Qantas,” he said.

However, Mr Thomas said Qantas was at the same time offering some additional reward to customers at the premium end.