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You will need 20pc more points for Qantas reward seats in premium cabins under changes

The challenge for frequent flyers securing a Qantas seat is about to cost them up to 20 per cent more points per flight as the scheme increases redemption values across key routes.

Qantas under fire for poor value of frequent flyer program

Travellers will need up to 20 per cent more frequent flyer points for a premium reward seat on a long-haul flight under Qantas’s latest overhaul of its loyalty program.

The first look at the details behind its points devaluation, announced by Qantas in January, shows the challenges facing frequent flyers seeking access to the front of the plane.

From August 5, a business class reward seat from Perth to London will require 151,800 points, which is up from 126,500, while a first-class seat will cost 227,800 points, instead of 189,800, plus taxes and carrier charges.

A 20 per cent increase has been applied to premium cabin seats on routes such as Brisbane or Sydney to Los Angeles, Sydney to Singapore, and Brisbane to Denpasar in Bali.

According to the Qantas points calculator, it would take 400 economy flights to New Zealand or 84 trips to Los Angeles to accumulate that many points.

More modest increases have been applied to domestic and trans-Tasman travel, and frequent flyers will need 5 per cent more points for a premium cabin seat, and 15 per cent more in economy.

Qantas pointed out frequent flyers could still book reward seats at the current rate up until August 5, for flights up to 11 months ahead.

The airline also stressed it was the first increase to Classic Reward seat pricing in six years, and only the second since 2004. Other airline programs have similarly devalued points, including Virgin Australia’s Velocity.

Furthermore, Qantas said the “adjustment was needed to ensure the frequent flyer program could continue to provide over 20 million reward seats and deliver other initiatives to reward members and improve the program”.

The changes are also expected to help address a 6 per cent decline in earnings in the Qantas Loyalty business in the first half of the 2025 financial year. The loyalty business run by executive Andrew Glance has 17 million members, and with a 19.1 per cent operating margin it is more profitable than domestic and international flying.

As a sweetener, Qantas relaunched a loyalty promotion on Wednesday to drive bookings across its domestic and international network. For the next week, people booking flights with Qantas would earn either double the status credits or double the points.

From August, Qantas frequent flyers will need 130,100 points for a business class reward seat on a Sydney-to-Los Angeles flight which is up from 108,400.
From August, Qantas frequent flyers will need 130,100 points for a business class reward seat on a Sydney-to-Los Angeles flight which is up from 108,400.

Frequent flyer expert Adele Eliseo of The Champagne Mile said that previously this promotion resulted in two thirds of participants choosing double status credits over points.

She said that showed the majority of members valued lounge access and priority benefits above a big points balance.

“Historically, these offers have been a clever way for Qantas to drive significant bookings at premium pricing in a short space of time,” Ms Eliseo said.

“With a limited booking window and restricted access to sale fares, Qantas will be counting on many frequent flyers paying for flights they may not actually need.”

She said that as the cost of flying had increased in recent years, so had the cost per status credit, making the pursuit of desirable gold and platinum tiers a more expensive exercise.

“Travellers chasing status today are paying more for flights than they did pre-Covid,” Ms Eliseo said.

“Booking flights you actually need, during a sale, can sometimes get you status credits at a lower cost than paying premium prices for this promotion.”

Unlike Virgin Australia, whereby the amount spent determined the number of Velocity points and status credits earned, Qantas points and status credits are based on the distance flown.

QFlyer and Flatbeds managing director Mark Trim said there were some “catches” to the double status credits promotion frequent flyers should be aware of, and he encouraged members to pay attention to the terms and conditions.

“Double status credits don’t apply to codeshare flights operated by other airlines, including Emirates, so do check the operating carrier and not the ticketing carrier,” Mr Trim said.

“It’s also imperative to register during the promotion period, as this cannot be backdated.”

He said frequent flyers looking for a big boost in status credits, could book Sydney or Melbourne to Bali return, for an easy 480 credits under the offer.

“That’s about as good as bang for your buck as you can get as it’s the same earn rate as to Singapore, Hong Kong or Tokyo, but typically a lot cheaper,” said Mr Trim.

Mr Glance added that frequent flyers could move from bronze to gold, by booking two return flights from Melbourne to Los Angeles in premium economy, or one return flight from Melbourne to London in flexible economy plus a return Melbourne-Perth flight.

The frequent flyer program has five tiers — bronze, silver, gold, platinum and platinum one, with member benefits increasing with each progression.

Originally published as You will need 20pc more points for Qantas reward seats in premium cabins under changes

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Original URL: https://www.heraldsun.com.au/business/you-will-need-20-per-cent-more-points-for-qantas-reward-seats-in-premium-cabins-under-changes/news-story/5e277187fc2190a2daa2d2500b82845f