How to game Qantas’ new frequent flyer program

Just hours after my column last week on the probable design of the new Qantas frequent flyer scheme, the details were announced, and the program declared open for business.

Happily, the leaks proved authentic and my logic about likely program nuances was accurate. So today we move beyond the basics, to how to game the new Qantas frequent flyer schemes – and win.

Qantas CEO Vanessa Hudson unveiled the changes on Monday.Credit: Oscar Colman

Qantas Classic Plus reward seats – ultimately, 20 million of them a year – are now live for flights from July. So far, those are only international flights originating in Australia, including returns; those from overseas will be added over the next few months, followed by domestic flights.

As foreshadowed, there is no intention to make flights on any partner airline part of the program, and – for now – not Jetstar either. You will be able to book using Classic Plus on most Qantas flights and in all cabin classes.

This new program sits – value-wise – between the two existing ones. Here are the relative points exchanges:

• Classic Rewards – it varies depending on the cash fare, but you will get value from 2 to 5 cents per point. This is by far the highest-value program, but there are far fewer available seats – just five million across all partner airlines worldwide.
• Classic Plus – economy fares give 1 cent per point; business class is 1.5 cents. There are 20 million seats a year, so this is the most inexpensive way that is also widely accessible.
• Points Plus Pay – usually about 0.6 cents per point. Although this is by far the worst value, it will be the only option if you don’t have enough points to fly.

Note these points conversions factor in the fees and taxes you pay for all but Classic Rewards. But with both Classic Rewards and Classic Plus, you pay these on top.

The big difference with the new Classic Plus scheme, though, is that it is dynamically priced – how many points it will cost is determined by the lowest cash fare in each cabin when you search for flights.

Like Classic Rewards, Classic Plus flights don’t earn you more points and only earn you status credits if you are in the Qantas Points Club.

And the points-penalty for cancelling is the same for both rewards types at 6000. You can change flights for 5000 but with Classic Plus, will also have to pay any difference due to pricing changes – in money, not points. Particularly if you book multiple seats, that could quickly cost you.

The $64,000 – or more like 64,000 points question – is how do you get the best value?

Firstly, jump on Qantas.com, and you’ll now see a lot of rewards availability, and perhaps not just at Classic Plus levels.

Last week, the cheap-flight chat rooms were abuzz with talk of a bulk seat-release – timed for the launch of Classic Plus – of Classic Rewards. They were unexpectedly replenished and if you’re quick, you may still get a nearer-term fabulous deal.

When I say nearer term, Classic Rewards seats (and now Classic Plus seats) are released 353 days in advance and, as they are such great value, are usually snapped up in a blink.

One flyer wrote on the australianfrequentflyer.com.au forum: “Just booked 2x LAX-BNE for mid/late January.” Another had even managed the cut-price option to fly internationally in October.

And here’s a great strategy tip: You’ll get the best value out of the prices-linked program Classic Plus program if you look for return flights… as cash prices are lower for return flights. This is true of Points Plus Pay, too.

For Classic Rewards, with their fixed points, per-sector conversion rate, it makes no difference. However, on shorter routes in particular, Classic Plus deals could periodically dip below the points required on Classic Rewards. This is because such routes can be deeply discounted in one-off sales.

This happened on some return routes in the New Zealand sale last week.

It will be important to keep watch. (Note there are myriad sites and services that will do this for you, and on airlines all over the world, usually for a fee or subscription. These include australianfrequentflyer.com.au, seats.aero, ExpertFlyer and iflyflat.com.)

In premium cabins on long-haul flights, Classic Rewards will almost always trump Classic Plus.

So, how do you search for – and snare – the best deals? Ideally, early – 353 days early if possible! At all times, go to the Qantas website and search flights as usual but check the “rewards” box.

With any luck, you’ll still see some Classic Rewards flights, alongside some Classic Plus. In any case, it will default to showing you the cheapest (don’t forget the fees and taxes).

In all this, there is the question I raised last week about what will pay for all this extra availability. The answer, as I explained, is probably that the points earn rate from companies and on cards, and especially bonus points, will be slashed as Qantas progressively puts a higher price on higher-engagement points.

But another query leaps out at me, having typed all these technicalities today: do we need three Qantas frequent flyer schemes?

The original two, at the cheapest and most expensive ends of the spectrum, for now, remain unchanged. But they could well be next for design changes. Or even ditching.

Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me. Follow Nicole on Facebook, Twitter or Instagram.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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