Qantas frequent flyers can now earn status credits without flying

Qantas has unveiled a controversial new element of its loyalty program, allowing frequent flyers to earn coveted status credits through ground spending.

For the first time Qantas is giving frequent flyers the chance to build up their status credits on the ground, to achieve higher tiers in the program.

For the first time, Qantas is giving members of its frequent flyer program the chance to build up their status credits balance on the ground to attain higher tiers and more benefits.

In a move predicted to delight some members and irritate others, frequent flyers can earn up to 110 status credits by using their Qantas-linked credit card, shopping with program partners or booking a hotel stay.

Previously, status credits could only be earned by booking and flying with Qantas, with the most frequent flyers then able to reach coveted gold and platinum status in the program.

The higher the status tier, the more benefits for members, including lounge access, a higher points-earn, a dedicated customer service call line, and a better chance of landing upgrades and classic reward seats.

Qantas Loyalty chief executive Andrew Glance said while flying would always be at the core of the program, the offer was about expanding the way in which the program recognised members both in the air and on the ground.

“Members are already earning two-thirds of their points on the ground, and we expect this will be particularly appealing to our ‘frequent buyers’ who might not fly as often but are very engaged with the program through our hundreds of partners,” Mr Glance said.

Qantas frequent flyer members need to earn 300 status credits to reach silver, and 700 to attain gold.

Access to Qantas lounges, such as the first class lounge at Los Angeles International Airport, is one of the big drawcards of the frequent flyer program.

Under the new offer, 20 status credits will awarded for every 1000 Qantas points earned in the cards, banking, utilities and insurance categories.

Ten credits will be granted for every 1000 points earned in the hotels, travel, fuel and car, food and wine, retail and shopping, and leisure and entertainment categories.

Each member can earn up to a maximum 110 status credits, but they can’t come from a single category more than once.

Point Hacks spokesman Daniel Sciberras said the move was similar to a US model, and would likely divide frequent flyers.

“Some people are going to love this, some are going to hate it, such as the frequent flyers of this world who live by the traditional meaning of status credits, and I might fit into this category – I’ve had to put my bum on a seat, it can be quite uncomfortable at times, so I want status credits to be a reward for that, and then all the benefits you get from the tier levels,” Mr Sciberras said.

“Others will say, though, and it’s a strong argument, ‘I’m just as loyal a customer to Qantas via their frequent flyer program.

“It’s going to be a love-hate thing depending where you sit on this, and how you actually spend.”

The Champagne Mile’s Adele Eliseo.

Adele Eliseo of The Champagne Mile said 110 status credits was “a drop in the ocean” for members hoping to achieve platinum status – requiring 1400 credits, or platinum one, which required 3600.

She said it appeared to be Qantas getting ahead of the RBA’s move on interchange caps that would most likely reduce the points earned by people using credit cards.

“I think it’s pretty clever because it essentially allows Qantas to engage members with another currency that’s perhaps even more compelling than points, but is not tied to interchange caps,” Ms Eliseo said.

“We know status credits are the most coveted currency – with more than 60 per cent of members opting for credits over points when Qantas does its double status credits or points promotions.”

She said the challenge of earnings credits across so many different categories would require a “significant commitment” and people should “do their maths”.

“Look at the cost of engaging with those categories. So for things like taking out new energy plans or looking at financial services products, make sure that’s what is on offer in order to get those status credits makes the best financial sense,” Ms Eliseo said.

Frequent flyers must register with Qantas by October 31 to be eligible for the status credits deal, with the offer ending on December 31.