Qantas Frequent Flyers not using travel perks earned during COVID
Qantas frequent flyers added an average of 160,000 points to balances in the last year from on-ground activities, creating an unusual problem for the airline.
Qantas frequent flyers have added an average of 160,000 points to their balances in the last 12 months from on-ground activities, creating an unusual problem for the airline.
Despite the activity and huge number of points amassed, an audit by Qantas has found frequent flyers are not making use of the perks that come with big balances.
The issue dates back to last March, when Qantas introduced its Points Club for frequent flyers with a minimum balance of 150,000 points, and Points Club Plus for those with at least 350,000 points.
Despite being informed of their eligibility for the clubs, more than 100,000 members had not bothered to “cash in” their benefits including Qantas Club membership and lounge passes, discount wine and hotel rooms, and hire car upgrades.
Qantas Loyalty CEO Olivia Wirth said it seemed a shame to let such benefits go to waste.
“We introduced Points Club to ensure that our frequent buyers who earn lots of points on the ground, got to enjoy travel perks associated with frequent flying,” said Ms Wirth.
“As travellers head off for a holiday, they could be missing out on enjoying our lounges or getting discounts off their hotel stay. We’re encouraging all frequent flyers to check their accounts to see if they are Points Club members.”
Status credits have no bearing on Points Club membership with even bronze frequent flyers qualifying.
Once points thresholds were met, members were informed via email and through the Qantas app.
With so many points being earned on the ground, club membership had increased 35 per cent in the past year, prompting the addition of more rewards, Ms Wirth said.
These included vouchers for wine and hotel rooms, exclusive access to flying offers, and exclusive access to a double status credit offer on flights taken in Australia and New Zealand.
“Around two-thirds of Qantas points are earned on non-flying activity so the potential to build large points balances on the ground is huge,” said Ms Wirth.
“Last year, one member earned close to 3 million points on the ground alone, that’s enough points for 25 Sydney to Auckland return flight in business, or a month’s stay at The Langham hotel in Melbourne.”
The Qantas frequent flyers program has more than 13 million members, making it Australia’s largest loyalty scheme, ahead of Virgin Australia’s Velocity with 10 million members.
The program is also a significant money spinner for Qantas, generating $125m in earnings before interest and tax in the first half of the 2021 financial year.
So highly valued is the frequent flyer scheme, Qantas has waged a major legal battle to delay a former executive starting as Velocity’s CEO, after sensitive information was shared with him.
Nick Rohrlach had accepted a job in Qantas Loyalty before jumping ship, and was allegedly given access to sensitive commercial information about the program.
Qantas recently won an injunction stopping Mr Rohrlach from taking up the position with Velocity this month.
The matter is due to return to court in Singapore on Thursday.
More Coverage
Qantas ghost flights penalty a ‘necessary sting’
The Federal Court has agreed a $120m settlement reached by the ACCC and Qantas will be an effective deterrent for future non-compliance with consumer laws.
Flight Centre to relaunch meetings arm amid global push
The ASX-listed travel business will relaunch its corporate meetings and events business to position it for global opportunities as Australian companies look to spend big on conferences.