Qantas in frequent flyer program makeover

Qantas is giving its frequent flyer program a makeover in what it has called the biggest in 32 years.

Qantas Loyalty chief executive Olivia Wirth will announce the changes with CEO Alan Joyce. Picture: James Croucher

Qantas is giving its frequent flyer program a makeover in what it has called the biggest overhaul in 32 years.

One of the oldest airline loyalty programs in the world, Qantas Frequent Flyers boasts 12 million members, and 450 partners with points used almost like a second currency in Australia.

Qantas Group CEO Alan Joyce will join Qantas Loyalty chief executive Olivia Wirth for the “significant” announcement in Sydney on Thursday.

Details are being kept tightly under wraps but the airline has recently provided new opportunities for frequent flyers, including a points only flight, and Airbnb listings giving members the chance to “buy” seats on overseas flights, at a fraction of the usual points.

A Qantas spokeswoman said the airline currently redeemed one flight for points every 15-seconds, and granted upgrades for points every minute.

Flight redemptions and upgrades were the most sought-after “rewards” for frequent flyers who could earn points in numerous ways ranging from credit card purchases to sleeping.

A Qantas wellbeing app launched in January offered users the chance to earn points for a minimum of six-hours of sleep — based on mobile phone inactivity, and has been downloaded half a million times.

“We know our members like to redeem their points on travel so we’re always exploring new ways to reward members and provide more redemption opportunities,” said the spokeswoman.

In addition to Qantas’s own products and services, a variety of businesses including some banks and retailer Woolworths, pay for frequent flyer points to distribute to customers as rewards for loyalty.

Points balances have even started showing up on profiles on online dating sites, as an apparent selling point.

In the first half of the 2019 financial year Qantas Loyalty produced a record earnings before interest and tax result of $175 million, up 4.2 per cent on the previous corresponding period.

The half-yearly results report noted that points-earning Qantas credit cards were growing at a rate of 4 per cent compared to a 1 per cent decline for the rest of the market.