Frequent flyers’ dilemma: what’s better points or status credits? Experts have their say
Travel experts are split over whether status credits or points deliver better value, with the choice potentially transforming the flying experience. The status chase locks the options down to one particular airline, while points suit infrequent fliers.
In the curious world of airline loyalty programs, many believe there is only one thing better than points – and that’s status credits.
More difficult to obtain than points, status credits are typically only earned through flying with a particular airline and cannot be redeemed. They help get a better seat on a flight and unlock a range of other travel benefits that confer privileges like VIP invitations and lounge access.
Not everyone agrees — points whisperer Steve Hui for example — but Adele Eliseo of The Champagne Mile said there was appeal in going for a big bank of status credits as airlines increasingly reward “elites” in the loyalty game.
In the case of Qantas, status not only unlocked such niceties as lounge access, priority boarding and a bigger checked luggage allowance, it also improved the chance of landing an elusive reward seat.
“Effectively before Covid we had a situation where the vast majority of reward seats were released up to 11 months out,” said Ms Eliseo. “The game has changed since then, with higher status Frequent Flyers given access to those seats earlier — so the exact day of release depends on status, with platinums getting that earliest release.”
For those fortunate enough to reach coveted platinum one, the benefits are even more compelling.
“That’s actually the ability to ring up the airline and ask for the release of seats, so quite a powerful benefit,” Ms Eliseo said. “It’s not something that could be done for every seat but it can be done for quite a number of seats depending on the fare bucket, and that’s a really big advantage.”
It is not only Qantas tying loyalty benefits more closely to status. In the case of Emirates’ Skywards, lowly blue tier members don’t even get to see rewards in first class, while Air France-KLM’s Flying Blue program restricts access to its very best reward seats to platinum members only.
Then there is the matter of upgrades, which Ms Eliseo rates as delivering excellent value for enthusiasts.
Over in the points camp is Mr Hui, the founder of iflyflat.com.au who treats points as a second currency. As well as being the necessary ingredient for reward seats, Mr Hui said points offer certainty whereas status credits are more of a “lottery”.
“(With status) you make an upgrade request and hope for the best,” he told the Festival of Aviation and Corporate Travel conference in Sydney. “It’s the same as putting your name down at the hottest restaurant in town and waiting for a callback. You may never get a callback. But if we use points to book, business class is confirmed.”
He said status credits also tied the member to one program, whereas points could be used across the various schemes through certain credit cards.
“If you’re chasing status, they’ve got you locked up. (The airline) has got you looking only at their routes, only at their fares, so it’s like this endless chase to get something more than what you paid for,” Mr Hui said.
“But when you chase points, you’re saving them up to redeem them on a confirmed business class seat, so you still get more than what you pay for but you know precisely that you’re flying business class.”
Another advantage of points is that reward seat “pricing” is consistent, whereas fares fluctuated wildly.
“Using points is one of those things where it’s very unique because you get access to the same seat for the same price every time you fly,” he said. “That’s how frequent flyer point systems are designed, because the number of points needed is actually based on distance, not seasonality.”
Fellow frequent flyer whiz Daniel Sciberras of Point Hacks said it was clear there were benefits to both points and status credits, which came down to the individual. He said the general rule was if you only travel once or twice a year, status credits were unlikely to be for you.
“You’re unlikely to reach any of the premium tiers, or at least the gold tier which is where the real benefits start to kick in, so in that case go for points because you can use points as an infrequent flyer,” Mr Sciberras said.
“If you fly frequently enough to reach the tiers, electing for status credits is probably going to be beneficial because you fly enough to gain the benefits of status.”
Qantas Frequent Flyer members needed 700 status credits to gain gold, and 600 a year to retain that status, while for Virgin Australia 500 status credits is the magic number.
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Originally published as Frequent flyers’ dilemma: what’s better points or status credits? Experts have their say
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