Cut through the frequent flyer points confusion

The biggest changes to the Qantas Frequent Flyer scheme in 35 years announced last week sparked a mixed reaction from members, marketing experts and commentators, and rightly so.

Qantas’s introduction of a new “Classic Plus” tier of reward flights was described by some PR specialists as “clear as mud” and a “sleight of hand”, while critics say it focuses more on bigger profits for its lucrative Frequent Flyer business rather than a better deal for consumers. It’s true that Qantas has effectively created a separate, more expensive frequent flyer scheme where seats can cost five times more points than its existing Classic rewards program, but it’s also true that the airline’s release of millions more seats helps satisfy customer demand for reward flights.

However, a big problem is ongoing confusion about frequent flyer points, and how changes such as these make them even more mindbending.

I personally love collecting and using frequent flyer points. Where possible I spend with a rewards credit card that comes with an annual flight credit that offsets its annual fee, and it has helped me pay for several family holidays in Australia and offshore.

My job gives me the good fortune of chatting with frequent flyer and reward points specialists regularly. But I still find frequent flyer programs confusing, and frustrating.

For example, a one-way Qantas flight between Sydney and LA in business class later this year can be paid for in several ways:

• Cash or credit card for between $7500 and $15,000.

• Classic rewards, costing 108,400 points and $347.

• Classic Plus rewards, costing between 500,000 and 700,000 points and $627.

• Points Plus Pay, costing well over a million points.

There are several ways to cut through some confusion, and make reward points work for you. Try these tips.

DO SOME RESEARCH

Websites such as thechampagnemile.com.au, pointhacks.com.au and iflyflat.com.au have plenty of articles, tools and tips about making the most of points.

When it comes to frequent flyer programs, knowledge is power. You will benefit more if you understand what each reward point buys.

DON’T WASTE POINTS

Some people previously complained about big increases in traditional frequent flyer program costs, but they were confused by the rules and trying to book using Points Plus Pay, or other airlines’ systems, rather than usual frequent flyer bookings.

In the Sydney-to-LA example, I calculated that each dollar of saving off the $7500 fare would cost 166 points if using Points Plus Pay. That’s very little bang for their buck.

Experts say the value of frequent flyer point varies depending on what it’s used for. It’s about 1.2c for a domestic flight or hotel booking, 3c for international business class, 5c for domestic business class and only 0.5c for gift cards and online stores.

BE FLEXIBLE

If you have a set date planned for a future family holiday, it will be harder to find reward flights for everyone.

Those who have the most success booking reward flights are able to vary departure and return dates by several days, weeks and sometimes months.

DO A PRACTICE RUN

The best way to learn about reward flight availability is to spend some time searching the locations you like for your next trip. You can search airlines’ websites right up until the point of payment to check bookings, extras and points – just don’t pay for something you don’t want.