Qantas’ decision to increase the number of reward points required for seat redemptions has sparked debate among travelers and industry experts. While the airline has promised new perks, including an expanded network of partner airline seats, critics warn that these changes may reduce the overall value for loyal members. With nearly 17 million Frequent Flyer members, the overhaul of the program could have widespread implications for Australian travelers and their access to affordable rewards.
Changes to Frequent Flyer Points Raise Eyebrows
Qantas’ recent adjustments to its Frequent Flyer program represent a significant shift for travelers who rely on rewards to offset the costs of domestic and international flights. By increasing points requirements while introducing new partnerships, the airline seeks to balance growing its loyalty program with offering sustainable benefits. However, the trade-offs have raised questions about whether the changes will genuinely benefit loyal customers.
Increase in Points Required for Redemptions
Qantas recently announced a hike in the number of reward points needed for Classic Reward seats, with adjustments ranging from 5% to 20% depending on the route. This applies not only to Qantas-operated flights but also to seats on partner airlines.
- Sydney to London (business class, one-way): an additional 21,700 points and $175 in fees.
- Sydney to Melbourne (economy): an extra 1,200 points.
- Melbourne to Cairns (Jetstar economy): an additional 2,200 points.
New Partnerships and Added Reward Seats
To counterbalance the price hike, Qantas revealed that members will have access to one million additional Classic Reward seats through partnerships with airlines such as Air France, Finnair, KLM, and Hawaiian Airlines.
- New Hawaiian Airlines routes are expected to contribute approximately 800,000 seats.
- Classic Reward seats on Jetstar start at 5,700 points plus fees on nearly half of the carrier’s flights.
Despite these promises, critics argue that the availability of partner airline seats is not guaranteed, as seat allocations remain under the control of these airlines.
CEO Defends Changes
hQantas Loyalty CEO Andrew Glance explained that the adjustments aim to secure the program’s longevity and enhance offerings over time. He noted that the airline is committed to increasing Classic Reward seat availability annually.
Critics Warn of a “Dangerous Gamble”
The backlash against Qantas’ loyalty program overhaul stems from concerns about accessibility and fairness. Many industry experts and frequent flyers argue that the program’s long-term value is now uncertain. With more competition for limited seats and no guarantees of exclusivity, loyal customers may find themselves questioning the benefits of staying with the airline.
Concerns over Partner Airline Accessibility
Travel expert Steve Hui described the overhaul as a “dangerous gamble,” pointing out potential flaws in the expanded partner airline network. He noted that Qantas members would be competing with loyalty members of other airlines for the same pool of reward seats.
- Partner airlines such as Air France, Finnair, and KLM do not operate direct flights to Australia, reducing their practicality for Qantas members.
- Hawaiian Airlines’ reward seats will also be accessible to members of programs like Virgin Velocity and Alaska Airlines, limiting exclusivity for Qantas customers.
Loyalty Program Profitability
The Qantas Frequent Flyer program has become a significant revenue stream, generating $511 million during the 2024 financial year. While this highlights the program’s importance to the airline, some customers feel that the latest changes prioritise profits over member benefits.
Implications for Frequent Flyers
The changes mark the first significant points increase since 2019, ending a long-standing period of stability. With the potential for reduced availability of reward seats and increased competition, frequent flyers may need to reassess the program’s value.
- The overhaul could prompt members to explore other loyalty programs that offer better access to rewards.
- Increased fees and higher points thresholds might deter casual travelers from engaging with the program.
The future success of the Frequent Flyer program will likely hinge on Qantas’ ability to deliver on its promises of expanded availability and meaningful benefits for loyal customers. Qantas’ gamble with its loyalty program has sparked mixed reactions, leaving many travelers questioning whether the benefits outweigh the rising costs.
