QANTAS REFUELS CREDIT CARD REWARDS FOR FREQUENT FLYERS

Transferring your rewards to Qantas Frequent Flyer points is now a thing of the past. Much-publicised changes to Qantas Frequent Flyer (QFF) programs, in place as of 1 April 2009, have seen a complete overhaul of frequent flyer redemption, as we know it.

Previously, the majority of rewards credit cards provided the option to transfer points to QFF as and when desired. Internal changes at Qantas have resulted in only one way to earn QFF points – through Qantas co-branded cards. These cards, and there are 25 of them listed on the Qantas website, will 'direct earn' QFF points with every purchase. No longer do consumers need to convert their credit card loyalty points to QFF before they use them.

TO SWAP OR NOT?

The lead up to the March 31st deadline to convert existing points to QFF points has been an interesting time for those consumers using one of the many credit cards that has QFF as a points-redemption option. The decision whether to swap their points to QFF – and sign up to a direct earn card to earn further points, or to continue earning points as usual, and use their points for other rewards has not been an easy one. Qantas helped the situation along by running a promotion to give 10 lucky winners 1 million bonus points for using a direct earn card. Not to be outdone, Velocity Rewards (Virgin Blue-based reward program) upped the stakes to 25 million bonus points for one lucky winner. The enormity of the prize was highlighted when Virgin stated that it was enough points to fly into outer space with Virgin Galactic. With the stage set for a battle between the two biggest players in the frequent flyer rewards space, cardholders were reminded by the big black and red digital clock on the Qantas website that time was running out to make their decision. Qantas has since reneged and allowed a little extra time due to an administration backlog.

However, by now, most cardholders will have made their decision. Those loyal to Qantas and who have been happy with years of free flights to their favourite destinations will have chosen a direct earn card to suit their needs. Other consumers, curious about options available to them, may well be converting their everyday spending into free travel, goods or cash rewards. The question remains, who has benefited from the changes? There are the obvious beneficiaries, such as QFF - who have their reasons for the changes. Some credit card companies too see merit in outsourcing their rewards program on certain cards to Qantas. From a consumer point of view however, it is only the dedicated QFF users who will see any direct benefit. They will now earn their QFF points quickly and simply, adding to their total with every swipe. It is arguable that many of these users would have already sought out one of the Qantas branded cards that have been on the market for some time. However there has been a limited range of these cards in the past, so with 25 options from nine different providers, there is now plenty of choice.

For those no longer earning frequent flyer points, there are still some benefits to be gained from these cards. We are seeing a changing market for flight rewards, and we have noticed an increasing number of competitive options for those looking to earn flights or travel.

OTHER WAYS TO FLY

Cardholders who have not swapped their points to Qantas and signed up for a direct earn card still have plenty of options for earning flights. Velocity Rewards has an impressive range of rewards available, from flights and holidays, to fitness and home entertainment. Both Qantas and Velocity provide a full breadth of reward options, giving those people focused on flight rewards the ability to redeem more traditional rewards when desired.

Another good option for redeeming travel rewards is through an in-house travel agent such as American Express Travelscene. This is a full service travel agent that allows customers to pay for a full range of travel by using either cash or their American Express Membership Rewards points. For members booking a holiday with Travelscene, their points are as good as cash. They can even be used to pay for foreign exchange and airport tax. Several other providers including ANZ’s Holiday Rewards, the Commonwealth Banks’s Travel Plus and Westpac’s Altitude Travel offer similar travel services through in-house travel agents as a way of catering for all travel needs.

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