Qantas Frequent Flyer members looking to take advantage of the revamp of its status credit scheme can now roll over some of their excess credits from one year to the next, accelerating the pace at which they can move up status tiers and access more perks.
Qantas on Thursday unveiled a major change to its loyalty program, allowing members to earn status credits by spending on things such as food and petrol.
Unlike regular Qantas Frequent Flyer points, which have long been available from the airline’s branded credit cards through on-the-ground spending, status credits have come largely from flying – and brought perks such as more generous baggage allowance and lounge access.
Steve Hui of IFlyFlat said the announcement is Qantas acknowledging what is already true in its customers’ behaviour: “Loyalty isn’t about flying any more: it’s about financial behaviour.”
For people flying or buying their way to a higher tier of status credit, Hui said they will be able to roll over up to 50 per cent of unused status credits into the next year.
Hui gives the example of a member who can fly enough each year to accrue around 600 to 650 status credits but cannot get to gold status, at 700 credits. “If you can generate even 80-140 status credits through normal business behaviour – not extra flights – that gap can disappear,” he said.
But there are caps on the amount that can be rolled over from one year to the next, too. Silver tier holders can only roll over 100 credits, for gold 350 credits, and platinum holders 500.
Under the changes, Qantas Frequent Flyer members can earn up to 140 status credits per year from their spending on the ground, while a customer needs 300 status credits to earn silver, 700 to earn gold, for example.
Adele Eliseo of The Champagne Mile said the new 140 status credits available on the ground can help, “but they won’t move you into a meaningful tier on their own”.
“If you’re new to status and weighing up a push, gold remains the level where lounge access and priority benefits materially change the travel experience,” she said, noting that 140 status credits represent only one-fifth of gold, and an even smaller proportion of platinum.
Qantas typically runs only one or two double status-credit promotions – which allow people to earn more status credits – each year, she said. One of those promotions, Points Club, is ceasing with these changes.
Qantas Frequent Flyers members who hold Points Club status are likely to have a final opportunity to earn double status credits on reward-seat bookings under the current promotion, she said.
“If you already have Points Club, this could be your last chance to maximise that combination before it disappears,” she said. “At the top end, it’s possible to receive up to 126 status credits, or 252 during a double status-credit promotion, on a single sector.” That’s more than a third of the way to gold tier in just one flight.
The changes were announced in tandem with Qantas’ half-year results. The airline posted a $1.46 billion pre-tax half-year profit, helped by strong demand, including from its loyalty division which posted pre-tax earnings of $286 million, a rise of 12 per cent.
Qantas loyalty division chief Andrew Glance said of the changes: “Ultimately it’s a fantastic way to be recognised for everyday behaviour, be it shopping at Woolworths, filling up your car at BP, or taking out a credit card.
“It’s nice to know that through that journey you’re being recognised and importantly rewarded for it. It is very much part of the DNA within the Australian culture, and it’s something that we [at Qantas] certainly don’t take for granted,” Glance said. “That’s why we invest a lot of time in understanding what our members want from us.”
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