What's a QFF point worth

[manlai]

Hi guys. New to this forum. But I'm interested in knowing what a QFF point might be worth? If there is a link to an old thread I'd be happy to read that.

Cheers manlai

 

[MichaelD]

Between 4 and 6 cents with careful use.

 

[serfty]

Anything from zip to 10+¢ depending on how you redeem them. I look at 2½-3½¢ as a 'rule of thumb'.

• http://www.australianfrequentflyer....-flyer-program/value-of-qff-points-29386.html
• http://www.australianfrequentflyer....rogram/qff-points-redemption-value-18971.html
• http://www.australianfrequentflyer....y-rewards-qantas-credit-28317.html#post406774
• http://www.australianfrequentflyer....ssion/query-about-value-points-any-26105.html

 

[Awesom Andy]

Personally, I look at points being worth just 1c per point. The reasons being -

1. I may not be able to use the benefit until a very long time away in the future, and even when I'm in the position to attempt to use them, seats may not be available.

2. As a general trend, points are being devalued constantly in the industry (by all airlines), and I never know if the points I have now is still going to be worth the same next year, next month, or even next week.

3. When/if I redeem for a F/J flight, while on paper, the value is not bad, I have to also look at whether I would've traveled in the same cabin if I didn't use the points. e.g. I might only have bought a Y+ (or, God forbid, a class O ticket) instead of J/F. While we obviously can't compare values between the premium cabins and the sardines cans at the back of the plane in this way, the pure monetary savings on my part would be somewhat reduced.

4. It's a lot easier to calculate how much value I have in points.

Having said that, however, if you only look at the points spent vs the cost of the equivalent tickets, there's no reasons why it won't be substantially higher than 1c per point if points are used carefully.

And, as you can probably tell by now, I'm a bean counter in my normal everyday life. :shock:

 

[JohnK]

Not an easy one and it is entirely up to the individual.

In my opinion

1 QFF point = ~2.5c (I know some people value them higher)
1 Velocity point = ~0.75c
1 Priority Club point = ~0.6c
1 Hhonors point = ~0.8c
1 Flying Club mile = ~1.5c
1 Diamond Club mile = ~5c

 

[manlai]

Thank guys. Really enjoying this site!

 

[Stargazer]

What is a QF Frequent Flyer point worth?

I am about to book my first flight using points and have spent the afternoon trawling through the QF website to learn about points redemption.

In looking at the fine print the website notes that points and status credits can be earned on a QF Any Seat Award. However you can't earn points and status credits on a Classic Award. But the QF Frequent Flyer consultant I spoke to agreed with me about the status credits but did say you can earn points on this award type. Who's right.

The web site states that points required for a QF Any Seat Award are inclusive of surcharges, fees, and taxes. But with the Classic Award surcharges, fees and taxes are on top of the points required for the award. I played around with the web site using a MEL/HKG/MEL routing based on an economy fare and came up with 60,000 points (classic award) + $371.72 in taxes etc. In order to work out the real difference between the two award types I need to be able to work out what $371.72 is really worth in frequent flyer points. I came up with various calculations but none of them seemed correct. So over to you -- Can someone please advise how this calculation is completed. I know its straight forward but the maths just seems to elude me

 

[opusman]

Re: What is a QF Frequent Flyer point worth?

To calculate the dollar value or cost of a point, divide the number of dollars by the number of points.

MEL/HKG/MEL will earn 9192 points in discount Y assuming you're QF NB. Therefore the cost of the points is $371 / 9192 = $0.040, or 4 cents, per point.

(Don't forget you earn status credits too on an ASA which may also have value to you).

 

[Stargazer]

Re: What is a QF Frequent Flyer point worth?

To calculate the dollar value or cost of a point, divide the number of dollars by the number of points.

MEL/HKG/MEL will earn 9192 points in discount Y assuming you're QF NB. Therefore the cost of the points is $371 / 9192 = $0.040, or 4 cents, per point.

(Don't forget you earn status credits too on an ASA which may also have value to you).

I actually worked this out differently. That's where my confusion comes into it. I thought you take the fare MEL/HKG/MEL (let's say $1,200) -- divided by 60,000 (classic award) = 0.02 cents per frequent flyer point.

Then to determine the cost of the taxes, surcharges etc the equation would be the following: 2 cents = 1 frequent flyer point. So for $1 = 50 points. 50 points x $371.72 (cost of surcharge, taxes and fees) = 18,586 frequent flyer points. So the actual cost in frequent flyer points for the trip would be 60,000 (classic award) + 18,586 = 78,586. If I have got this wrong (and most probably it is) I am embarassed beyond belief

 

[trippin_the_rift]

Re: What is a QF Frequent Flyer point worth?

Points are only worth what you think they are. It's all very subjective.

For example I booked 2x F seats and 2x J seats to/from asia today. Points cost = 300K + $880.
That exact same ticket on the Qantas website is well over $8,000.

The real question is, what is a QFF point worth to you?

 

[yo yo ma]

Re: What is a QF Frequent Flyer point worth?

In looking at the fine print the website notes that points and status credits can be earned on a QF Any Seat Award. However you can't earn points and status credits on a Classic Award. But the QF Frequent Flyer consultant I spoke to agreed with me about the status credits but did say you can earn points on this award type. Who's right.

The website is correct:

Points and Status Credits may be earned on Qantas & Jetstar Any Seat Awards for new bookings made on or after 23 March 2010.

9.4.1 Points are not earned for travel on:
(e) free tickets or Qantas & Partner Classic Awards;

20.1.3 Status Credits are not earned for travel on:
(e) free tickets or Qantas & Partner Classic Awards

Frequent Flyer - About the Program - Terms & Conditions

In order to work out the real difference between the two award types I need to be able to work out what $371.72 is really worth in frequent flyer points. I came up with various calculations but none of them seemed correct. So over to you -- Can someone please advise how this calculation is completed. I know its straight forward but the maths just seems to elude me

This depends on what you value your points at; if you value them at 1c each, then it is worth 37,172 points. If they are 2c each, then it is 18,586 points... and so on. You can then look at the ASA and compare the differences. Just remember that points and status credits are earnt on the ASA so it becomes more valuable.

 

[JohnK]

Re: What is a QF Frequent Flyer point worth?

I actually worked this out differently. That's where my confusion comes into it. I thought you take the fare MEL/HKG/MEL (let's say $1,200) -- divided by 60,000 (classic award) = 0.02 cents per frequent flyer point.

Then to determine the cost of the taxes, surcharges etc the equation would be the following: 2 cents = 1 frequent flyer point. So for $1 = 50 points. 50 points x $371.72 (cost of surcharge, taxes and fees) = 18,586 frequent flyer points. So the actual cost in frequent flyer points for the trip would be 60,000 (classic award) + 18,586 = 78,586. If I have got this wrong (and most probably it is) I am embarassed beyond belief

There is no right or wrong. Only the value you place on points is important.

I would have done it slightly differently but at the end of the day I think one gets the same result. If airfare is ~$1,200 and taxes are ~$370 then the net cost of airfare is ~$830. So in this case the value is ~0.01383 cents per QFF point.

I value QFF points at ~0.025 each so in this case not a good redemption.

I believe an Any seat award would be much better value if one can get it for the cost of a classic award plus a few extra dollars in taxes and surcharges.

 

[ricee007]

Everyone is different, but I value at about 1.5c

 

[trippin_the_rift]

Everyone is different, but I value at about 1.5c

How many points can I sell you....?

 

[ricee007]

How many points can I sell you....?

Wait, what?

I'm overthinking now?

12,000 points = Adl-Mel flight at 1.5c, this is $180... which is about right?

Why are people saying 'So in this case the value is ~0.01383 cents per QFF point.'?

 

[JohnK]

Why are people saying 'So in this case the value is ~0.01383 cents per QFF point.'?

I said that and it may have been a little confusing as it was not a fraction of cents.

The calculation was based on 60,000 QFF points +$370 taxes and surcharges for MEL-HKG return classic award with a paid airfare costing ~$1,200. So in this case the value is ~$0.01383 per QFF point which is derived by diving $830 ($1,200 - $370) by 60,000 QFF points.

Similarly a Oneworld award is 140,000 QFF points + ~$1,000 in taxes and surcharges. Assuming the equivalent airfare costs ~$4,500 then the value of QFF points for a Oneworld award is ~$3,500 (~$4,500 - ~$1,000) / 140,000 QFF points or ~2.5 cents per QFF point.

Other people value QFF points at $0.04 to $0.08 for each QFF point by redeeming QFF points for upgrades to business class or even business class redemptions.

 

[ricee007]

So what did trippin_The_rift mean then ?

 

[drron]

So what did trippin_The_rift mean then ?

He means that in his award redemption case he got 4 cents value for each of his points.If he buys them from you for 1.5 cents each he is way in front on the deal.
In my case I value my AA miles at 6 cents as we always do premium cabin longhaul redemptions.For that QFF is about double the AA cost therefore QFF points worth 3 cents.
My most valuable points are SPG points as I transfer them to AA with a 25% bonus therefore worth 7.5 cents.Never come across a hotel redemption worth that much.

 

[JohnK]

He means that in his award redemption case he got 4 cents value for each of his points.If he buys them from you for 1.5 cents each he is way in front on the deal.

I actually read it the other way. Trippin_the rift said "How many points can I sell you?". Which to me suggests that trippin_the_rift can buy the points cheaper than 1.5 cents a point and sell them to ricee007.

My most valuable points are SPG points as I transfer them to AA with a 25% bonus therefore worth 7.5 cents.Never come across a hotel redemption worth that much.

It would be nice if Amex had an SPG credit card in Australia but not holding my breath waiting for one.

Otherwise SPG properties around the world are too expensive and the points difficult to accumulate.

 

[Stargazer]

The calculation was based on 60,000 QFF points +$370 taxes and surcharges for MEL-HKG return classic award with a paid airfare costing ~$1,200. So in this case the value is ~$0.01383 per QFF point which is derived by diving $830 ($1,200 - $370) by 60,000 QFF points.

Similarly a Oneworld award is 140,000 QFF points + ~$1,000 in taxes and surcharges. Assuming the equivalent airfare costs ~$4,500 then the value of QFF points for a Oneworld award is ~$3,500 (~$4,500 - ~$1,000) / 140,000 QFF points or ~2.5 cents per QFF point

Here's where my lack of knowledge is really going to show up. And I apologize in advance.

whiy don't you include the taxes, surcharges etc when determining the value of a point. Afterall this is a cost which makes up the airfare and can be paid with points. So if you do include the taxes in the calculation then you alter the value of a QFF point? In the above example $4500 divided by 140,000 = $0.032

secondly, I do understand the calculation which JohnK provided. What I don't understand is that if you earn one dollar per point when using your credit card, then 140,000 points = a spend of $140,000. Whereas in my example of 60,000 points = $60,000 spend (+ $370 for taxes). To me it seems more logical to spend 60,000 points on an airfare rather than 140,000 (and use the difference between 140,000 and 60,000 = 80,000) on a new award flight??? Can someone please explain where I have gone wrong