Article: Want to Fly to Europe? Collect a Flexible Points Currency!

[AFF Editor]

Want to Fly to Europe? Collect a Flexible Points Currency! is an article written by AFF editorial staff:

Want to Fly to Europe? Collect a Flexible Points Currency!

Credit card rewards programs offer flexible points currencies that you can transfer to whichever airline has the best deal when you book.

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

 

[levelnine]

Excellent article (and podcast episode).

One of the challenges of attaining flexible points currencies in Australia is the structure of the credit card market.

For most people, the only reasonable way to attain the ~260K KrisFlyer miles necessary to fly business class Australia - Europe return is with credit card sign-up bonuses. (The obvious exceptions being business owners with very large credit card spend and very infrequent flyers who are happy to fly business class once every couple of years.)

Thus, one could attain the 260K KF from the following currently available bonuses:
- Amex Platinum: 150K MR = 75K KF
- St George Signature: 150K Amplify = 75K KF
- ANZ Rewards Black: 150K ANZ = 50K KF
- NAB Rewards Signature: 140K NAB = 46K KF

The challenge is the only way to repeat that for a second or third time is to sign up for the same cards again — there aren't very many credit card issuers with flexible points currencies that have large sign-up bonuses.

That means the best course of action is to close these credit cards as soon as possible to start the clock on eligibility for the sign-up bonus again.

But what happens when you close the credit card? You lose the flexibility! You have to transfer the points to an airline partner or lose them. (That would be an easier pill to swallow if KrisFlyer didn't have a hard 3 year expiry on points.)

This stands in contrast to the US market where credit card sign-up bonus eligibility is typically based on the time since you attained your last bonus, not the time since you closed the card. That means you can keep the card open (and therefore the points in a flexible currency) while waiting to be eligible again. They also can get multiple cards that earn the same flexible currency (eg they can get many sign-up bonuses for earning Amex MR). The Americans have it so easy compared to us!

I also think that's one of the reasons Qantas points are so popular in Australia. They used to act a little bit like a flexible currency — you warehouse points from Woolworths, credit cards, insurance, electricity, AirBNB/hotels, etc in Qantas, they don't expire (in comparison to KF) and they can be redeemed for flights on a range of airlines. The problem, of course, is that all of Qantas' 'transfer options' (ie flight redemptions partners) have currently disappeared ha!

 

[aikman]

Isn't Qantas usually excluded from most flexible points currencies, as in you have to choose either Qantas exclusively or not at all? Qantas points could potentially be useful in the future for anyone based in Australia but excluding it from flexible points currencies doesn't seem very flexible at all.

But if the goal was to diversify away from Qantas then I agree that flexible points currencies is a good strategy.

 

[kessar]

I'm someone who is sitting on a stack of QF points I struggle to redeem, and I'm making sure that where possible all my future points earn is going to other airlines. What do people put the lack of partner availability down to? My theory is that back around 2019~ QF dramatically expanded the ways to earn QF points - over the last few years I've earned them from paying my energy bills, health insurance, business insurance and eating at restaurants - this is on top of any credit card points for the dollar spend. I think this may have created a QF point inflation and partners have moved to isolate QF points holders as a result, though I'd love to hear better informed views.

 

[levelnine]

What do people put the lack of partner availability down to?

It is both a demand and supply problem.

Demand for award travel has increased due to more people sitting on larger piles of points, having been able to collect points, but not redeem points, for 2+ years. Also, the attraction of flying business class has only increased due to an enhanced desired to sit further away from strangers.

Supply for award seats has dramatically decreased. On Qantas' own flights, they have only half the number of seats flying to key destinations, such as the US, compared to pre-COVID.

On Qantas' partners, supply has dramatically decreased for different reasons:
- Qatar because Qantas appears to be in a dispute with them and because Qatar appear to have shifted allegiances to Virgin
- Cathay because of the HK lockdown (slowly getting better)
- JAL because of Japan's lockdown (slowly getting better)
- Emirates for some unknown reason (presumably because they are filling their planes with cash passengers)
- AA because it has shifted to dynamic pricing, leaving few classic flight rewards
- UL because the airline is teetering on the brink of financial collapse
- LATAM left oneworld and has aligned with Delta (though some availability is coming back)

 

[JohnK]

Premium cabins or economy?

Forget using points on any carrier. Too many issues.

Purchase cash airfare if possible although at some point I'd like to take daughter to Greece for 1 week on one of the Thailand trips and would love to use QFF points. EK used to have good availability but I think their schedules are still limited.