Article: If You Have a Huge Points Balance, You Might Be Doing It Wrong

[AFF Editor]

Many frequent flyers seem to think that having millions of loyalty points is a sign of success. But there's another school of thought that points redeeemed is a better metric of success, and therefore having a low points balance (with a high inflow and outflow of points) may actually be better.

This opinion piece makes this case:

If You Have a Huge Points Balance, You Might Be Doing It Wrong

Many people think of a huge balance of frequent flyer points as a status symbol. A better metric is the number of points redeemed.

www.australianfrequentflyer.com.au

What do you think about this?

 

[moa999]

Definitely agree you need to spend points before they lose value by being 'enhanced'.

But equally some may see it as their retirement travel savings or the like - helps to have more flexibility in spending them.

 

[Flyfrequently]

A timely article as I look at my points balance.
I don't actively pursue points and over the years, I have been fortunate to get several F & J CR to Europe, USA and UK with relative ease.

Makes me think, why did I just buy J fares - oh, the DSC promo of course!

 

[levelnine]

Even points redeemed isn't a particularly good metric of success. You could blow all your points on a poor value redemption. It's one of the reasons why cents per point calculations do make sense, even though I don't love them because bloggers/vloggers manipulate them for clicks ('I got 15 cents per point for this first class trip — click my affiliate link to find out how' [by comparing it to a one-way last minute cash ticket]).

 

[Gredgy69]

Many frequent flyers seem to think that having millions of loyalty points is a sign of success. But there's another school of thought that points redeeemed is a better metric of success, and therefore having a low points balance (with a high inflow and outflow of points) may actually be better.

This opinion piece makes this case:

If You Have a Huge Points Balance, You Might Be Doing It Wrong

Many people think of a huge balance of frequent flyer points as a status symbol. A better metric is the number of points redeemed.

www.australianfrequentflyer.com.au

What do you think about this?

I had just under 1.4m Velocity points in my account until recently. I transferred most of them to Krisflyer and then redeemed them for 2x J SYD to LHR and 2x F CDG to SYD for our birthdays and wedding anniversary next year. This was always the planned use of them but took longer to organise due to covid etc.

 

[daft009]

I was sitting on 5mil KF points as covid hit.
used every single point on J & F flights, no issues whatsoever.
not a single point expired

was quite easy. all saver fares, except the suites one back from FRA to SYD

 

[NoName]

Rarely have a huge balance due to constantly planning and redeeming them on future trips. If we have a big trip planned then will save them up for that specific goal but wouldn’t peak at much over 1m points across all programs and used pretty quickly after that.

 

[andye]

Agree in general but it's nice to have some in reserve for when a great opportunity comes along. I have a modest stash of American and Alaskan miles which I haven't touched for about 5 years.

Managed to redeem some today for BER-DOH-HKG on QR J/F for 90K AA and SIN-CMB-LHR on UL J for 75k AS. Both with very reasonable taxes

 

[SeatBackForward]

My issue is not having the points but the use of them - I rarely use them for reward redemptions because my flights are usually date/time constrained. I recognise that using marketplaces is not good value, which only really leaves upgrades as the main avenue for me to spend points.

 

[justinbrett]

I think saving enough points for a return long haul business class seat is the happy medium. You never know when you’ll need it. After that you’re hoarding.

 

[SYD]

My issue is not having the points but the use of them - I rarely use them for reward redemptions because my flights are usually date/time constrained. I recognise that using marketplaces is not good value, which only really leaves upgrades as the main avenue for me to spend points.

and this is where QF not sticking to the drum beat release of seats 353 days out is not good for those time constrained but can at least plan well in advance…

But as mentioned earlier, it’s nice to maintain a decent float for impromptu redemptions or something in the back pocket (eg UA miles for a short intra Americas or Europe *A hop when one way fares are $$$!).

 

[GrahamBRI]

Definitely think a balance is required. I look to spend about 75% of points earned and bank about 25%. Definitely acknowledge the risk of banking points, but I also see a risk of the point earning opportunities drying up (eg. when you retire, credit card earn opportunities change)

 

[MARTINE]

Horses for courses
I just spend and accrue as I normally would rather than points accumulation
If it gets me more points so be it — if not I dont change what I do
If you get what you want by using points - cents per point has no meaning.
I pay for my own flights to coincide with overseas family commitments so booking months out rarely works.

 

[Secco]

I am not a regular flyer but have been saving Velocity points for many years, wanting to fly my wife and I business class return to Europe for our 30th wedding anniversary, something we could never afford to pay cash for. Have got 600,000 points for the 2 return business class fares (556,000 points).

Now I just need the seats to be available with Qatar to be able to redeem them, which is going to be easier said than done.

 

[eddie eagle]

My wife & I have over 1m qantas points each and approx 500K velocity points. As we are retiring within next 6 months, our ability to earn will be severely curtailed in terms of credit card churning. Have been able to book 2 x business class trips return, one each to europe next year, and the US this year. So it is a "retirement travel bank" that does certainly risk devaluation, as is occurring for velocity from next year (so we booked the above europe trip for 484000 points in total for two people return, very recently) Also a risk for qantas devaluation (when they see their brand image improving..........which won't be any time soon in next 18 months at least I'd suggest

 

[CaptJCool]

After getting burnt in the Ansett collapse.. mine was a small loss compared to many

The big issue is QF loyalty is based on earning status. Refits JASA into 2024 - jokes

No earn, no status (how terribly liberal Marxist of them)
Redeem points sure but that worked beautifully when JASA was a thing but collapsed for the time period when it was abolished before Points Club turned up

Now Points club was originally designed for the infrequent flyer so handing out a fraction of the usual status credits cost QF nothing much indeed it generated quite some decent goodwill

Until the carousel stopped turning and all discovered the Emperor had no clothes…

Now with the good fortune of being LTG (60/40 paid by my former employer and taking advantage of funnelling my personal spend to QF & JASA & DSCs) my future goal is to refuse to pay for revenue tics as many times in a year as I can. After all, lounge access is free so there’s zero need to chase status

 

[Lynda2475]

I think saving enough points for a return long haul business class seat is the happy medium. You never know when you’ll need it. After that you’re hoarding.

For me the sweet spot is 318k points so I can redeem OWA in J.

This year I knew I wouldn't be able to travel for 6 weeks to make best use of an OWA so I did redeem some points for QF J SYD-HNL-SYD; but apart from 104 points for carbon offset to get a green leaf, I dont plan to spend any more points until I'm back at 318k.

I dont think my balance has ever been above 450k (a result of cancelled awards during Covid lockdowns), but I've done two OWAs since the borders reopened and a couple of sweet spot dom J upgrades, so I like to think I redeem regularly enough.

I cant imagine ever letter my points balance get into the millions, it would be an indicator its been too long between trips. As i too lost big in Ansett collapse, so earn and burn (on flights only) is now my motto.

 

[Greg555]

Many frequent flyers seem to think that having millions of loyalty points is a sign of success. But there's another school of thought that points redeeemed is a better metric of success, and therefore having a low points balance (with a high inflow and outflow of points) may actually be better.

This opinion piece makes this case:

If You Have a Huge Points Balance, You Might Be Doing It Wrong

Many people think of a huge balance of frequent flyer points as a status symbol. A better metric is the number of points redeemed.

www.australianfrequentflyer.com.au

What do you think about this?

This article sounds a little like a Qantas spin to reduce their balance sheet liabilities....?

 

[p--and--t]

After getting burnt in the Ansett collapse.. mine was a small loss compared to many

The big issue is QF loyalty is based on earning status. Refits JASA into 2024 - jokes

No earn, no status (how terribly liberal Marxist of them)
Redeem points sure but that worked beautifully when JASA was a thing but collapsed for the time period when it was abolished before Points Club turned up

Now Points club was originally designed for the infrequent flyer so handing out a fraction of the usual status credits cost QF nothing much indeed it generated quite some decent goodwill

Until the carousel stopped turning and all discovered the Emperor had no clothes…

Now with the good fortune of being LTG (60/40 paid by my former employer and taking advantage of funnelling my personal spend to QF & JASA & DSCs) my future goal is to refuse to pay for revenue tics as many times in a year as I can. After all, lounge access is free so there’s zero need to chase status

I got seriously burnt in the Ansett collapse when I was Diamond

Now as a QF Bronze I find it easiest to accumulate points with QFF and save until I get somewhat close to a J OW CR and book my next sojourn maximising the number of sectors and “miles”. Have had a couple in recent years when I maxed out at 16 sectors and one with a nice 90day holiday across multiple countries.

 

[AFF Editor]

This article sounds a little like a Qantas spin to reduce their balance sheet liabilities....?

Not at all! Qantas had no role in the making of this article... it's my personal, professional opinion based on my background as an economist and someone who's been using and observing frequent flyer programs for well over a decade