Article: Latest Changes May Not Fix Qantas’ Reward Availability Problem

[AFF Editor]

In this opinion piece, I explain why I think Qantas has a Classic Reward availability problem, and why the latest changes - while they may have a positive effect overall on availability - probably won't be enough to fix it in the longer term.

Opinion: Latest Changes May Not Fix Qantas' Reward Availability Problem

Qantas Frequent Flyer has an availability problem. The recent program changes including Classic Reward price hikes, the introduction of Classic Plus and expanded partner airline rewards try to fix this. But they might not be enough.

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

 

[harryhv]

Qantas' classic awards are also available for other programs such as AA - whose members pay less than half the miles & cash for those same seats as QFF's unfortunate locked-in-clientele. So the situation is much worse than you make out, with AA and other programs snaffling a sizeable proportion of the available QF classic awards?

 

[SydneySwan]

So Qantas thinks making award options available on other carriers is the solution? Wow wee! What parallel universe are they living in?

Qantas needs to trim the exec bonuses and have an honest relationship with its members - a guaranteed minimum of classic reward seats available in all classes on all flights would be a good start. It makes points collectable on flights, credit cards, etc. with the implied understanding that you can use these points for flights and at the pointy end as well. The reality is that you can't. The ACCC should investigate the QFF program.

 

[SYD]

Qantas' classic awards are also available for other programs such as AA - whose members pay less than half the miles & cash for those same seats as QFF's unfortunate locked-in-clientele. So the situation is much worse than you make out, with AA and other programs snaffling a sizeable proportion of the available QF classic awards?

Not if those seats are never released. eg SYD-SIN/BKK/LAX/LHR etc

Also, AA system allows bookings from 330 days out, so QFF get first dibs on what little there is.

 

[Kerrodt]

Part of the answer is relatively straightforward:

Change the Executive and Remuneration targets for bonuses to include one that says something like “By 30 June 2026 the value of accumulated points will be no more than $2.4B. Strategies to achieve this are to be submitted by all Divisional Executives by 31 March 2025.” Ensure all divisions are included, including Revenue Management. This will change behaviours.

 

[mviy]

What I want is MEL-LHR or SYD-LHR in J/F return as a classic award. The changes announced do nothing to address the lack of availability on those routes.

 

[levelnine]

Qantas already has a solution to the problem, but it is not one that you'll like, as the article notes.

As my quick calculations demonstrated in the other thread, Qantas has reduced the value of a point when redeemed for classic rewards, significantly closing the gap between classic rewards and classic plus. In the most typical of flight booking scenarios (SYD-LHR, SYD-MEL), it is now only a slight up-charge to book classic plus in economy (1 vs ~1.1c/pt) and the up-charge for business class has significantly decreased (1.5 v ~2.1c/pt).

That up-charge will reduce even further during sale periods where the classic plus price falls. As a result, there will now be substantial parts of the year where it will be cheaper to book classic plus than it will be to book classic rewards.

And there's ample classic plus availability.

So I expect Qantas will release fewer classic reward seats, not more, because they have solved the problem: book classic plus.

If I'm correct, the big question, as the articles notes, is: should you still collect Qantas points?

Here's my broad answer:
- If you're Platinum or higher: yes, because you can still attain classic rewards via release.

- If you can attain your points for under 0.5c/pt (through non-surcharged card spend, credit card sign-up bonuses, manufactured spend, etc): yes, because you're still getting a good return on spend — purchase $1000 worth of points & get $2000+ worth of flights.

- If you're paying 1c/pt or more for points through Woolworths conversions, paying a 1% credit card surcharge & only earning 1 point per dollar: no, because you're converting liquid cash to an illiquid point for no uplift.

One last thought. The elephant in the room is the looming ban on debit card surcharges. If debit card surcharges are banned & credit card surcharges are not, credit card usage in Australia is going to take a big hit. Why pay 1-2% in credit card surcharges only to get 1-1.5c in points when one can pay 0% with a debit card and keep the cash?

 

[RooFlyer]

should you still collect Qantas points?

- If you can attain your points for under 0.5c/pt (through non-surcharged card spend, credit card sign-up bonuses, manufactured spend, etc): yes, because you're still getting a good return on spend — purchase $1000 worth of points & get $2000+ worth of flights.

- If you're paying 1c/pt or more for points through Woolworths conversions, paying a 1% credit card surcharge & only earning 1 point per dollar: no, because you're converting liquid cash to an illiquid point for no uplift.

I agree with the thrust of your argument but in the quoted bits, aren’t you assuming that credit card spend is purely in pursuit of points earn? If I am going to charge my credit card anyway (which obviously most people do) then aren’t the points a bonus if you don’t really chase them?

I only earn Qantas points through flying and I treat them as a bonus when I can use them for something useful.

 

[levelnine]

If I am going to charge my credit card anyway (which obviously most people do) then aren’t the points a bonus if you don’t really chase them?

Good question.

That gets to the elephant in the room. If from January 2026 debit surcharges are banned, the question will be: should you have a points earning credit card at all? You'll be paying an extra 1-2% for each surcharged transaction and likely an annual fee (only a small number of fee-free points earning cards left).

There's nothing wrong with treating points as a bonus, but you definitely shouldn't be paying anything extra for them then (eg paying a surcharge when there's a surcharge-free option).

 

[Gold Member]

That gets to the elephant in the room. If from January 2026 debit surcharges are banned, the question will be: should you have a points earning credit card at all? You'll be paying an extra 1-2% for each surcharged transaction and likely an annual fee (only a small number of fee-free points earning cards left).

There's nothing wrong with treating points as a bonus, but you definitely shouldn't be paying anything extra for them then (eg paying a surcharge when there's a surcharge-free option).

<Cpt. Obvious Hat ON> Many of us here on AFF churn credit cards. That is, we sign up purely for the SUB (Sign Up Bonus), cancel after receiving it, and then move onto the next card and rinse and repeat, with up to several cards at any given time. So the actual points earning to fee % ratio is somewhat irrelevant in the bigger scheme <Cpt. Obvious Hat OFF> Next level AFFers (Levelnine and above ) play the US credit card SUB game with even greater effect.

IME speaking with regular Joes who don’t play the points game and incur credit card fees; some people don’t care, some are blissfully unaware, some like the convenience of a watch/phone tap instead of carrying a purse/wallet with cash, and some hold it for the international travel insurance and other card benefits. Zero fee Debit cards also make a lot of sense for most people.

But I agree with the basic math presented on surcharges for credit card spend. I think it comes down to whether you can redeem for an outsized value over and above the fee % being charged. For me, I’m happy to pay up to 1.5% (depending on the conversion ratio to the respective Airline FFP) because I am confident that I can redeem on premium long-haul for over 3cpp at some point in the future. Without Platinum status I no longer have the benefit of speed dialling Vanessa for an immediate CR release, but whether it’s at 353 days out or via batch release I’ll eventually get my CR biz/first seat with some patience and flexibility.

I am far more engaged with non-Australian loyalty programs (looking at you AS, AA, AC, QR/BA, SQ etc) that offer much better availability and value. Put into context, these ongoing enhancements and devaluations to Qantas Frequent Flyer are always disappointing, not unexpected, but don’t move the dial a huge amount for me personally given my diversified FF strategy.

But it doesn’t mean we should let the greedy fat cats in Mascot get away with it unchecked. Vote with your wallet and take your business (and points earning credit cards) elsewhere if those elusive Classic Rewards are never forthcoming.

 

[elanshin]

Qantas already has a solution to the problem, but it is not one that you'll like, as the article notes.

As my quick calculations demonstrated in the other thread, Qantas has reduced the value of a point when redeemed for classic rewards, significantly closing the gap between classic rewards and classic plus. In the most typical of flight booking scenarios (SYD-LHR, SYD-MEL), it is now only a slight up-charge to book classic plus in economy (1 vs ~1.1c/pt) and the up-charge for business class has significantly decreased (1.5 v ~2.1c/pt).

That up-charge will reduce even further during sale periods where the classic plus price falls. As a result, there will now be substantial parts of the year where it will be cheaper to book classic plus than it will be to book classic rewards.

And there's ample classic plus availability.

So I expect Qantas will release fewer classic reward seats, not more, because they have solved the problem: book classic plus.

If I'm correct, the big question, as the articles notes, is: should you still collect Qantas points?

Here's my broad answer:
- If you're Platinum or higher: yes, because you can still attain classic rewards via release.

- If you can attain your points for under 0.5c/pt (through non-surcharged card spend, credit card sign-up bonuses, manufactured spend, etc): yes, because you're still getting a good return on spend — purchase $1000 worth of points & get $2000+ worth of flights.

- If you're paying 1c/pt or more for points through Woolworths conversions, paying a 1% credit card surcharge & only earning 1 point per dollar: no, because you're converting liquid cash to an illiquid point for no uplift.

One last thought. The elephant in the room is the looming ban on debit card surcharges. If debit card surcharges are banned & credit card surcharges are not, credit card usage in Australia is going to take a big hit. Why pay 1-2% in credit card surcharges only to get 1-1.5c in points when one can pay 0% with a debit card and keep the cash?

You missed one category - business owners whos cost base is expensed directly against their revenue so there is some accounting reasons why you'd consider 1-1.5% per point.

 

[Gremlin]

I think this article is wrong. QF don't have a Classic Reward availability problem. QFFers have a Classic Reward availability problem. Especially QFFers that are wanting to live in the past, with an expectation that the program isn't evolving in QF's favour and at their expense.