Discarding the points chasers also means discarding a significant amount of revenue because they earn so many points. Take your semi-dedicated points chaser who churns 2-3 cards per year, shops at WW & through Qantas Wine, signs up for a white label insurance policy & directs their flight spend to Qantas. They earn ~500K points per year. A mere 25,000 members in this cohort (0.15% of the membership base) account for half of all YOY points growth in FY24.
It remains to be seen if the prospect of 700K return J tickets to Europe convinces a business owner to spend an extra $500K/year on their credit card to make up for each points chaser Qantas loses.
This is a strawman. The correct comparison is not between your theoretical points chaser and the business owner whacking spend on their card. My expectation is that QFF don't actually care just how many CR+ redemptions they make. It's between the
profit QFF makes selling that seat as a revenue seat versus the accumulated profit of the points chaser who is only seeking outsized rewards (bearing in mind that not all points chasers seek outsized rewards - some are highly, highly valuable to a rewards program).
I don't know the ins and outs of QFFs financials, but based on my experience with other programs and what constitutes profitable behaviour and unprofitable behaviour, Qantas is, in my opinion, acting entirely rationally here.
If that's where Qantas ends up turning in the pursuit of program growth (Qantas'
first-ever transfer bonus to Capital One customers in late 2024 was an early warning sign), it'll end up with an even more disloyal set of customers. There's no one more fickle than the US credit card customer with points that can be transferred to 20+ programs.
I don't think this is incompatible with a rational strategy at all. QFFs home market bias should mean there's a higher loyalty threshold in Australia than other markets. It's perfectly normal for your 'best' customers to pay a much higher loyalty tax. There's nothing irrational about moving the bar higher for your existing customers, whilst lowering the bar for new customers in unsaturated markets. The idea that everyone is treated the same, or even the idea that you'll be treated
better, rather than
worse, once you reach a higher threshold (tier, Customer Lifetime Value, whatever...) isn't borne out by the reality of loyalty programs.
As an example, that's why someone on this forum yesterday found J availability from BKK to JNB via SYD, but couldn't get QFF to release the same flight for just SYD to JNB.
Is this exploitative? Probably.
Does it meet the community expectation of "loyal behaviour" from QFF? Absolutely not.
Does it meet the industry norms of "loyalty"? Without a doubt.
Do you have a choice not to engage? Absolutely!
What are the overwhelming majority going to do? Remains to be seen but I can hazard a guess...