Credit card points to QFF conversion survey

[SIA1A]

Guys,

I received a survey today (via email) that attempts to gauge what I will do with my credit card points after Qantas imposes the direct-earn-only option on Citibank (and some other) card holders in April next year.

I've posted the details of the survey here: http://www.frequentflyer.com.au/com...t-flyer-online-survey-13655-5.html#post206017

Perhaps Qantas is beginning to get nervous about whether this will decrease rather than increase the value of the QFF program for its shareholders?

Prior to the changes Qantas sells points to the banks only when a customer decides to convert. After the changes Qantas sells points to the banks as soon as the customer spends money with a credit card. Presumably Qantas hopes to get money sooner - and more of it if all points are going to Qantas rather than to rival FF programs or to merchandise etc.

The problem for Qantas is that its plan might backfire, with customers resenting the loss in flexibility concerning points use. They might just avoid the new Qantas plan altogether and instead participate more heavily in rival FF programs. I note that several competitor programs are now revving up their direct marketing programs and increasing the attractiveness of credit card points conversion while Qantas is doing the opposite on the attraction front.

 

[roego]

Well because Westpac Altitude is no longer going to deal with Qantas, and I had to get rid of either ANZ Qantas card, I decided to cancel my Westpac card and I have 55000 points and they are going to Malaysia Airlines.

A reasonable airline and offering some good bonus for points. At the moment KL-Europe 3300.

My Diners will allow me to ad to Velocity or Singapore airlines etc.

 

[AKG]

Fortunately most consumers are smart enough to work out that the new Qantas frequent flyer program has no where near the value of existing credit card reward programs (unless you can get on an old classic seat). That is especially so if you're after vouchers and merchandise. In fact David Jones vouchers aren't even available in the Qantas frequent flyer program. The 'fly anwhere at anytime' concept has been around for years with credit card providers such as Westpac Altitude and the value is still superior here with the additional benefit that you earn your frequent flyer points and status credits on top of your fare because you are considered a full fee paying passenger. In particular the non-direct earn credit cards have no capping (the problem with the ANZ direct earn cards) and have other frequent flyer options now such as Singapore Airlines, Malaysian, Velocity etc so if you want the best value and the best choice, do not transfer to a direct earn card and stay with a bank credit card program.

 

[roego]

The only problem with altitude is that really they only give you a half point per dollar.
No worse off with Diners you can use Singapore Airlines under same conditions.

Anyway with the increase in most aitlines with points as against the card fees not really worth while.

EG Anz $150 a year unless spending lots of money you look at some of the low cost airlines eg Kuala Lumpur Australia 5-600 dollars.

 

[JohnK]

I am enrolled in Amex Ascent MR and also have an Amex Qantas premium card. I have stopped using the Qantas premium card and the MR points will stay there until I am ready to use them.

Now if Qantas is not a partner of Amex when I am ready to use the MR points all I can say to Qantas is tough luck. You may have a captive audience in Australia, overpriced, provide poor scheduling and service on Friday nights and the suckers keep coming back but you are not going to tell me how I am going to spend my Amex MR points....

 

[SIA1A]

Anyway with the increase in most aitlines with points as against the card fees not really worth while.

I'm not exactly sure about what you're saying, but the HSBC Mastercard (international version) delivers more than 2 Singapore Airlines miles for every US$1 spent. Seems like a sensible earn rate to me... and HSBC is one of the strongest-performing banks in the world right now. Its stock price has done well compared with, for example, Citi and the Australian banks.

 

[AKG]

Good morning,

Just need to remember what the earning rate on credit card rewards programs are - while you're points may go to frequent flyer at half a QFF point per dollar, you're earning on the Amex Altitude card (and many other card programs) 2 points per dollar (3 if platinum).This is especially valuable if you don't redeem for frequent flyer and use those points for vouchers aand merchandise. Amex membership rewards is particularly generous on merchandise where the funding rate is very high - there are great prices to use your points.

 

[Philosiphier]

Fortunately most consumers are smart enough to work out that the new Qantas frequent flyer program has no where near the value of existing credit card reward programs (unless you can get on an old classic seat). That is especially so if you're after vouchers.

I hate to say it, but you really should look more closely at the points for vouchers scheme with the QFF program.

Since it's introduction, I have been transferring all of my points (Citibank and AMEX x 2) to QFF.

Here is a comparison to support my reasoning:

$100 WISH Card

Citibank - 18,000 points
QFF Store - 15,700 points

I also recently traded in 31,250 per $250 WISH voucher which was part of a special promotion with QFF (Citibank charge 41,000 for the same vouchers) - this represents quite a saving.

It does pay to shop around not only when comparing how many points you can earn from a credit card, but how many points it actually costs you to redeem certain goods and/or services.

At least with shopping vouchers, QANTAS FF Store is the best bet at least for moment!

 

[serfty]

G'day Philosiphier, welcome to AFF

... At least with shopping vouchers, QANTAS FF Store is the best bet at least for moment!

... and,with vouchers, that's where it ends.

Due to the ways I redeem them, I redeem Amex MR points for an average of about 1¾¢.

So I would average ~$550 from 31,250 MR points so a $250 Wish card is poor value in my book.

YMMV!

 

[Philosiphier]

G'day Philosiphier, welcome to AFF
... and,with vouchers, that's where it ends.

Due to the ways I redeem them, I redeem Amex MR points for an average of about 1¾¢.

So I would average ~$550 from 31,250 MR points so a $250 Wish card is poor value in my book.

YMMV!

Thank yee for the welcome note

I am very keen to learn all the tips and tricks I haven't discovered yet with both earning and redeeming points!

I'd LOVE to know how you're able to get ANYTHING worth $550 for only 31,250!

Who are you redeeming them through to get $550 worth?

Zoe.

 

[serfty]

Upgrades are one. e.g. Cheapest upgradeable QF fare MEL-CNS is $381, Business class is $1429, that's a difference if $1048. It costs 16000 QFF points to upgrade so that's a value of 6½¢ per point.

Hotel stays are another, it costs 40,000 HHonors points (Amex transfer @1:1) to stay at the "Hilton Arc de Triomphe Paris hotel" on a flexible award. The cheaper end of the accommodation costs €350 (~AUD730) - that's 1.83¢ per point

Of course, I can cherry pick the best value. Note that I rarely use QFF points for award flights and certainly not Amex MR's.

You may not wish to travel business class nor stay in high end hotels. I'm a frequent traveller and it suits me to do so. YMMV

 

[SIA1A]

Thank yee for the welcome note

I am very keen to learn all the tips and tricks I haven't discovered yet with both earning and redeeming points!

I'd LOVE to know how you're able to get ANYTHING worth $550 for only 31,250!

Who are you redeeming them through to get $550 worth?

Zoe.

Well 30,000 points will get you a one-way Melbourne - Singapore ticket for departure on 1 Jan 09 - and Classic rewards seats are available on that date. If you were to pay cash online today, the same seat would cost you at least $956! The points option therefore sounds like good value to me.