Disillusioned with accumulating QF points - turn to Krisflyer?

[airstriker]

I have been in the QF points games since Jan 2020 when I first learned that the best use of points was not converting to gift cards!
Then covid happened and it's really been now when I'm starting to think about using the points that I have accummulated for past 2.5 years
However, looking at award redemption, even in economy is very difficult in QF international flights - let alone premium cabins.
I have heard from the start award redemption in QF is limited while other airlines like Singapore has much better availability - but I guess at that time I wasn't sure how to get krisflyer points and QF points seemed much easier to access

So now i'm thinking of stop accumulating QF points through my Amex ultimate Qantas card and probably apply for Amex card that allows you to earn MR to turn into krisflyer points.

Are there others thinking the same? Or am I over-reacting to the current bad press/situation that QF is facing? Would this be over in the long run and will there be more award availability 2-3 years down the road which will be comparable to SQ?

If others agree with me, then what is the best way to maximise points in my transition?
I have called Amex and they said that Amex QF ultimate card is completely different product to Amex MR cards and that I will have to do a separate application and that I won't be eligible for any bonus MR points on any of the card since i'm currently an AMEX customer.

Does anyone have any better idea or transitioning to AMEX MR card from my situation while earning some bonus points? I have called twice to ask but should I be calling more to ask?

 

[Human]

Savvy frequent flyers have always known that it is worth diversifying. There have always been great advantages in having points such as Membership Rewards points which can be converted to whatever FF program is best for the time and route required. But that's especially true now. It's simple mathematics: there are more people with QF points, and QF points are the easiest to accumulate. It follows that QF will be the most difficult to redeem, especially for high-demand routes such as international long-haul.

I agree that you should switch to Membership Rewards points as a priority. If you have a partner, the simple solution is to cancel your card, get your partner to apply for a new Amex card (with bonus points), take out a supplementary card yourself, wait 18 months, apply for a new MR card for yourself, and pocket the bonus points a second time.

If you don't have a partner, then you have to choose between applying for a MR card now, and losing the bonus points, or cancelling your card and taking out another card (such as an Amplify card from St George, Bank of Melbourne or Bank SA) which has a reasonable KrisFlyer earning rate. Then you can take out an Amex with bonus points in 18 months.

 

[RAM]

When Q started enhancing QFF redemptions by creating (creative accounting) the ever growing 'fees & taxes' cash component - Q's game was no longer hidden.

The main game became fleecing loyal Q customers.

Pricing up redemptions on Q to various destinations in (lowly) Y - there were several destinations where the 'taxes & fees' were just 10-15% lower than the then available Y cash fare price (including taxes & fees). The odd thing being that the 'T&Fs' on the cash fare were substantially lower than on the QFF redemption.

Yet, for some reason, redemptions on Jetstar for the same destination (HNL) had massively different fees & taxes. Lower fees & taxes. The largest Q fee just happened to be a 'fuel surcharge'. Yet the plane Jetstar used to fly to HNL used MORE fuel per seat that the Q plane (thank you MATRIX for the details).

So, the fuel surcharge was nearly 3x larger for the Q plane than the Jetstar plane that used more fuel...
_____________________________________________

Spoiler: Enhancent = Profit

For those new to the Q 'enhancements', it is time for some definitions.

'Fees & Taxes' since the 7th 'enhancement' often represent mostly Q fees NOT fees/charges levied by any Govt nor airport.

In fact, it has been suggested by someone in the know, these enhancements were specifically designed to have the effect that travel agents (TAs) saw their commissions fall as the commission calculations are based solely on the 'fare' not fare + 'fees & taxes'. The commission calculation was created back in the day (pre-enhancements) when 'fees & taxes' were solely made up of either Govt or airport charges.

Is anybody else starting to suspect why Q enhanced 'fees & taxes' so many times?

At one stage the 'fees & taxes' for some international destinations was a larger number than the 'fare' component.

So for Q, this not only saw the value of commissions paid per booking drop massively, it also turned QFF redemptions into a major cash cow.

Contrast this with VFF redemptions (pre & post bankruptcy) where on one international destination (HNL) - even today the VA 'F&Ts' are a fraction of Q's.

Definition: Q Enhancement = profit generating increase leading to substantial enhancement of senior executives bonus pool.

 

[RooFlyer]

@airstriker To answer your question – “yes“.

 

[AustraliaPoochie]

The only downside with Krisflyer, unless you do earn ASAP the min points/miles so you can burn them in the stipulated 3 years.
For now, they are extending the life of their Krisflyer miles, but who knows, sooner or later, it would probably end, and its then back to a life of max 3 years, and if you don't use them, you loose the points.
Go with VFF, where as long as you have activity, your points do not expire, you can always transfer the VFF points to Krisflyer as the needs arise.

 

[levelnine]

The biggest challenge is that it is difficult to earn KrisFlyer points in Australia. The main way is credit card spend and that is going to be a slow process for a typical Australian with only regular personal spending (ie no large business or reimbursable employment expenses). Eg it is 261,000 points to fly one person return to Europe in business with Singapore Airlines. Even with Amex's top tier credit card that earns 2MR per dollar spent, which equates to 1KF, you would have to spend $261,000 on your Amex card. That is a lot of spend for a person with only regular household expenses. Therefore, you really need to hit all the credit card programs that provide sign up bonuses that are transferrable to KrisFlyer.

 

[Mattg]

The biggest challenge is that it is difficult to earn KrisFlyer points in Australia. The main way is credit card spend and that is going to be a slow process for a typical Australian with only regular personal spending (ie no large business or reimbursable employment expenses). Eg it is 261,000 points to fly one person return to Europe in business with Singapore Airlines. Even with Amex's top tier credit card that earns 2MR per dollar spent, which equates to 1KF, you would have to spend $261,000 on your Amex card. That is a lot of spend for a person with only regular household expenses. Therefore, you really need to hit all the credit card programs that provide sign up bonuses that are transferrable to KrisFlyer.

Absolutely agree, but earning points that are transferrable to KrisFlyer through credit cards doesn't have to be that slow if you utilise sign-up bonuses

 

[levelnine]

Absolutely agree, but earning points that are transferrable to KrisFlyer through credit cards doesn't have to be that slow if you utilise sign-up bonuses

Yep, hence my last sentence. The key is that you cannot stick to Amex, as the original poster seems to be thinking, as you can only earn one sign up bonus approximately every two years (assuming the card is held for 3-6 months and closed thereafter to reset the 18 month timer). You really have to hit all the cards with KF as a transfer partner, especially because the sign up bonuses are quite low compared to QF due to the 2:1/3:1 conversion rates. I find the chart you made to be an exceptionally handy guide for newcomers: The Ultimate Australian Credit Card Points Transfer Matrix

 

[dajop]

Don't, not a good idea. Krisflyer is an awful program, please stick with Qantas. Please.