Good redemption rates for Qantas points?

[Kengyin]

Hi all, I was wondering what you all would consider a minimum threshold for redemption points value for it to be worth spending Qantas points on? Obviously different things will have different values, such as hotels, classic flight awards, upgrades etc. I'm mainly thinking of using my points on classic flight awards in economy. For example I've been looking at tickets between CHC and SYD where a single leg (in Jan) would cost 18000 points + $108 in surcharges. The equivalent ticket price would be $513, however the cheapest possible ticket price in this date range is $430. So I figured that to see how worth it is to use points I should compare with the lowest possible ticket price. But 18000 points for effectively a savings of $320ish which at face value doesn't seem worth it to me? It's equivalent to about 1.8 cents per point. In your experience would this be considered decent, and if not, what minimum cents/point do you think is worth it for you? I'm aware that higher classes will produce a higher cents/point ratio, but that's not really an option for me. Thanks.

 

[Duffa]

$18 per 1000 points isn't a bad return.
Just don't buy toasters.
In business class 300,000ish points gets you a $6,000 flight. Roughly $20

 

[exceladdict]

Value is always a personal question, many people for example use points to allow them to use cash elsewhere, like accommodation or activities.
I'd consider an absolute floor price of 1 cents per point, as the direct conversion for QF points from Woolworths dollars is $10 = 1000 points.
On a few recent domestic redemptions in economy, I achieved over 2 cents per point, however the equivalent ticket prices were higher and tax component (being domestic) was lower.
If parting with 18k points is worth it to enable you to enjoy time in NZ, then perhaps there is your answer.

 

[Must...Fly!]

If parting with 18k points is worth it to enable you to enjoy time in NZ, then perhaps there is your answer.

This is really the best answer, above all the numbers. Maybe one day you get a poor quality redemption on the numbers alone but you can't afford the cash price. It can turn an average redemption in to an invaluable one.

Last week I booked MEL-LEA-MEL for 36000 points + $119. Cash price $1100.

Is it the best value I could or have ever achieved? No.
But would I have ever paid $1100 to go to LEA for 3 days? No, never.
Will I get ~3 days in LEA, snorkel & time with Mum who I haven't seen for months? Yes.

Ergo, the points on this occasion are essentially invaluable.

 

[luxury-lizard]

Another think I consider is how 'easy' is it to replace the points I'd be using for a reward - i.e. is it better to hang onto them for a better (value) redemption in the future. Then most of my points have been transferred from credit cards or purchased (AA and AC) - these methods are getting less attractive over time (e.g. AmEx recent devaluation of transfer to SQ and/or low AUD vs USD) so I'm tending to hang onto current balances and pay for shorter trips.

 

[RooFlyer]

@Kengyin another way to look at value is, do you have an alternative use for the points? If you also are contemplating visiting, say, Singapore then its a matter of weighing up those costs and, importantly, opportunities too.

If you really want to got to NZ, and have the points and the seat is there, and there is no other pressing need for the points, then I think 'value' becomes less of a numerical calculation.

My own view is that Qantas points are so easy to come by, but then so difficult to spend for what I'd actually want, that they have very low value. Sort of like having a tonne of 1 cent pieces (I actually have about 5kg ). I'll book a Classic Reward domestic economy seat quite often just to save a few bucks, which is probably hideous 'value' if did the calculation, but that's life.

 

[aikman]

I value my points based on the cash fare I would have otherwise purchased on any airline. This valuation method means its hard to get outsized value so I take anything that is over 1c per point.

So to me your redemption of 1.8c is very good. I think the only way to get value higher than that for economy is to go to regional cities that you may have no reason to visit where there is no competition and so fares are artificially high, or to travel in peak periods but Qantas usually release little to no reward seats during this time. Your CHC-SYD plans falls under this peak period so take the seats while you still can.

Something else to consider is that you could save your points for something better in the future but that may never come.

 

[tinkybelle]

1.8cpp isn't bad I value
I usually keep or international J
like syd to scl cost about 4k one way 108k plus $A100 in tax. so 4 cpp was good value for me
but usually hard to find flights hoping this changes in the future.

 

[oz_boater]

There is an article on this here:

https://www.australianfrequentflyer.com.au/case-study-redeem-points/

 

[tdimdad]

I'm with Must...Fly! here: if this is a trip you want and burning points makes it more possible, do it. Especially, if you can easily (cheaply) replenish your points balance, if you want to.

The cost to get points should be your floor for the redemption cost. Woolies costs you 1c/point, credit card churning might be around 0.35 c/point. My own aim is to get 2c /point value when redeemed, and anything above 3c would be a win for me. But I've done many lower redemptions, too, just to push down the cost of a trip that little bit. E.g. SYD-BNE $150 fare redeemed as a CR gives you only 1.25c /point - and sometimes that's perfectly OK.

 

[bashworth]

Last year with lots of points and little chance to redeem, as there was lots of competion for seats, I was happy to spend points on a Trip a Deal Holiday at $0.01 per point.
Last month I travelled Melbourne to Timor Leste, return, that worked out at $0.03 per point so that is what I am going to be looking for as a minimum in the future.

 

[Mr H]

For example I've been looking at tickets between CHC and SYD where a single leg (in Jan) would cost 18000 points + $108 in surcharges. The equivalent ticket price would be $513, however the cheapest possible ticket price in this date range is $430. So I figured that to see how worth it is to use points I should compare with the lowest possible ticket price. But 18000 points for effectively a savings of $320ish which at face value doesn't seem worth it to me? It's equivalent to about 1.8 cents per point.

This is genuine value at 1.8 cents per point because it is using your points for something you would actually have bought.

I could look at my OWAs and persuade myself I was getting 10 cents per point by looking at sector by sector one way J fares and arriving at $30,000 - but I would never have paid that money for the seats so I'm not really getting that much value. Plus, even if I were going to pay revenue I would probably have got a revenue RTW ticket at a third of that price (which I still would not have paid) so I could maybe persuade myself that I was getting 3+ cents of value per point.

The only reasonable way to look at it is what did the points cost you (I reckon 300,000 points might cost me about $1,000) and then ask whether you think you are getting good value for redeeming that $1,000 investment. In the case of a RTW, the answer would be definitely yes.

In your example, I would probably have paid about $60 for the 18,000 points (averaging out my different acquisitions of points) - and when added to the $108 in surcharges that looks like a bargain.

It really is about what works for you, though.

 

[kangarooflyer88]

Just don't buy toasters.

As someone who enjoys Avocado toast from time to time I take exception to such remarks. I think the key is actually using the points for something of value. A lot of folks hoard points saving up for that dream trip only to discover that they can’t get what they want with said points.

What I will point out is there are a lot of pedestrian uses of points that are actually valuable. For instance upgrading a $99 red edeal between SYD and MEL to J to enjoy the wide body A330 experience or 16,000 to fly Sydney to Lord Howe Island can be worthwhile. Heck back on Easter I decided to switch my travel plans with my GF to go to Adelaide instead of Melbourne (where it was raining). Having that ability to cancel that trip at relatively low cost and secure some last minute seats during peak travel time for peanuts was worthwhile.

-RooFlyer88