Qantas earns over $1 billion per year from Frequent Flyer points

[connieguy]

Qantas earns over $1billion per year from Frequent Flyer points - Flights | hotels | frequent flyer | business class - Australian Business Traveller

Anybody got an idea of the total number of QF points generated per year?

The full report makes an interesting read:
http://ideaworkscompany.com/press/2011/PressRelease57AncillaryRevenueTop10.pdf
Interesting Qantas rates 2nd in Ancillary Revenue at $37 per Passenger (page 6).

First time I have read about QF offering voluntary redundancy to all 7,000 cabin staff. Or is this old "Enhancement" news?

 

[serfty]

...

First time I have read about QF offering voluntary redundancy to all 7,000 cabin staff. Or is this old "Enhancement" news?

Thanks for the iwc link.

The reduncy news has been around for a day or so, see here:

• http://www.australianfrequentflyer.com.au/community/travel-news/qf-offers-vr-400-mainline-30501.html

 

[thewinchester]

This is old news, gets reported every time when QF releases financial data.

As usual, slow news day for AusBT staff again.

 

[Deleted User]

after reading this article, how much are the FF points sold for to the credit card & other companies offering QFF points...?

Is this a trade secret...? I guess the value of the points depends on the negotiations between both parties, however I would imagine that most of the big CC players & Woolworths with their EDR offers would pay less for the points than other companies...

But generally what do they cost to "buy"

 

[ric_melb]

If you are using points for things such as Points and Pay Qantas seems to value the points at 1 cent each. If you buy them from Qantas the cheapest they sell them for is 2.8 cents. Therefore I suggest partners pay between those prices to buy points, with Woolworths down the lower end of the scale or maybe even less.

 

[cove]

It has created the best game in town.
Woolworths are buying customers and QF is selling it's excess capacity.
I guess Woolworths pay about 1.25 cents to get a customer in the door so they can make about 30 cents out of a sales dollar.
Then we come along and try to redeem for our best perceived value in the way of flights.
Game on!

 

[markis10]

Maybe we should create a sub category for the playground titled Australian Business Traveller - "Claytons" News.

Qantas has had QFF revenue of over 1.2B since FY09, hardly breaking news, and you generate revenue and earn profits, you never earn revenue as such!

 

[connieguy]

Maybe we should create a sub category for the playground titled Australian Business Traveller - "Claytons" News.

Qantas has had QFF revenue of over 1.2B since FY09, hardly breaking news, and you generate revenue and earn profits, you never earn revenue as such!

What I found interesting was some of the details in the full report such as:

1) FF program revenue per average QF FF of A$154. Anybody care to put some $ numbers behind each status tier? Anybody know the number or percent breakdown per status tier?

Here is one to think about:



2) All sources ancillary revenue per Pax of $37, which also means per Pax per flight.

 

[moa999]

An interesting guess but I suspect the points / tier are more even. Afterall the amount of points earnt =/ amount of flying, I suspect there are a number of Bronze and Silver members who earn far more points than most Plats via cc spend.

 

[ric_melb]

Gowatson, is that table from the Qantas Annual Report or is it your estimate of the splits?

 

[connieguy]

Gowatson, is that table from the Qantas Annual Report or is it your estimate of the splits?

Just my estimate. If anyone has better data on the tier % splits and / or points earn per tier, post it so I can update the spreadsheet.

I do remember reading someone posting the number of WPs. Anyone remember the number?