Qantas reward seats Syd to Sin in 2023

[mt4789]

I think some people aren't understanding the fundamental economics. Supply of award seats is low, price is low (the value of the classic rewards seats is what, around 5-10% of the cash price?); as a result it's a hugely in-demand product. There are always going to be lots of people left out even with reasonable availability, as these seats will almost always be snapped up right away. This whole thread seems to be one person's sour grapes that they were left out this time, when in reality most people are left out at most times, like a lottery. If you don't win the lottery you don't normally ask the lottery agency to improve the odds, you just recognise that you didn't win this time and consider whether it's worth it to play again, right?

The reason the perk exists at all is to try to increase the perceived value of miles to entice people to earn them through various means, it's not something that makes money for Qantas on its own. As long as there is huge demand to redeem these flights, they are clearly doing that, so why would they release more seats and reduce their profitability? If you want to pay what they're actually "worth" there's always points+pay. The vast difference to those two prices should be a clear indicator that demand would be high for the classic rewards, and thus availability limited.

FF schemes are much more than a bargain basement for unwanted tickets. For example BA spun out Avios as its own company, it is hugely profitable ($150million in 2021). Frequent Flyer programmes are hugely profitable. I agree they are 100% used to get rid of inventory cheaper than the company want to sell in cash but they are also much more.

I think if Qantas aren't going to release seats on some routes for 4+ months of the year to the majority of customers, they should be transparent about it, or else yes, sour grapes. IMHO BA/Avios didn't want to be transparent so they opted for guaranteed seats, I think Qantas could do the same.

 

[RichardMEL]

And if QF made some big announcement about a Guarantee of seats and you do not see them or can't book a seat then what? Is the "Guarantee" still meaningful?

It's like the times QF say they've dumped x million reward seats into the system and a few get lucky and get just what they want and after a few hours most of the good things have gone. Someone coming to the party the next day might then think well they're a bunch of *@#)*@* because I can't see anything.

Remember there's what 12m? QFF members - now sure say 95% of them are mostly idle and say 0.5% are actively searching for reward seats at any given time.. or heck even 0.1% - that's still, what, over 10,000 people that may be looking for an inventory release of a few seats? Even if you take it down to 0.01% the odds are still not great unfortunately. And that's only counting QFF members let alone any other OW members that might happen to be searching or others with access to inventory. OK BA (for example) may have greater sheer numbers of members - but they also have quite a deal more capacity (specially on some populr routes). It's all relative.

It's maths, it's demand/supply, it's the vibe, it's the constitution.. no it's the vibe....

 

[mt4789]

Thanks all for your thoughts.
I guess the difference in opinion all boils down to what the common man believes "subject to availability" means. My opinion differs here.
I take the point that Qantas can do whatever they like and potential customers are warned before entering.
I hold the opinion they could do better but also totally agree they don't need to do anything given they already run a hugely successful FF programme that is unrivalled in Australia and clearly working for them (and many of us).

 

[RichardMEL]

Sounds like you might be happier as a BAEC member

 

[Quickstatus]

it is hugely profitable

Because they limit redemption seating and provide other outlets for redemption
QF sells toasters for points which are highly profitable. Then there are those who are happy to let the points slide...

 

[dajop]

FF schemes are much more than a bargain basement for unwanted tickets. For example BA spun out Avios as its own company, it is hugely profitable ($150million in 2021). Frequent Flyer programmes are hugely profitable. I agree they are 100% used to get rid of inventory cheaper than the company want to sell in cash but they are also much more.

Qantas FF program is not exactly unprofitable.

Let's go back in time to 2019 .... annual report listed loyalty EBIT as $374m

AFF reported in 2020 that the loyalty program helped keep QF float with profit of $340m.

I suggest it is already hugely profitable for QF and is working for them, and many of the members who do participate.

For full disclosure I only participate in QFF now to the extent of earning points regularly from the Wellbeing app, occassionally from a flight or two and the odd redemption. I don't let credit card points go anywhere near QFF, nor hotel points, but I also don't live in Australia so it just doesn't work that well for me. I do have credit cards that can earn points @ ~ 1.2 pts/$, that can be transferred to QFF, but wouldn't dream of doing that when I have other uses for those points, such as Krisflyer.