Qantas rolls out Classic Plus Flight Rewards

[Princess Fiona]

ASX announcement is out.

According to the statement when fully rolled out, they expect 20 million new seats to be available throughout the year. Initial Classic+ seats are International only, but Domestic will be available by the end of the year.

The "investment" is expected to cost QF up to $125m in total to initially implement; will impact growth of QFF profitability this financial year but expect to see growth returning to normal (10%+ YOY) from FY25 onwards.

Announcement (and slides): https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02792837-2A1516303

Interesting that you can now request points upgrade from J-F on CR+
Never understood why they wouldn’t allow that on regular CR.

 

[encryptededdy]

standard classic rewards can't

They are upgradeable, except for Business -> First.

 

[Princess Fiona]

Looks like Classic+ Rewards will also potentially be upgradable too (where as standard classic rewards can't) - functionality to be made available from May.

Standard classic are upgradeable just not J-F

 

[TheDefenestrator]

The QFF T&Cs have been updated with a new section (section 15) on Classic Plus Rewards:

Frequent Flyer Terms and Conditions | Qantas

These Terms and Conditions form the basis of Qantas Frequent Flyer, to protect both Members and the Qantas Group.

www.qantas.com

Hopefully the more eagle-eyed folk can check to see if they've snuck in any other changes.

 

[CaptJCool]

A number of concerns expressed here are addressed in the FAQs

https://www.qantas.com/au/en/frequent-flyer/use-points/classic-plus-flight-rewards.html?int_cam=au:qf_home:qf001:classicpluslaunch_april2024:en:ff

 

[shuuy]

I have a feeling that PE in Classic+ will be a sweet spot

Will Classic international J/F awards slowly disappear?

 

[offshore171]

Feels a bit like a 50% devaluation

 

[shuuy]

CR+ - changes - fare difference in **cash**. That could be consequential.

 

[I love to travel]

A number of concerns expressed here are addressed in the FAQs

https://www.qantas.com/au/en/frequent-flyer/use-points/classic-plus-flight-rewards.html?int_cam=au:qf_home:qf001:classicpluslaunch_april2024:en:ff

Was top up points as an option (not linked to a booking) always available? $56 for 1000 points

 

[exceladdict]

So… sell points to banks and businesses at 1c each. Pax now redeeming at 1c each. ‘Profit’ comes for the fees and charges?

Maybe it's the other way around, the fees and charges represent the cost to operate (airline charges qff) and the points are the profit?

Announcement also lists that the "TFCC" (taxes, fees, carrier charges) are higher for cr+ in J/f

This was part of the leaked info - that they are linked to revenue fares in the market - so in that sense dynamic, but at a fixed rate (ie 1.5c/point for premium seats)

But not printed anywhere, so subject to enhancement?

 

[Mwenenzi]

Taxes and fees seem to have almost doubled? One way J from Aus to LA now over $600

Real govt & regulatory authority taxes will not change.
Fees~carrier surcharges (=100% airline profit) will increase

From QF new release https://www.qantasnewsroom.com.au/m...n-one-of-the-biggest-ever-program-expansions/

Are the taxes, fees and carrier charges (TFCCs) the same as Classic reward seats?
For Economy and Premium Economy seats, the TFCCs for Classic Plus reward seats will be the same as Classic reward seats.
For Business and First seats, the TFCCs for Classic Plus reward seats will be higher than Classic reward seats. (See tables above for examples).

QF news release Feb 2024 https://www.qantasnewsroom.com.au/m...4-supports-continued-investment-in-customers/

QANTAS LOYALTY Qantas Loyalty expanded significantly during the half, adding more members to reach 15.8 million and adding several major program partners. Value of bookings via Qantas Hotels and Holidays increased by around 30 per cent compared with 1H23; TripADeal bookings grew by more than 60 per cent.

The number of Qantas-branded home and motor insurance policies increased by a factor of 2.5 times compared with 1H23 and financial services continued to grow, with more than 100,000 credit card acquisitions during the half and a 4 per cent increase in the value of purchases on cards earning Qantas Points.

Underlying EBIT grew by 23 per cent compared with 1H23 to reach $270 million. The strong performance in calendar 2023 meant Loyalty achieved its earnings target of $500 million per annum six months ahead of schedule.

The Group is still working to finalise improvements to the Frequent Flyer program that will represent a significant investment for members, with the aim of announcing them by April.

More money (~profit) selling ff points for hard cash to banks, retailers, rental car companies and airlines (all flavours) than selling seats in a thin metal tube. FFP's are a major profit source for airlines. Sell something that many months/years later you may or may not provide at a price you decide on day. (no long time fixed commitment).

ExecTrav https://www.executivetraveller.com/news/qantas-classic-plus-rewards

No change to Classic rewards:
loyalty boss Glance is certain to stress that Qantas will not increase the number of points needed for a Classic reward seat or reduce the number of Classic reward seats (which is estimated at five million per year across all travel classes on domestic and international flights).

Is Qantas a flying roo or a flying pig? [pigs don't fly] Believable?

 

[CaptJCool]

Was top up points as an option (not linked to a booking) always available? $56 for 1000 points

The inference was to steer you towards a fairly immediate redemption by suggesting you top up to do so.

I don’t think anyone felt completely obligated to buy top up points and use them straight away

 

[_TheTraveller_]

It's a shame that you're paying rev equivalent prices (in points) but getting CR SCs as part of Points Club.

 

[ellen10]

Thanks for the info, I will start my search!

 

[aikman]

Will Classic international J/F awards slowly disappear?

Don't worry. I am sure we will get a daily update over the next few years with someone commenting that classic rewards may, have, are or will disappear because of classic plus.

 

[Princess Fiona]

Don't worry. I am sure we will get a daily update over the next few years with someone commenting that classic rewards may, have, are or will disappear because of classic plus.

Haven’t AA had dynamic pricing for a while now?
They require differing amounts of miles and don’t appear on OW booking engines.
They still have regular Awards available outside this structure.

 

[RooFlyer]

Don't worry. I am sure we will get a daily update over the next few years with someone commenting that classic rewards may, have, are or will disappear because of classic plus.

So, what do you think?

 

[HSB44]

I guess the question now is - how long do they intend to keep them at the rate of 1.5 cents - if they are available on all Int flights...

 

[TheInsider]

Just some various price points if anyone hasn't searched anything yet:

 

[CaptJCool]

So I just did some random searches and what was curious was SYD-CHC (return) 2x J:

CR 166,000 pts + $514 (the pts being 41,500 pp each way)

CR+ 128,400 pts + $514 (being 32,100 pts pp each way).

Now granted, there’s a NZ sale on now but there does appear to be some value in CR+.

However only Classic or Plus will be shown on the website

I did pick up this little difference


Same day same flight
Different Y points offer
Search within 30 seconds of each other switching from rewards to cash tab