Qantas rolls out Classic Plus Flight Rewards

[levelnine]

Maybe that's what Qantas meant when they said C+ is a significant investment. It's a significant investment in advertising C+.

 

[RooFlyer]

Maybe that's what Qantas meant when they said C+ is a significant investment. It's a significant investment in advertising C+.

That media spend would’ve paid for an upgrade to a lot of economy meals.

 

[Seat0B]

Please do. I only read the on-line subscription one (no adverts )

Sorry to report it was already recycled. I’ll dumpster dive tomorrow and see if I can locate it.

 

[SYD]

Sorry to report it was already recycled. I’ll dumpster dive tomorrow and see if I can locate it.

But by the magic of digital media, it’s out there forever…no need to dumpster dive or anyone else retrieve the front page of the Budgie cage!

 

[am0985]

Hmm...actually whilst I wouldn't redeem them I can see why some of those CR+ economy return awards might appeal to some.

Bengaluru for 79k, Bali for 57k, Tokyo for 95k, LA for 92k...these are all quite competitive for flyers who don't mind sitting at the back of the plane. They're all likely achievable with fairly typical points balances. The NZ fares are competitive too. Singapore for 235k economy return on the other hand is obscene.

 

[AFF Editor]

We've done an in-depth analysis into Classic Plus and the reasons Qantas decided to introduce it. You can read the full article here: https://www.australianfrequentflyer.com.au/why-qantas-introduced-classic-plus/

 

[aikman]

Realistically, Qantas cannot and should not release Classic Reward seats on every single flight. That doesn’t make commercial sense.

I think this is the main issue. Most people are either not aware of this or they simply do not care. They just want more classic rewards because that is the dream that was being sold to them. If that means the executives go without multi million dollar bonuses every year then so be it.

 

[CaptJCool]

I think this is the main issue. Most people are either not aware of this or they simply do not care. They just want more classic rewards because that is the dream that was being sold to them. If that means the executives go without multi million dollar bonuses every year then so be it.

While I think this is one of the key issues I do need to say

Why not?
Is it because the preference the 30,000 internal employees and their associates who can book “dirt cheap” tickets or the broader travel industry ?
Is it because they are ferrying so many staff around to fill gaps in rosters ?
Is it because there’s sponsorships and charity seats ?

The second part is
It’s not that Classic Rewards come completely for free
While AFF places members and browsers at the forefront of victory on the less pricey way of earning points, there’s still a financial cost to being involved

When I think about the traditional customer loyalty card 6, 8, 9 or 10 coffees and the next is free, the paying customer is led to the belief that the free one is free even if they have paid for it through their earlier purchases so the idea that QF have failed to plan for the day when the “chickens come home to roost” and are ready to receive their freebie - really? is not that the point of the loyalty program ?

To go crying poor after a year of billion $ profits smacks of “sour grapes” and a lack of understanding of what loyalty entails You made the loyalty offer but when it came time for me to receive my “free coffee” you bailed.


But Captain, captain you know it’s about flying toasters ?

It’s a really poor way to treat the people (passengers) who are keeping your business running
And it reflects that the business strategy has lost its way when the focus has stopped being on carrying (the paying) passenger

 

[MEL_Traveller]

I think this is the main issue. Most people are either not aware of this or they simply do not care. They just want more classic rewards because that is the dream that was being sold to them. If that means the executives go without multi million dollar bonuses every year then so be it.

Some airlines DO guarantee an allocation of awards seats on every single flight. BA for example, and I think VS as well.

Sure, at peak holiday time they might be able to fill the plane with top-fare paying pax, but realistically the seat costs them no more at a peak time than off peak.

The exchange for guaranteeing seats on every flight is a few $$ revenue, which either (a) offsets some of the massive FF profits, or (b) actually improves profits because people will spend more on acquiring your points.

 

[Brissy1]

While I think this is one of the key issues I do need to say

Why not?
Is it because the preference the 30,000 internal employees and their associates who can book “dirt cheap” tickets or the broader travel industry ?
Is it because they are ferrying so many staff around to fill gaps in rosters ?
Is it because there’s sponsorships and charity seats ?

The second part is
It’s not that Classic Rewards come completely for free
While AFF places members and browsers at the forefront of victory on the less pricey way of earning points, there’s still a financial cost to being involved

When I think about the traditional customer loyalty card 6, 8, 9 or 10 coffees and the next is free, the paying customer is led to the belief that the free one is free even if they have paid for it through their earlier purchases so the idea that QF have failed to plan for the day when the “chickens come home to roost” and are ready to receive their freebie - really? is not that the point of the loyalty program ?

To go crying poor after a year of billion $ profits smacks of “sour grapes” and a lack of understanding of what loyalty entails You made the loyalty offer but when it came time for me to receive my “free coffee” you bailed.


But Captain, captain you know it’s about flying toasters ?

It’s a really poor way to treat the people (passengers) who are keeping your business running
And it reflects that the business strategy has lost its way when the focus has stopped being on carrying (the paying) passenger

No Captain you can't have your coffee now, you'll get it when it suits us. And we'll charge you a surcharge for the cup.

 

[encryptededdy]

Singapore for 235k economy return on the other hand is obscene.

*business, but yeah

 

[Beano]

Sorry if someone has raised this already. You would think that Qantas would encourage people to use their points as it is probably a financial liability on their balance sheet. Reducing that liability should be Qantas's aim. On my part I have mostly used Points + Pay because classic rewards were never available on long-haul when I wanted to go. I look forward to seeing how this Classic Plus will work for me when I book my next long-haul.
Surprisingly at the end of 2023 I managed to get a Y to J points upgrade on a SYD-PER flight on the same day.

 

[serfty]

You would think that Qantas would encourage people to use their points as it is probably a financial liability on their balance sheet.

Don't forget 'breakage", although I guess with the myriad of ways to keep an account active these days it happens far less than it used to.

 

[CaptJCool]

Don't forget 'breakage", although I guess with the myriad of ways to keep an account active these days it happens far less than it used to.

YES. Breakage is still a thing and especially until recently, Qantas scooped up all the points after death.
Similarly, to those cancellation fees or no shows or change fees hoovered up into profit

Sorry if someone has raised this already. You would think that Qantas would encourage people to use their points as it is probably a financial liability on their balance sheet. Reducing that liability should be Qantas's aim. On my part I have mostly used Points + Pay because classic rewards were never available on long-haul when I wanted to go. I look forward to seeing how this Classic Plus will work for me when I book my next long-haul.
Surprisingly at the end of 2023 I managed to get a Y to J points upgrade on a SYD-PER flight on the same day.

no, its not a liability

Its Revenue Received in Advance that sits on the sidelines until such time as its used to buy that toaster, or flight or wine etc
what this means is it can sit there for many years without any income tax being paid nor GST for that matter - tax deferrals are enormous
so not only do they get an interest free amount (currently around $8 billion) which means they don't need to borrow as much money they are flushed with cash such that they can do a couple of billion of share buybacks! (similar to accommodation deposits for aged care homes)

at the time the flight is actually flown, the RRIA is converted from money on the sidelines to money brought to account for the flight flown aand then its included in monthly profit and tax charged and paid accordingly

 

[Clayton]

As most Bloggers keep repeating points are a depreciating asset to the member, and it makes no sense to hoard them, because much like Delta, AA, Aeroplan, Alaska Air have done in the past QF has suddenly depreciated all our life savings but are advertising it as an "improvement"

As I have done with the above mentioned FF programs, I'll stick with using my points on their partners because at the moment their award flights aren't massively inflated.

 

[encryptededdy]

QF has suddenly depreciated all our life savings but are advertising it as an "improvement"

Well, you could say that the recent lack of CR has been depreciation, but the introduction of Classic+ alone has not.

 

[Valdek]

I really can't see them phasing out CR. I don't think it will happen.
What is almost a certainty is QF steadily decreasing CR seat availability and increasing the points required, dressing it up as "improvements" for the CR+ program by reducing competition from CR.

But after all, this has already happened.
For the last 3–4 years, finding a good CR deal outside a few lucky occasions has been nearly impossible, so comparing what the Qantas frequent flyer programme looked like before that, we can safely say that CR has already been phased out.
And I think we can agree that it is certainly not going to be better than today?

 

[Valdek]

Anyway, for now I will continue collecting QFF points, keeping enough in my account (~300k) for 2 upcoming trips at a time.

"2 trips for 300K"... Where to? With the new CR+ option, it could be enough from Hobart to Launceston

 

[SYD]

For the last 3–4 years, finding a good CR deal outside a few lucky occasions has been nearly impossible,

Sadly, the majority of those years were/are COVID and post-C times.

And I think we can agree that it is certainly not going to be better than today?

That’s the main concern for most of us. QF not restoring the pre-C process of releasing CRs seats across all classes on most flights 350 odd days out has been the tell tail sign that things were a foot.

Yes, most of us covet premium seats but gees, the lack of whY seats on most international sectors when pre-C, they’d easily have 10+, has been standing out like dogs bits and that there’s an issue with CR availability.

The random mass release of seats has been a parlour game of smoke and mirrors. If we see the return to pre-C release of CR seats, then fears should be allayed but if we don’t see that anytime soon, then just assume they’re not coming back….

 

[trippin_the_rift]

Sadly, the majority of those years were/are COVID and post-C times.

That’s the main concern for most of us. QF not restoring the pre-C process of releasing CRs seats across all classes on most flights 350 odd days out has been the tell tail sign that things were a foot.

Yes, most of us covet premium seats but gees, the lack of whY seats on most international sectors when pre-C, they’d easily have 10+, has been standing out like dogs bits and that there’s an issue with CR availability.

The random mass release of seats has been a parlour game of smoke and mirrors. If we see the return to pre-C release of CR seats, then fears should be allayed but if we don’t see that anytime soon, then just assume they’re not coming back….

Consider that near-unlimited points are warehoused in US banks via credit cards, and people with money and points will pay people to find seats for them.

I'm sure business is booming for folks like Steve Hui at iFlyFlat.
In fact - I don't know why QF and other airlines don't team up with him.

Most people can't find seats because the competition to find those seats has exponentially increased.
The rules of the game have changed... but the way people search for flights has not.