QFF worth it??

[Never_Flies]

Evening all, first time poster. Very new frequent flyer points etc etc etc. I have the opportunity to earn approx 1.2m Qantas points for the cost of around $22,000 in AMEX fees. I don’t really fly often and usually only domestically. My wife is a school teacher so if we were to fly overseas (or anywhere) would be in peak times. As we don’t fly we obviously don’t have any credit or whatever they are called. Is it worth while? What am I going to get for my 1.2m points? Thanks heaps all for your help.

 

[sjk]

Really not close to being worth it.

Is Qantas points your only option with that Amex?

 

[Ade]

Welcome to AFF, @Never_Flies and congrats on the 1.2m points

1.2 m QFF points is huge, but it's really the status credits (SC) that will elevate you in the hierarchy of frequent flyers.

Although I don't see why you wouldn't be able to do a few trips with the points stash you have, having status with the airline really does help. As an example, finding reward seats (seats booked using points) is much easier and more available for QFF Gold & higher.

However, given that you fly domestically, depending on how often you fly, you could get somewhere with status. A Silver is better than a Bronze

 

[Never_Flies]

Thanks SJK.

NO. It’s a question of whether I want to start using AMEX.

I have a small business that pays everything cash or EFT. But had someone telling me I’m mad not to look at AMEX and get points for my trouble.

Looked into it will cost me $22k extra in fees. Info AMEX game me says Syd - NY in BUS would cost only 260,000 points. But I don’t think that’s right?

 

[Never_Flies]

Thanks Ade, help much appreciated. I might do 3-4 Syd-Melb flights a year. That’s is about it. So sounds like I could struggle to get good flights with my 1.2m in peak times then.

 

[juddles]

I am understanding the scenario is that you could earn 1.2 m QFF points if you change a business practice, but that will cost your business $22k actual dollars. Assuming there is no way through tax/etc to reduce that sheer dollar cost, then in my opinion you are asking if it is worth spending $22k in cash to get 1.2m QFF points....

Never_Flies, the value of a QFF point is entirely dependent on each individual and how they choose to redeem them. Because of this I would never even start to attempt to advise you one way or another.

But just to give one small scenario, or use, for you to consider value:

To me, a good value for money use of points is on long haul premium class redemptions. A return Australia to Europe or USA (via Dubai) on Emirates in F costs just under 400k points, plus about a thousand in cash. So Effectively that means that with your $22k, 1.2m points thing you could do each return trip in in Emirates F for about 7 thousand AUD (plus some change). To me that is a seriously good value thing (approx half or a third of the cash cost to buy) , as I consider Emirates F a really nice way to travel

Another way to see this is that it would allow you to go on a "trip of a lifetime" or whatever with a partner for about 14k AUD true cost, and be experiencing one of the most premium flying experiences out there.

Does this do it for you? Only you can decide that

 

[juddles]

Another totally different scenario of value would be if you often pay for J class travel between aussie cities. In this scenario, plucking the latest off the QF website:

A one way between Brisbane and Sydney costs $700 in J. Or 16k points plus $37 dollars.

Ignoring the loss of earning SC and some trivial points when buying a cash fare, effectively the dollar value you get for those 16k points is 700-37 = $643. Using that basis those 1.2m points get you 75 trips and are worth $48,000 to you

 

[Never_Flies]

Thanks Juddles and all for feedback. Really appreciated. I was hoping to get 2-3 business class flights to US or EU. Seems my lack of frequent flyer status is going to make that near on impossible. Therefore I reckon I’d rather not go the AMEX route and save the $22k. Thanks heaps again!

 

[MEL_Traveller]

Evening all, first time poster. Very new frequent flyer points etc etc etc. I have the opportunity to earn approx 1.2m Qantas points for the cost of around $22,000 in AMEX fees. I don’t really fly often and usually only domestically. My wife is a school teacher so if we were to fly overseas (or anywhere) would be in peak times. As we don’t fly we obviously don’t have any credit or whatever they are called. Is it worth while? What am I going to get for my 1.2m points? Thanks heaps all for your help.

1.2 million points will get you 3 return first class tickets from Australia to Europe (give or take) with about $4000 in taxes, fees and charges. So all up you will have spent $26K for only one return trip for the two of you, plus one spare.

But you have to find availability. Which can be tough. Especially for 2 seats.

Alternatively, you can take your $26K and buy 4 return business class tickets on a top tier airline, including all taxes, fees and charges, and fly when you want, where you want, with no fussing about award availability.

Alternatively for the second time, use your $26K to buy just one set of return first class tickets for you and your partner. On the airline of your choice, at the time you want, to where you want. No fussing. basically a trip of a lifetime.

1.2 million QF points are 'nice to have', but come with so many restrictions and difficulties that you might be better off buying a ticket outright.

 

[sjk]

I’d give a lot more thought to 1.2 million KrisFlyer points...

Which would also be a possibility if you’re starting Amex from scratch.

 

[sjk]

Among the many things that render Juddles’ analysis predictably pointless:

- If 1.2 million QFF points were a worthy goal, there are cheaper ways of achieving it.

- Even if his example flights were something you aspire to, actually booking them would be easier said than done.

There’s a whole spectrum out there, though, between cash equivalents and AMEX. Even Visa will earn you points that will eventually add up.

And there are better AMEX options than Qantas.

 

[lovetravellingoz]

Thanks Juddles and all for feedback. Really appreciated. I was hoping to get 2-3 business class flights to US or EU. Seems my lack of frequent flyer status is going to make that near on impossible. Therefore I reckon I’d rather not go the AMEX route and save the $22k. Thanks heaps again!

Your problem is that you are earning points to the wrong program.

Ditch QFF and switch to Krisflyer instead. Redeem in J or F and then status does not matter. 1.2 million will get 5 return Js.

Cost less points, less fees and way easier to actually get J or F redemptions

 

[amaroo]

If you are hell bent on Amex make sure you get a card that earns Accent Premium, this means you will have a choice of 10 airlines including QF.

As a long term QFF with high status and millions of points - I totally agree with the post above.

We’ve recently played around with SQ miles via CC and have thoroughly enjoyed Singapore Airlines.

QFF works for us due to status and the fact QF will release award seats for us. SQ works for us with no status. SQ will be a better fit for you.

Look at Visa / MC using third party payments options like Easybillpay.

 

[serfty]

@Never_Flies , The cost of 1.8 cents per point earn is reasonable.

Note that as a business you would possibly be able to claim the $22000 as a tax deduction, but speak to your accountant.

As a generic rule of Thumb, I assume that for Qantas Frequent Flyer award flight redemption it costs approx. 1cent per point to redeem - so at that rate, to redeem 1.2M it would cost ~$12,000 on top.

There are better Frequent Fler program options out there.

 

[MEL_Traveller]

Although the OP is only going to earn 1.2 million points (not 2.1). That changes the figures a bit.

 

[get me outta here]

I’d forget the AMEX option. Using cash to buy J or F seats will get you status, especially if you use a good TA to maximise the SC earns.
Later, the cc points and status earns will get easier access to reward seats.

 

[amaroo]

Amex is a good option for multi airline redemption. If you're only interested in one airline, then Amex is not that critical these days.

Look at CC churning and paying business expenses with a decent visa/mc via the third party players - fees run at zero or up to 0.8% with the right card you can build a good stash quite quickly.

The outlay to earn the points/miles is neither here or there assuming you can afford it - the selection of airline/card combo is critical.

You also need to burn the points/miles at a premium rate to make it worthwhile ..... that means flying first or business. If that's not your scene not bother with these loyalty schemes.

 

[Pleb Status]

The proposed transaction is poor value and high risk. Even worse value if not a QF WP, as redeeming the points will be difficult.

Pay cash for the tickets required on better quality airlines....

 

[Dr Ralph]

I wouldn't do it. A lot cheaper ways to earn that number of points. And unless you are very organised you won't get full value from these points.

Despite what some others have indicated, there's no problem getting high value reward flights with QFF, but you do need to be extremely organised.

 

[albatross710]

Alternatively for the second time, use your $26K to buy just one set of return first class tickets for you and your partner. On the airline of your choice, at the time you want, to where you want. No fussing. basically a trip of a lifetime.

In 2014 as a small business owner I used a swag of SQ miles (fromWestpac AMex) and flew Mrs Albatross in suites from Melbourne to Zurich. That trip is still paying dividends now.