The Danger of Hoarding Points

[lovetravellingoz]

I am saying that anything can happen. Reasonable risk? Anything is reasonable risk in the current climate.

Well I guess that I am just more optimistic in terms of "burn".....and probably more pessimistic in terms of future "earn". . So we will have to just have to agree to disagree.

So instead of redeeming all my points now for "low-risk", but very poor, value redemptions now, I will keep them for the higher risk (but IMO not by much) purpose of J redemptions over the next several years.

However, I will be prudent my storing the points in different locations.


I would also note that redeeming all your points now does have some risks too. One of the "anything that can happen" scenarios is that:

* the current trend of more CC surcharges occurring gets worse
* that earning opportunities for points declines as per the recent Amex devaluations.
* that the ample promo "bonii" of recent years does not continue at the very nice levels that it has been

In which case, FF points may become harder to get and you may then look back wistfully at the points expended on an expensive toaster.

Personally I tend to think of the last several years as having been an amazingly good period to collect points (or at least for the avid Point runners it has been). Best ever IMO. Will such largess continue? I think it is a lot more likely that points, for a person in my circumstances, will not as been generous as they have been.

I have been racking up over million points per year. But I can easily see that dropping to only 100-200K. I don't have a business cashflow to milk and the vast % of my points are gathered by working the system and making the most of any promos.

However things do happen in cycles, and so maybe, just maybe the good times will come again. But personally I see the next several years as being lean that the last several, and so in my case I will spread out the redemption of my points over several years rather than casing them in now.

 

[RWJ777]

I have been racking up over million points per year. But I can easily see that dropping to only 100-200K. I don't have a business cashflow to milk and the vast % of my points are gathered by working the system and making the most of any promos.

A million a year! Are you points laundering??!!

That's simply amazing.

 

[sumthinfornuthin]

For my penny's worth...

If Qantas was going bad they might sell off QFF........... but what a money spinning loyalty program for whomever bought it and they would be MAD to destroy it or devalue the points especially with VELOCITY upgrading their program and possibly going to give them some competing stick..

POINTS are big business and a defacto 2nd currency in this country.

I'm happy to hoard. I had close to 2 million but now down to 1.2 million points in QFF and just on 700,000 in Velocity that I might now start thinjking about using with the ability to earn status on Any seat awards.

My point earning opportunities are drying up too so I want to keep them as long as I can and use them for JASA's with minimum point burn plus tip in some dollars to continue flying u-p the front.

 

[sumthinfornuthin]

A million a year! Are you points laundering??!!

That's simply amazing.

Just have a look at the amex bonus partners. the point earning ability there helps. 5 x points per dollar etc

 

[lovetravellingoz]

A million a year! Are you points laundering??!!

.

No.

Just making the most of promos of various types including sign-up bonii, plus using the CC that earns the most points for any tx. These have been drying up of late

Did anyone else notice that this pre-Xmas period was the first for many years that Amex did not run a lucrative promo? .

Just look at the Everday Rewards with Woolies as another example.
Sign on bonii are still about, but are no were as lucrative, and often are not worth signing up for due to card fees. I gained over 500K over the last 15 months, but that will probably on be a small fraction of that over the next 15 months.

 

[lovetravellingoz]

My point earning opportunities are drying up too so I want to keep them as long as I can and use them for JASA's with minimum point burn plus tip in some dollars to continue flying u-p the front.

Indeed. Times are much tougher now to earn in out-performing ways.

 

[lovetravellingoz]

Just have a look at the amex bonus partners. the point earning ability there helps. 5 x points per dollar.etc

Indeed.

But the current crop are no where near as useful as a group. So less points earnt here now. The DSE one last year gained me say 200K alone.

My Everyday points at Woolies had been averaging over 4 points per $ in the year prior. Since the change before Xmas where the bonii have basically disappeared this is now back to less than 1 point per $ (ie as the first $30 earns nil). So that is another 30-40K gone unless Woolies brings them back.

 

[coyote25]

My problem is that I want to use my points but there has been so many J specials over the last few years, that I've actually ended up paying cash. I just feel the value isn't there when in some cases, flights have been around half price eg. NYC $5600 and LHR $4999 over the last 12 months and would prefer to save for some time in the future against a full flight fare

Still, a few 280K RTW trips are something to aim for and seem to represent the best value anyway

Totally agree seeing that I'm currently on a 280K trip. Great value.

 

[cove]

I remember using about 750k AN points prior to their demise in a family holiday and I don't dwell on losses as life is just too short for that.
Clearly there needs to be a balance where you consider your own options. I meet people who say it is just too hard to use FF points so they just keep paying cash for seats.
Lots of things change.....I still remember having an ANZ points earning credit card and thought that was wonderful way more than 10 years ago.
Diners Club was a name people recognized.
Getting the best results out of your travelling dollar is a very nice game to play and I don't believe in hoarding even though it might take a year or two to burn the stash off.
My family have a plan if I hop onto a death bed and they have pin numbers recorded so they can book multiple flights before the final gong.

 

[Berlin]

You might need to explain to your partner that it is all necessary travel, especially when they join you in the Flounge.

Excellent idea! I actually have a very sinister plan for later this summer- it involves Eggs Benedict, Corn Frittters and lots of Champers

 

[amaroo]

of more immediate threat to the value of your points is rising taxes and fuel surcharges that stealthily devalue them over time!

+1..........

 

[fersea]

Personally I hoard points for an objective, 4x J tix to MCO when the kids get a bit older.

Like most things it pays to have an objective, and when you reach it, you can enjoy the rewards.

That is saving not hoarding.

 

[JessicaTam]

That is saving not hoarding.

I tend to agree. I would regard hoarding as building up points with no specific purpose as opposed to saving where there is a goal in mind.

 

[Grooba]

Totally agree seeing that I'm currently on a 280K trip. Great value.

+1. I booked my first a few weeks ago and now can't wait to start my first ever RTW!

Great use of points imho.

 

[scheps]

never had the good fortune of looking into the RTW ticket but is there a minimum or maximum time frame for travel? say RTW 2-3 weeks (rushed i know)? and how many cities/continents etc?

 

[KLN]

i prefer the term "Warehousing". sounds much more polite

 

[FuzzyAUS]

My family have a plan if I hop onto a death bed and they have pin numbers recorded so they can book multiple flights before the final gong.

Amen
There are a few people that are not to be told i am dead until a bunch of points are spent/moved, but i am sure they wont be spent well

 

[cove]

On KLNs thoughts on warehousing points I have that happening in 3 places.
They are:
Citi Select (non Qantas Citi Rewards points)
Westpac Platinum Altitude points that accrue until I contact them
and my US based American Express Premier Rewards points that can be transferred on request.
All the other cards transfer points monthly to our FF accounts.
The reason I have these warehouses is to maximize flexibility.

 

[serfty]

never had the good fortune of looking into the RTW ticket but is there a minimum or maximum time frame for travel? say RTW 2-3 weeks (rushed i know)? and how many cities/continents etc?

12 months - any number and more than once as long as the other rules are met - see here:

http://www.australianfrequentflyer....ogram/oneworld-award-140k-280k-420k-8228.html

 

[xk140]

My preference is the EMIRATES FF scheme, basically because you can use your points on all EMITATES flights if there are seats available, whereas Qantas FF its near impossible to ever get a seats on a flight you actually want - seems FF seats are only offered on unpopular routes - eg to LA via Fiji, rather than direct.
Trouble though with EMIRATES all points have an expiry date, so unused points are lost. I am about to lose 50000 points that expire in June, so am looking now for another holiday.
Just as well Qantas FF points dont expire - impossible to use them as you want - no decent International seats, and excessive cost of using them domestically.