WARNING - QANTAS rip off in offering credit for QFF points on cancellation

[marchredmr]

Hi all
This is my first post. I decided to recount my story so that other QFF members can be aware of a potential ripoff of its loyalty members by QANTAS.
Last month I cancelled my QANTAS booking (wife and I), for return flights from Canberra to Cairrns, due to contracting COVID - while I believe I may have been still allowed to fly I decided to do the socially responsible thing and cancel.
After several calls with QANTAS I was eventually advised that I would receive a credit for the cash component paid for the outward journey (approx. $790) and that the QFF points (85,000) used to procure the return (business class) tickets would be converted into a credit. I can't recall the exact amount of total credit but it was around $1,050 - i.e. approximately an additional $260 credit for my QFF points.
I told the consultant that this was totally unacceptable, as the "refund" for my business class tickets was not even equal to the cost of economy tickets. She advised that the conversion was "worked out by the system" and she could do nothing about it. I requested that she put me through to her manager as I was not prepared to allow QANTAS to "rip me off". She put me on hold, and after some time, returned to advise that her manager had offered to provide a full cash refund of the outward journey and a credit to my QFF acount of the points (85,000). I agreed and the points have been credited. I am still waiting on the cash refund but was advised it would take 6 - 8 weeks, so no issue at the moment.
My issue is that I am disgusted that QANTAS thinks it's OK to rip off it's loyalty program customers when converting points to a cash credit. I checked the QFF pages and found that if I wanted to purchase top up points, it would cost me $2,328 for 85,000 points - $260 will get me just over 6,000 points.
Other more experienced QFF users may not be suprprised, but to me, it's unconscionable that the "client sell value" (i.e. using points) is around 7% of the "buy value" of QFF points. Luckily I was able to avoid the rip off.
I've lodged a formal complaint with QANTAS but thought QFF members need to be aware of this issue and certainly need to kick up if they are in similar circumstances.

 

[bam71]

This is the first time I’ve heard of Qantas saying that they’ll put a redemption ticket into credit. That’s not how it works… they just deduct 5000 points per person ( or waive the fee depending on the case), and then refund the points, and the taxes on the redemption booking. Either there are some wires crossed here, or the QF staff member had no idea what they are talking about, which is common for some of the call centers now.

 

[marchredmr]

This is the first time I’ve heard of Qantas saying that they’ll put a redemption ticket into credit. That’s not how it works… they just deduct 5000 points per person ( or waive the fee depending on the case), and then refund the points, and the taxes on the redemption booking. Either there are some wires crossed here, or the QF staff member had no idea what they are talking about, which is common for some of the call centers now.

As I understand it (well as I was told by two consultants), because we had paid cash for outward journey and used points to return and it was the same booking reference, flight credit was the only option ... which proved to be false as we got cash refund and points recredit - but I take your point about call centre staff (especially offshore contractors) not knowing what they are talking about.
Edit: I will definitely advise the response, if any, I get from QFF

 

[ChrisMars]

As I understand it (well as I was told by two consultants), because we had paid cash for outward journey and used points to return and it was the same booking reference, flight credit was the only option ... which proved to be false as we got cash refund and points recredit - but I take your point about call centre staff (especially offshore contractors) not knowing what they are talking about

A bit too late now, but did you had a look at cancelling online to see what was the option? Asking because on an award only ticket, for sure you get point refund automatically. But I never done an award + paid ticket on the same booking (didn't know it was possible tbh), so I was wondering how it look like, if it is even possible to cancel online.

 

[kpro]

Did you book the return as a points plus pay or a classic reward booking?

 

[marchredmr]

Did you book the return as a points plus pay or a classic reward booking?

Did the whole return booking on points (85,000)

 

[encryptededdy]

I've never come across this before (and I've refunded countless classic reward tickets), I suspect it's a quirk of mixed Classic Reward / Cash bookings. I suspect the system treats them as cash bookings, and a nominal value is assigned to the classic rewards portion. I can't imagine any GDS is actually capable of handling a mixed award/cash booking "correctly".

Was your cash ticket flexible? It sounds like in the end they did do you a favour by fully refunding the cash component of your ticket, which they didn't have to do per the fare rules. In fact, generally speaking when you have one booking, the most restrictive fare condition applies if they are different for the different fare types that construct the booking, so it's possible that the whole booking isn't technically refundable at all (credit only). Of course, there's no real way to hold points "in credit", which is how you end up in your situation here.

For instance, if you change the classic reward portion of a classic reward + cash booking, you would technically still have to pay the $99 change fee due to the rule regarding most restrictive condition (if the cash portion was a red-e-deal).

Perhaps someone else knows the full technicalities when it comes to refunding / holding in credit these bookings.

With that said, I think this is a good warning about these mixed bookings, and to be careful regarding how the fare rules apply when cancelling, changing, or refunding.

 

[serfty]

I've lodged a formal complaint with QANTAS but thought QFF members need to be aware of this issue and certainly need to kick up if they are in similar circumstances.

Yes, warning noted ... never mix points with cash. Two oneway bookings may have worked better (although still an issue cancelling the cash component.

 

[encryptededdy]

Two oneway may have worked better

I think mixing does let you get "return" pricing on the cash portion though. As you know a one-way cash fare would be higher.

 

[ChrisMars]

Was it 85,000 points, or 83,000 points? Asking because 2 pax in Business CBR-CNS should be 83,000 points. Wondering if 2,000 were used for some of the tax component of this award, as it is possible to use point to partially or fully pay the tax, at a value of roughly 0.7 cents per points. That makes refund more difficult to process for untrained staff I think.

 

[AIRwin]

As you know a one-way cash fare would be higher.

Not for domestic?

 

[oz_mark]

This used to come up with JASAs all the time. The cash amount reflects how much QFF pays QF for the ticket, which can be surprisingly low!

I think mixing does let you get "return" pricing on the cash portion though. As you know a one-way cash fare would be higher.

I don't think there is a "return" pricing thing with domestic travels.

 

[encryptededdy]

Not for domestic?

Ah. Good point

I don't think there is a "return" pricing thing with domestic travels

Yep you're right.

Although I think mixed bookings are possible for at least some international too, I wonder if it applies there.

 

[RichardMEL]

Having just made a mixed int booking myself yes it is a thing. ie: clsssic reward outbound/cashola inbound (NOT p+P). of course if it was domestic I'd have booked it as separate one ways since all fares are one way and there's no real difference and it's much easier to manage. Unfortunately this doesn't work on most (all?) international fares as one way pricing can (and in this case was) significantly greater so a return fare it was.

I suspect if I wanted to cancel I would be up against the same issue potentially

Side note for the info of anyone who cares, while I could book the ticket online and it was all fun, I was unable to also use a TP which was a tad annoying.

 

[AIRwin]

I suspect if I wanted to cancel I would be up against the same issue potentially

What if you try cancelling online (but without proceeding further) as @ChrisMars suggested above?

 

[Mattg]

If Qantas is going to make it this difficult to cancel a flight and get an acceptable refund/credit, they're effectively creating an incentive not to cancel and instead to fly with COVID. I wonder how other passengers/Qantas crew would feel about that.

 

[justinbrett]

I think mixing does let you get "return" pricing on the cash portion though. As you know a one-way cash fare would be higher.

Return domestic fares have been dead since the days of Ansett.

Anyone remember the Saturday night stay requirement?

 

[bam71]

QLE21C6X - fare basis. Booked Q class, 3 weeks in advance, Saturday night stay needed. Ah, the old days!

 

[BD1959]

This used to come up with JASAs all the time.

ahhhh .... JASAs ..... fond memories!!

Regards,

BD

 

[marchredmr]

Thanks all for the feedback on the potential issue of mixing cash (economy) and point (business class) fares on the same booking. I think next time I decide to do so I will make separate bookings. Nevertheless, once QANTAS agreed that my COVID result was a good reason to allow me to cancel the booking, there is something inherently wrong with their system algorithm if it converts 85,000 QFF points into a cash credit of around $250. I'd be surprised if it were the case, but perhaps I'm the first instance of this occurring or maybe others have also arced up and I'm just reporting it here for the first time.