Qantas CEO Vanessa Hudson has flagged upcoming changes to the Qantas Frequent Flyer program, to be implemented in early 2024.
Addressing shareholders at the 2023 Annual General Meeting (AGM), Hudson cited changes to the frequent flyer program as an example of an area where Qantas was investing in better value for customers. It’s in response to customer feedback and negative media attention over recent months and years, as well as a Senate inquiry that looked into the value of frequent flyer points.
Qantas already invested in several initiatives last month to offer more value to frequent flyers, including a large release of extra Classic Reward seats to Europe.
“Last month, we brought forward the release of 35,000 reward seats – seats you can secure with the least number of points – for members. On top of that, we added a further 6,000 rewards seats to Europe for the next summer peak,” Hudson said.
“At the same time, we offered a 50 per cent discount on the number of points required for any Premium international seat on any Qantas flight in our system.”
Those were initiatives that Qantas could implement in the short term. But the airline is also working on longer-term “improvements” to the program that should make it more sustainable and attractive to members.
“These [recent initiatives] are things we’ve been able to do quickly, but we’ve been working on more permanent improvements to Frequent Flyer for several months that we look forward to sharing early next year,” Hudson added.
What could Qantas Frequent Flyer be changing?
At this stage, Qantas hasn’t given any more specific details about the changes planned for early 2024. However, we expect that any changes will be designed to address some of the key current “pain points” for frequent flyers.
One of the most common complaints about the Qantas Frequent Flyer program has been a lack of Classic Flight Reward availability on routes and cabin classes that people want to fly. So, we wouldn’t be surprised if part of these changes involved making more reward seats available – albeit, perhaps, for a higher number of points.
Over recent years, the value of Qantas points being earned by members has exceeded the value of points being redeemed. As well as being a growing liability for Qantas, this dynamic can affect the loyalty program’s sustainability. Making it easier for members to redeem points would address this issue.
There have also been recent reports that Qantas is looking to improve its Points Club program, to make the benefits more attractive.
A Qantas spokesperson declined to comment further.
Don’t panic!
There are probably a few AFF members who will look at today’s announcement and fear that “enhancements” (often a codeword in the loyalty industry for “devaluations”) are coming. However, we don’t think there’s much cause for concern at this point.
It’s unlikely that Qantas would do anything to exacerbate the current public sentiment towards the airline. Indeed, Qantas plans to invest actual money into the early 2024 changes – which is likely to mean a good overall outcome for members.
In any case, the Qantas Frequent Flyer program terms & conditions require the airline to provide at least three months’ notice of any changes that will limit any benefits provided by Qantas. Where a third party provides the benefit, Qantas must give at least 30 days of notice before any changes, where possible.
So, if the changes did result in a reduction in the value of points, it wouldn’t be immediate and you would have time to use your points before any negative changes took effect. If, indeed, there are any negative changes – and that’s not a given.
The last time Qantas Frequent Flyer made major changes to its frequent flyer program was in 2019. One of the key changes made then was an increase in the cost of points upgrades and Classic Flight Reward bookings in premium cabins. However, those changes were accompanied by a reduction in reward booking carrier charges and lower long-haul Economy Classic Reward pricing.
It has now been over four years since the last significant Qantas Frequent Flyer program changes. That’s quite a long time in the world of loyalty programs.
What would you like Qantas Frequent Flyer to change?
For now, we’re keeping an eye out for a big announcement in early 2024!
In the meantime, it’s over to you, AFF community…
What changes would you like to see Qantas make to its frequent flyer program? You can share your thoughts on the AFF forum!
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