What is happening to Qantas frequent flyer points?

Economy seats are going to be cheaper and easier to get. But premium economy, business and first class tickets will cost more.

And upgrades will up to 9% dearer.

What’s getting cheaper?

The points needed to earn an economy seat on international and domestic flights will be up to 10% lower – effective immediately.

Qantas is also cutting something known as the carrier charge. This is the extra cash payment you need to make when buying seats with points. The airline estimates that on average this will save you $200 a flight.

For example, an economy flight from Melbourne to Los Angeles (return) used to cost 90,000 points and $513 in cash.

Now it will cost 83,800 points (6,200 fewer) and $393 cash ($120 less).

Sydney to Tokyo, economy one way, used to cost 35,000 points and $182. Now it will be 31,500 points and $147, a saving of 3,500 points and $35.

What’s getting more expensive?

Everything else.

A return premium economy flight from Melbourne to LA used to cost 144,000 points and $793. Now it will cost 162,600 points and $603. That’s 18,600 more points but $190 less cash.

Business class for that same flight will go from 192,000 points and $943 cash to 216,800 points (24,800 extra) and $703 cash ($240 less).

This will come into effect on 18 September.

What about upgrades?

The news is purely negative.

Upgraders will cop an up to 9% increase in their points but without that discount on the cash charge of the carrier fee. That’s because the carrier fee applies only to new bookings.

From Sydney to LA, one way, it used to cost 56,500 points to upgrade from economy to premium economy. After the change it will cost 61,600.

To upgrade to business on the same flight, it used to cost 90,000 points. Soon it will cost 98,100.

David Flynn, the editor of Australian Business Traveller, says upgrades used to be “the best way to use your points”.

“When it comes to using points, anecdotally, most people go for buying an economy seat, when in fact upgrading is much better value. When we advise people, we usually say upgrades are better value for money.”

Under the new rules, though, Flynn says that has changed.

“They are still a good deal – but one of the problems with economy seats before was you used a lot of points and got a surcharge. Now you are using fewer points and have fewer surcharges. Buying an economy seat with points is marginally better value.”

How many more miles, or how many more purchases, will I have to get?

Using the Melbourne to LA, premium economy, new booking example, the changes mean you will need to find 18,600 more points.

That is the equivalent of three one-way flights from Melbourne to LA, in standard economy, on the lowest bronze membership level (which is 6,750 points).

But Flynn says the extra points needed could be easily achieved.

“Almost every Qantas-partnered credit card on the market today will give you a sign-up bonus of 50,000 to 80,000 points,” he says. “Your credit card can give you a mountain of points. I know people who earn 100,000s of points a year.”

“18,000 is not hard to get at all. If you’re flying it’s a lot of miles, but there are much more fun ways to earn points than flying.”

What else is being offered?

There will be more seats available to get in the first place.

Qantas’s chief executive, Alan Joyce, said on Thursday that the most frequent complaint about the old program wasn’t about the number of points you need but rather about the lack of frequent flyer seats available on popular routes, or at key holiday times.

Now Qantas will boost the number of seats by over a million, focusing on routes like London, Singapore, LA and Tokyo.

It has also signed on with new partner airlines – such as Air New Zealand, Bangkok Airways and Air France – to get those extra seats.

Is it a good deal?

It depends who you are.

Families looking for a lot of economy seats, and people who earn points through spending, are the big winners, Flynn says.

And that’s most of Qantas point owners.

“We understand that over three-quarters of the membership base basically earn their points through shopping rather than flying,” he says. “This is a play for them. Qantas are trying to appeal to the larger part of its frequent flyer base.

“These frequent buyers – they have got all of these points, but they have trouble finding seats. They are not looking for a flight for themselves – they have a partner or kids, and you want those seats during school holidays.

“Then it becomes painful. You are looking for four frequent flyer seats at the same time of year. I think Qantas has addressed the main pain points their customers had.”

But he stresses you should still think twice before emptying your points to go straight for new seats.

“Keep in mind a lot of these seats are the ones you can already get on discount in sales. So if you can pick up an economy seat at a good price, it might be better holding on to your points.

“Sometimes fares to Hong Kong drop to $500. Why use frequent flyer points – just use cash.”

And high-end flyers who want those upgrades and premium seats are the ones losing out.

“I would say for the average punter, it is a good deal,” says Flynn. “The average punter is not the super frequently flyer who is always looking to fly in business, or upgrade. Those people will find it less appealing.”

What is Points Club?

The airline is creating a membership club for those who earn their points through purchases and credit cards rather than flights.

It’s a program for frequent buyers, rather than frequent flyers.

Joining the club means you will get flight benefits and lounge access and other rewards – similar to the existing club for flyers.

There will be two tiers to the club, and the lowest will need you to earn 150,000 points to reach it. More details of this will be released later on.