The Qantas frequent flyer program is changing - here’s how to still fly for free
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First let me confess something: I am crazy for rewards schemes. Like, crazy.
I don’t buy anything without first figuring out how I can work an angle to get extra points, bonus vouchers, shopping credits … heck, even a loyalty stamp on one of those the-10th-one’s-free business cards.
The changes to Qantas’ frequent flyer scheme are a bit “give here” and”take away there” … but most frequent flyers will be worse off.Credit: Sam Mooy
But my No. 1 priority has long been Qantas points. Just this year I’ve flown with my two kids to North America and back, and taken myself to London return, purely using Qantas frequent flyer points.
Which, if you’ve been following along at home, are as of Tuesday worth less.
This week we’re talking about: Qantas points
Firstly, full credit to Qantas for announcing in advance the increase to the points required, in some circumstances, to fly. Not all airlines – or any other reward scheme – do this. It’s also the first time in six years Qantas has made such an adjustment.
But it’s a blow, which it has tried to soften by offering more reward seats on more partners, soon also Hawaiian Airlines, Finnair, Air France and KLM.
What’s the problem?
The number of points it takes to fly on the most generous, old-school Qantas Classic Rewards scheme has now, in some cases, increased by 20 per cent. These cases are mainly for business and first-class seats.
The amount is on a route-by-route basis – how this scheme is, statically, priced.
(The other main, newer scheme is called Classic Plus and seats are dynamically priced based on the prevailing dollar cost – the only thing that is set is a point-to-price conversion rate: one point per 1 cent cost of an economy seat and one point per 1.5 cents of a business class seat.)
So, the problem is on the redemption side. On the earnings side, Qantas earlier in the year upped the points that you earn on some flights.
It’s a bit of a “give here” and “take away there” situation … but indisputably, most frequent flyers will be worse off.
What you can do about it
If you’re still keen on collecting Qantas points, it’s time to step up that collection. Here are the top four ways I’m doing it.
My shopping
When I go to buy anything online, I always check first whether I can get it through Qantas Shopping. It’s essentially just an online intermediary that partners with thousands of retailers to offer boosted earn rates, like five points per $1 spent. You’ll earn points regardless of payment method, even when using discounted gift cards.
Then there is grocery and other shopping: Everyday Rewards points from Woolworths, BIG W and BWS convert into Qantas points at a rate of 2:1. Watch for promotions such as 10x points on select items or bonus points for meeting a spending threshold. Gift card deals, in particular, can unlock big points.
My power
Some electricity providers, including Red Energy and Origin Energy, offer thousands of bonus Qantas points just for switching. Ongoing, you can get points for every dollar spent on your bills (2-for-1 for both providers, with the Origin Energy conversion via Everyday Rewards). Some promotions mean 20,000 Qantas points annually.
And talking fuel, purchases at Ampol and BP can also get you Qantas Points either directly or through Everyday Rewards.
My card charging
Frequent flyer credit cards typically offer a hefty sign-up bonus of circa 100,000 points, plus points-per-dollar spent. Switching cards annually – but no more often as it could otherwise affect your credit score – can keep the bonus points flowing. And, naturally, clear your balance in full every month, as interest payments can wipe out any benefit.
(Note: a further threat to your ability to earn points – a future one but regardless worth filing away – is the mooted crackdown on credit card fees … these help fund the credit card providers’ points programs.)
My health
Of course, Qantas has also devised a type of virtuous points circle where you usually get bulk points for signing up for products with its subsidiary businesses such as travel insurance and health insurance. For example, the new-customer health insurance offer is currently 130,000 points.
But the free Qantas Wellbeing app also lets you earn points for simply walking, sleeping well and completing health challenges ... without needing Qantas Health Insurance. If you do hold a policy, you’ll earn points at a faster rate. Hitting 10,000 steps daily and meeting sleep goals can net you up to 1000 frequent flyer points in the first month, and policyholders can keep this higher earn rate going.
What about at the redemption end of it all … when it comes to converting all your hard-earned, extra points to longed-for flights?
Whatever you do, resist the Points Plus Pay option. And only use Classic Plus payment if there is a bargain-basement sale price. Typically, these remain worse value than Classic Rewards, even after the redemption recalibration.
Instead, plan ahead and pounce on the seats 353 days before your desired fly date, when the first tranche of Classic Rewards seats are typically released.
Yes, it will cost you more points, but hopefully you will also now accrue more.
Meanwhile, if you would like to learn about something in particular in your Real Money newsletter, or have a burning question, please drop us a line.
Happy (frequent) flying,
Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me, available at www.nicolessmartmoney.com. Follow Nicole on Facebook, X and Instagram.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. You should always seek your own professional advice that takes into account your own personal circumstances before making any financial decisions.