How Qantas Frequent Flyer, Velocity compare to other airline loyalty programs
Australian Frequent Flyer's Matt Graham and Wilson McTaggart undertook the detailed analysis in an effort to throw some light on one of the murkiest areas of loyalty schemes.
It was noted the value of points varied dramatically based on redemptions — with Qantas Frequent Flyer members getting the equivalent of 0.46 cents a point for a gift card, and as much as 3.66c a point for a domestic flight cabin upgrade.
Overall, Qantas points were valued at an average 1.8c per point, just ahead of Virgin Australia's Velocity on 1.7c, and behind Virgin Atlantic's Flying Club at 2.1c.
Qatar Airways' Privilege Club 'avios' were worth an average 2c a point, and Cathay Pacific and Air France loyalty programs 1.9c a point.
At the other end of the scale was Air New Zealand airpoints — estimated to be worth a mere 1c per point, and Etihad Guest and Emirates' Skywards at 1.3c.
Mr Graham acknowledged Virgin Atlantic did not fly to Australia, but said the airline offered 'relatively good value redemptions with lower points requirements than other programs for similar flights'.
'In addition, Virgin Atlantic is part of SkyTeam, and there is very good reward flight availability on key routes, including from Australia to Asia with partner airlines such as Garuda Indonesia and Vietnam Airlines,' he said.
'With Virgin Atlantic Flying Club, you can also book trans-Tasman flights on Air New Zealand as well as economy class flights on Virgin Australia.'
On the homegrown front, it was noted it was easy to earn large amounts of points with Qantas Frequent Flyer and Virgin Velocity, particularly through points-earning credit cards.
But, Qantas points were considered slightly more valuable, partly due to higher airfares with more inclusions and better access to lounges.
Mr Graham said there was no question the best use of Qantas points was for business class reward flights between Australia and Asia, closely followed by using points for upgrades and domestic flights.
'For example, a business class redemption from Sydney to Tokyo through Qantas Frequent Flyer would net you around 3.4 cents per point of value, more than seven times the value of a gift card,' he said.
'The same Sydney-Tokyo business class redemption through Velocity Frequent Flyer is worth around 2.7 cents per point.'
Velocity chief executive Nick Rohrlach said the program made it easier to earn and redeem points across a wide range of partners, and competitive fares meant members could access rewards sooner.
'While points valuations can vary depending on methodology and timing, we remain focused on providing a rewarding and accessible program that meets the needs of Australian travellers,' said Mr Rohrlach.
Loyalty expert Adele Eliseo of The Champagne Mile said the Australian Frequent Flyer analysis showed there was 'value hiding in programs that may not be on most Australians' radar'.
'As a UK-based program, Virgin Atlantic isn't as easy to earn into as Qantas or Velocity but it's accessible to Australians Amex Membership Rewards,' Ms Eliseo said.
'Virgin Atlantic's high valuation is partly built on access to Air New Zealand's premium cabin seats, with standout redemptions like 15,000 miles for business class from Australian cities to Auckland.'
She said it was somewhat ironic that while Air New Zealand's own program delivered some of the weakest returns, 'international partners monetised its best inventory'.
'Air New Zealand's own program Airpoints Dollars, is little more than a fixed cash rebate,' said Ms Eliseo.
Although there was no question that airline loyalty programs differed considerably, Mr Graham said the best rule of thumb was to not tie yourself down to just one.
'Collecting points with multiple airline programs — or better, flexible credit card reward programs that let you transfer your points out as needed — ensures you can get the best value for your points every time you want to redeem them,' he said.
'It also helps spread the risk, in case a particular airline devalues its frequent flyer program at short notice.' Read related topics: Qantas Robyn Ironside Aviation Writer
Robyn Ironside is The Australian's aviation writer, and has twice been recognised by the Australasian Aviation Press Club (in 2020 and 2023) as the best aviation journalist. She has been with The Australian since 2018, and covered aviation for News Corp since 2014 after previously reporting on Queensland state politics and crime with The Courier-Mail. Aviation
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