Frequent flyer program: Why your ‘status’ matters
For most frequent flyers, the strategy is a straightforward game of “win then burn” for points. Indeed, you may only be focused on increasing that number; You can levitate. And every time you do this in business class, it’s a sweeter payoff.
But I have to say, I’ve been caught up in all the fuss lately about so-called status, gold, silver and platinum level perks. If frequent flying is a game and many enthusiasts treat it as such, status is like being overpowered.
So this personal statement that Qantas is changing the rules of the status game seems perfectly timed. Let’s see if you should care too?
Status provides some nice-to-haves as well as potential must-haves. On the nice-to-have side, there are also rest cards; Think free food and drinks, a comfortable place to wait for your flight, and priority boarding. You can also get higher discounts and seat upgrades on flights from Qantas partners.
But on the possible must-have side, there’s something that addresses one of people’s (and indeed many) biggest gripes with the Qantas reward scheme: seat availability.
What many people don’t realize is that high status gives you the opportunity to earn award seats. not available unlocked (on Qantas planes, not partners) – either not available to lower status members, or even phone calls.
You’ll receive up to 140 additional status credits each year by spending in 10 different categories with Qantas subsidiaries or affiliates.
The problem is that, traditionally, you get status in the air by paying for flights, which – for me and many others – defeats the purpose of playing, because ‘winning’ at frequent flyer is getting those flights for free. But Qantas has now shifted the situational goalposts significantly.
Following the huge success of a promotion that allowed members to earn status late last year, this change is becoming permanent.
How do you gain status on the field? You’ll receive up to 140 additional status credits each year by spending across 10 different categories with Qantas subsidiaries or affiliates, such as credit cards, retail partners and service providers. Details will be announced later.
While status credits used to expire at the end of the membership year, tier members (tiers are bronze, silver, gold, platinum and platinum) will now be able to carry over up to 50 percent of their excess status credits. This is definitely better than them expiring.
But there’s a complication to all this, because its “nice to have” status wasn’t actually all that great. Only can be won in the air… and those extra routes appear to be in danger for now.
Sub-programs of the Qantas program are Points Club and Points Club Plus, which provide similar benefits for 150,000 and 350,000 points earned in a year of membership. You can already boost these points with partners and Qantas products, as bulk credit card sign-up points are a particularly quick way.
And here’s the real catch: Another big benefit was that Points Club and Points Club Plus members could earn status credits on Classic flight award bookings.
Both programs will be closed at this stage, although Qantas Loyalty and Customer CEO Andrew Glance said in the media release: “We are looking for a new home for this benefit and that may look like something very different.”
The closure of Points Club and Points Club Plus and the opening of status on the field are generally planned to occur in October or November. To me, this means a chance for transition plays; So I asked Point Hacks editor-in-chief Brandon Loo about his moves to play with the new system.
Ahead of the changes (remember, they are rumored to come into effect in October or November), he says: “If Points Club is already on the radar then I would definitely recommend members consider whether they can access it and take advantage of the benefits next year.
“It guarantees at least the last year of lounge passes, hotel and wine vouchers and, of course, the ability to earn status credits on Qantas reward flights. If they achieve Points Club Plus, another year of guaranteed Qantas Club access is also very valuable for some travellers.”
The problem is that, although some of these benefits will be redistributed to other levels, earning them will not be as easy as just 150,000 points across multiple channels, as in Points Club. What about Loo’s suggested strategy for accounting for the possibility of rolling over 50 percent of your status credits in the near future?
“If your membership year needs to be renewed before the new rollover benefits kick in [also pencilled in for October or November]then there probably isn’t much point in exceeding your status goals unless you’re primarily focused on Lifetime status.
“But for members with renewal dates after During this period, it might be a good idea to see if your travels allow you to take advantage of the new rollover feature. “I wouldn’t lock into a strategy this early until we know more about Qantas’ execution.”
Don’t forget there’s also a temporary promotion running until midnight on Monday, March 2, where you can earn double Qantas status credits on your flight bookings. Watch this space to find out what’s in store for these credits and where else you can earn them soon.
Nicole Pedersen-McKinnon is the author of: How to Get Mortgage-Free Like Me?Available at: www.nicolessmartmoney.com. Follow Nicole Facebook, X And instagram.
- The advice given in this article is general in nature and is not intended to influence readers’ decisions about investments or financial products. They should always seek their own professional advice, taking into account their personal circumstances, before making any financial decisions.
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