Are frequent flyer points, well, pointless? New Finder research found most Australians think so with three in five saying that they don’t think points are worth collecting and more than half failing to find value in Australia’s two dominant airline loyalty programs.
The survey showed the majority of respondents (57%) – equivalent to 12.2 million Aussies – do not see value in Qantas Frequent Flyer or Virgin Velocity Frequent Flyer loyalty programs.
Almost one-third (31%) believe Qantas Frequent Flyer points are worthwhile, compared to one-quarter (26%) of those who say Velocity points are worth the hassle, despite Velocity’s recent 1 Point Rewards Store pop-ups and Qantas’ current Status Tier offer.
Other recent research showed that Australian airline loyalty programs lag behind overseas counterparts due to redemption flexibility, award availability and the strength of their global partner networks.
It’s not great news for the two Australian airlines, for which loyalty and rewards programs are revenue growth streams, however, advisors can assist clients to get the most out of their memberships and frequent flyer points.
Finder’s Head of Consumer Research Graham Cooke said being strategic about earning and redeeming points is the way to maximise the value of your airline loyalty program.
“While it’s easy to earn frequent flyer points, it can be tricky to get maximum value when it comes time to cash in,” he said.
He suggests channelling your everyday spending, such as credit cards and supermarket shopping, through earning programs and looking for bonus offers to earn more points.
Cooke said frequent flyer credit cards linked to either QFF or Velocity are one of the fastest ways to earn large volumes of points with many offering sign-up bonuses of up to 150,000 points.
“Once you’ve earned your points, don’t waste them. Flights and upgrades will get you much better value than using them to shop or pay for fees,” Cooke added.
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