Just 40 per cent of Australians who requested a points upgrade on their most recent international flight using airline frequent flyer points were successful – and one particular generation is more likely to ask for a better cabin (and it’s not who you think).
New Money.com.au research found four in 10 Aussies who asked to move into a better cabin on their latest overseas flight using points got upgraded, leaving 60 per cent missing out on a Premium Economy or Business Class upgrade despite holding enough points to be eligible.
Among those who did use points upgrade successfully, 58 per cent redeemed Qantas Frequent Flyer points, while 28 per cent used Virgin Australia Velocity points and 14 per cent used another airline or travel rewards program.
The result comes as Qantas continues to expand the ways members can build a balance, including a David Jones partnership, as well as new partner airlines.
Which generation wins the most points upgrades?
Millennials led the field with 46 per cent securing an international upgrade to Premium Economy or Business Class on their most recent overseas trip.
Baby Boomers followed at 39 per cent, ahead of Gen Z on 36 per cent and Gen X on 33 per cent.
Money.com.au Head of Insights Sean Callery said Millennials were also the most likely generation to request a points upgrade in the first place.
“Millennials were also the most likely generation to request an upgrade, so it’s no surprise they’re also the most likely to get one. The old saying applies here — you’ve got to be in it to win it,” he said.
Why having the points is not enough
Callery said travel points can open the door to premium cabins, but a healthy balance is no guarantee of a better seat.
“Premium frequent flyer members are often first in line for upgrades, because airlines reward loyalty. They release a limited number of upgrade seats on each flight, and factors like your fare class, the popularity of the route, the availability of premium cabin seats and when you lodge the request can all influence the outcome of an upgrade request,” he said.
“How you apply for an upgrade can also influence your chances. Airlines often prioritise direct points upgrades ahead of upgrade bids, although each airline has its own process.”
He added that fare type matters, too.
“It’s worth keeping in mind that not all fares are eligible for upgrades. Discount Economy fares, particularly those purchased during airline sales, are often excluded from upgrade programs altogether,” he said.
“But ultimately, there’s no secret sauce to success. Two travellers with the same points balance or frequent flyer status can have very different outcomes. If there’s only one seat available and multiple passengers requesting it, someone is going to miss out.”
The research also found that 73 per cent of Aussies have never requested a flight upgrade using their travel points at all, with many spending years building a balance they never put toward a better seat.
How to improve the odds on points upgrades
Money.com.au points to building frequent flyer status, lodging upgrade requests as early as the booking is confirmed, and flying off-peak, mid-week or on less popular routes when premium cabin demand is lower.
It also flags upgrade bids, where airlines including Qantas, Virgin Australia and Jetstar let passengers bid using cash, points or a combination, as an alternative path when traditional points upgrades are not available.
Demand has stayed robust across the major carriers, with recent half-year results showing Australia’s airlines climbing and Jetstar continuing its breakout run.
KARRYON UNPACKS: With more than 70 per cent of Australians never having asked for an upgrade, there is plenty of room for advisors to manage client expectations on the routes where points actually go further, and where peak demand makes a better seat a long shot. The numbers also confirm Qantas and Virgin loyalty programs as the dominant currency for the outbound travellers most likely to ask.
