Sydney, Oct 9: New Finder research suggests most Australians don’t see the payoff in chasing points. In a national survey of 1,034 people, 57 per cent—around 12.2 million adults—said Australia’s two major frequent flyer schemes don’t deliver enough value. By contrast, 31 per cent believe Qantas Frequent Flyer is worthwhile and 26 per cent say Virgin Velocity is worth pursuing.
Graham Cooke, head of consumer research at Finder and avid frequent flyer, said there is an art to earning and using frequent flyer points.
“While it’s easy to earn frequent flyer points, it can be tricky to get maximum value when it comes time to cash in.
“When it comes to earning, channel your everyday spending through points-earning programs where possible and look for bonus offers.
“If you choose Qantas, you can then earn points through Qantas-earning credit cards and shopping at Woolworths; if you choose Virgin, you can earn points through Velocity-earning credit cards and shopping at Coles.”
Cooke said don’t think earning the points is the whole game – redeem cautiously.
“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.
“For instance, spending 100,000 points on a $2,000 flight is decent value, while spending them on a $500 appliance is not.”
Finder has also broken down the effective dollar value of a Qantas point to illustrate the difference between flight redemptions and merchandise.
Cooke said frequent flyer credit cards are one of the fastest ways to earn large volumes of points.
“These are credit cards that earn Qantas Points or Velocity Points for every dollar you spend.
“Many also come with hefty sign-up bonuses – often 50,000 to 150,000 points if you meet a minimum spend in the first few months.
“You can get great value out of these cards, but pay your balance in full each month if you take one out. With an average purchase rate over 20% – it would take a lot of points to cover the interest charges.”
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