Is there a Devaluation of Qantas Frequent Flyer Points coming?

[Scott K]

With QF monetising their rewards program through services like the online mall and hotel bookings, a direct devaluation of points would jeopardise their business model. As it stands they have offset costs in the program with their fees on flights as it is.
At the moment online value-added services provide a consistent income stream from points being sold to business, with additional income coming from client data acquisition. Essentially QF is using the dangling carrot of points as a means to acquire personal information of the most cashed-up members of the market. This data is more valuable than data acquired from say - facebook.
Devaluing the points at a stage where they are building that business model would be rather adverse to their business model. Right now those points can sell products and keep a close and direct eye on customers spending habits. This is a supplemental income stream that both helps maintain loyalty to QF, while cashing them up without even getting a plane of the ground.
Sure. It may happen. But right now while they are building a business around these fringe services, I can't see it happening.

 

[trippin_the_rift]

QF have driven down the blended points redemption rate consistently every year for the past decade. They've done it in such a smart way that is not transparent to members and adds additional value to QF Loyalty business while also driving redemption/realised revenue. Quite frankly it's a masterstroke of genius what QF have achieved year on year. Need to give credit where it's due - well done Qantas Loyalty.

I doubt QF would make changes to points pricing of classic awards anytime soon. An upward movement in points pricing for classic awards would have a flow-on effect with RASK, Banks, non-corporate top-tier member ticket sales, and could result in a sudden loss of member confidence in the QF points currency. QFF needs to remain competitive with the likes of VA/SQ/CX/EK on redemptions, and they're already at the high end with current pricing.

Be sceptical when an unknown "friend" tells you a devaluation is coming. We've been hearing it for years. It never transpires... and even if it did - there would be fair warning.

 

[dajop]

QF have no need to play around substantively with classic award points table - they can alter the “value” of the points used for classic awards with no notice - just play around with the surcharges. For AU issues tickets there’s plenty of room to move up - at least for economy tickets. They could do it tomorrow.

 

[eminere]

QF have no need to play around substantively with classic award points table - they can alter the “value” of the points used for classic awards with no notice - just play around with the surcharges. For AU issues tickets there’s plenty of room to move up - at least for economy tickets. They could do it tomorrow.

Can we please not give QF any ideas.

 

[dajop]

Can we please not give QF any ideas.

I thought about that before posting. But then I thought there's no danger of giving them the idea, I'm sure they're well aware of it.

 

[amaroo]

LOL, only within the past week I've changed tack and aligned all our point earning capacity away from QF towards SQ and a few others - great timing

Honestly, I've been a member for a couple of decades and have seen a few changes. Can't see any future adjustment being a big deal .... better not be, we've still got a few million in QF bank.

 

[JohnK]

DSC doesn't count towards P1 unfortunately.

No more marginal Platinum Ones?

 

[mviy]

No more marginal Platinum Ones?

There's a difference between DSC counting towards P1 and not counting towards the P1 Loyalty Bonuses at 5000 SC and 7000 SC on QF/JQ. Often it seems the not counting towards P1 Loyalty Bonus is misread as not count towards P1. QF's own image on the DSC promo page shows a P1 card indicating that they are promoting that a DSC promo could lead to you getting P1. Of course things could change in future promos to remove counting towards P1, but I hope not. If I ever get P1 I think it's highly likely QF will get more value out of it than I will.

 

[JohnK]

Be sceptical when an unknown "friend" tells you a devaluation is coming. We've been hearing it for years. It never transpires... and even if it did - there would be fair warning.

From memory the last major devaluation/enhancements were in 2005?

 

[trippin_the_rift]

From memory the last major devaluation/enhancements were in 2005?

That is what I recall. There have been other devaluations with gradual increases to carrier fees in that time, decreased inventory, downgauging flights etc

 

[RichardMEL]

DSC still DO count towards P1.

It's the ridiculous notion that DSC do not count to the "bonus rewards" (or loyalty bonus, which makes some sense) eg: I can attain P1 with say 1800 earned SC if all are DSC, but if I do 3800 with say 1200 of DSC I would not get the 5000 SC bonus reward. Kind of stupid if you ask me.

Now, I can absolutely see they have set it up to make P1 attainment NOT include DSC and that would align with their other T&C.. but so far, nope.

And yes, I have attained P1 some years on DSC and others by doing it the hard way.

 

[mviy]

Now, I can absolutely see they have set it up to make P1 attainment NOT include DSC and that would align with their other T&C.. but so far, nope.

I disagree on that. P1 has limited value if you don't fly a lot. The whole point of these promos is to encourage travellers to book travel earlier and do more of it. If they can encourage travellers to reach P1 that won't fly enough to get a lot of value out of it that's more profit for QF.

Whereas the Bonus Rewards have benefits that have a greater cost. Partner Gold can be given to anyone you please and that could be a disincentive to that friend to chase status in their own right as long as they expect you will continue to provide it to them.

 

[RichardMEL]

I disagree on that. P1 has limited value if you don't fly a lot. The whole point of these promos is to encourage travellers to book travel earlier and do more of it. If they can encourage travellers to reach P1 that won't fly enough to get a lot of value out of it that's more profit for QF.[/qupte]

I disagree with you about QF's motivations with these promos - DP or DSC. They are ALL about short term profit - hence the short booking windows and the like. They are also targeting those looking to hit Silver, Gold or Plat with them as incentive to "just book another flight or two" while they include P1 (for now) I'm certain they see most P1's, or those near to P1, as virtually locked in QF diehards, or at least those who are willing to spend enough to be worth QF's while to hand P1 to. Mostly though it's about driving short term demnd and probably short term in terms of travel windows too - your irregular holiday pax will have already decided on their plans and it likely won't make much difference to those travel decisions unless it just so happens they are booking in that period. The people ost likely to take advantage of these promos, in my view, and apart from people like most AFF members, is those who fly enough to have experienced status benefits, which means moderate to heavy travel, and most of those folks probably only plan within a 3-6 month window. There are obviously always exceptions, but I would not be surprised if this was generally the types that they would target... If you fly once a year to Bali or OOL a SC promo won't give you anything so there's no incentive for those folks.

Also, P1 has always been set as a firm "line in the sand" - in the past when comps were common and the like QF was always very firm, even if you were 3599 SC they would NOT grant P1.

Plus the 2700 QF/JQ "flights" (inc codeshares) requirement is also very firm. They have this for no other status level and it's ensuring QF loyalty specifically (much like the new-ish Loyalty Bonus only being base QF/JQ flying based).

In fac I could see the next T&C change to be about that 2700 level perhaps more than P1 itself.

And, don't forget, even if one only flew 1800 SC's worth (assuming all the rest were DSC) that's a lot of flying for most people (unless you're doing like 2-3x revenue F SYD-LHR r/t or something, in which case you would likely not worry about P1, and QF would love your business)..

I guess my point is that QF's tweaking of the program with limits of what bonus SC promos will achieve is an indication of the thinking at Mascot. And frankly, it makes perfect sense to me from their point of view. Like I say it would not surprise at all for further changes in this regard.

 

[mviy]

I'm at a point where with a DSC promo I could reach P1 with a little more expense than retaining WP next year. I think QF would rather I make an impulse decision to go for P1 than maybe not even bother to do the flying to retain WP next year and drop back to SG.

I'd consider doing extra travel to reach P1 using DSC but without it it wouldn't be worth considering for me.

The bulk of my travel is leisure travel and I do seek to make the most of DSC promos.

 

[RichardMEL]

I'm at a point where with a DSC promo I could reach P1 with a little more expense than retaining WP next year. I think QF would rather I make an impulse decision to go for P1 than maybe not even bother to do the flying to retain WP next year and drop back to SG.

I'd consider doing extra travel to reach P1 using DSC but without it it wouldn't be worth considering for me.

The bulk of my travel is leisure travel and I do seek to make the most of DSC promos.

You are in the vast majority of QFF members though. As am I and most of the others membership here. We have different goals, experienes and probably expectations to the "other 99%" so to speak.

I bet someone sitting on 2600 SC's may not even be aware P1 is there. Sure, QF send an email at some point saying go for it but still..

.. and given all the talk here from those of us who have been and are P1 about the relative value of it, is it really worht going for? that's a different question though i guess. Each to their own

However my point is that a relatively minor number of QFF members are close to multple thousands of SC's in a year. Those that fly enough to get there probably do it on the work dime or perhaps would not want to fly any extra as it is, or simply could not care either way (eg: those paying full J/F for their travels where status is more or less irrelevant and they'd get it within a certain number of trips anyway as a byproduct).

There are plat's out there who have no clue they can access F lounges or various other benefits... and/or they don't care.

Each to their own.

You can't base a judgement of the overall motivations for promotions and such based on your own situation.

As I have noted before I have made P1 without any bonus promos at all, and other years I have. I am self funded leisure traveller too. I absolutely am aware I am in a very small minority of pax in this situation. There's clearly a few others on this forum, but most people generating high SC's are almost certainly business pax and/or high yield leisure (eg: paid F) and I'm sure many would not worry about such promotions as it's not likely to be any kind of motivation to them.

IMHO.