Qantas Classic Plus devaluation

[oz_mark]

Id be keen to see where if indeed QF advertised the points ratio for CR+.

I certainly can’t recall QF making any such announcement or declaring any such value. Indeed QF often say points have no material value. Many pundits did the calculations and posted about their calculations and assumptions.

I've had a look through what I could find from the launch, and I don't think Qantas ever gave a cents per point value. They gave some examples of how CR+ would work, and you could back calculate a value, but I can't find anywhere where they gave a specific value per point.

 

[RooFlyer]

I've had a look through what I could find from the launch, and I don't think Qantas ever gave a cents per point value. They gave some examples of how CR+ would work, and you could back calculate a value, but I can't find anywhere where they gave a specific value per point.

Stated or not, there was a value. Now it costs more.

 

[serfty]

Daniel Sciberras of Pointhacks did quite a good interview relating to this on 3AW this morning.

 

[ChrisMars]

The fact that Qantas didnt officially published the exchange rate doesnt change the fact that the value dropped significantly, and only what, one year after launching the program. That s worrying.

For people interested in CR+ (and during sales, CR+ may be not too bad sometimes), this makes it very hard to correctly plan their point strategy.

For other people focused on CR, it s a clear indicator that Qantas is accelerating devaluation, and the future for us doesnt look great.

 

[FlyingKangaroo]

Ag

The fact that Qantas didnt officially published the exchange rate doesnt change the fact that the value dropped significantly, and only what, one year after launching the program. That s worrying.

For people interested in CR+ (and during sales, CR+ may be not too bad sometimes), this makes it very hard to correctly plan their point strategy.

For other people focused on CR, it s a clear indicator that Qantas is accelerating devaluation, and the future for us doesnt look great.

Agreed. The semantics of it are a bit silly. Published or not, the effective rate was what it was and it's been devalued.

Qantas knows this too, which is why they deflected to "there are more seats available" when asked rather than try to double down on "technically we never published the rate so it doesn't matter that we've lowered it in practice." Of course it matters.

The value of CR+ was already nothing special, so I regard the devaluation as just another easy way to reduce the value of points on the liabilities side of their balance sheet even more.

 

[oz_mark]

Daniel Sciberras of Pointhacks did quite a good interview relating to this on 3AW this morning.

What did he have to say?

 

[serfty]

What did he have to say?

Mainly about how many redeemed Classic+ because they could and for them it may have been better than gift card or appliances. (Did not mention toasters.) They did refer to the Qantas Classic oneworld Zone 10 award as providing the best value.

 

[Falcs]

Mainly about how many redeemed Classic+ because they could and for them it may have been better than gift card or appliances. (Did not mention toasters.) They did refer to the Qantas Classic oneworld Zone 10 award as providing the best value.

Admittedly 1c per point is double the value of a toaster or gift card. but when you start needing a million points for 2x J tickets to Asia the points start to lose their aspirational value.

 

[FlyingKangaroo]

Admittedly 1c per point is double the value of a toaster or gift card. but when you start needing a million points for 2x J tickets to Asia the points start to lose their aspirational value.

The toaster might be lower value but getting to relive the premium Qantas experience making your own toasties in your own house with the added satisfaction of doing so using an appliance procured via Qantas is priceless.

 

[Aeryn]

Yes I suspect a lot of points whales burned points on C+ out of frustration of not being able to use them any other way for a while.

 

[ChrisMars]

Do we roughly know how the total points balanced has involved since CR+? Does it have any impact?

 

[Aeryn]

I believe points liability is covered in the Annual Report - I guess you can compare last 3 years balances to see the trend post C+