Qantas unveils the biggest changes to status in program history

[RooFlyer]

It's more extensive than I was expecting, which is good as I think most categories should be relatively easy to pick up without much additional cost. The trickier or more expensive categories are likely to be Holidays & Experiences and Banking & Home Loans.

Amazing. Of that entire list, I only use Qantas Hotels, Merrells and Avis. Lucky this isn't something that I'll ever need.

 

[Daver6]

Could you not just make multiple transactions a day apart to get to desired outcome?

That was my plan.

Personally, I'd do one a day, just to be on the safe side.

 

[esseeeayeenn]

New one on me, mate; still not a fan of this SC on the ground nonsense, though.

Absolutely agree. SCs should be earned through flying only. Stop this nonsense and lower the lifetime WP threshold.

 

[mviy]

Absolutely agree. SCs should be earned through flying only. Stop this nonsense and lower the lifetime WP threshold.

Problem is if they lowered it to say 28k/36k LTSC a lot of us here might increase spend in the short term going for P1 if not already and lock it in pretty quickly. And then a big drop in spend when we might otherwise have kept doing WP (or higher) spend for longer.

As much as I’d like the threshold lowered I can’t see it dropping much unless QF becomes really desperate for short term spend, but there’s other things they could consider such as Triple SC promos before lowering the LTP threshold. Once lowered it would be very bad PR to revert lowering it.

 

[Cloud9]

Problem is if they lowered it to say 28k/36k LTSC a lot of us here might increase spend in the short term going for P1 if not already and lock it in pretty quickly. And then a big drop in spend when we might otherwise have kept doing WP (or higher) spend for longer.

As much as I’d like the threshold lowered I can’t see it dropping much unless QF becomes really desperate for short term spend, but there’s other things they could consider such as Triple SC promos before lowering the LTP threshold. Once lowered it would be very bad PR to revert lowering it.

50k seems reasonable to me.

 

[esseeeayeenn]

Problem is if they lowered it to say 28k/36k LTSC a lot of us here might increase spend in the short term going for P1 if not already and lock it in pretty quickly. And then a big drop in spend when we might otherwise have kept doing WP (or higher) spend for longer.

As much as I’d like the threshold lowered I can’t see it dropping much unless QF becomes really desperate for short term spend, but there’s other things they could consider such as Triple SC promos before lowering the LTP threshold. Once lowered it would be very bad PR to revert lowering it.

You have the options backwards. Triple SC promos would mean they could never lower the lifetime WP threshold.
They'd have to increase the LTG threshold instead.
And anyone who can lock in 75,000 SCs "pretty quickly" is flying so much they don't need to chase lifetime status anyway.
That was my point in another post, at the current threshold:
Those who need it have no hope and those who have hope, have no need.

 

[SeatBackForward]

Absolutely agree. SCs should be earned through flying only. Stop this nonsense and lower the lifetime WP threshold.

What, and keep a Frequent Flyer program to only those who fly frequently? what madness!

 

[Chrizztofa]

You have the options backwards. Triple SC promos would mean they could never lower the lifetime WP threshold.
They'd have to increase the LTG threshold instead.
And anyone who can lock in 75,000 SCs "pretty quickly" is flying so much they don't need to chase lifetime status anyway.
That was my point in another post, at the current threshold:
Those who need it have no hope and those who have hope, have no need.

I've considered LTP as an inducement for the executives / frequent travellers at the large corporates (basically the target market for Project Sunrise) to keep their accounts with QF - basically an extension to the CL.

If someone is racking up 5-7k SCs per year from corporate travel to LHR/JFK they have a fair shot at LTP during their working life (and may continue flying QF when their corporate travel winds down or retire - when they have the means to travel in retirement and may consider other carriers if they don't get F lounge access).

If anything WP/LTG is probably too low given QF are effectively locked into offering DSCs that count towards it now (consider the furor after they tried to exclude DSCs from lifetime status last year!). I only take about 10-15 flights per year but easily requalified for WP each year with about $5k spend and reached LTG after 11 years. While most flyers don't 'play the game' like many do on this forum, I'm sure LTG was never designed for me.

 

[SeatBackForward]

I've considered LTP as an inducement for the executives / frequent travellers at the large corporates (basically the target market for Project Sunrise) to keep their accounts with QF - basically an extension to the CL.

But does having the "lifetime" in front of any status confer any benefits beyond that status level anyhow? in that sense I doubt LTP is at all comparable to CL status.

 

[Cloud9]

But does having the "lifetime" in front of any status confer any benefits beyond that status level anyhow? in that sense I doubt LTP is at all comparable to CL status.

Pretty sure LTP get access to the VIP centre team on the phone?

 

[Chrizztofa]

But does having the "lifetime" in front of any status confer any benefits beyond that status level anyhow? in that sense I doubt LTP is at all comparable to CL status.

Was thinking more in the sense that it would 'replace' CL (i.e. F lounge access) when they lose access to CL. During their working life this target segment may have P1/CL and travel frequently on the corporate dollar. Afterwards, when they begin to retire or wind back their commitments, they:

• Lose CL/P1 (and access to VIP team and F lounges etc.)
• May not qualify for WP in their own right
• Have the means to travel internationally in J class (possibly with other carriers) - or even F although only a few carriers offer a true F product ex-Australia nowadays

LTP bridges that gap somewhat by providing ongoing WP benefits, thereby incentivising QF/OW travel for these travellers where they can access F lounges etc.

 

[Flyfrequently]

I’m having a hard time finding the benefit in these changes.


Qantas has put cream on cough and called it cake—and done a very good job of convincing people it’s a win.


Let’s break it down.


Points earners lose Points Club and Points Club Plus. In return, they can earn up to 140 Status Credits through spending, but if they rarely fly, 140 Status Credits doesn’t even get them Silver status. Many also lose benefits such as Qantas Club membership, Status Credits on Classic Reward flights and the Points Club Plus rollover.


Silver, Gold and Platinum members are also worse off. The annual retention requirements are increasing by 50 Status Credits for Silver, 100 for Gold and 200 for Platinum. Green Tier—and its choice of 50 Status Credits—is disappearing, while the Loyalty Bonus of 50 Status Credits or 8,000 points for every 500 eligible flight Status Credits is also being retired.


Take a Gold member earning 1,000 eligible flight Status Credits each year: they can currently receive 100 Status Credits through two Loyalty Bonuses and another 50 through Green Tier. Under the new system, those 150 credits disappear, Gold retention increases from 600 to 700, and the replacement is a maximum of 140 Status Credits that requires spending across multiple Qantas partner categories.


That member is up to 250 Status Credits worse off before earning any of the new ground credits—and still effectively 110 Status Credits worse off even if they manage to earn the full 140.


For higher-tier members, the story is similar. The only clear improvement is the rollover, but even that is being oversold. Gold, Platinum and Platinum One members only roll over 50% of Status Credits earned above the higher attainment threshold, it is capped, and rolled credits don’t count toward Lifetime Status.


The previous system was already balanced: Frequent Flyer status rewarded people who flew, while Points Club rewarded people who earned points through shopping and credit cards. This isn’t rebalancing—it looks like cost-cutting and increased partner spending dressed up as an enhancement.

Good first post @Lukedb1985
Thanks for your take on it.

 

[SeatBackForward]

Was thinking more in the sense that it would 'replace' CL (i.e. F lounge access) when they lose access to CL. During their working life this target segment may have P1/CL and travel frequently on the corporate dollar. Afterwards, when they begin to retire or wind back their commitments, they:

• Lose CL/P1 (and access to VIP team and F lounges etc.)
• May not qualify for WP in their own right
• Have the means to travel internationally in J class (possibly with other carriers) - or even F although only a few carriers offer a true F product ex-Australia nowadays

LTP bridges that gap somewhat by providing ongoing WP benefits, thereby incentivising QF/OW travel for these travellers where they can access F lounges etc.

Don't confuse CL as a status tier that reflects flying. It has nothing to do with flying, and cannot be attained by flying.

Rather it is awarded at Qantas' discretion to those who have influence over decisions that help Qantas' bottom line.

 

[Chrizztofa]

Don't confuse CL as a status tier that reflects flying. It has nothing to do with flying, and cannot be attained by flying.

Rather it is awarded at Qantas' discretion to those who have influence over decisions that help Qantas' bottom line.

Yes, understood - but I imagine there is some crossover between the executives at these corporates (or those that control the travel budget!) and those that are granted CL while they are working. I'm sure CL is taken away as soon as they are no longer in those positions.

 

[SeatBackForward]

Yes, understood - but I imagine there is some crossover between the executives at these corporates (or those that control the travel budget!) and those that are granted CL while they are working. I'm sure CL is taken away as soon as they are no longer in those positions.

If there is crossover, they will be CLP1 status holders. But at a guess, there would be much fewer of these than there are CL members.

I don't think Qantas would want CL to be diluted by making it an attainable status, and mixing it with Lifetime anything would be mixing it up

 

[FlyingKangaroo]

Good first post @Lukedb1985
Thanks for your take on it.

^^^ Different strokes for different folks; the question is, what does QF's "preferred" loyal customer look like (presumably those who spend the most) and what do these changes mean for them as a group (if that group can even be generalised)?

I'm SG. I could be WP if I more religiously booked QF, but I don't because the incremental benefits are not worth the extra cost coming out of my own pocket and I don't have enough of someone else's money to get there, especially when QF fares are often so high that their fares fall out-of-policy within our corporate travel tool.

A higher retention requirement and no more loyalty benefit sucks, full stop.

A rollover benefit does not. Yes, it's mostly good for QF because it keeps people engaged after they retain their current level or attain a new one but otherwise wouldn't have bothered trying to get to the next one that membership year. To the extent that works in my favour too, great. I often land around 900-1100 SCs per year, stuck in the no-man's land between SG and WP: not enough to make it worth spending (at best) $1500+ on a DSC status run just for the WP benefits, but still a meaningful amount more than Gold that makes seeing all the excess SCs disappear painful. For someone like me, the rollover benefit will be materially valuable to me and make future gold retention easier even with a higher retention figure, and QF is fine with that, because they also know that perceived value is more likely to keep me booking them even after I've hit retention.

I'll miss Points Club and Points Club Plus (though I've earned the latter only once). Though as Classic Rewards on Qantas' own metal have become increasingly impossible to get as a SG, the status credit benefit for those flights has meant nothing for me the last few years. Ditto QF Club membership --- there are no doubt some out there who earn Points Club Plus yet don't fly enough to at least get even Gold, but the benefit never meant anything for me. Hotel vouchers mean little when you have hotel status at various chains as a frequent traveller and can pay less and get more benefits booking direct. Wine vouchers? Nice, but hardly material. I never engaged with Green Tier -- wasn't logical to spend money for the sake of some SCs.

Status credits on the ground? Meh, might be nice, but jury is out; again, won't spend money I otherwise wouldn't spend just for the sake of SCs unless I'm right at the cusp of a membership tier that I really want.

But like with all things, everyone is different and while there are obviously objectively good and objectively bad coming out of this, whether the balance is a net benefit or a net positive will vary from person to person.