CC points reductions impact on airlines bottom line

[Mogul]

With the reduction of points being earned and therefore sold by airlines it will be interesting to see the impact on the airlines bottom line. In particular QF who have made an absolute fortune over the years. Will airfares increase again to make up for the shortfall.

With less points entering the pool hopefully reward seats will be easier to get in the future.

 

[casanovawa]

Or will there be a whole heap of ruckus, with all sorts of dire predictions and then it will pretty much return to where we wea re, maybe the points sign ups slightly less...

 

[JohnK]

Here's a thought.

If Qantas sells 120,000 QFF points for ~$1200 to a credit card company why not just retail a business class airfare SYD-HKG for ~$1,800 or even $2,000? Then it will be fair for everyone not just the gamers.

And they may end up making more money as there is better value in airfares.

 

[cove]

Just think of airline points/miles as wholesaling of travel and you cannot go too wrong unless you want toasters.

 

[lovetravellingoz]

Here's a thought.

If Qantas sells 120,000 QFF points for ~$1200 to a credit card company why not just retail a business class airfare SYD-HKG for ~$1,800 or even $2,000? Then it will be fair for everyone not just the gamers.

And they may end up making more money as there is better value in airfares.

I am not sure how correct your statement is.

As I understand it FF points is very profitbale for Qantas.


I think you are forgetting that with points:
* That I would guess that the vast majority are not used on J or F redemptions. (Moreso as QFF are tightarses in how many of these redemptions thet actually releade)
* That many going on items in the Qantas Store
* That a % of points lapse as they are not used before they expire

 

[burmans]

Here's a thought.

If Qantas sells 120,000 QFF points for ~$1200 to a credit card company why not just retail a business class airfare SYD-HKG for ~$1,800 or even $2,000? Then it will be fair for everyone not just the gamers.

And they may end up making more money as there is better value in airfares.

Forever the wishful thinker!

The answer is probably that devaluing your business is never really a good (business) idea. As a businessman if there are people prepared to pay 3k or 4k for a ticket, I'd be pretty stupid to sell it for $1,800.