Earn up to 110 Qantas Status Credits on the ground

[ChrisMars]

That's what we don't know - not mentioned, but also not excluded. Waiting on the first person to cross over 1K credited in Oct to find out.

Which category does the survey falls into?

 

[tanahflyer]

That is what the market is expecting, in particular:



However, the problem is, how can you engage Chinese and Indians, the two largest races in Australia to Qantas Frequent Flyer program, if status is useless in China, Taiwan and India?

Also how would Qantas status engage the emerging New Zealanders travelling public when they don't get anything when flying domestically within NZ?

I suppose that is something Qantas should consider about.

This is something i’d be very interested in as someone who isnt based in Australia - a lot of the “on the ground” activities just aren’t viable for me. The closure of 3K too.

Alaska Atmos seems to be giving 20% more SCs for flights starting/ending outside the US.

 

[33kft]

However, the problem is, how can you engage Chinese and Indians, the two largest races in Australia to Qantas Frequent Flyer program, if status is useless in China, Taiwan and India?

Also how would Qantas status engage the emerging New Zealanders travelling public when they don't get anything when flying domestically within NZ?

What are you talking about? How is oneworld status useless in those countries? And what do you mean when you say "don't get anything flying domestically within NZ"?

Also, anyone who equates a reduction in credit card points based on spend with the end of points earn entirely is getting the wrong end of it. I earn way more from other venues. Firstly, credit card bonuses aren't spend based, they're customer acqusition fees. They aren't going away. Yes interchange fees are going away, but banks still make money on other things - loans for example. They'll just switch to offering points for other activities that result in revenue for them. Points are not dead just because one source of earn is impacted.

And if the challenge is being outside of Australia limits your points earn potential, cmon. Who is paying Qantas for the points? You think some business in Abu Dhabi gives a toss about buying Qantas points? Pick your program based on where your spend goes, it's pretty simple.

 

[TheCollecter]

the emerging New Zealanders travelling public

Like Kiwi's have never traveled before? I do understand that they can't even get a bird off the ground, but seriously?

 

[levelnine]

Firstly, credit card bonuses aren't spend based, they're customer acqusition fees. They aren't going away. Yes interchange fees are going away, but banks still make money on other things - loans for example. They'll just switch to offering points for other activities that result in revenue for them. Points are not dead just because one source of earn is impacted.

You severely underestimate the importance of interchange to the points ecosystem.

A reduction in interchange reduces the margins on credit cards as a product category for banks, so there is less incentive to offer sign-up bonuses to acquire new customers in the first place. Just look at the sign-up bonuses in the UK (among many other examples) to see what is in store for Australia.

And the market and economic dynamics of other products (eg home loans) are completely different from credit cards, which is why so few have any rewards scheme attached to them.

 

[joelby]

Has anyone had Qantas Hotels credit? I got my SC offer registration email on the 3rd, and then on the 5th I received points for a hotel stay back in September. No SCs yet though.

 

[dairyfloss]

Has anyone had Qantas Hotels credit? I got my SC offer registration email on the 3rd, and then on the 5th I received points for a hotel stay back in September. No SCs yet though.

It’s based on the activity date, not the points posting date, so if activity from September it won’t count

 

[dairyfloss]

Which category does the survey falls into?

They get posted under ‘phone, utilities & services’

 

[joelby]

It’s based on the activity date, not the points posting date, so if activity from September it won’t count

Thanks, I was worried that might be the case. Back to the hotel I go!

 

[33kft]

A reduction in interchange reduces the margins on credit cards as a product category for banks, so there is less incentive to offer sign-up bonuses to acquire new customers in the first place.

We know almost exactly what this represents, per ACCC breakdowns:

• Interest on Balances: Approximately 50% of revenue comes from the net interest margin. This is the profit made from the interest charged to customers who carry a revolving balance on their cards, minus the bank's own cost of funding that money.
• Interchange Fees: Approximately 33% of revenue is derived from interchange fees. These are the fees paid by a merchant's bank to the cardholder's bank for each transaction.
• Other Fees: The Remainder (around 17%) is made up of other charges to the cardholder, such as annual fees, late payment fees, and fees for cash advances.

So they're looking at going from a weighted average 0.5% to a hard cap of 0.3% for a fee that impacts about a third of the bank's revenues for card products. It's estimated they'll collectively lose out on $900m of revenue per year. They'll have to reduce bonus points and raise annual fees, sure. They have had plenty of practice there over the last few years.

How is that the death of airline points, exactly? You say I underestimate the impact, tell me - how's that reduction in revenue going to lead to the death knell for the points ecosystem? Assuming $800m of that $900m is attributable to the big 4 (generous), we're talking $200m each. ANZ have paid more than that just in fines this year, plus another bil in capital set aside for non financial risk. Did they kill all incentives on their card products to fund it?

Just look at the sign-up bonuses in the UK (among many other examples) to see what is in store for Australia.

It's more false equivalence, like the whole song and dance about Qantas going revenue based because of the US carriers. You can't say look at the UK credit card bonus landscape vs Australia's when it never had the same bonus offerings in the first place.

I just wish I could cite some sort of commentary on this. Comparing Australia's airline duopoly to EU and US markets constantly just results in the same issue, they're not equivalent markets.

 

[moa999]

Half an hour on IHG WhatsApp to I think transfer 10k points for 2k Qantas miles...

Might have been quicker if I had first switched my earning preference to QF (they had issue with my 7 digits number).

Will switch it back once points hit QF.

Very weird chat. After telling my it would earn 2000 miles and take 14-21 days.
After sending them they then asked me to confirm they had been received. and then got confused when I said I could see the deduction in IHG but nothing in QF.

 

[exceladdict]

Half an hour on IHG WhatsApp to I think transfer 10k points for 2k Qantas miles...

Might have been quicker if I had first switched my earning preference to QF (they had issue with my 7 digits number).

Will switch it back once points hit QF.

Very weird chat. After telling my it would earn 2000 miles and take 14-21 days.
After sending them they then asked me to confirm they had been received.

Interesting. Mine took a week, for reference. Transferred on 3rd, landed on 10th.

 

[Mwenenzi]

Off topic
A lot of off topic posts, including fine details of bank cc. and the QF ffp in general
Better if thread kept on topic.

That is what the market is expecting, in particular:

However, the problem is, how can you engage Chinese and Indians, the two largest races in Australia to Qantas Frequent Flyer program, if status is useless in China, Taiwan and India?

Also how would Qantas status engage the emerging New Zealanders travelling public when they don't get anything when flying domestically within NZ?

I suppose that is something Qantas should consider about.

https://www.jetstar.com/au/en/flights/frequent-flyer-partners/qantas-frequent-flyer

Minimum Points Guarantee
You'll earn at least 800 Qantas Points with the Minimum Points Guarantee on eligible Jetstar fares. On Jetstar New Zealand domestic, you’ll earn a minimum of 400 Qantas Points. Check the Qantas and Jetstar Airline Earning Tables for detailed information about Qantas Points and Status Credit earn rates

In NZ all JQ domestic only flights earn QF ff points. Some thing that JQ AU does not do. No QF status benefits

Wool;worth NZ now have Everyday rewords that can transfer at 1000 WW = 1500 QF points (better rate than in AU)

LoinKing may not have noticed, but Skyteam status and Star status and earning ff miles useless in AU. Unless flying VA and status with one of VA star partners (AC SQ UA)

 

[levelnine]

We know almost exactly what this represents, per ACCC breakdowns:

What you don't understand is that these margins are interdependent.

The reduction in interchange rates will decrease the attractiveness of credit cards as a product category. More consumers will simply choose debit. That means banks will earn less interest on balances and earn fewer fees because fewer customers will choose the product. The banks can't offset this decrease in attractiveness with bonuses/points because there is less margin to share with customers.

Even if we conservatively estimate that the loss is only $900m (it will be far higher due to the abovementioned factors) and banks are paying airlines 2c/pt (an incredibly generous estimate), that is 45 billion points per year being taken out of the system. No small change. And a realistic estimate is much closer to double or triple that.

How is that the death of airline points, exactly? You say I underestimate the impact, tell me - how's that reduction in revenue going to lead to the death knell for the points ecosystem?

Where did I say 'death' or 'death knell'? You said we won't even notice a change: 'They'll just switch to offering points for other activities'. That is what I was responding to.

It's more false equivalence, like the whole song and dance about Qantas going revenue based because of the US carriers. You can't say look at the UK credit card bonus landscape vs Australia's when it never had the same bonus offerings in the first place.

How do you think Australian banks are going to afford to continue to pay current sign-up bonuses once their profit margin on them shrinks? Do you think banks operate as charities that offer bonuses out of the goodness of their heart?

It has been proven in every market — Australia isn't some magical exception. Yet another example is when the Durbin Amendment banned interchange fees on debit cards in the US, banks simply stopped offering points on those products.

And thanks for pointing to a comment of mine showing that the UK credit card points market is inferior to the Australian market, which is exactly what I'm saying here lol.