Is there a Devaluation of Qantas Frequent Flyer Points coming?

[slinky123]

Hi everyone,

Yesterday at work, I happened to be chatting to customer who has just recently cashed out all his Qantas Frequent Flyer points for Gift cards from the Qantas Shop. He told me that if I have any points that I should do the same as the program is being devalued in the very near future and points will only be worth half as much.

I asked him if he was referring to the reduction of points given by Banks on their cards and he said no, it is something Qantas is doing very soon with all points earned by their FF members.

Does anyone know anything about this?

Many thanks for any info

 

[pauly7]

Hmmmm did he allude to his source?

 

[slinky123]

Hmmmm did he allude to his source?

His did mention that it has already been announced but I cannot find where

 

[opusman]

I wouldn't put anything past them, but the negative press they'd get from a wholesale devaluation of this magnitude would be significant, to say the least.

 

[pauly7]

His did mention that it has already been announced but I cannot find where

Ok, well if it has been announced and AFF members don’t know about it I’m not sure how that could be.... perhaps confused with recent Cathay changes?

 

[Ansett]

Ok, well if it has been announced and AFF members don’t know about it I’m not sure how that could be.... perhaps confused with recent Cathay changes?

I agree pauly and given Qantas are telling us how well they are doing surely not even the gamest, or stupidest of marketing people would be able to justify to members a devaluation like that in the current conditions.

 

[slinky123]

Yes, the first place I looked was on AFF since it would surely be here if it was going to happen. I hope he is wrong and has this confused with something else.

 

[JohnK]

I don't think Qantas would be that silly.

 

[opusman]

I don't think Qantas would be that silly.

cough Simpler & Fairer cough

 

[craven morehead]

I don't think Qantas would be that silly.

Well ............ no surely not !!

 

[drron]

Well if one thing is as certain as death and taxes it is that Qantas will devalue QFF.But,as with death and taxes,just when and by how much is uncertain.

 

[cove]

I went to use some QF points yesterday and couldn’t get home when I wanted so I used VA points instead.
That was to get to the Adelaide AFF event without it costing any readies.

 

[RooFlyer]

I wouldn't put anything past them, but the negative press they'd get from a wholesale devaluation of this magnitude would be significant, to say the least.

I agree with what you are saying, but shareholder returns will beat negative press and pi**ed off FFers, any day, in Qantas' mind. Don't put it past them, anytime.

If they do devalue, I wonder if that would also devalue what their 'partners' pay to buy points from Qantas Loyalty? Could be the only thing stopping them devaluing - they'll always sell more than those points are redeemed.

 

[JohnK]

cough Simpler & Fairer cough

Good point although devaluing points by half would be extreme.

If anything I can see economy awards decreasing in cost and premium awards increasing in cost to reflect revenue airfares similar to points + pay.

 

[Ansett]

Simpler and Fairer was released when the airline was in the doggy doo and that is how they partially justified it. They sure couldn't justify it like that now, indeed I cant think of any reason for them to justify a devaluation.

 

[cove]

Our business has a deal with issuing QF points to our customers. There have been no changes to our deal since it started other than the GST rate which varies based on the percentage of exempt overseas travel.

 

[justinbrett]

Maybe the non-flight value is being devalued to account for all of the non-flight awards and redemptions.

So now 10000 points, gets you an upgrade SYD-PER or $50 wish gift card. Value 0.5c/ point.
New change, 10000 points still gets you the same upgrade but now only $25 gift card. Value 0.25c / point.

Effectively they halve their liability for points earn, and because they have no actual cost on points redemption on their own airlines they can afford to keep it the same rate, effectively making it half price.

Not sure how this would affect partner awards though...

And having said all that, I read an article that QFF is the most profitable arm of the business and Qantas wouldn’t want to do anything to jeporise that.

 

[serfty]

he said no, it is something Qantas is doing very soon with all points earned by their FF members.

His did mention that it has already been announced but I cannot find where

If whatever change was happening has "already been announced" then many would be aware ... AFF, AusBT, FT. travel bloggers and a few Frequent Flyer interest groups. I have seen nothing such on any of these.

I suspect some misinterpretation on the "customer"'s behalf.

 

[samh004]

just recently cashed out all his Qantas Frequent Flyer points for Gift cards from the Qantas Shop

There's a devaluation right there

(Not offering) but I'd have given him the cash for the points

 

[DavidFlynn]

His did mention that it has already been announced but I cannot find where

Well, there's been no announcement from QFF and I can also confirm there's been nothing shared with media under embargo etc. As Serfty has mentioned, if anything was announced it'd be out far and wide, and I know that would include mainstream media such as SMH/Age and News, because anything negative which Qantas does is a proven winner for them, and a devaluation of points even more so because it'd be relevant to most of their readers.

Personally speaking, I would find any looming & substantial devaluation to be an odd decision: Qantas is set to announce a record profit at its FY18 prelims (Aug23) and will be looking to couple this with some positive 'passengers benefit' announcements, and Qantas Loyalty is already a massive money-spinner for the airline – so to turn around in a time of trumpets and reduce the value of points, do something which is going to negatively impact so many people and cast a shadow over a positive climate, would strike me as unlikely.