Notional value of the QFF point

[RooAvery]

For a current promotion involving QANTAS and Woolworths they are giving away 10 x 250,000 QFF points, the T&Cs show

Woolworths - Qantas Frequent Flyer Points

There are 10 prizes of 250,000 Qantas Frequent Flyer points issued by Qantas Airways Limited. The Total Prize Pool is 2,500,000 Qantas Frequent Flyer points (“Prize”) issued by Qantas Airways Limited. The notional value of the Total Prize Pool is $54,560.

Am I right in saying then that QF rate their QFF points as 1 QFF point = $0.021824 or 2.1824c

just a thought

 

[Moopere]

The Total Prize Pool is 2,500,000 Qantas Frequent Flyer points (“Prize”) issued by Qantas Airways Limited. The notional value of the Total Prize Pool is $54,560.

Am I right in saying then that QF rate their QFF points as 1 QFF point = $0.021824 or 2.1824c

This looks like the value they place against selling QFF points directly. If you go to the QFF site to buy points with money, and you buy the largest number possible, I think they are about 2.2c each.

At the wholesale level though you'd have to imagine them costing companies far less. When you 'buy' points via new credit card applications the price seems to often be around 0.4c to 0.7c each, occassionally as high as 1c each.

Despite valuing my QFF points at about 3c each I'll rarely be interested in spending much more than 1c each to gain them.

 

[trippin_the_rift]

Definitely inflated.

Anyone with a commercial agreement with QF can buy points under 2c. Problem is minimum commitment. Our company offered min $20k/mo spend at that level and in a few less words were told to go elsewhere. Strange way to do business.

 

[nickfromeastryde]

I think Woolworths are probably legally obligated to publish the 'retail' value of the prizes they are offering but that doesn't necessarily bear any relatioship with what they actually paid Qantas for them

 

[elbarto]

a JASA redemption I've just done values them at 4.2c based on buying the ticket as if I were paying full fare. Doing the same calculation using the value QF puts on the redeemed ticket, the value of the point plummets to 0.007c

 

[Awesom Andy]

Just to make things interesting...

SIN-SYD return in Y costs 60,000 points + $545.30 SGD in charges/taxes.
Current fare in cash is $868.
i.e. 60,000 points are worth $322.7 SGD = 0.5378c SGD per point = ~0.4c AUD per point.

At the same time, a Myer AUD $100 voucher costs 13,500 points = 0.74c AUD per point.

 

[markis10]

Just to make things interesting...

SIN-SYD return in Y costs 60,000 points + $545.30 SGD in charges/taxes.
Current fare in cash is $868.
i.e. 60,000 points are worth $322.7 SGD = 0.5378c SGD per point = ~0.4c AUD per point.

At the same time, a Myer AUD $100 voucher costs 13,500 points = 0.74c AUD per point.

That's a poor example, a Super Saver ASA is 60K + $435SGD before taking into account net cost after points earned.

 

[medhead]

This might be a bit complex and I'm not sure I have this exactly correct. Bu if I look at a classic J award booking SYD-ADL it will cost me 4500 points to save $29.54. Qantas is giving me ~0.7c per point. Or a JASA I can pay $88.20 to save 7801 points. Qantas is charging me 1.1c per point. I would guess there is a similar margin on points via all methods of trading points with Qantas.

a JASA redemption I've just done values them at 4.2c based on buying the ticket as if I were paying full fare. Doing the same calculation using the value QF puts on the redeemed ticket, the value of the point plummets to 0.007c

Do you mean $0.007? (=0.7c)

Just to make things interesting...

SIN-SYD return in Y costs 60,000 points + $545.30 SGD in charges/taxes.
Current fare in cash is $868.
i.e. 60,000 points are worth $322.7 SGD = 0.5378c SGD per point = ~0.4c AUD per point.

At the same time, a Myer AUD $100 voucher costs 13,500 points = 0.74c AUD per point.

Either way they are both poor value.


Sent from my iPhone using Aust Freq Fly app so please excuse the lack of links.

 

[GaryBne]

“beauty is in the eye of the beholder” and also “value” is in the opinion of the buyer / seller.

As for me, I use my points to buy tickets – the points/ pay being a better deal, because one also earns points (vs Classic awards)
Using the sliding scale to switch between points vs pay does not give me a consistent $ value for points. Last time I looked it varied between 0.7 cents and 1.1 cents.

But for you - the “value” is in how you use them – shopping, upgrades, tickets .

 

[medhead]

“beauty is in the eye of the beholder” and also “value” is in the opinion of the buyer / seller.

As for me, I use my points to buy tickets – the points/ pay being a better deal, because one also earns points (vs Classic awards)
Using the sliding scale to switch between points vs pay does not give me a consistent $ value for points. Last time I looked it varied between 0.7 cents and 1.1 cents.

But for you - the “value” is in how you use them – shopping, upgrades, tickets .

Value is also in your ability to use the points. For example some people who don't fly and resort to gift cards.

I assume you mean Anyseat Award, as points + pay is something else again. Anyseat awards earn points. I did a detailed set of numbers on the slider late last year and the variation was no more than about 0.2c. I think I concluded the best value was minimum points.


Sent from my iPhone using Aust Freq Fly app so please excuse the lack of links.

 

[Berlin]

I for my part use points on upgrades and nothing but that- when ever I calculate that against other uses, it seems to be the by far better deal. I usually upgrade overseas work flights from J to F or private trips that I pay for in Premium Economy to J or domestic trips from Y to J. Rate of success around 50% in my experience which is good enough and makes the FF scheme well worth while for me.

Interesting how different members use their points for different things but the above is pretty good value in my eyes

 

[RooAvery]

wow, my thread went to two pages

 

[elbarto]

Do you mean $0.007? (=0.7c)

Yes I do.


....

 

[Duffa]

What about an SQ saver return to Europe in J.
127,500 points - value $7600 (after deducting ~~ $850 for taxes)
= 760000/127500 cents per point
= 5.96 c per point

 

[lovestotravel]

What about an SQ saver return to Europe in J.
127,500 points - value $7600 (after deducting ~~ $850 for taxes)
= 760000/127500 cents per point
= 5.96 c per point

IF you can get a saver....... Won't be able to for much longer with 2 x 77W and 1 x A380 daily......

I value my points at roughly 4.5c per point, all depending on the cost of J airfare which varies greatly....

EG: MEL-LAX on QF in J
192000 points - Value $8700
870000/192000
= 4.53 c per point

 

[yo yo ma]

wow, my thread went to two pages

Bad news for you... it is only one page if you change to 40 posts per page (in settings). Still an interesting topic and it may get to 2 pages

 

[nonpop]

We work on worst case 1 point = 1 cent if we had to actually use our points in a fire-sale type environment e.g a Mel / Syd /BNE loop.
So we are never prepared to 'pay' more than 1 cent if there is a merchant surcharge.

But whenever we cash in our points, the actual value tends to be approx 1 point = 5 cents based on QFi J ticket.
Do keep in mind that QFi J prices are also on the higher side vs some of the other full service carriers such as Thai, JAL, Royal Jordanian, Finnair, Delta etc when in J.
Nonetheless, the objective for us is to acquire points at zero surcharge with the occasional surcharge thrown in where the % is 'low' e.g ATO. For us 95%+ of all points are at zero fee to acquire and then only at 1 cent per point or less.

Consider treating it as a game as spending the points is still a lottery if you want to fly when YOU want to fly where YOUR schedule flexibility is low.

Worst case scenario, you cash them in on shopping vouchers so long as you paid zero to acquire the points. So it becomes a nice little cash-back for nothing.

And have fun along the way.

 

[RooAvery]

Bad news for you... it is only one page if you change to 40 posts per page (in settings). Still an interesting topic and it may get to 2 pages

DOH!

 

[drross]

DOH!

here we go.. page 3???

love our FF points.. havd used them to send our daughters all over the planet for 'free'

 

[burmans]

What about an SQ saver return to Europe in J.
127,500 points - value $7600 (after deducting ~~ $850 for taxes)
= 760000/127500 cents per point
= 5.96 c per point

And even better with the 50% discounts! Priced this recently at only 75K for one route.