QANTAS to launch their own credit card in tie-up with Citibank

[mviy]

It's ok, they can launch it with great offers then just "enhance" it.....

Then many here (if they signed up) would ring up and cancel it citing the enhancements as the reasons for getting rid of the card.

 

[eminere]

Then many here (if they signed up) would ring up and cancel it citing the enhancements as the reasons for getting rid of the card.

Most people in the game of churning credit card sign-up bonuses would cancel the card after the first year anyway.

 

[mviy]

Yes, if not sooner. I guess it depends how quickly the "enhancements" come and whether one will be able to get the sign up bonus a second time perhaps after an exclusion period.

 

[burmans]

Well AusBT theory is that there may well be and history would suggest they have a reasonable chance of being right, and if not what have we lost by keeping an eye out?

 

[jpk]

I filled in a survey for QF a couple years back specifically focused on a QF branded card. 3 of the proposed benefits they wanted feedback on were:
- SC accelerator (more SC's for booking flights on that card, bonus SC's for $$$ amount of spend etc)
- better seat selection for cardholders
- more award seats available to cardholders

The cynic in me suggests that rather than actually make more seats available, they'll just open up the elite selection to everyone with the card, ie: level the playing field. When QF giveth, they also taketh...

 

[Steady]

When QF giveth, they also taketh...

Very well put, unfortunately.....

 

[mviy]

SC accelerator sounds interesting. Whether the extra SCs for booking flights on the card would count towards lifetime status or not would be interesting too. If the SC accelerator was a decent amount that'd definitely be enticing to get the card and keep it.

Yeah. Better seat selection wouldn't help me whilst a WP unless they opened up P1/CL rows (front two rows of economy on Domestic) earlier to me which one would think would be highly unlikely.

More award seats would be nice, but like you I doubt they'd open more for WP than they do now.

Certainly to get people to keep the card for years it would need to have some decent benefits over other cards, not just one off benefits like a sign-up bonus.

 

[Danger]

I filled in a survey for QF a couple years back specifically focused on a QF branded card. 3 of the proposed benefits they wanted feedback on were:
- SC accelerator (more SC's for booking flights on that card, bonus SC's for $$$ amount of spend etc)
- better seat selection for cardholders
- more award seats available to cardholders

The cynic in me suggests that rather than actually make more seats available, they'll just open up the elite selection to everyone with the card, ie: level the playing field. When QF giveth, they also taketh...

This would be disastrous as far as I'm concerned.

I said a few months ago that giving SCs for anything other flying was a slippery slope and it appears the slider is speeding up.

And those other benefits touted only diminish the value of existing Gold and Platinum.

One thing I think that needs to be remembered is that the only common limitation (of sorts) to achieving status and tier benefits is what's in your hip pocket. If you throw in a credit card giving benefits that are only available to those who satisfy the criteria to get the card in the first place, you're creating a very uneven playing field, in addition to further blurring the lines between rewarding those who actually fly, rather than those who spend.

The way things are going, very soon, there'll be no need to fly to achieve any benefit of value; it'll all come from non-flying means. And that will be a very, very sad day.

 

[greyyy]

You cant fly without spending. FF Status already is limited to those who can spend to achieve it.

 

[mannej]

You cant fly without spending. FF Status already is limited to those who can spend to achieve it.

True for those who are self-funded, but aren't you forgetting those who travel for work?

 

[greyyy]

True for those who are self-funded, but aren't you forgetting those who travel for work?

IMHO if you're upset about people 'earning status the wrong way', this is where to start - when work foots the bill yet you accrue status.

I have nothing against any of these, but I do think that status should always be linked to flying (and I think Qantas believes this as well). If Qantas are looking at having status credits be a part of this card, I would imagine it would be in the form of increased earn rate when flying, or something like that. I couldn't imagine them rewarding my woolies spend with P1 status.

 

[I love to travel]

So note to Qantas for intro offer:
1. No annual fee first year
2. 2 x free lounges passes
3. Balance transfer 0% with 0% BT fee. 90% of max balance.
4. 100k bonus sign on points.
5. Max insurances(purchase, travel, warranty) including local rental car insurance
6. 75k salary eligible
7. Status credits going rate is 75 bonus with flight purchased?
8. ATO GETS POINTS !!!!
Did I miss something?

No that does it nicely

 

[Strategic Aviation]

I have nothing against any of these, but I do think that status should always be linked to flying (and I think Qantas believes this as well). If Qantas are looking at having status credits be a part of this card, I would imagine it would be in the form of increased earn rate when flying, or something like that. I couldn't imagine them rewarding my woolies spend with P1 status.

Qantas is trialling both approaches.

Qantas trials earning status credits on credit cards - Australian Business Traveller

Under a trial being launched this week and running through to May 2018, selected members of the Qantas Frequent Flyer scheme will collect one 'credit card status credit' – which is different to a conventional status credit – for every 400 Qantas Points earned on either the Macquarie Black Card with Qantas Rewards or the Westpac Altitude Black Credit Card with Qantas Points.

Australian Business Traveller understands the invitation-only trial is extended to less than 0.1% of Qantas' 11.5 million frequent flyers.

Qantas is positioning the scheme as a way to bridge the gap between tiers – such as Silver to Gold, or Gold to Platinum – or provide a 'plastic assist' in retaining your current status, rather than a replacement for flying.

"The ability to earn Status Credits is highly prized by our members and we wanted to explore how we could potentially reward frequent buyers as well as our Frequent Flyers with status" a Qantas spokesperson told Australian Business Traveller.

Credit card status credits won't count towards reaching or retaining Platinum One status, Lifetime Status or the regular loyalty bonus milestones.

The trial also places a cap on how many credit card status credits can be earned.

Earn Qantas status credits on American Express, ANZ credit cards - Australian Business Traveller

Add 75 status credits to any Qantas flight: once you've been approved for either card, use that plastic to book any Qantas return flight and complete your travel by 30 September, 2017 to score a one-off bonus of 75 status credits on top of what you'd usually earn for that flight.

This includes even the cheapest economy fare on a short trip such as Sydney-Melbourne, which would usually yield just 20 status credits as a return trip.

The flight can be domestic or international, as long as you're flying on Qantas– (no codeshares or partner airlines, or Classic Flight Reward bookings for that matter.

And for those with their eye on Lifetime Silver or Lifetime Gold, it's worth, we've confirmed with Qantas that those 75 status credits also count towards your lifetime balance.

 

[Oxy]

IMHO if you're upset about people 'earning status the wrong way', this is where to start - when work foots the bill yet you accrue status.

I have nothing against any of these, but I do think that status should always be linked to flying (and I think Qantas believes this as well). If Qantas are looking at having status credits be a part of this card, I would imagine it would be in the form of increased earn rate when flying, or something like that. I couldn't imagine them rewarding my woolies spend with P1 status.

Earning status credits from any activity other than flying makes no sense. The whole reason they exist is to measure how much you fly with the airline. If you can earn them from general spend just get rid of status credits and use points earning to qualify for status.

 

[mannej]

IMHO if you're upset about people 'earning status the wrong way', this is where to start - when work foots the bill yet you accrue status.

I have nothing against any of these, but I do think that status should always be linked to flying (and I think Qantas believes this as well). If Qantas are looking at having status credits be a part of this card, I would imagine it would be in the form of increased earn rate when flying, or something like that. I couldn't imagine them rewarding my woolies spend with P1 status.

I never said I was upset, I just pointed out your statement wasn't factually correct.

I find it funny that I can earn SC's and Tier miles towards VA and EY just by shopping at Coles, so we agree on that.

 

[justin23]

I'm wondering if they use SC's as a way of ensuring people keep the card versus churning multiple CC's for the sign up bonus points. 50SC's at every anniversary, or something like that, pending they flew say the 4 QF metal segments per yer also and kept the CC for 12 months. I kind of agree they shouldn't be given away for spending, but I can see an argument for rewarding CC loyalty with SC's on QF branded cards.

After all how many people earn higher status due to a DSC promotion. Its kind of rewarding people for buying flights at the right time, rather than flying more.

 

[liamg]

I imagine that status credits are valuable to a tiny percentage of the membership base. Really, it's only for people who are trying to qualify/re-qualify. For everyone else status credits sounds good but Qantas loses nothing by giving them away, because they're only going to accrue 100-200 a year (at most). I think for the people in this forum it's a big deal (the difference between re-qualifying and not?), but for your average member who flies a couple of times a year (at most), it's a good thing to lure them to sign on to the card for, but won't end up costing Qantas anything.

 

[RichardMEL]

There is another way to look at SC's via purchase (and let's face it, this is the way they are going).

Consider status as a key to lock you in to the product - eg: if you have status on QF, but nothing on VA who would you pick for the average trip other factors(schedule, price etc) being reasonably similiar? You're more likely to go for the one you get the most out of via status - be it more points, be it lounge access or other priority services, or whatever.

With that as a base, if QF sells you status via a CC offer, or some other method consider the benefit to QF:

- they expend no fuel burn, labour cost or other overheads to grant these SC's
- they earn the revenue from the CC spend/signup through the bank they sell the bonus points to and have the arrangement with

now, if you continue to spend on the card and buy some QF services to boot - they earn MORE revenue,and the SC's given away are paid for at virtually nil cost
if you do not fly QF and given them revenue then they have given the SC's at zero cost anyway

but wait, you've signed on for that juicy CC signup bonus right? Yeah what are you going to do with those 75k points? Sit on them till they expire? No of course not.. you'll spend them.. maybe on upgrades, maybe on awards, maybe on toasters (!).... all more $$$ for QF.

either way they lock you in, or at least do a lot to ensure you will continue to give them revenue one way or the other

at least this is how my logic processes this.

And they'd hardly be the first. The USA legacy airlines have evenues to purchase status, and often their co-branded CC's offer benefits such as boarding priority, lounges access and so on.

I can definitely see the time when say a "QF Premium Platinum" CC gives you QC entry (and for most of the folks who might get this would already have it via status, but still a selling point), some priority services (check in at J counter, etc) and other things.

it's not about flying anymore, it's all about the almightly $

 

[RichardMEL]

Also note the bonus SC offers I have seen eg ANZ Black, Amex) I believe require a SC earning QF booking by a certain date (30 Sep?) to qualify... so again they want you to spend. Even if you bought a Discount Y one way ticket earning 10 SC they've clearly factored in with the sums the value. And granted most people on such cards would be buying a) multiple flights and b) more expensive ones where the cost of both bonus points and SC's are well and truly offset by the revenue gain.

It's not something for nothing

 

[Basalt]

it's not about flying anymore, it's all about the almightly $

Ahhh, think it's always been like that. I sincerely think the primary motive behind Fysh, McGinness and McMaster back in 1920 was to make money, not promote flying per se. Of course one could argue there are sovereign reasons for a government owned flag carrier to have motives other than the profit motive, but a public listed company (airline or otherwise) needs to make money. Times, competitors and customer habits change and airlines need to adapt. SC's are fundamentally nothing but a means to assist an airline to make more money somehow....