What card companies pay Airlines for FF points use?

Discussion in 'Open Discussion' started by Jim, Nov 26, 2004.

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  1. Jim

    Jim Intern

    Nov 17, 2003
    52
    1
    Does anyone know how much AMEX and the other card companies pay the airlines per point or however for FF use?
     

  2. NM

    NM
    Moderator

    Aug 27, 2004
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    I think it is fair to assume they pay about the same rate as they pay any other program partner for their cash-equivalent rewards such as gift vouchers. So assume they buy their $100 Myer (or any retailer) vouchers for a 5% to 10% discount.

    So a $100 Myer voucher from Amex Membership Rewards costs 15,000 points. Assuming Amex pay Myer $95 for the voucher, that's 0.633 cents per Amex MR point. I think it is fair to assume they will will be paying a similar amount for QF FF points transfers.
     
  3. bravoecho1

    bravoecho1 Member

    Sep 10, 2004
    221
    0
    OOL
    After speaking to a employee of Audi, he said that it costs $80 for them to buy 4000 QFF points.

    This is in relation to the Test Drive Offer they have for CBA Platinum holders.

    A lot of dealers have refused to honour the deal because people are ringing up not wanting to drive the car and just get the points.
     
  4. Jim

    Jim Intern

    Nov 17, 2003
    52
    1
    That's .02 cents per point. So that would mean a 80K FF flight to LAX pays Qantas $16,000 from the card provider. That's more revenue then a discounted cash flight so Qantas should welcome FF card converters with open arms.
     
  5. Jim

    Jim Intern

    Nov 17, 2003
    52
    1
    I meant $1,600 not $16,000 of course.
     
  6. Guest

    Guest Guest

    thats a pretty crappy rate, even with a discount....no?
     
  7. sxc

    sxc Junior Member

    Dec 4, 2004
    19
    3
    Hong Kong
    Of course they do - not only do they get revenue from the card company, they don't have to shell out for the free flights to the FF member as they make hardly any flights available.
     
  8. Myrna

    Myrna Active Member

    Aug 23, 2002
    568
    95
    As I understand it, all participants (or partners) of QFF program - whether they are banks, hotels, credit card providers, car hire companies etc - have to enter into an agreement with Qantas to pay Qantas so much per award point (so many cents in a dollar). This amount varies from partner to partner, depending on their bargaining position. Qantas does not allow the transfer of points for nothing. The point is that Qantas receives money from the partners but in turn it does not have to provide the service (ie FF seats) to the users (ie us). This is why when Ansett collapsed, Westpac claimed that it already paid Ansett for the provision of the FF seats so it was not liable to the FF members as such. It would be nice if the regulating authority, or the partners themselves, can somehow monitor how much money Qantas receives compared to how many actual FF seats actually offered. It is money for jams for Qantas.
     
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