Why are Singapore Airlines Award Redemption Taxes/Charges so HIGH?

[cove]

Well I just flew on the A340-500 from Los Angeles to Singapore.This flight is all business class with 98 seats in a plane that could carry 300 plus in economy configuration.There were 47 passengers so I used points.
If you can go on this one you would say it is a very real bargain and those additional charges are worth every dollar.
Very impressive and I booked it less than 3 weeks before I flew.

 

[deluxeflyer]

Well I just flew on the A340-500 from Los Angeles to Singapore.This flight is all business class with 98 seats in a plane that could carry 300 plus in economy configuration.There were 47 passengers so I used points.
If you can go on this one you would say it is a very real bargain and those additional charges are worth every dollar.
Very impressive and I booked it less than 3 weeks before I flew.

Kewl.
But I'd say the real bargain is the 744 F on the same route: 76,500 KF miles for F vs 102,000 for J on 345.

 

[cove]

A very good point you make on the use of Kris points that I will go looking into.Because I booked about 17 days from travelling my choices were limited for the quick connection to Perth but I expect to have a better view and of course First is everyones favourite if they have plenty of Kris points.
Very good thinking DELUXEFLYER you are joining my HALL OF FAME and you are in there now with SERFTY.

 

[cove]

Well Deluxeflyer I now have a two in front of a number that has 2 commas in it on my frequent flyer points so I loved your comment about First being available through KRIS.
What a bargain for that quality level to be able to travel at short notice using points rather than using cash for the whole flight

 

[albatross710]

Well Deluxeflyer I now have a two in front of a number that has 2 commas in it on my frequent flyer points so I loved your comment about First being available through KRIS.
What a bargain for that quality level to be able to travel at short notice using points rather than using cash for the whole flight

I'm compiling a Trip Report on this very topic at this post http://www.frequentflyer.com.au/community/trip-reports-and-trip-photos/albatross-goes-bne-lax-via-22797.html

If time is a constraint then I think next time I would go for the extra points and take the A345. There are quite a few extra hours on the trip via NRT. F was great this time around but time is also a factor.

 

[deluxeflyer]

Very good thinking DELUXEFLYER you are joining my HALL OF FAME and you are in there now with SERFTY.

Thank you kagitower.
Mighty high praise, I am in fine company indeed.

 

[deluxeflyer]

Well Deluxeflyer I now have a two in front of a number that has 2 commas in it on my frequent flyer points so I loved your comment about First being available through KRIS.
What a bargain for that quality level to be able to travel at short notice using points rather than using cash for the whole flight

Thank you cove !
Your KF miles balance is enviable.
Feel free to add me to your redemption nominee list if you have a free spot remaining.

 

[deluxeflyer]

I'm compiling a Trip Report on this very topic at this post http://www.frequentflyer.com.au/com...-photos/albatross-goes-bne-lax-via-22797.html

If time is a constraint then I think next time I would go for the extra points and take the A345. There are quite a few extra hours on the trip via NRT. F was great this time around but time is also a factor.

Thanks for the TR.
The only thing I don't like about that F flight is the 1.15am arrival into SIN.
In the scheme of things, it's a small dislike,
eased by judicious absorption of Krug,
which is not avail on the A345.

 

[bamboli]

A year on and I think the Singapore charges are far worse!! The redemption surcharges are crazy :evil:

 

[Awesom Andy]

A year on and I think the Singapore charges are far worse!! The redemption surcharges are crazy :evil:

It's bordering on stupidity for redemptions in Y. It's a bit like, you still pay for your ticket, and you'll give us your points at the same time.

 

[cove]

Doing Y redemptions outright on points is very much a lousy way of using Kris points seeing the fuel levies and taxes are so high. Upgrades on points or outright business class redemptions work very nicely for use of points at a high retail value. Those high charges look smaller when your points are redeemed with a retail value of more than 4 cents each. Getting Saver redemptions would be the icing on your points cake!

 

[hummel]

Doing Y redemptions outright on points is very much a lousy way of using Kris points seeing the fuel levies and taxes are so high. Upgrades on points or outright business class redemptions work very nicely for use of points at a high retail value. Those high charges look smaller when your points are redeemed with a retail value of more than 4 cents each. Getting Saver redemptions would be the icing on your points cake!

Agreed. Before I knew really anything about booking redemptions I booked a MEL-SIN-HAN-SIN-MEL in Y last year, and only took the trip a few months ago. My taxes came to something like $380AUD

Compare this to a recent booking on *A SYD-BKK-CDG-FRA-ICN-SYD in F no less... taxes were $356USD. Not on SQ but TG and LH.

I now don't put any points into KF apart from what I have already and just let my Amex balance keep rising, this way I have the choice of carriers. While I really do like SQ product, I find the availability of award seats pretty ordinary and their taxes extraordinary!

 

[cove]

That helps explain why I can get seats at short notice to pretty much anywhere using points for front of the plane flights.

 

[Jeffrey O'Neill]

i think SQ has made a big mistake with the high taxes for redemption.

If they'd kept them at a reasonable level it would have been another thing going for them compared to QF.

Now with the JASAs QF can be at times great value for those with the miles to burn.

 

[kpc]

i think SQ has made a big mistake with the high taxes for redemption.

Doing Y redemptions outright on points is very much a lousy way of using Kris points seeing the fuel levies and taxes are so high. Upgrades on points or outright business class redemptions work very nicely for use of points at a high retail value. Those high charges look smaller when your points are redeemed with a retail value of more than 4 cents each. Getting Saver redemptions would be the icing on your points cake!

cove hits the nail on the head. It is not worth redeeming Sq Y awards. To illustrate this point, I just redeemed a saver J award for my +1: Syd-Sin-Cpt rtn for 123250 Kris Flyer pts and $870 in taxes / surcharges. The same ticket bought with cash is around $6666, meaning I'm getting ($6666-$870)/123250 = $0.047 (4.7 cents) per Sq mile value.

The same ticket in Y costs 76500 Kris Flyer pts and $815 in taxes / surcharges. The same ticket bought with cash is around $1871, meaning I'm getting ($1871-$815)/76500 = $0.0147 (1.4 cents) per Sq mile value

Big difference between 4.7 vs 1.4 cents per Sq mile value!

Now with the JASAs QF can be at times great value for those with the miles to burn.

I know...I'm about to book a Syd-Scl JASA for my +1.

That's why AMEX pts are great...you can TF them to the program that gives you the best value for you intended flights!

 

[cove]

The difference between what Duffa and I have been doing is we are saving $473 per 100,000 points by using Visa instead of Amex when we pay a tax bill seeing the fee % is now quite different.
SWMBO is very happy with SQ and QF so we haven't tried Thai nor LH.
Getting value out of your points is very,very nice so kpc I love seeing you getting great results!

 

[Stephen65]

I do not think the difference is that much if the ATO's credit card surcharge is deductible to you. Of course the after-tax effect depends on your marginal tax rate and the earn rate on your visa but if you are in the highest bracket then by my arithmetic the after-tax cost of 100,000 points is as follows:

100,000 points on 1.5:1 amex = $66,667 spend x 0.0125 x 0.525 = $437

100,000 points on 1:1 visa = $100,000 spend x 0.0048 x 0.525 = $252

100,000 points on 1.25:1 visa = $80,000 spend x 0.0048 x 0.535 = $205

In any event if you use the points for J/F travel you should be able to get at least 4c per point value or a return of $4000+ on 100,000 points.

 

[kpc]

I do not think the difference is that much if the ATO's credit card surcharge is deductible to you. Of course the after-tax effect depends on your marginal tax rate and the earn rate on your visa but if you are in the highest bracket then by my arithmetic the after-tax cost of 100,000 points is as follows:

100,000 points on 1.5:1 amex = $66,667 spend x 0.0125 x 0.525 = $437

100,000 points on 1:1 visa = $100,000 spend x 0.0048 x 0.525 = $252

100,000 points on 1.25:1 visa = $80,000 spend x 0.0048 x 0.535 = $205

In any event if you use the points for J/F travel you should be able to get at least 4c per point value or a return of $4000+ on 100,000 points.

Interesting analysis... confirms what I thought in that it is easier to get more points for tax paid by using Amex but at a slightly higher cost per point.

 

[cove]

Yes it is a very good deal whichever way you look at it.
I don't think Wayne wants to let us off the flood levy when we pay on that last Visa example.
It will be interesting what that extra 1% levy is called if it stays in place for years.

 

[Stephen65]

Fixed - accounting for the flood levy:

100,000 points on 1.5:1 amex = $66,667 spend x 0.0125 x 0.525 = $437

100,000 points on 1:1 visa = $100,000 spend x 0.0048 x 0.525 = $252

100,000 points on 1.25:1 visa = $80,000 spend x 0.0048 x 0.525 = $202