Etihad Guest “Simplified Redemption Rates” Coming

Etihad Guest is overhauling its award charts next month. Redemption rates will change for award travel on both Etihad Airways and the program’s many partner airlines, including Virgin Australia.

While Etihad has said it will simplify its redemption rates, the airline has not advised what the new prices will be. Unfortunately, it is very likely that the many of the new prices will be higher.

So, if you’re sitting on a stash of Etihad Guest miles, you may wish to redeem them by 7 March 2023 to avoid the potential price hike!

What we know so far about Etihad Guest’s new award charts

From 10 March 2023, Etihad Guest award flight pricing will be based on a “simplified redemption rate”.

“The rates will be based on zones across Etihad Airways and our airline partners, for example there will be one redemption rate for any destination in Europe,” Etihad told its BusinessConnect members in an email.

Presumably, this means that Etihad Guest will charge the same price for award travel on Etihad Airways as on partner airlines, for travel within or between the same geographical zones.

Australian Frequent Flyer asked Etihad what the new redemption rates would be, and whether Etihad Guest members would be advised of the new pricing before or after the changes come into effect.

An Etihad spokesperson did not answer our questions directly, but provided this statement:

Members of Etihad Airways’ frequent flyer programme Etihad Guest will be able to use a simplified redemption table to spend their miles from 10 March 2023.

The redemption rates will be based on the fare zones across both Etihad and its airline partners and will be published shortly.

The airline is unable to share the new redemption table at this point, but the rates will be published very shortly.

The new pricing takes effect from 10 March 2023, but you’ll need to book by 7 March to lock in the current rates.

Between 8 and 9 March 2023, many of Etihad’s systems will be offline for a major IT upgrade. During that time, it won’t be possible to book an Etihad ticket, manage a booking or check-in online.

Etihad Guest’s current award charts

In fairness, the current award charts used by the Etihad Guest program are a complete mess and probably overdue for an overhaul. (On the other hand, this is one of the key things that makes the current program so attractive to savvy points users!)

The bizarre thing about the current award charts is that there is a different one for each of Etihad’s 20 partner airlines… and they have nothing in common.

For example, the award chart for Virgin Australia redemptions lists a specific number of miles required to book each individual route flown by the airline (with pricing ultimately based on the distance flown). But the award chart for Garuda Indonesia redemptions uses distance-based zones.

The award prices are also not particularly logical. For example, it would cost 59,000 Etihad Guest miles to fly Sydney-Seoul in Asiana Business Class. Etihad also partners with Korean Air, and it would cost 67,000 Etihad Guest miles to fly Sydney-Seoul in Korean Air’s Economy Class.

Bizarrely, Etihad Guest award bookings on many partner airlines are also currently better value than redemptions on Etihad’s own flights.

Sweet spots

The revised award pricing will probably indeed make the program more simple. This is not always the case when an airline announces a “simplification”!

Unfortunately, this change will also likely remove many of the current niche sweet spots.

For example, it currently costs just 13,800 Etihad Guest miles (plus taxes) to fly Virgin Australia Business Class on routes up to 1,250 miles including Sydney-Cairns, Sydney-Queenstown, Brisbane-Hobart, Brisbane-Port Vila and Melbourne-Hamilton Island. That’s a great deal… and one that probably won’t last.

See our guide to buying and redeeming Etihad Guest miles for more information on current award chart sweet spots.

The good news: Some awards will be bookable online

There is a silver lining to all of this.

Currently, redemptions for Etihad Airways flights can be booked online. But award bookings for all other partner airlines can only be done over the phone. This can be a slow and cumbersome process at times.

From 10 March 2023, Etihad says that it will become possible to redeem Etihad Guest miles for Virgin Australia and American Airlines flights online. So, at least the redemption process should become a bit easier.

Frequent flyer programs can change their rules any time

Of note, section 11.1 of the Etihad Guest terms & conditions says:

We may change the rules applicable to the Etihad Guest programme (including all or part of these Terms and Conditions) in whole or in part, at any time without notice. However we will make reasonable efforts to give you prior notice of the changes and any such changes to the rules applicable to the Etihad Guest programme shall apply with effect from the first date of their publication.

It’s unclear what “reasonable efforts” are being made here to notify members of the upcoming change. But the T&Cs do give Etihad Guest the right to change the rules without notice.

It’s yet another reminder of the risks of hoarding frequent flyer points. The availability and pricing of rewards can change at any time, so it’s best to use your points sooner rather than later!

American Express Membership Rewards members can transfer their points to Etihad Guest.

Matt Graham

The editor of Australian Frequent Flyer, Matt's passion for travel has taken him to over 70 countries… with the help of frequent flyer points, of course!
Matt's favourite destinations (so far) are Germany, Brazil & Kazakhstan. His interests include economics, aviation & foreign languages, and he has a soft spot for good food and red wine.

You can connect with Matt by posting on the Australian Frequent Flyer community forum and tagging @AFF Editor.