1. NEW REWARD PROGRAM IN AUSTRALIA
 

A new on-line loyalty program launched today (Tuesday, August 6, 2002) and linked with Virgin Blue has brought back competition into Australia's domestic frequent flyer market.

Revitalise Ansett reward points

The newest kid on the block allows former Ansett Global Awards point holders to "reactivate" some of their old points. This should prove to be a big carrot for many disgruntled former Ansett frequent flyers. Upon joining the Triple A Club, old Ansett point holders will be able to revalidate between 1,000 and 3,000 of their old points. On top of this, their remaining points will be placed in a revalidation account. Depending on your membership status, the Triple A Club will then revalidate between 1 and 1.5 points each time you make a purchase with program partners. You also earn Triple A Club points for your purchases.

Virgin vouchers

As we predicted earlier in the year, Virgin Blue is now linked with a domestic reward program. It's not exactly Virgin's own program, but it's a start and you can now earn loyalty points - which can be redeemed for travel - when making an online booking with Virgin Blue. This is the 1st domestic alternative to the Qantas Frequent Flyer program since the collapse of Ansett almost a year ago. While Virgin Blue has not endorsed the Triple A Club as its official rewards program, the airline is a program partner in the scheme.

How it works

The unique aspect of this new club is its trust account-based pointing system. Unlike other loyalty programs, the dollar value of points earned by its members is placed in a bank account. The club claims the innovative measure will prevent another Ansett Global Rewards collapse fiasco because the points are backed by cold hard cash in the trust fund.

The costs

Joining fee is $30 and the annual membership fees range from $39 to $149, depending on the status. You'll get between 1,000 and 3,000 points upon joining and there's no use-by-date on points earned, as long as the membership stays active.

Our view

The Triple A Club is certainly an exciting addition to the stale domestic frequent flyer market. Time will tell whether the on-line program will catch on with the flying punters, but its positioning in the market - being non-bank or airline based - may prove appealing. It is also the first serious attempt to capture the former Ansett members, something the banks and perhaps even Qantas should have done a long time ago. The biggest downer about this concept so far is that points can only be earned on purchases made through the club's online partners. The trust account guarantee is an interesting concept and should provide relief to those still cursing Ansett.

Visit the TripleAClub website for more information.

2. PROGRAM SHOPPING
 

Plan of attack

With more and more loyalty programs entering the market, we thought it was time to rehash on some of the golden rules to remember when thinking of joining a new credit card-based reward program. Here are a few tips to consider if you're facing the "which card's best for me" dilemma:

1. Set your goals
Choosing the right card will be easier if you know what sort of reward you're after.

2. Is it all there?
If it's air travel you're after, check if the partner airlines fly to the destinations you want to visit. Just as important is how flexible they are with letting you fly with other partner carriers, especially if you're planning to go overseas.

3. Exchange rate
Check what the program's dollars-to-points conversion is. These can range significantly and you really want at least one for one offer otherwise you could be saving forever.

4. Hidden fees
It's easy to neglect, but you really ought to add up all the costs, such as the annual fee and joining fee and offset that from the reward you're hoping to claim by the end of the year. If it's more than the goods you're after, it's not really a reward.

5. Expiry date
If the points expire within a limited time, consider whether your goals are actually achievable in that time. If not, change your goals or sign up with someone else.

6. Exploit the family
You can't choose your family but you can use them. You'll earn more points faster if your close ones buy their products on your card. So for instance your kids' textbooks, phone bills and shopping bills can all be whacked on the loyalty card, earning you extra points.

7. Go cashless
Use your card for ordinary, everyday spending such as fuel and groceries. You'll be amazed how quickly you'll rack up points on daily items. Of course the big secret here is to make sure you have the funds to immediately pay back the credit amount, otherwise the high interest will quickly "eat up" the real value of your rewards. And of course don't buy things just for the sake of racking up free points, that's counter-productive.

8. Stay with one program
You'll reach your goals faster if you concentrate your spending on one loyalty program.

New ANZ reward program

As we reported on the Frequent Flyer Club site a few weeks ago, ANZ has launched a new reward program. Sphere, a new "non-airline-frequent-flyer" program, can be used with the ANZ First card and offers a lower cost alternative to the popular ANZ Qantas Visa card. While the Qantas Visa card has repositioned itself to cater more to the flying public, Sphere will take care of those who preferred to redeem their points for other goods and services, including travel vouchers redeemable at Harvey World Travel. We value a Sphere point at 0.6c when used to purchase travel. In comparison, Westpac's Altitude is worth about 0.8c per point and NAB Gold about 1c per point.

New card for Asia

For those with a second home or office in Asia, American Express and Singapore Airlines have issued a new program card. The American Express Singapore Airlines Krisflyer Credit Card was launched in Singapore, Hong Kong, Malaysia and Taiwan. Members receive Krisflyer miles each time the card is charged, double miles on Singapore Airlines or SilkAir tickets and between 3,000 and 5,000 bonus points upon joining.

US merger

Big news from the US with the announcement of a merger between US Airways and United Airlines loyalty programs. Under the new scheme Dividend Miles and Mileage Plus members will now be able to earn and redeem points through both airlines. The move, according to US Airways president David Siegel will help the airline financially by expanding its client base and providing more choice and flexibility.

Is this seat taken?

A quick update on Qantas Frequent Flyer seats still available for redemption, according to stats released at the end of July. For August and September travellers, seats on international flight were still available between Sydney and Auckland, Jakarta, Tokyo and Manila and Melbourne and Tokyo, Auckland, Christchurch, and Perth and Jakarta. On the domestic market, flights still available for travel in August, September and October included routes between Sydney and Melbourne, Perth, Ayres Rock, Darwin, Alice Springs; Melbourne and Hobart, Perth; Brisbane and Darwin; Adelaide and Sydney, Melbourne. Availability depends on class of travel...and any strike action...

Email points

Airlines are increasingly looking for ways to entice new members. The latest promotion from United Airlines is to offer 500 points to those who sign up for its emailing service. But the offer's only open to those not already on the mailing list, so "old timers" miss out.

On print

Qantas is now issuing "printer-friendly" Frequent Flyer statements on its website. The service allows you to print and file your activity statements without having to wait for the official mail-out.

Rumour mill

This year the Singapore Airline's KrisFlyer program has been developing an increased presence on the Australian market. It could get interesting if the slow build-up would result in a third domestic airline, backed by the Singapore carrier. Already there's been at least one suggestion we've come across that if a third carrier was to take off, it should consider buying Ansett's old naming rights and tapping into the defunct airline's customers.

Best in first class

Forbes.com readers have voted the Singapore Airlines as the carrier with the best first class facilities in the business. More than half of the 320 votes went to Singapore Airlines. Also last month the carrier picked up the Best Foreign Airline award in the Travel & Leisure World's Best Awards.

More flying kangaroos

Qantas will increase its services to New Zealand and Europe from October 27. Sydney-Auckland return services will be boosted by 15 per week - from 22 to 37; Sydney-Christchurch return services by four per week - from 17 flights to 21 per week operating Boeing 767 and 737 aircraft; and a fourth weekly return service to Rome will also be add.

Philippines on the cheap

Companions get a 50% discount on return economy award flights for travel between Sydney, Melbourne or Brisbane and Manila. The offer is also open to connecting award flights in Australia. Valid until end of August but you must travel before the end of October.

Half price coast to coast

Book an award flight or purchase one between Australia or New Zealand and Los Angeles and Qantas will take 50% off the onward award booking between LA and New York. That's about 15,000 for economy class or 22,5000 for business class. Offer expires August 31 for travel until October 26.

25% off

KrisFlyer is offering a 25% discount on round-trip Singapore Airlines tickets until the end of August. Destinations include Perth, Sydney and Melbourne. KrisFlyer is also offering a bonus 1,000 miles for customers choosing its e-ticketing service.

NZ bonus

Air New Zealand's promoting its "book-online" service, promising up to 1,500 bonus Air Points for bookings made via the net before September 15. Economy bookings will get you 1,000 bonus points while First or Business Class reservations score 1,500 bonus Air Points.

Extra bonus

It's the biggest "points for on-line bookings" offer we've seen to date. United Airlines is offering a bonus 3,000 miles for round-trips between Australia and any of United's destinations if booked online before September 30. You'll receive 3,000 bonus miles for your first round-trip, and 500 bonus miles per flight segment (1,000 bonus miles round-trip) for this and every subsequent ticket booked online.