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The increase in competition in the airline industry has sparked an increase in frequent flyer programs. With this new found choice, flyers are forced to sift through the confusing and often complex rules of each program to determine which program best suits their needs. Money Magazine has made this process a little easier with their recent article on the relative merits of the Qantas and Virgin programs.
The Qantas Frequent Flyer rewards program has been around longer than Velocity and this is its trump card — it has a bigger range of affiliated partners. So members have the twin benefits of more opportunities to earn points, plus increased choice when it comes to claiming rewards.
There are a number of ways to build your points tally with the Qantas Frequent Flyer program. The first is by booking and paying for a Qantas flight. Points here are awarded on the basis of one point per mile for eligible flights. Qantas offers a "minimum points guarantee", so a shorter trip, such as Sydney to Brisbane, will still earn 1000 points. Points can also be earned on international flights. Qantas has scheme affiliation with other airlines including British Airways, Cathy Pacific, LAN and American Airlines, along with a big menu of hotels. Rental car companies affiliated with Qantas Frequent Flyer include most of the larger outfits such as Avis, Hertz, Thrifty and Budget. You can even add to your points total through the sale or management of residential property, as property group LJ Hooker is also a program member.
As the new kid on the block, the biggest downside of Virgin's Velocity program is the limited choice of reward program partners, though doubtless this is something Virgin is working on. International carriers affiliated with Velocity include Malaysia Airlines, Hawaiian Airlines and Emirates. Other partners include Europcar (car rental), the Choice Hotels chain and Toga Hospitality. Every time you fly with Virgin or an affiliate you earn six points for every dollar spent on the fare (including taxes but excluding a credit card surcharge). So, on a standard economy air fare for a return trip from Adelaide to Darwin, you could expect to pay $510 and earn 3060 points.
Qantas Frequent Flyer points will not expire as long as you are either adding to or using your points. After three years of not using the account, the points do expire. The Velocity program offers no joining fees and no blackouts, so you should be able to use your points for a seat on any flight provided it isn't fully booked. As with Qantas, there is no expiry date on the points as long as your account remains active, otherwise the points have a lifespan of three years.
The bottom line, according to money magazine, is that with both schemes, you need to either be a frequent traveller or spend big on your credit card to get a decent reward. Otherwise you may be better off simply taking advantage of discount ticket sales offered by both Virgin and Qantas affiliate, Jetstar.
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