Frequent flyer members can expect to book more flights with fewer points in the near future as Qantas makes changes to its loyalty program.
The airline’s biggest overhaul of the program is expected to take place in April and there are rumors that a new membership scheme will be introduced.
Allows members to convert Frequent Flyers points into cash at a rate of one point for one cent when booking an economy seat. Points are expected to be worth less for higher quality seats.
Members can currently pay for a seat with points through Classic Flight Rewards or have the points converted to 0.7 cents each under Points Pay Plus.
The new tier is expected to attract more customers to Australia’s most popular flight rewards program, with more than 15 million members by 2023 – up from just over 14 million the year before.
A new subscription tier is rumored to be coming to Qantas’ Frequent Flyers program in April, as the company looks for ways to improve customer relationships (stock image)
A Qantas spokesperson told Daily Mail Australia that the new plan, which will reportedly be called Classic+, will be offered alongside the two current programs which will remain unchanged.
“We’re still working to finalize the frequent flyer improvements that address what members tell us about the importance of redeeming points for flights at the times they most want to fly,” the spokesperson said.
“It is a significant investment that will deliver great value to members, but also makes sense for the program and our partners.”
Sources close to the overhaul report this Australian Financial Statement that the points used through Classic+ are worth one cent each when booking an economy seat.
This means a $100 flight costs 10,000 Frequent Flyers points.
Sources close to the loyalty program overhaul say the new tier will allow members to convert every point into a one-cent discount on an economy seat (stock photo)
The renewal was hinted at by Qantas CEO Vanessa Hudson during a financial update last month.
She noted that since the Covid-19 pandemic, members have become frustrated with the availability of seats through the Classic Flight Rewards program.
Despite the frustration, the loyalty program has generated approximately $1.27 billion in revenue and $270 million in revenue through the last half of 2023.
The airline recently invested $50 million of the $230 million in the program to free up more reward seats.