Frequent flyer points how does it work

For both Virgin and Qantas the earn rate depends on which airline you choose, which fare class you choose, whether it's domestic or international and whether you have status credits which are earned through flying and take you on to different levels of membership.

You can earn points by flying with an airline, but the earn rate depends on which airline and fare class you choose, whether it's domestic or international and whether you have status credits. Even though the average redemption rate for flights is around one cent, this can vary a lot. Depending on how they're redeemed, we found the value of points ranged anywhere from half a cent to over six cents.

Qantas has recently updated its frequent flyer program so you may get better value redeeming points for an economy class international flight than a seat upgrade. A CHOICE member rang us to complain about the falling value of frequent flyer points, telling our customer service staff he thought points were less valuable than in the past.

He's right. When we did our frequent flyer point breakdown in June , points used for seat upgrades were worth as much as 14 cents.

In the best value upgrades we found were worth less than half that. When it comes to redeeming points for flights, in , points were worth on average 1. In , Qantas points redeemed for flights were worth closer to 1. In June , points used for seat upgrades were worth as much as 14 cents. In the best value upgrades were worth less than half that. In February , new laws were introduced to ban unfair credit card surcharges. This was a hard-fought win for consumers.

The new laws stop businesses from using blanket card surcharges to offset the cost of expensive rewards programs that only benefit a small number of people, like Amex card holders or frequent flyers. With unfair surcharges removed for the benefit of all consumers, those individuals who take advantage of rewards programs are no longer subsidised. We're not surprised to see that, in these circumstances, airlines are reducing the value of frequent flyer points.

This may be disappointing to frequent flyers, but removing unfair surcharges benefits all of us. Hertz now collaborates in more than 60 FF programs domestic and international partners combined.

In today's market in addition to the many airline partner programs, there are several airline alliances more about these alliances a little later. Another perk in today's frequent flyer market is that you can also earn "miles" or "points" points can be redeemed later as miles for other travel and non-travel transactions. Travel transactions can include hotel stays, rental cars, and more. Non-travel-related awards include credit card purchases you earn at least one mile, if not more for every dollar charged , long-distance telephone services , even mortgages and stock trades!

Finally, shopping at certain stores, both brick-and-mortar and online, also provides an opportunity to "rack up" those miles. Your frequent flyer miles reside in your account -- much like your dollars in the bank.

They accumulate as you travel, although unfortunately they don't earn interest. At this time, most of the larger domestic airlines use a fairly uniform policy: mileage does not expire, but there must be some activity in your account once every three years. The airlines may change their mileage expiration policies, so you should read their most current guidelines. When the mileage total reaches a certain amount, you can "redeem" them for an award, usually air travel. Frequent flyer programs are the beginning of a relationship -- hopefully long and loyal -- between you the consumer and the airline.

If you choose to apply online using a Web site such as WebFlyer , your information will reside in several airline databases in a short amount of time. You can call the airlines on their toll-free telephone numbers during which you'll instantly get a member number , sign up while at the airport not advisable if you are in a rush , or send in the registration form using the old standby -- U.

There are several things to consider when deciding which frequent flyer program to join. First and foremost, look at the overall quality ratings of the program that you are considering. One way to obtain information about the quality of frequent flyer programs is to read a survey, such as InsideFlyer's Freddie Awards. If you truly are a frequent flyer, join the program that will allow you to consolidate your miles.

This would usually be with the dominant airline in your region i. The chosen airline should be convenient for you and the one that has the most flights to the places that you frequent. This is your number one consideration, because when you rapidly accrue miles and reach the critical "25," mark, you can qualify for elite status. However, if you are an infrequent flyer, compare the programs and choose the one that allows you the greatest opportunities to earn miles or points for all your non-flight activities.

Consider your patterns of purchasing hotel rooms, renting cars, and general shopping. Look at the airline's partner roster and decide whether that particular frequent flyer program is for you. If you are in this last group, you should compare the total rewards package offered for both flight and non-flight activities before choosing your primary frequent flyer program.

And, finally, you want to pay attention to the little things - the tiny print at the bottom or on the back of the enrollment form. Therein expect to find quite a few key terms and conditions, such as:. Although the programs started with U. Foreign carriers initially resisted using frequent flyer programs; they theorized that it "reduced" the value of their service. However, their resistance resulted in a significant loss of market share to the U.

In the end, they formed their own programs. When selecting a frequent flyer program, airline alliances are something else to consider. The ability to schedule seamless travel is important -- airline alliances help make it possible. An alliance is a business relationship, often between U. Its purpose is to allow foreign carriers access to the U. The goal of alliance growth is twofold:. Airlines code share so that travel can be organized to flow from one carrier to the other.

Code sharing is the industry practice in which an airline puts its code on a flight operated by another carrier. The airline then sells and issues tickets for the flight. For example, American may place its code on a flight that British Airways operates and then sell it to the customer. This is how air carriers get around restrictions to expand their market presence. In today's global economy, this truly benefits the frequent traveler. When you travel using alliance carriers, the miles are credited and can be used interchangeably.

This allows rapid accrual of miles so you can reach elite status quickly and receive the extra awards at that level. Elite status is a division of the awards programs that separates the frequent traveler from everyone else. In order to achieve this status, a customer must clock 25, frequent flyer miles. But it is also stratified -- the three levels of elite status are silver , gold and platinum.

Each subsequent level requires more mileage and thus, more paid business for the airline. Elite status provides a wide range of benefits, such as preferred boarding, lounges, gratis miles added to the regular number usually awarded, etc. Within the levels of elite status, there are three tiers of upgrades. These benefits are rewards in addition to those listed above.

As you enter this level of status, you should review: the minimum number of miles required to upgrade, and what mileage threshold is required to receive a bonus. Second-tier consumers may receive unlimited domestic and some international upgrades along with lucrative mileage bonuses. Oh my! So much useful information! This is one thing I will definitely be looking into when I get to Oz. Great post Nicole. I never really bothered about QFF as have found the fee to start up is hirer than its worth and the credit card fees are pretty large too complared to other credit cards.

At the moment we have fly buys attached to the credit card — which is a bit of a waste hey! Even if you can switch your shopping to Woolworths and remember your card! Such a fantastic break down hun! Well you have two-years — or more if you find a hottie! How many flights did it take you to get gold status though?! Just a heads up. I have just signed up for Quantas frequent flier points. I have a flight from Adelaide to Los Angeles with Fiji Airways next week and I would like to know how I would earn points towards that flight.

The easiest way to add your Qantas frequent flyer number to your booking is to get the desk agent to do it upon checking in. To upgrade from bronze you need to keep flying! The more you fly, the more credits you earn, the higher your membership level will be. Being an Aussie, I only have a very limited knowledge on how New Zealanders can earn QFF points, though I would say that many of the offers would overlap eg. With big thanks!!

To upgrade from bronze you …… […]. I would much rather spend my money or Qantas Frequent Flyer Points on flying their new Business class […]. Thankful that I held Qantas Gold oneworld Sapphire , I managed a speedy check-in and headed through to […]. Notify me of follow-up comments by email. Notify me of new posts by email.

Follow Me! Your Options Australia is lucky that we only have two major airlines to choose from — Qantas and Virgin Australia.

How do you collect points? By flying on of the OneWorld or partner airlines which can be found here. By using Qantas Cash , a debit card which also acts as a travel money card. Buying flowers through Frequent Flowers found through the Qantas site Buying tickets for musicals, plays, concerts and events in Australia and around the world through Qantas Box Office Getting your car tinted with Tint-A-Car Buying a car through Trivett Being part of Qantas epiQure — an online food and wine community Travelling with companies including, Cruiseco , Wildlife Safari , Ski Max , and Qantas Holidays Exchanging money with Travelex or purchasing In Sky Shopping available on Qantas flights Through their chauffeur service or Valet parking with Qantas Drive and their dry-cleaning service!

Hooker By taking out life insurance and income protection with ANZ Taking out loans or with online trading Printing with Snap Printing Please note not all of these will work for all people.