Analysts say loyalty could even play a role in pushing the share price of Qantas from the $6.59 it was trading at on Friday morning to about $10.
In the 2023 financial year, Qantas expects frequent flyer members will earn about 170 billion points and redeem 165 billion of them – evidence of a highly engaged user base. The target for the 2024 period is at or above 180 billion points earned and burnt.The programs work well as a marketing mechanism for airlines – encouraging brand engagement – and even other businesses likethat purchase frequent flyer points to redistribute to their own customers.
Daniel Sciberras, editor-in-chief of Points Hack, a website with the stated mission “to help as many people earn the most points they can”, says frequent flyer points are an effective lure for potential customers. Some of Qantas’ more than 700 partners include BP service stations, tech giant Apple, the big four banks, Woolworths, credit card providers such as American Express, and Optus.Velocity lists just over 50 partners on its website, including major banks and credit card providers, but also Wesfarmer’s Flybuys program and 7-Eleven.
The complication is that the airlines cannot book the revenue from the sale of the points until they are redeemed, so it is classified as revenue received in advance in their accounts. As of last June, Qantas recognised $3.1 billion in unused points in its annual report, and Virgin nearly $438 million.
“Back in the day, anything over 50,000 bonus points for signing up to a home loan, credit card or anything else was unheard of. People may whinge about devaluation, but you have to look at the other side of the ledger,” he says.Velocity is advertising credit cards that come with up to 160,000 bonus points on its website, and Qantas Frequent Flyer cards with up to 120,000 bonus points.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Qantas faces backlash over CEO’s inaction on ageing aircraftsQantas CEO Alan Joyce has come under fire for not prioritising upgrades of the airline's ageing fleet. The airline, which has over 120 aircraft, currently has the oldest average plane fleet age in company history at 15 years. The flying kangaroo has flagged potential upgrades to replace the A330s over the next two years.
Read more »
PM in $6 million pledge for the Good Friday AppealThe Prime Minister has announced the federal government will provide $6 million over three years for the Good Friday Appeal, which raises money for The Royal Children's Hospital in Melbourne.
Read more »
‘Thousands of people’ participating in Good Friday Appeal to support Children’s HospitalThe Good Friday Appeal in Victoria has 'thousands of people' participating and volunteering in its cause to help raise money for the Royal Children's Hospital, says Good Friday Appeal Executive Director Rebecca Cowan. “Our hope this year is to raise like we do every year as much money as we can for the Royal Children Hospital, the community every year is so generous, and we’re seeing it this year again … we’ve got thousands of people down here today,” she told Sky News Australia. “Every dollar counts … whatever you can give it all adds up and it really creates meaningful change, it’s lifesaving change and it impacts all Victorians, but also we know children across Australia and internationally also need the support of the hospital.”
Read more »