QAN ASX: Qantas closes in on biggest revamp of frequent flyer program yet

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QAN ASX: Qantas closes in on biggest revamp of frequent flyer program yet
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Under the changes being discussed internally, customers would be able to exchange one point for 1¢ on almost any flight across the network, sources said.

Already a subscriber?Qantas is close to finalising the biggest shake-up of its loyalty program, allowing travellers to book more flights using fewer Frequent Flyer points for the first time.

The existing program offers two ways to redeem points. Travellers can secure Classic Rewards seats, which use a set number of points, although these are often hard to find. Alternatively, they can use some points and pay the remainder – known as Points Plus Pay.. The number of points needed for Classic Rewards is always much lower than those needed for Points Plus Pay.

Steve Hui, the chief executive of iFlyFlat, a firm which provides reward point management advice, said many of Qantas’ loyal customers had given up trying to find Classic Rewards seats. In a note to clients last week, Jefferies equities analyst Anthony Moulder said the number of Qantas Frequent Flyer members had increased 76.7 per cent since 2012, but the number of Classic Seat redemptions had only risen from about 4 million to some 5 million.“It is therefore appropriate to invest in improving redemption opportunities available to members,” he wrote.

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