As part of their customer loyalty programs, a number of airlines across the world offer frequent-flyer points that can be earned and accumulated every time a passenger chooses to fly with them. These points can then be redeemed for various rewards or air travel.
The points you earn under frequent flyer programs can be based on a number of things, such as:
- The distance you flew with the airline
- The class of fare you pay for your flights
- The actual amount you pay
These points can then be transferred to point managing forums like www.pointsbank.com.au for efficient management and redemption that is actually rewarding.
The most popular frequent flyer programs in Australia include:
- Qantas Frequent Flyer
- Velocity Frequent Flyer
Redeeming Frequent Flyer Points
One obviously looks for the best deals on frequent flyer points available to them. You obviously want to redeem these points for something that gives you the best bang for the points you have accumulated.
On an average, the point redemption rate is one cent per point. However, this value tends to vary a lot depending on how you choose to earn and redeem your points. When we talk about redeeming points, one can explore the following options.
- Seat upgrades: It costs just about 5 to 14 cents/point (assuming each point is redeemed at 1 cent) to get seat upgrades for your flights.
- Flights: For domestic flights, you may get around 1.4 to 1.5 cents of point value, whereas the rate dips down to 0.7 – 0.8 cents for international ones.
- Obtain gift vouchers and/or products for your points
- Pay off tax portions with your points
When you talk about the rewards that are offered against redemption of frequent flyer points – the options are infinite. There is one small drawback though – they keep changing regularly.
This means that the slot toaster you were accumulating point for may not be available to you when you have ample points for it, but you can always redeem the same points for the express coffee machine you wanted to buy.
If nothing else, just keep on collecting your points till the time you find the best thing to redeem them for!
Are They Really Worth It?
Truth is, if you use your frequent flyer points wisely, there is a lot you can buy, especially if you fly a lot like business travellers. With several airlines operating in the country, one already has the advantage of competitive ticket prices to avail. So, spending precious points on tickets may not be a wise choice to make – that doesn’t mean you can’t.
It is always smarter to look for options that give you the best value in exchange for your points. May be a reduction in hotel room prices when you’re travelling, or that vacuum you had to buy because yours malfunctioned.
There is no harm in spending extra money in exchange for more points as long as you know what is it you want to spend them on. Just make sure you assess the reward benefits you’ll receive by applying a 0.01 factor to your expected points. This is how you get the average dollar value you’ll receive for the points you earn.
If you ask us, it’s best to use your frequent flyer points for upgrades or domestic flights. Rest assured, if you use them wisely, there is plenty you can redeem from the frequent flying points you collect overtime.