Qantas is set to unveil a significant overhaul to its frequent flyer program this Monday, April 8, aiming to provide greater accessibility to seats through the use of Qantas Points.
At a highly anticipated event hosted at the airline’s Sydney headquarters, Andrew Glance, recently appointed as CEO of Qantas Loyalty, will introduce the new Classic Plus rewards tier. Positioned between the existing Classic rewards and Points Plus Pay options, this tier is designed to address common challenges faced by customers when redeeming their points for seats.
The anticipated changes, first brought to light by internal documents from Qantas Loyalty and reported by The Australian Financial Review’s Ayesha de Kretser, are tailored to enhance the customer experience.
The introduction of Classic Plus will introduce a novel category of reward seats that can be booked using Qantas Points. The pricing structure for these seats will be closely tied to the cash price of airfares, with a ratio of 1 Qantas Point per 1 cent for economy flights and 1 Qantas Point per 1.5 cents for business class.
Although Classic Plus rewards may generally be more expensive than fixed-rate Classic rewards, they will require substantially fewer points compared to Points Plus Pay fare combinations.
For instance, a one-way business class fare from Sydney to Melbourne to Brisbane to Singapore, booked as a Classic reward seat for 68,400 Qantas Points, could translate to around 215,000 Qantas Points under the Classic Plus booking, based on a typical mid-October ticket price of $3,220.
Classic Plus is anticipated to cater particularly to ‘points whales’—individuals who amass significant points, often through activities such as spending on Qantas credit cards. These rewards will typically be made available 353 days in advance, coinciding with the release of Classic reward seats.
Glance is expected to emphasize that there will be no changes to the existing Classic rewards structure, assuring members that the number of points required for such rewards will remain consistent.
The forthcoming adjustments to Qantas’ frequent flyer program underscore the airline’s commitment to enhancing member benefits and optimizing reward redemption processes.