Welcome to the exciting world of frequent flyer points! For many Australians, these points are the key to unlocking discounted flights, upgrades, and even dream holidays. But how do you earn them, and more importantly, how do you maximise their value? This in-depth guide from Pointshacker will teach you everything you need to know, from the fundamentals to advanced strategies.
1. Understanding Frequent Flyer Currencies (Qantas Points, Velocity Points)
Before you start earning, it's crucial to understand the main 'currencies' in the Australian frequent flyer landscape. The two dominant programmes are Qantas Frequent Flyer and Velocity Frequent Flyer.
Qantas Points
Qantas Points are the loyalty currency of Qantas Airways and its partners. They are incredibly versatile and can be earned and redeemed in numerous ways. Qantas has a vast network of partners, including airlines (like Emirates, American Airlines, Fiji Airways), credit card providers, retailers, and even petrol stations.
Earning: Through Qantas flights, partner airline flights, Qantas-branded credit cards, shopping at Qantas partners (e.g., Woolworths, BP), and specific promotions.
Redeeming: Primarily for flights on Qantas and partner airlines, flight upgrades, hotels, car hire, and products from the Qantas Rewards Store. Flight redemptions generally offer the best value.
Velocity Points
Velocity Points are the loyalty currency of Virgin Australia. While perhaps not as extensive as Qantas's network, Velocity still offers excellent earning and redemption opportunities, particularly for domestic travel within Australia and international travel with partners like Singapore Airlines and Etihad Airways.
Earning: Through Virgin Australia flights, partner airline flights, Velocity-branded credit cards, shopping at Velocity partners (e.g., Coles, 7-Eleven), and specific promotions.
Redeeming: For flights on Virgin Australia and partner airlines, flight upgrades, hotels, car hire, and products from the Velocity Rewards Store. Similar to Qantas, flight redemptions typically provide the highest value.
Understanding which programme aligns best with your travel habits and spending is the first step. Many Australians choose to focus on one primary programme, or strategically earn points in both.
2. Earning Points Through Credit Card Sign-Up Bonuses
One of the fastest and most lucrative ways to accumulate a large sum of frequent flyer points is through credit card sign-up bonuses. Australian banks and credit card providers frequently offer tens of thousands, sometimes even hundreds of thousands, of bonus points to new customers.
How it Works
- Apply for a New Card: Choose a credit card offering a substantial sign-up bonus for either Qantas Points or Velocity Points.
- Meet Spending Requirements: Most bonuses require you to spend a certain amount within a specified timeframe (e.g., $3,000 in the first three months). It's crucial to only apply for cards if you can comfortably meet this spending requirement through your regular expenses, without going into debt.
- Receive Bonus Points: Once you meet the conditions, the bonus points are credited to your frequent flyer account.
Key Considerations
Annual Fees: Most cards offering large bonuses come with an annual fee. Factor this into your decision. Sometimes, the value of the bonus points far outweighs the fee.
Eligibility: Pay close attention to eligibility criteria. Many banks have rules about how recently you've held a card with them (e.g., not having held a card from the same bank in the last 12-18 months) to qualify for a bonus.
Interest Rates: While sign-up bonuses are tempting, always remember that credit cards are financial products. If you carry a balance, the interest charges will quickly negate any value from the points. Always pay your balance in full and on time.
Credit Score: Applying for multiple credit cards in a short period can impact your credit score. Be strategic and responsible.
This method is often referred to as 'churning' - applying for cards, earning the bonus, and then cancelling or downgrading the card before the next annual fee is due, only to repeat the process later with a different card or bank. However, it requires careful management and discipline.
3. Everyday Spending: Using Points-Earning Credit Cards and Loyalty Cards
Beyond sign-up bonuses, your everyday spending is a consistent source of points. By strategically using points-earning credit cards and loyalty programme cards, you can steadily build your balance.
Points-Earning Credit Cards
Once you've secured a sign-up bonus, your primary points-earning credit card becomes your daily companion. These cards typically offer a certain number of points per dollar spent.
Direct Earn Cards: These cards directly earn Qantas Points or Velocity Points. For example, 1 Qantas Point per $1 spent.
Bank Rewards Cards: These cards earn points in the bank's own rewards programme (e.g., CommBank Awards, NAB Rewards). You can then transfer these points to frequent flyer programmes, often at varying conversion rates. This offers flexibility if you haven't decided which frequent flyer programme to focus on.
Tip: Always use your points-earning credit card for all your expenses where possible and practical - groceries, bills, petrol, dining out, online shopping. Just ensure you pay the balance in full each month to avoid interest.
Loyalty Cards and Programmes
Many retailers and service providers have their own loyalty programmes that allow you to earn frequent flyer points.
Supermarkets: Link your Everyday Rewards (Woolworths) or Flybuys (Coles) card to your Qantas or Velocity account, respectively. You can often choose to convert your supermarket loyalty points into frequent flyer points.
Petrol: BP (Qantas) and 7-Eleven (Velocity) are common partners where you can swipe your loyalty card to earn points on fuel and convenience store purchases.
Utilities: Some energy providers or insurance companies offer points for paying bills.
Always present your loyalty card or provide your membership number when shopping with partners. These small earns add up over time.
4. Shopping Portals and Partner Offers: Boosting Your Earn Rate
To really accelerate your points balance, look beyond just swiping your card. Shopping portals and special partner offers can significantly boost your earn rate, sometimes offering multiple points per dollar spent.
Frequent Flyer Shopping Portals
Both Qantas and Velocity have online shopping portals (Qantas Shopping and Velocity eStore). When you click through these portals to make purchases at participating online retailers, you earn extra points on top of what your credit card provides.
How it Works: Log into your frequent flyer account, navigate to the shopping portal, find your desired retailer (e.g., Myer, Apple, The Iconic), click through their link, and complete your purchase as usual. The points are then tracked and credited to your account.
Example: If a retailer offers 5 points per $1 through the Qantas Shopping portal, and you spend $100, you'll earn 500 Qantas Points plus the points your credit card earns for the $100 transaction.
Partner Offers and Promotions
Keep an eye out for special promotions from frequent flyer partners. These can include:
Bonus Points for Specific Purchases: E.g., double points on hotel bookings, bonus points for signing up to a new service.
Limited-Time Offers: Retailers might offer significantly higher earn rates through shopping portals for a short period.
Surveys: Some programmes offer points for completing online surveys.
Subscribing to email newsletters from Qantas, Velocity, and learn more about Pointshacker can help you stay informed about these lucrative opportunities. Regularly checking the 'offers' sections on the frequent flyer websites is also a good habit.
5. Strategic Flight Bookings and Status Credits
While this guide focuses on earning points for redemption, it's worth touching on how flight bookings contribute to your overall frequent flyer strategy, particularly concerning Status Credits.
Earning Points on Flights
When you fly with Qantas, Virgin Australia, or their partner airlines, you earn frequent flyer points based on the fare class, distance, and your membership tier. Higher fare classes and longer flights generally yield more points.
Booking Direct: Often, booking directly with the airline (rather than through a third-party travel agent) can ensure your points and status credits are correctly allocated.
Membership Number: Always ensure your frequent flyer membership number is added to your booking before you fly.
Understanding Status Credits
Status Credits (Qantas) or Status Points (Velocity) are different from frequent flyer points. They determine your membership tier (e.g., Silver, Gold, Platinum). Higher tiers offer benefits like lounge access, priority boarding, extra baggage, and sometimes bonus points on flights.
Earning Status Credits: Primarily earned through flying with the airline and its partners. The number earned depends on the fare class and distance.
Tier Benefits: Achieving higher status can make your travel experience much more comfortable and rewarding, even if you're redeeming points for your flights.
For those who fly frequently, understanding the optimal routes and fare classes to earn status credits can be a separate strategy in itself. You can find more details on our services that focus on optimising travel rewards.
6. Avoiding Common Mistakes When Earning Points
While the world of frequent flyer points offers incredible value, it's easy to make mistakes that can cost you points or money. Here are some common pitfalls to avoid:
1. Paying Interest on Credit Cards
This is the golden rule: never pay interest to earn points. The interest charges on a credit card will almost always outweigh the value of any points you earn. Only use points-earning credit cards if you can pay your balance in full every single month.
2. Not Meeting Credit Card Spending Requirements
If you apply for a credit card solely for a sign-up bonus, ensure you can comfortably meet the minimum spending requirement within the specified timeframe using your regular expenses. Don't buy things you don't need just to hit the target.
3. Letting Points Expire
Qantas Points generally don't expire as long as you have some activity (earning or redeeming) in your account every 18 months. Velocity Points, however, expire after 24 months of inactivity. Keep track of your balances and make a small transaction or redemption if needed to reset the clock.
4. Not Linking Loyalty Accounts
Missing out on points because you forgot to link your supermarket loyalty card to your frequent flyer account, or didn't provide your membership number for a flight, is a common and easily avoidable error.
5. Redeeming Points for Low Value
While it's tempting to use points for merchandise or gift cards, these redemptions often offer very poor value compared to flights or upgrades. Always aim for flight redemptions, especially for business or first-class travel, where you'll typically get the highest cents-per-point value.
6. Not Comparing Offers
Don't jump on the first credit card offer you see. Different banks and cards have varying bonus amounts, annual fees, and ongoing earn rates. Do your research and compare options to find the best fit for your spending habits and points goals. You can check our frequently asked questions for more insights on comparing offers.
By understanding the different ways to earn points and being mindful of common mistakes, you'll be well on your way to maximising your frequent flyer rewards in Australia. Happy earning!