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Old 03-01-2013, 04:10 AM   #1
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Default Frequent Flyer Points

Today I got an email from Qantas International offering return economy flights Adelaide to Hong Kong return for $798 which is a very good price.
I looked to see how many points it would cost to do the same flight using my Frequent Flyer points. 60,000 points plus $524, so if I used my points I would save $274 dollars.
Qantas claim the $524 is taxes and charges, so, it's no wonder the airlines are going broke if all they make is $274 to fly from Adelaide to Hong Kong and back.
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Old 03-01-2013, 06:23 AM   #2
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Default Re: Frequent Flyer Points

I used my points to buy a 32gig iPad from the QF FF store.
It's very nice indeed.
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Old 03-01-2013, 06:39 AM   #3
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Default Re: Frequent Flyer Points

Sounds like a much better deal
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Old 03-01-2013, 06:42 AM   #4
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Quote:
Originally Posted by Drivermann View Post
Qantas claim the $524 is taxes and charges, so, it's no wonder the airlines are going broke if all they make is $274 to fly from Adelaide to Hong Kong and back.
Read the fine print. I don't know about Qantas, but if they're like some European airlines, they've just fooled you.

Amid the 'taxes and charges' is sometimes a huge 'fuel surcharge' that the airline pockets. Who knows what relationship that number has to the actual fuel costs. But what they're doing is making your miles much less valuable by making you still pay a chunk of money to them for your award flight.

there have actually been cases reported where, because of this structure, you can end up paying less for a ticket if you just buy it, than if you use your miles.
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Old 03-01-2013, 06:49 AM   #5
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Default Re: Frequent Flyer Points

Yep, I rarely use my points to buy tickets.
As most of my travel is on business, I don't pay the bill therefore my points go towards buying things I would be hard pushed to part the cash for, eg the iPad.
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Old 03-01-2013, 01:26 PM   #6
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Default Re: Frequent Flyer Points

Airport tax is killing airlines, The Uk government need to wake up and see what harm it can do to airlines like British Airways, Its no wonder airlines like Emirates, Etihad and Qatar are developing at warp speed because the low airport tax there countrys charge can make the airlines more attractive with cheaper tickets, This is helping middle eastern airlines growth, employment for its people and passing tourism $$$$.
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Old 03-01-2013, 01:45 PM   #7
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Default Re: Frequent Flyer Points

Figure your miles should be worth about 2 cents each. So that 60,000 miles should get you a ticket that is worth $1,200 (usd).

I use miles all the time to travel in the U.S. I can get a round trip 1st class ticket that is worth $1,500 (at full value) for 50,000 miles plus a meager $20 fee just by planning ahead two months.

Bottom line is that Qantas wants to totally screw you out of those miles.
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Old 03-02-2013, 06:01 AM   #8
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Default Re: Frequent Flyer Points

Quote:
Originally Posted by Drivermann View Post
Qantas claim the $524 is taxes and charges, so, it's no wonder the airlines are going broke if all they make is $274 to fly from Adelaide to Hong Kong and back.

And they don't really "make" that money in terms of profit. They have to pay recurring cost (wages etc.), the aircraft etc. On the other side you have many pax who do not get the really cheap tickets - especially everyone who's not economy and particularly business travelers. I'm not an expert but I think economy pax mostly help the airline to amortize running expenses. But then it also depends on the airline, the route, the season and so many other factors...

I think it is common knowledge that it is very hard to make money running an airline. As they say: "if you want to make a small fortune in aviation start with a big one".
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Old 03-02-2013, 08:06 PM   #9
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Default Re: Frequent Flyer Points

There are mixed opinions on frequent flyer programs but I am of the opinion that they were one of the smartest things that airlines have ever done. American really started something when they launched AAdvantage and it became mainstream.
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Old 03-02-2013, 08:28 PM   #10
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Quote:
Originally Posted by QFA388 View Post
Yep, I rarely use my points to buy tickets.
As most of my travel is on business, I don't pay the bill therefore my points go towards buying things I would be hard pushed to part the cash for, eg the iPad.
If you're dealing with an airline that makes you pay a big fee when you use your miles to purchase a ticket, then your best value is usually in using the miles to get upgraded to business or first.

the advice above is correct - try to get 2 cents of value per mile.
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Old 03-02-2013, 10:17 PM   #11
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Default Re: Frequent Flyer Points

When I use my miles, it's for pleasure travel, with family members, but only in First/Business Class. Miles for Economy Class tickets seems a waste, especially when there are so many airlines giving seats away dirt cheap.most of what you pay is taxes and fees, applicable to both paid tickets, and free tickets.

Or do as Tim does, and use your miles in the airline's catelog, for an ipad or other electronic item you would normally have to buy. Save your cash for diecast!!
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