Qantas eyes rivals with boost to top-tier loyalty programme

Qantas says the new offer will run for a week. Photo / Josh Withers on Unsplash

Qantas is tweaking its loyalty scheme with a new campaign today.

Qantas Loyalty chief executive Andrew Glance said ex-tropical Cyclone Alfred had caused some delays for the airline but the new Status Fast Track offer was taking off today.

“We’re having to do a fair bit of work. It will go live on Wednesday for a week. And the double-status, double points campaigns are without a doubt one of the most popular weeks in our frequent flyer calendar,” he told the Herald just ahead of the launch.

Qantas said Status Fast Track allowed top-tier members of other airline loyalty programmes the chance to switch and speed up their status to Gold at the Australian flag carrier.

Status Fast Track enabled members to climb faster up tiers, gaining entry to hundreds of lounges worldwide, priority boarding, and access to other benefits.

Alternatively, members could choose to put their points balance towards a future trip or flight upgrade.

“It appeals to all our frequent flyers,” Glance said.

The programme was a big logistical undertaking and the airline also had to contend with disruptions in Queensland due to Alfred.

“Anything that is airline-related is quite complex. So these campaigns are extremely well-thought through,” Glance said.

“Aviation is an extremely competitive industry, and so are loyalty programmes.”

Qantas Loyalty chief executive Andrew Glance says the new fast-track programme is ready to go. Photo / Supplied

The new offer meant eligible frequent flyers with Gold or higher equivalent status at selected other airlines could get Qantas Gold by earning 100 status credits within 90 days on flights with Qantas, Jetstar, and its partners.

Usually, the Gold status required 700 status credits in a membership year.

This week’s changes follow a revamp of the Qantas Loyalty proposition last November.

Qantas said that revamp was popular, with 80% more expressions of interest than four years before.

The airline reported a 230% increase in members activated on the fast-track last year compared to in 2020.

Loyalty schemes for many airlines are big business, and credit card partnerships or selling points to other third parties can be lucrative.

Air New Zealand’s loyalty boss in November said the airline would fight raids on its upper-tier Airpoints members.

The airline’s loyalty general manager Kate O’Brien at the time said members spent the equivalent of nearly 3.5% of New Zealand’s GDP with Airpoints eligible cards.

KrisFlyer, the Singapore Airlines lifestyle rewards scheme, hit 10 million members this month.

Singapore Airlines said KrisFlyer membership experienced 20% growth in the last year.

The airline teamed up with a major bank to give BNZ Advantage Visa credit cardholders the chance to transfer BNZ points into KrisFlyer miles, flights, and other goods and services.

But some loyalty programmes were under pressure from generational trends, airline data company OAG said in a report last year.

OAG said far more older travellers were likely to enrol in loyalty schemes than their younger peers were.

Younger flyers tended to move around different airlines and wanted to be able to redeem loyalty points quickly, the report added.

“To entice sign-ups for airline credit cards, the majority of travellers want free checked baggage (63%) and sign-up bonuses (56%), with 43% wanting access to airport lounges,” OAG added.

A study from search and booking engine Point.me last year ranked the Air France/KLM Flying Blue loyalty scheme the best in world.

It ranked Japan’s ANA Mileage Club, Cathay Pacific Asia Miles, and KrisFlyer the best in Oceania and east Asia. It ranked Qantas Frequent Flyer sixth and Air New Zealand Airpoints 10th in the region.