Qantas Frequent Flyer members are increasingly choosing to redeem points for concerts, sporting events and live shows, driven by growing demand for non-flight rewards. These experiences are now the third most popular way to use points, behind flights and online shopping. However, concerns are mounting that this value could soon drop under potential financial reforms.
A 2023 agreement between Qantas and ticketing provider Ticketek is behind the surge in redemptions. Since this partnership began, over 250,000 members have used points to access events, with major acts like AC/DC’s Power Up tour proving highly popular. Other widely attended events include major sporting finals and top musicals. This change is redefining how customers interact with the loyalty program, combining traditional travel benefits with lifestyle rewards.
Qantas says this trend complements rather than replaces flight redemptions. Billions of points were spent on event tickets last year, highlighting the appeal of using points during checkout. Nonetheless, industry analysts caution that while the option is convenient, the redemption value tends to be lower, averaging around 0.4 to 0.5 cents per point, similar to gift cards or fuel options.
This pattern of spending could be disrupted if proposed reforms by the Reserve Bank of Australia go ahead. The RBA plans to address excessive surcharging by modifying credit card interchange fees, but banks may respond by slashing point values, reducing bonus offers or increasing fees on points-earning cards. A final decision has been pushed to March due to the issue’s complexity.
Roughly 35% of credit card spending in Australia earns points, so any major changes could have wide-reaching effects. Qantas has stated that it supports greater fee transparency but warned that similar regulatory moves overseas have led to higher customer costs. The airline is working closely with its banking partners to maintain the strength of its loyalty program regardless of the RBA’s decision.
