Frequent flyer members will now need around 20% more points to redeem premium seats. This change brings the value per point down from roughly 1.5 cents to about 1.25 cents. The airline states the adjustment is intended to balance growing demand with limited seat availability.
Launched less than 18 months ago, the Classic Plus program was designed to add more redemption options for members frustrated by limited availability. The programme quickly attracted attention, logging over one million redemptions in its first year. A significant rise in bookings came from members who had not used points in five years.
Though previously transparent with changes to carrier charges and Classic reward seat rates, Qantas made this latest adjustment without giving prior notice. The increase in points primarily affects international travel in premium economy, business and first class, which have historically provided a high return on points.
The airline appears to be responding to sustainability concerns. Almost half of Classic Plus redemptions have been in premium cabins, many during peak travel times such as school holidays. Qantas may be struggling to maintain the high-value perception the program once offered. The new points requirement lowers the value advantage of redeeming for premium travel, which was once up to three times that of gift card redemptions.
In addition to the Classic Plus revision, members now need more points to book hotel stays, holiday packages and wine, all without formal notification. The changes point to a broader issue in loyalty programs - reduced transparency and the shrinking value of stored points over time.
Elsewhere, American Express is making its own changes. From December, transferring credit card reward points to frequent flyer programs such as Virgin Atlantic and Cathay Pacific will require 50% more points. Points transfers to Qantas and Virgin Australia will remain unchanged. This shift may lead to more redemptions with Australian carriers, increasing competition for limited reward seats.
