Frequent Flyer Programs In Australia Lose Ground Globally, Leaving Travelers Disillusioned: Know More About It

Published on September 13, 2025

Frequent flyer programs are a celebrated perk among galore travelers, and millions of Australians are enrolled successful loyalty schemes to gain points and bask benefits. However, a caller world ranking by Point.me, a rewards hunt platform, has revealed that Australian predominant flyer programs are offering overmuch poorer worth compared to their world counterparts. The ranking assessed 59 programs worldwide crossed cardinal areas specified arsenic spot availability, booking fees, customer service, and wide value.

In this year’s rankings, Air France’s KLM Flying Blue topped nan list, followed by American Airlines’ AAdvantage and Alaska Airlines’ Mileage Plan. Despite boasting a mixed full of 30 cardinal members, Australian programs Qantas Frequent Flyer and Virgin Velocity were notably absent from nan apical 10, a worrying motion for those who trust connected these schemes for recreation benefits. Qantas made a humble improvement, climbing 7 places to 17th, but was still marked “poor” for redemption rates. Virgin Australia’s Velocity program, however, did not make it into nan rankings astatine all, chiefly owed to its attraction connected a home network.

This article delves into why Australian predominant flyer programs are lagging successful world rankings, nan challenges they coming to Australian travelers, and what tin beryllium done to maximize nan worth of predominant flyer points.

The Global Ranking: Why Australian Airlines Are Falling Short

The world ranking conducted by Point.me analyzed 59 predominant flyer programs from airlines worldwide. Factors specified arsenic reward spot availability, redemption value, customer service, and wide programme worth were weighed successful this analysis. KLM Flying Blue, American Airlines AAdvantage, and Alaska Airlines Mileage Plan emerged arsenic nan apical 3 programs, praised for their flexibility, availability, and easiness of use.

In contrast, Qantas Frequent Flyer classed 17th, an betterment of 7 places from erstwhile years. However, contempt this humble improvement, nan programme was still rated poorly for redemption rates, a important constituent of immoderate loyalty program. Virgin Australia’s Velocity, often considered a competitor to Qantas, did not make nan database astatine all, chiefly owed to its constricted scope and reliance connected a home network.

This year’s study sheds ray connected immoderate uncomfortable truths for Australian travelers: their loyalty to Qantas and Virgin whitethorn not beryllium yielding arsenic overmuch worth arsenic expected. With rank successful some programs topping 30 million, nan anticipation was that these loyalty schemes would rank higher. Unfortunately, nan reality is that Australian programs are falling down their world counterparts successful providing a bully worth proposition for their members.

The Struggles of Reward Seats: Limited Availability and Unpredictable Cancellations

One of nan biggest issues highlighted by nan study is nan deficiency of reward spot availability, peculiarly during highest periods. Julie Lintveltj, a Sydney resident, knowledgeable nan drawbacks of this rumor firsthand. Lintveltj, who had planned a dream travel to Rome for herself and her girl utilizing 120,000 Virgin Velocity points, recovered herself stranded astatine Sydney Airport aft her formation was abruptly cancelled. Worse still, nan cancellation came pinch no anterior notification from Virgin Australia aliases its partner, United Airlines, leaving nan family to fend for themselves.

Despite spending hours connected nan telephone pinch some airlines, Lintveltj received small assistance, and aft having nary different option, she had to acquisition 2 one-way tickets for $5,000. While her Velocity points were refunded aft six months, Lintveltj ne'er received compensation for nan further expenses incurred owed to nan cancellation.

Her acquisition highlights a important flaw successful nan system, peculiarly erstwhile flights are operated by partner airlines. When these flights are canceled, passengers are often passed betwixt nan airlines, leaving them without clear recourse aliases support. This is simply a increasing interest for galore predominant flyer members, particularly considering that travel security typically does not screen losses from reward formation cancellations.

This business serves arsenic a reminder that reward flights are not arsenic secure arsenic purchasing rate tickets. Airlines do not guarantee nan readiness aliases soft execution of reward flights, and erstwhile issues arise, customers are often near successful nan acheronian pinch small thief from nan airline.

How Frequent Flyer Programs Operate: A Lucrative Business for Airlines

Frequent flyer programs are acold much than a work for loyal customers; they are a highly profitable business exemplary for airlines. Airlines make important revenue by trading points to third-party partners specified arsenic in installments paper companies, banks, hotels, and retailers. In turn, airlines often use erstwhile points spell unredeemed, aliases erstwhile members redeem them astatine a worth little than their existent rate worth.

For instance, Qantas generated $2.6 billion successful 2023-24 done its loyalty program, pinch an further $3.3 billion worthy of unredeemed points still successful circulation. Similarly, Virgin Australia’s Velocity program earned $409 million. These figures item nan immense profitability of these programs, but they besides underscore nan imbalance betwixt nan airlines’ net and nan existent worth provided to customers.

Frequent flyer points enactment arsenic a shape of integer rate for airlines. They are sold to various partners, and airlines profit erstwhile these points are redeemed astatine a fraction of their existent value. The usage of off-peak flights for rewards and loyalty incentives to promote customers to instrumentality to a azygous hose make these programs a cornerstone of galore airlines’ business strategies.

What Protection Do Australian Travelers Have?

The ACCC (Australian Competition and Consumer Commission) has warned that travelers relying connected predominant flyer programs must see nan risks involved. These programs tin travel pinch important limitations, peculiarly regarding reward spot availability, cancellation policies, and hidden fees. Travel insurance often does not screen losses incurred from canceled reward flights, leaving travelers susceptible to unexpected costs, arsenic illustrated by Julie Lintveltj’s experience.

The rumor of partner airlines further complicates matters. When flights are operated by a partner airline, nan work for handling cancellations aliases compensation often gets muddied, leaving nan rider to navigate nan bureaucratic maze betwixt airlines. This deficiency of clear accountability tin make it highly difficult for passengers to person timely resolutions.

How Much Are Frequent Flyer Points Really Worth?

While nan caller rankings person shown that Australian programs are lagging, predominant flyer points tin still connection important worth erstwhile utilized wisely. According to Finder, a financial comparison website, Qantas points are typically worthy astir 2 cents each erstwhile redeemed for Classic Reward flights. In comparison, Velocity points are weighted betwixt 1 to 2 cents each. However, nan worth of points tin up and down significantly, peculiarly erstwhile redeemed for non-flight rewards, specified arsenic hotel stays aliases merchandise, wherever their worth tin driblet to little than half a cent per point.

To maximize nan worth of predominant flyer points, it is important to cautiously measure redemption options. Flights, particularly successful premium cabins, usually connection nan champion worth for points. Travelers should debar redeeming points for products that connection small aliases nary worth compared to their rate equivalent.

Tips for Maximizing Frequent Flyer Points

To guarantee that predominant flyer points present their maximum potential, see nan pursuing tips:

1. Plan and Book Early: Reward seats are successful precocious demand, particularly during highest recreation seasons. Early booking increases nan chances of securing a reward seat.
2. Know nan Value of Your Points: Check nan marketplace worth of reward flights versus cash fares to guarantee that you’re getting bully worth for your points.
3. Stay Active pinch Your Points: Avoid constituent expiration by making occasional redemptions aliases earning much points done partners.
4. Be Flexible: If your recreation dates aliases routes are flexible, you tin agelong your points further by uncovering little engaged periods aliases replacement connections.
5. Have a Backup Plan: Given nan inherent risks of relying connected reward seats, it’s wise to person a backup action successful lawsuit things don’t spell arsenic planned.
6. Stay Informed: Keep up pinch programme changes by reference nan good people and signing up for loyalty alerts to enactment up of immoderate shifts successful constituent requirements.

Australian Airlines Must Reevaluate Their Frequent Flyer Programs

Despite nan sizeable fame of Qantas and Virgin Australia’s loyalty programs, caller world rankings show that these schemes are not providing nan aforesaid worth arsenic those offered by world airlines. Frequent flyer points tin still beryllium valuable, but it’s important for travelers to enactment informed and strategical erstwhile utilizing them. For Australian airlines, location is important room for improvement, particularly successful ensuring nan readiness and reliability of reward seats and making nan redemption process much transparent and user-friendly.

Ultimately, it’s important for travelers to measurement nan worth of their predominant flyer points carefully. While Qantas and Virgin Australia proceed to beryllium cardinal players successful nan Australian market, nan clip whitethorn person travel for them to reimagine their loyalty programs to amended service their increasing membership.