Qantas Economy Plus: Experts Advise Caution on Points Value

Qantas is introducing Economy Plus seating, a new offering that provides up to 40 percent more legroom, priority boarding, and dedicated overhead baggage space. However, travel experts are advising caution regarding the value of using Frequent Flyer points for these upgrades.

Expert Caution on Points Value

Economy Plus Redemption Rates

Adele Eliseo of The Champagne Mile points out that redeeming points for Economy Plus typically yields approximately 0.6 cents per point. This figure is notably lower than the value often achieved from Classic Reward flights or business class upgrades, which can range from 1 cent to over 5 cents per point.

"Redeeming points for Economy Plus yields approximately 0.6 cents per point. This is considerably lower than the value typically obtained from Classic Reward flights or business class upgrades, which can offer 1 cent to over 5 cents per point."

Mark Trim, founder of Complex Travel Group, suggests that 0.6 cents per point is "slightly on the high side," with a more preferable rate being closer to 1.5 cents per point. He indicates that paying cash for Economy Plus upgrades might offer better value than using points.

The True Cost of Points

Steve Hui of iFLYflat Flights Club highlights a critical aspect: the value per point for Economy Plus can actually be lower than the cost incurred to earn those points through credit card surcharges. For example, earning 5,000 Qantas Points via a 1 percent credit card surcharge on $5,000 spend would cost $50, yet an Economy Plus upgrade redeemed for those points might only be worth $30.

Qantas' Strategic Play

Qantas has reported significant interest in Economy Plus from its Frequent Flyers, as well as corporate and leisure customers. From the airline's perspective, this new offering serves multiple strategic purposes. It helps to consume a large pool of unredeemed customer points, thereby addressing liabilities on the airline's balance sheets. Furthermore, it allows Qantas to monetize previously empty middle seats, which some high-tier flyers had enjoyed as an unofficial perk.

It's worth noting that high-tier frequent flyers will automatically be seated in Economy Plus on domestic flights at no additional charge.

Maximizing Frequent Flyer Points

Experts generally agree on a hierarchy of point redemption values. Flight upgrades and business class flights consistently offer the best value for Frequent Flyer points, followed by economy flights.

In contrast, redeeming points for store purchases or gift cards typically provides the lowest value. Virgin Australia's program, which allows points redemption for in-flight purchases, also offers low value, around 0.5 cents per point. Angus Kidman of Finder.com reiterates that while high-tier customers receive Economy Plus seats without extra cost, using points solely for this seat upgrade is not considered an optimal redemption option.