QANTAS: Increases frequent flyer redemption costs for domestic fares with introduction of Classic Plus rewards

The Classic Plus Rewards scheme was rolled out in July 2024 to partially revamp the Qantas Frequent Flyer scheme.

Qantas touted it as making thousands of seats available at a level lower than the ‘Points Plus Pay’ scheme, but it seems to have effectively replaced Classic Rewards. This is particularly true of premium cabins.

The same inflated redemptions are to be applied to domestic frequent flyer fares from 12 December 2024.

Points devaluation by stealth

I see the Classic Plus reward platform as an effective devaluation of the worth of frequent flyer reward points. Qantas argues that the Classic Plus scheme boosts the value of Qantas Points because it makes more seats available in addition to the standard but scarce Classic rewards. The airline claims tat the Classic Plus rewards add an additional 20 million seats to be redeemed over a 12 month period. That is likely to be true. It’s just that the cost of these seats are now require multiple times the points needed for a Classic reward.

Qantas also asserts that the number of Classic rewards seats remains the same. That is exactly my beef. If Qantas really wanted to give some worth to its Frequent Flyer scheme, it would make more Classic rewards available!

The roll-out of Classic Plus to Qantas domestic and regional destinations will make points even easier to use, especially during peak travel periods when reward seats are often harder to find,” says .

Andrew Glance, Qantas Loyalty CEO

Classic Plus rewards for Domestic Flights

But I digress. lets look at the details of the application of the more expensive Classic Plus rewards to Qantas domestic flights.

Remembering that Classic rewards are redeemable at a fixed rate, whereas Classic Plus rewards,are variable and are linked to the dollar pricing of airfares, which are dynamic. The points to dollar ‘exchange rate’ for Classic Plus rewards depends on what class you are redeeming for. The rough exchange rates values points at:

• Economy = 1c per point
• Premium Economy = 1.5c per point
• Business Class = 1.5c per point
• First Class = 1.5c per point

Because the cost of a Classic Plus reward is tied to price, during sale periods or low demand periods, it might be possible to catch a Classic Plus reward bargain. This is where a Classic Plus reward is similar to or cheaper than a Classic reward.

Domestic Classic Plus reward rates

Remember that both Classic and Classic Plus rewards require a cash component for taxes and surcharges. Qantas has provided the following redemption fares between Sydney and Melbourne, which would also attract a AU$53 fee.

• Classic economy reward: 8,000 pts
• Classic Plus economy reward (standard price): 12,600 pts
• Classic Plus economy reward (sale price: 8,300 pts

In this example, the Classic reward and the Classic Plus sale fare require almost the same number of points. Given that Classic Plus are more available than Classic rewards, this can be considered an advantage for frequent flyers redeeming points.

The release of reward seats has also changed. We have got used to Classic rewards becoming available 353 days out. This also applies to Classic Plus, however there is evidence that both types of awards may not be shared that far in advance, and might be released within shorter timeframes. This is apparently in response to seat availability. If true, it means that more seats will be available for redemption during the least popular periods, and not at the most popular times – say during school holidays.

There are a few more things to remember too about Classic Plus rewards. This includes that they apply only to Qantas operated flights and not partner or codeshared flights.

2PAXfly Takeout

I’m not overjoyed by this innovation. In the main, just as it is applied to international fare redemptions, it is not great value and effectively devalues the worth of points. However, this innovation of Classic Plus redemptions being available for domestic flights does provide an alternative way of ‘spending’ your points.

As a rule, I don’t redeem points for domestic flights. If I do use points for domestic travel it is for upgrades to Business Class, which usually accords your points much greated dollar value than either Classic or Classic Plus rewards.