Posts Tagged ‘Frequent Flyer Schemes’
Qantas points are back and Woolworths is beginning its roll out of the long awaited (and missed) points scheme. A decision that previously saw the supermarket lose a chunk of customers could now reverse that cycle, or so Woolworths hope. Customers who used to enjoy saving money on flights by shopping at their local supermarket became disgruntled when the chain stopped offering Qantas points last year. In December however, the food retailer decided to bring the scheme back under a new three-year deal.
Customers will now have the choice to convert 10 Woolworths Dollars earned via the purchase of orange-ticketed items, into 870 Qantas points. This information was sent out to a select number of the supermarket’s rewards program mailing list over the weekend, but how will this change affect the chain’s struggling market position?
We all know frequent flyer schemes are designed to reward you with free flights and other perks for your brand loyalty. They do this by trying to keep you spending within their scheme so that you can earn rewards. The truth though, is that you will need to spend vast amounts more than the value of the rewards you become entitled too from the airlines.
One of Australia’s leading financial comparison websites, Creditcardfinder.com.au, conducted research aimed at uncovering the truth behind these schemes to find out whether they do actually offer good value or not. In the report containing their findings, 41 personal credit cards that collected either Qantas or Velocity flyer points were evaluated. The findings, which to many wouldn’t have been that surprising, suggested that instead of rewarding you, they may actually be burning a hole in your pocket.