Best Value for Frequent Flyer Points per 1,000 Spent?
The infographic above looks into the value behind frequent flyer points given to customers within the Qantas and Virgin programs. The figures are based on the different point reclamation methods provided by each company. The value of return is based upon spending 1,000 frequent flyer points. The majority of point cards within the industry return one point per dollar spent with the company, so this will equate to the value of $1,000 spent.
Clearly from the images above, the worst value for money is on tech products and other goods because you receive the least amount of return for your points / money spent. The Virgin and Qantas website stores both have products such as the iPhone 6, retail store gift cards, kitchen aid cookers, cinema tickets and microwaves for sale. Each 1,000 points collected would only hold a value of $5 discount towards these types of products.
Finder compared flights from Sydney to Perth over ten different days and the value of the 1,000 points against the price of those trips reached a higher value of $13. Although this amount is still little, it’s twice the value received against the goods mentioned above.
Looking at those same flight dates but on a business class seat proved to generate considerably more value for money. Although the business class flights cost 8x more than economy and consumed double the amount of points, the amount of points generated from buying a business class ticket still increased the value. A value of $50 could be reached when spending 1,000 points on a business class ticket.
If you have a healthy build up of frequent flyer points, then think twice before splurging on the latest product from the business website as this will likely be the worst value for your money spent. Instead, consider receiving the best value for money by upgrading your ticket with points. Upgrading your ticket with Qantas returned $85 whilst Virgin returned $57 for every 1,000 points used.