Experts reveal the big mistakes to avoid with frequent flyer points as travel lockdown tempts Aussies to spend them on gift cards
- Experts say hanging onto your frequent flyer points gives buyers the best value
- Many Australians are stockpiling points amid online shopping boom of COVID-19
- Reward programs are tempting Australians to spend their points out of travel
- Redeeming points for flights over material items gives buyers ten times the value
Frequent flyer points should be saved for when travel returns to normal instead of being spent on reward programs to get the best value for money.
Australians are being tempted into spending their valuable points on gift cards and other material items, but experts say this diminishes the profit of your points.
Redeeming your points for flights over material items can give buyers up to ten times the value per point.
Steve Hui, the CEO of iFLYflat, believes hanging onto your points while travel is restricted is the way to go.
Experts say hanging onto your frequent flyer points will give you the best value for money instead of spending your points on material items in reward programs during travel restrictions from COVID-19. Pictured: a woman watches over Noosa National Park in Queensland
‘You might be tempted because you have heaps of points, but if you hold back you will be rewarded with flights in the future,’ he told News Corp.
Despite travel restrictions, Australians are still earning loads of frequent flyer points amid the online shopping boom of the pandemic.
But a large quantity of points does not mean you should spend them, as redeeming frequent flyer points outside of airline travel reduces their worth.
Mr Hui said when points are spent on gift cards they are only worth 0.5cents, while an economy flight is worth 1.2cents and business flights jump to as much as 5c per point.
Redeeming points for flights over material items gives buyers up to ten times the value. Pictured: a woman wearing a face mask checks in for a flight at Sydney Airport in September
Many Australians are stockpiling frequent flyer points amid the online shopping boom of COVID-19
Stockpiling points can be risky if airlines inflate airfare prices and alter reward programs into the future, but Mr Hui said the benefits will be paramount at the return of international travel.
‘You know travel will resume and when it does you will be glad you have got the points to pay for it,’ he said.
Mr Hui’s sentiment was backed by thechampagnemile.com.au founder Adele Eliseo.
‘As an example, Qantas Frequent Flyer members can extract a value of 0.58c per point when redeeming for vouchers from David Jones and Myer,’ she said.