What is the value of Qantas frequent flyer points?

Everyone loves collecting frequent flyer points with the dream of taking advantage of any affiliated perks and benefits with the airline. But all points are not created equal, and knowing their value can help you collect and use them effectively. 

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You may have spent months or years building up your Qantas frequent flyer points in the hopes of using them for your next holiday. Before you book your tickets or spend your points, you may want to understand how Qantas calculates the value.

Interestingly, there is no set value assigned to the points you earn when it comes to Qantas frequent flyer points value. If you’re thinking how much is a Qantas point worth, it all depends on how you plan to redeem it.

You can spend the Qantas frequent flyer points for the following:

1. Flight Upgrades
2. Purchases in the Rewards Store
3. Purchasing Flights
4. Booking Hotels

But you may not get the same value for each of these redemption options. The value of one point can be low if used to buy a supermarket gift card. On the other hand, 1 Qantas point can be worth much more if you use it to upgrade your ticket from business to first class on an international flight.

At the time of writing, the cost for a return plane ticket domestically or internationally from Sydney, in terms of frequent flyer points, are as follows:

Source: Qantas frequent flyer points calculator. 

Note: Total points required for return trips travelling in economy class when searching on 14/08/2024. Based on travel to a major airport in the capital city (e.g. Heathrow in London) from Sydney, Australia. Actual points cost at time of booking may vary.

You can redeem your Qantas points to upgrade your ticket on international and domestic flights, subject to availability. If seats on a domestic flight are available, the upgrade is immediate.

However, upgrading international flights can be slightly more complex as Qantas uses different rules to prioritise who is eligible for an upgrade. So it may be better to redeem the points to pay for a ticket or partially pay for a ticket instead of using them to upgrade the ticket.

You can buy gift vouchers or products from the Qantas Rewards Store using your points. However, when used in the Rewards Store, the Qantas points worth is the lowest of all the options. Therefore, it’s advisable to choose this option only if the points are nearing expiry or you don’t plan to use your points for flight bookings.

You can use the points in two ways for flight bookings – Classic Flight Rewards and Points Plus Pay.

Through Classic Flight Rewards, you redeem a certain number of points to book the ticket for your flight. The number of points varies based on where you’re travelling and the cabin class. Generally, you’ll receive the best value if you redeem the points to book seats in premium economy, business, or first class. However, the number of points needed doesn’t depend on the actual price of the fare, so if the ticket price fluctuates, the number of points will be the same.

The actual ticket price is converted to Qantas Points with Points Plus Pay. Since the number of points needed is based on the seat’s commercial value, it’s at a lower conversion rate than Classic Flight Rewards bookings.

While checking what Qantas points are worth for flight bookings, bear in mind that seats are subject to availability as these are limited available for international travel and premium cabins.

If you’re wondering how much are Qantas Points worth for hotel bookings? You need to understand it doesn’t matter if it’s a domestic or international hotel. It also doesn’t matter if you stay in a three, four, or five-star hotel. Typically, the conversion rate of one point is 0.6 cents, but this is subject to change.

As you can see, answering the question, the value of a Qantas point depends largely on how you choose to redeem it. Before using these rewards, it's important to do some research to find the best offers and maximise their value.

In an article on The Latch, Steve Hui, Founder of iFLYflat, suggests that the value of Qantas points can vary significantly depending on how they are redeemed. For example, redeeming points for a Sydney to Melbourne economy flight might give you a value of about 2.5 cents per point. However, redeeming points for business class flights can yield much higher values, often around 4.7 cents per point. He emphasises that using points for premium cabin flights generally offers the best value, while redemptions like gift cards, economy tickets, or hotel reservations provide lower returns, often between 0.5 to 2 cents per point​.

Using this example, if you're wondering how much 100,000 Qantas points are worth, the value varies significantly based on how you choose to redeem them.

Redeeming 100,000 points for economy flights might give you around $2,500 in value, while using them for business class could increase their value to approximately $4,700. However, opting for gift cards or lower-value items could reduce their worth to between $500 to $2,000.

To maximise the value of your Qantas points, it’s important to focus not just on how you redeem them, but also on how you earn them. If you’re considering a credit card to earn Qantas frequent flyer points, take the time to compare the features, fees, and redemption conditions of Qantas-linked options to find the one that aligns with your spending habits. It’s also worth monitoring bonus points promotions and Qantas partner offers, which can significantly boost your points balance. However, be sure to assess any associated costs or restrictions carefully.

Some credit cards require a minimum spend or have specific conditions that must be met to earn or redeem your rewards. It’s important to choose a card that aligns with your budget, lifestyle, and the type of rewards or redemptions that suit your travel preferences. By carefully considering these factors, you can boost your points-earning strategy and try to get better value for your Qantas points.