Frequent flyer points worth about 1 cent
The Australian Consumer Association has slammed Australia's frequent flyer schemes, saying that most passengers would be better off just buying the cheapest flights on offer.
Choice cited that Qantas made 60% of its profit last year selling points in its frequent flyer scheme to credit card companies and retailers.
In a best-case scenario, travellers would have to spend $5,000 per month ($60,000 per year) on their credit card to get $1,000 worth of Frequent Flyer points, and if they spent an average amount – $1,000 a month – on their card, any points earned would be eaten up by credit card fees.
Choice estimates the approximate value of a frequent flyer point at just one cent, with 19,800 points needed for a Sydney to Perth flight in economy, worth about $198.
Source: Australian Business Traveller