Qantas Points or Reward Points ?

mlionel20 on 07/02/2018 - 23:53

Hi all

All this while, I have been using my credit card to earn the bank's reward points to redeem Woolworths or Coles giftcards. So instead of getting ANZ Qantas, I get ANZ Rewards. Reason being they are equivalent to cash to me, I need to spend on groceries anyway and so far they have provided good value with an approximate 1% return for Coles Mastercard.

However, it seems that redeeming for Qantas points to upgrade flights to business / first class appears to be the best value for money. However, I find that is only good if you were planning to fly already anyway. If I was to fly for holidays, my ozbargain mentality is that I have 2 options

  1. redeeming for woolworths gift cards + paying for cheapest economy flights that is non-Qantas
  2. pay for the more expensive Qantas flight and using Qantas points to upgrade to business / first class

Option 1 seems to be the clear financial winner.

Anyone?

Financial

Comments

  • bluesky on 08/02/2018 - 00:38
    +2

    Pretty sure you will get different people favouring different options, since this is so much down to individual preference and circumstance. And I bet the same person could also switch from one to the other when circumstances change.

  • Ocean on 08/02/2018 - 07:04
    +2

    Redeeming points (other than business, first, rtw) you are only getting around 0.5% return, maybe 0.7% so yes option 1 financially. Having qantas points is nice for impulse trips/ upgrades though.

  • Meho2026 on 08/02/2018 - 08:41

    Using the points to upgrade is better value, the catch is you usually can't upgrade a discount economy fare only a flexible fare which obviously costs a lot more

  • djkelly69 on 08/02/2018 - 08:44

    Given that Qantas points can be redeemed for giftcards or flight redemptions, why not earn Qantas points and keep your options open? (That assumes the points required to purchase giftcards for each scheme are equivalent, which I am not sure of.)

  • capslock on 08/02/2018 - 08:54
    +2

    There is nothing wrong with option 1. It is the easier option and you will spend less $ overall.

    Option 2 is good if you particularly want to experience flying in business class. You do get better value for your points compared to buying business class flights outright which let's face it not many people will do. Note that there are a few gotchas with this option like you need to buy a non discounted fare in order to be able to upgrade, it is a bit of a lottery whether your points upgrade gets approved, you need tens of thousands of points if you want to get upgraded for longer flights which might mean you need to spend tens of thousands of $ on your credit card. Business class travel is more fashionable because not many people get to do it but it does require some research before you can use your points on it.

  • reno on 08/02/2018 - 09:05

    keep in mind the business flight upgrade is not a guarantee. You'll be put on a waitlist and you may not get the upgrade in which your economy ticket would feel expensive since u had to buy an non discount economy ticket

    but if u were flying lots and have status, id def go with upgrade

  • dbui8743 on 08/02/2018 - 09:29
    +1

    You can also sell the points here for better value than converting them to gift cards? Notwithstanding T&C's of course.

  • barbarella on 08/02/2018 - 09:59

    I used to have an ANZ credit card with connected rewards. Then they started charging me an annual fee and it wasn't worth it, as being an older single means my usage of the CC is small. I now have a fee free credit card with another bank but don't earn rewards. I get my 5% off Woolworths egiftcards all the time through Cashrewards :). Still looking for an easy way to get 5% (or better) off Coles egiftcards…anyone know?

    • Poolprouk on 08/02/2018 - 10:15
      +1

      Check your employers benefits scheme. My employer has a benefits scheme that uses an external company (rewards gateway) to provide rewards. One of those is 5% of Coles egift cards.

      • barbarella on 08/02/2018 - 10:26

        You're fortunate…but I'm retired - Centrelink currently not offering a rewards benefit scheme damn it! lol

  • Poolprouk on 08/02/2018 - 10:32

    You're retired?? you're the fortunate one mate!!! Enjoy it. Perhaps one of your family might have access to such a deal and can help you out.

  • SmiTTy on 08/02/2018 - 22:25

    Depends… Are you after best price, or best value.

    You'll know which to choose based on that.

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