Qantas has revealed how much spending on the ground its frequent flyers will have to do to earn coveted status credits, the means for advancing up the tiers of the loyalty program.
Qantas said the overhaul, first announced in August, would now allow frequent flyer program members to earn status credits from retail spending, rather than purely flying as has long been the case. The changes will be in effect from December 8.
Frequent flyer points and status credits are two separate tallies. Status credits determine what level a Qantas frequent flyer a member is: Bronze, Silver, Gold, Platinum. Those tiers control which lounge (business class, first class, etc) and what ongoing perks a member may have. Points are earned and used to purchase flights, trips and merchandise.
The change shifts the focus of the Qantas loyalty program away from customers solely in a position to fly frequently to a wider swath of the public.
Points strategist Adele Eliseo of The Champagne Mile called Qantas’ change a “meaningful development”, which will allow the airline to reward members for spreading their spending across its broad ecosystem of 700 partners.
“However, Qantas is introducing this initiative alongside changes that simultaneously make status harder to retain,” said Eliseo, noting increases to how many credits are needed to retain status.
“For travellers who fly enough to be close to earning or retaining Qantas status, this represents a worthwhile opportunity to pick up extra status credits.”
“It’s going to be less worthwhile for occasional flyers or people who are unlikely to earn enough status credits overall to reach a useful membership tier,” she said.
Under the change, members can earn up to 140 status credits on the ground a year – just under half of what’s needed to achieve Silver status, for example.
Qantas customers can gain up to 20 status credits a year on credit cards, when they earn 20,000 points in Qantas points on credit card spending.
The earn rate for Qantas points varies from a handful of points per dollar spent to less than one point per dollar spent, depending on the category. Periodic promotion can multiply the earn value or deliver a one-allotment through sign-up offers.
Qantas loyalty members can add another 20 status credits for 1000 points earned on banking and home loans, while 1000 points earned on insurance will garner 10 status credits for a member.
But members can’t earn enough only by retail activity on the ground to advance up the tiers. They’ll still need to fly to earn enough points to advance.
Under the changes, members wanting to retain their tiers will need 50 status credits more (totalling 300) to hold on to Silver status, 100 more (totalling 700) for Gold, 200 more (totalling 1400) for Platinum. But retaining Platinum One status is unchanged, requiring 3600 credits. Members still need to take least four eligible flights within their membership year to retain their status.
Is it worth it?
Silver gets you a domestic and international priority check-in. Gold gets you into the Qantas Club and International Business Lounge.
Tiered members can carry over 50 per cent of excess status credits into their next membership year as well.
While up to 140 status credits are on offer through terrestrial shopping, members will need to hit 10 separate categories including insurance, banking and home loans, holidays, retail and home utilities.
Eliseo notes: “In many cases, the cost of switching providers or taking out a new product or service could outweigh the value of the reward.”
For example, switching electricity or insurance providers could cost more than the status credit credits are worth.
“On the other hand, someone who already holds a Qantas linked credit card, shops at Woolworths and purchases fuel at BP could potentially earn 40 status credits each year without substantially changing their spending habits.”
In August, when the change was announced, Qantas Loyalty chief Andrew Glance noted that “our members have an immense appetite for earning points, but they value their status so much more”.
In a sign of Qantas’ footprint in consumer spending, Glance noted that Qantas-branded credit cards account for “roughly” 35 per cent of all credit card spend nationally.
In a statement, Glance said: “earning status credits on the ground will give members more ways to climb our tiers”.
“Now with status credits part of the equation, members will unlock even greater value from their daily spend.”
Qantas has also removed a 50 status credits bonus that was given for every 500 status credits earned.
Loyalty programs have growing importance for airlines both as a source of revenue, and a way to expand the brand’s reach through the consumer field. Qantas says it expects 5 to 7 per cent pre-tax earnings growth from loyalty in fiscal year 2027 and $800 million to $1 billion in earnings by fiscal year 2030.
The loyalty sector has been readjusting to changes in the market wrought by the Reserve Bank, which reduced interchange fee caps that directly fund the cost of air miles offered by cards as an incentive to consumers.
Loyalty consultancy Ellipsis estimates the overall loyalty market is $5.8 billion, with two thirds of Qantas Points now earned on the ground. Virgin Velocity members earning on the ground is up 40 per cent in the past year, Ellipsis reports.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
