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Analysis by Roy Morgan Research shows that just under a third of major banks and American Express Credit Card holders will be directly affected by changes to the Qantas Frequent Flyer Cards Reward program.

Changes to the Qantas Frequent Flyer Cards reward program effective from 1st April 2009 will have a direct impact on a large proportion of the major banks and American Express Credit Card customers, who previously have had the ability to convert points earned using their Credit Card to Qantas Frequent Flyer points. From 1st April 2009, Credit Card customers that are wishing to continue to have the ability to convert points earned on their Credit Card to Qantas Frequent Flyer points will need to either opt into a reward program that offers a “direct earn” option for Qantas Frequent Flyer points or will need to take up a direct Qantas Frequent Flyer earning Card. Otherwise, they will no longer be able to convert their points earned on their Credit Card to Qantas Frequent Flyer points.

According to Roy Morgan Research, of the 9 million major bank and American Express Credit Card customers just under a third could be directly affected and will need to make a decision, if they haven’t already, whether to convert any Qantas Frequent Flyer points currently accumulated, and whether to opt in to a rewards program which offers a “direct earn” option of Qantas Frequent Flyer points on their Credit Card, or whether to reassess their Credit Cards.

Chart 1: Proportion of Credit Card Customers with Credit Cards linked to Qantas Frequent Flyers

Only a small proportion of the major banks and American Express Credit Card customers already have a “direct earn” option of Qantas Frequent Flyer points, at approximately 11%, who will not be impacted by the change.  ANZ will be one of the least affected major institutions by the Qantas change, as ANZ had already initiated changes from September 2008 to shift their affected Credit Card customers.

The latest Roy Morgan Research results show that Qantas Frequent Flyer membership continues to grow and is currently at around 3.1 million.  Additionally, there have been increases in Virgin Blue Velocity membership since it was launched in November 2005, now with 1.2 million members, half of which are also Qantas Frequent Flyer members.

Chart 2: Frequent Flyer Membership

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“A large proportion of Credit Card customers will need to make a decision, if they haven’t already, on whether to convert existing rewards points accumulated to Qantas Frequent Flyer points or not, and also whether to reassess options on reward points schemes linked to their Credit Cards, or reassess the Credit Cards they have.

“With the increasing popularity of both Qantas Frequent Flyer and Virgin Blue Velocity memberships, the linkages to reward based schemes is an important consideration for both the major banks and the major airlines.”

 

For comments or further detail, please contact:

Norman Morris, Industry Communications Director

Email: Norman.Morris@RoyMorgan.com - Telephone: +61 (03) 9224 5172

About Roy Morgan Research:

Roy Morgan Research is the largest independent Australian research company, with offices in each state of Australia, as well as in the United States, United Kingdom, New Zealand and Indonesia. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan Research has more than 65 years experience in collecting objective, independent information on consumers.

In Australia, Roy Morgan Research is considered to be the authoritative source of information on print media measurement, financial behaviour, voting intention and consumer confidence. Roy Morgan Research is a specialist in recontact customised surveys which provide invaluable and effective qualitative and quantitative information regarding customers and target markets. 

Margin of Error

The following table gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

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