Qantas earns over $1billion per year from Frequent Flyer points

Discussion in 'Qantas Airways | Frequent Flyer' started by sobore, Jun 3, 2011.  |  Print Topic

  1. sobore
    Original Member

    sobore Gold Member

    Messages:
    12,421
    Likes Received:
    33,847
    Status Points:
    16,520
    http://www.ausbt.com.au/qantas-earns-over-1billion-per-year-from-frequent-flyer-points

    Qantas might be struggling, but its Frequent Flyer program is raising over a billion dollars a year, along with almost $350 million in ancillary fees from baggage and other non-ticket extras.

    The Frequent Flyer program revenue catapults it to being the world's top earner of ancillary fees, outside of the US airlines.

    The dollar value of the extra fees Qantas earns is higher even than airlines like RyanAir and Tiger Airways, who rely on directly charging customers for extra fees, and don't have frequent flyer programs.

    The author of an annaul report tracking airline ancillary revenues, US airline consultant Jay Sorensen, says Qantas earns $1.5billion per year in ancillary revenues. But $1.1 billion of this is earned from Qantas' many Frequent Flyer point partnerships with credit cards and retailers, who have to buy the points from Qantas.

    "Points in the program have seemingly gained the status of official currency through partnerships with major Australian retailers and banks. With 7.2 million members, that’s a stunning A$154 in revenue for every programme member," notes Sorensen.

    Qantas is only beaten in total dollar value by the three major US airlines: United/Continental, which collected a staggering $5 billion in ancillary fees, Delta ($3.7 billion) and American Airlines (nearly $2 billion).

    Other airlines do charge more as a percentage of their overall revenue -- Las Vegas super-budget airline Allegiant Travel topped the list, earning 29.2% of revenue from add-on fees.
     
  2. infoworks
    Original Member

    infoworks Silver Member

    Messages:
    213
    Likes Received:
    169
    Status Points:
    420
    Interesting. Also they are changing allies with phone companies in Oz from Telstra to Optus in the next month or two.
     
  3. drewbles
    Original Member

    drewbles Gold Member

    Messages:
    2,823
    Likes Received:
    12,277
    Status Points:
    10,520
    They've had deals with Optus for quite some time now for Mobile, so it's just a natural progression
     

Share This Page