Qantas launches a new dynamic pricing redemption option, but is it a good deal?

Qantas Frequent Flyer has announced a new option to redeem Qantas points for seats across its network. Named “Classic Plus Rewards,” this dynamically priced redemption tier expands the Frequent Flyer program as it now offers customers access to 20 million reward seats annually. This option is in addition to Qantas’ already existing “Classic Flight Rewards,” which only offers 5 million award seats annually.

Though Classic Flight Rewards will most likely get you a better redemption offer for your points, the limited availability has made it a frustrating point within the loyalty program for members. So, will Classic Plus Rewards be any better?

Here is everything you need to know about the Qantas program loyalty changes, including if it is a good way to use your points.

What is Qantas Classic Plus Rewards?

The new Classic Plus Rewards redemption option allows members to redeem their points for a much larger number of seats than the limited Classic Flight Rewards option, which offers a fixed redemption rate of:

• 0.01 Australian dollars (about $0.066) for economy seats
• AU$0.015 (about $0.01) for premium economy, business class and first class

Classic Plus Rewards are dynamically priced, meaning they fluctuate depending on the demand for cash fares on the same flights. Dynamic pricing is now commonplace among U.S. loyalty programs.

These new redemptions are now available for Qantas-operated international services for travel from July 1, with domestic redemptions within Australia coming later in 2024.

For example, when searching for flights from Melbourne Airport (MEL) to Dallas Fort Worth International Airport (DFW) in September, Qantas shows a Classic Flight Reward available for a nonstop flight for 94,900 Qantas points one-way in premium economy. As there is no Classic Flight Reward availability in economy or business class, Qantas Frequent Flyer members can now opt to redeem more points to book Classic Plus Rewards in these classes.

Classic Plus Reward redemptions will not be available on flights operated by partner airlines, including American Airlines, Emirates and British Airways.

Related: A perfect hop across the Pacific: Qantas 787 business class

How else can I redeem my Qantas points?

Qantas Frequent Flyer members can also choose between the existing Classic Flight Rewards and Points Plus Pay to redeem their Qantas points for flights on Qantas and its partner airlines.

Classic Flight Rewards follow award chart pricing and offer attractively low redemption rates, with one-way flights from Los Angeles International Airport (LAX) to Sydney Airport (SYD) priced at 41,900 points in economy and 162,800 points in first class.

Availability of Classic Flight Rewards is strictly limited, with seats difficult to find. Social media is flooded with Qantas members complaining they can never find Classic Flight Reward seats on the flights they want to take.

On the other end of the scale, the Points Plus Pay option allows members to book any cash seat with points but only at a rate of AU$0.006 per point (about $0.004). This has always been a poor value redemption option since flights could easily cost more than a million Qantas points each.

There are no changes to Classic Flight Rewards or Points Plus Pay following the introduction of the new Classic Plus Rewards.

Related: A review of Qantas’ premium economy class on the Airbus A380 from Melbourne to Los Angeles

Are Qantas Classic Plus Rewards a good deal?

When announcing the new way to use Qantas points, the airline stressed that it has listened to members’ complaints about the lack of Classic Flight Rewards. The carrier notes that this new option will provide far more seats, with 20 million Classic Plus Reward seats to be added this year. This additional availability will only be given to Qantas members, not members of partner airline programs like American Airlines AAdvantage.

When a Qantas cash fare is on sale and you have many Qantas points to redeem, this could represent a decent deal. The issue is that for long-haul flights, especially in premium cabins, Qantas traditionally has extremely high cash fares.

This round-trip Dallas-to-Sydney itinerary in business class, for example, would require almost 1,500,000 Qantas points per person if booked as a Classic Plus Reward. This is higher than almost any other program would charge for flights to Australia.

You will also not earn any Qantas points or elite status qualification credits for a Classic Plus Reward booking.

How to earn Qantas points

While there are no Qantas branded credit cards available in the U.S., you can transfer rewards from three programs with transferable currencies directly to Qantas Frequent Flyer:

Each has a transfer ratio of 1:1, so 10,000 points equal 10,000 Qantas points.

Many of these programs offer cards with terrific welcome bonuses. Here’s just a sample of the travel rewards credit cards that earn these transferable points that can be converted to Qantas points:

You can also transfer Marriott Bonvoy points to Qantas Frequent Flyer at a 3:1 ratio, meaning 3 Marriott Bonvoy points become 1 Qantas point. Marriott will also add 5,000 bonus points when you transfer 60,000 Bonvoy points to an airline.

Bottom line

If you can find Classic Flight Reward availability, this remains a great way to use your Qantas points to easily obtain over 1 cent per point in value. While seats at this level are easy to find in economy class, the issue remains that these seats are extremely limited in premium cabins.

The new Classic Plus Rewards option is a better deal than the existing Points Plus Pay option — but not by much given Qantas’ high cash pricing.

If you are sitting on a large balance of Qantas points, keep an eye out for sale fares on Qantas-operated flights, as this could lead to a sensible Classic Plus Rewards price. However, if you cannot find Classic Plus Reward or Classic Flight Reward availability, you are better off transferring your credit card points to other programs.