The average Australian holds around 73,000 frequent flyer points, according to new research from TravelInsurance.com.au – yet many are failing to use them properly. The survey of 1,000 Australians found that one in five (18%) collect points but rarely redeem them, while 15% (or 3.2 million people) don’t understand how frequent flyer programmes work at all.
Even among those who do redeem occasionally, 26% admit they don’t know their points balance, risking expiry and wasted value. According to Shaun McGowan, CEO of TravelInsurance.com.au, those 73,000 points could be worth anywhere from $500 to $3,000, depending on how and when they’re used.
“That’s enough for several domestic flights or even a return trip to Asia,” McGowan said. “[But] if you’re not tracking or redeeming them strategically, you could be leaving serious value behind.”
Gen X and millennials are making their points work
Gen X and millennials are most likely to make their points work – 44% of each group say they redeem strategically. They’re also more likely to hold balances above 100,000.
In contrast, Gen Z and boomers are more passive. Around 30% of each group use their points only occasionally and don’t track their balance, often sitting under 10,000 points.
Tips for using your points
TravelInsurance.com.au recommends five tactics to avoid wasting value:
Check your points at least once a year – they often expire.
Make a habit of checking your points balance every 12 months. It helps you track progress and avoid losing points due to inactivity.
Use a rewards credit card for groceries, bills – even rent.
If you have a rewards credit card, you can earn frequent flyer points on everyday purchases like groceries, fuel, insurance and utility bills. Some rewards credit cards offer over 100,000 travel points when you sign up (provided you pay the annual fee and meet a minimum spend within the first few months).
Book flights and hotels through airline partners to “double dip.”
You can earn bonus points by booking flights, hotels or car hire through your airline’s shopping or travel partners – on top of the points you earn from your credit card.
Use points for flights or upgrades – not gift cards.
Flights – particularly upgrades or long-haul routes – tend to offer the highest dollar value per point. In most cases, using your points for flights gets you more bang for your buck than redeeming them for merchandise, gift cards or cashback.
Link your frequent flyer number on every booking site.
Always add your frequent flyer number to your account or profile when booking flights, hotels, or car hire through third-party sites like Expedia or Webjet. Missing out on points because you forgot to link your account is one of the most common mistakes travellers make. Fortunately, most airlines allow you to claim missing points for eligible flights within a certain period after travel.
“With most travel programmes, it’s a case of use it or lose it,” McGowan said. As it stands, Australians are leaving “thousands of dollars in unused travel sitting idle.”
