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Frequent Flyer Factors Valuation Methodology


Qantas Frequent Flyer & Velocity Frequent Flyer – First-party valuation | November 2026 version | Flight redemptions solely

CCAU Valuation Outcomes (November 2026)

Qantas Frequent Flyer: 2.42¢ per level (flight redemptions solely)

Velocity Frequent Flyer: 2.78¢ per level (flight redemptions solely)

Methodology: 7-route basket, trimmed imply (removes highest & lowest), flight redemptions solely. Examine: Our increased determine displays exclusion of low-value present card and merchandise redemptions.

1. Function and Scope

This doc establishes CreditCard.com.au’s first-party methodology for valuing Qantas Frequent Flyer (QFF) and Velocity Frequent Flyer (VFF) factors. It’s designed to:

  • Produce a repeatable, updatable valuation every quarter
  • Be clearly differentiated from third-party sources (AFF, Level Hacks) in scope and transparency
  • Mirror the worth of factors to bank card prospects — individuals accumulating factors particularly to redeem for flights
  • Function the information spine for the frequent-flyer-credit-cards web page on creditcard.com.au

Scope: This system covers flight redemptions solely (financial system and enterprise class). It explicitly excludes present playing cards, merchandise, resort bookings, automobile rent, and Factors Plus Pay, which persistently return the bottom worth in each packages. That is the first distinction from AFF’s basket, which incorporates all redemption sorts.

2. How AFF and Level Hacks Calculate Their Figures

Understanding the present methodologies is critical context for why CCAU’s figures differ.

Australian Frequent Flyer (AFF) basket methodology

AFF calculates a “trimmed imply” valuation throughout 16 redemption eventualities. Their basket intentionally contains each high-value redemptions (long-haul enterprise class) and low-value ones (present playing cards, merchandise). The trim removes the very best and lowest values earlier than averaging.

Their reported figures (as of December 2025): Qantas 1.6¢, Velocity 1.7¢. These are blended averages throughout all redemption sorts. The present card flooring (approx. 0.46¢ for QFF, 0.4¢ for VFF) considerably anchors the typical downward.

AFF applies a ±20% qualitative weighting adjustment for elements like seat availability, program stability, and buyer expertise. That is subjective and never independently verifiable.

Level Hacks methodology

Level Hacks publishes valuations based mostly on a choice of actual redemptions. Their method is much less formally documented than AFF’s however equally blended throughout financial system, enterprise, and merchandise. Additionally they take into account alternative price (what the factors would earn in different packages) and seat availability.

Their figures align intently with AFF’s, which suggests convergence on a broadly comparable basket composition. Neither organisation publishes the precise redemptions of their basket.

Why CCAU’s figures are increased

Key distinction: CCAU excludes present playing cards and merchandise.

AFF’s basket contains redemptions returning 0.4–0.5¢ per level. Together with these redemptions is official for an ‘common throughout all makes use of’ metric, however it underrepresents the worth of factors to somebody who will solely redeem for flights. Our methodology solutions a special query: “Should you earn these factors on a bank card and redeem them for flights, what are they value?” That determine is meaningfully increased.

3. Basket Development

We chosen 7 routes based mostly on three standards:

  • Routes Australians truly ebook (home, Asia, Europe being the highest three worldwide locations by quantity)
  • Protection throughout each financial system and enterprise class (premium redemptions are the place each packages ship their greatest worth, and plenty of bank card prospects aspire to enterprise class redemptions)
  • Routes the place each Qantas and Velocity supply redemptions (enabling like-for-like comparability)
# Route Class Distance QF Zone VA Zone Money Fare
1 SYD → MEL (Financial system) Home 437 mi Zone 1 (0–600 mi) Zone 1 home $179
2 SYD → AKL (Financial system) Trans-Tasman 1,341 mi Zone 3 (1,201–2,400 mi) Zone 3 Trans-Tasman (1,201–2,400 mi) $380
3 MEL → DPS (Financial system) SE Asia 2,038 mi Zone 3 (1,201–2,400 mi) Zone 3 short-haul intl (1,201–2,400 mi) $380
4 SYD → SIN (Enterprise) Asia (Enterprise) 3,927 mi Zone 5 (3,601–4,800 mi) Zone 5 SQ/EY/QR (3,601–4,200 mi) $3,780
5 SYD → HND (Financial system) Asia (Financial system) 4,860 mi Zone 6 (4,801–5,800 mi) Zone 6 SQ/EY/QR (4,801–5,800 mi) $1,513
6 SYD → LHR (Financial system) Europe (Financial system) 10,561 mi Zone 10 (9,601–15,000 mi) Zone 10 SQ/EY/QR (9,501–15,000 mi) $1,331
7 SYD → LHR (Enterprise) Europe (Enterprise) 10,561 mi Zone 10 (9,601–15,000 mi) Zone 10 SQ/EY/QR (9,501–15,000 mi) $8,726

Money fares: lowest Qantas-sold one-way fare with no multiple cease (financial system, or enterprise the place famous), checked on Google Flights on 12 November 2026 for journey on Wednesday 24 February 2027. The same old six-week window fell within the Christmas peak, so we used the primary mid-week, non-peak date after the summer time college holidays and Lunar New 12 months. Award pricing for each packages is unchanged since July 2026. Service expenses are carried over from the July 2026 reserving circulation checks.

4. Components

Cents per level (cpp) = (Money fare − Service expenses) ÷ Factors required × 100

Service expenses are subtracted since you pay these no matter whether or not you utilize factors or money. Solely the ‘factors worth’ part of the redemption is counted.

Remaining valuation = Trimmed imply of all 7 routes (removes the only highest and single lowest cpp earlier than averaging). The trimmed imply method is according to AFF’s methodology and reduces the affect of outlier routes.

5. Labored Calculations

5a. Qantas Frequent Flyer

Route Class QF Zone Factors Money CC ($) Internet worth cpp
SYD → MEL Home Zone 1 (0–600 mi) 9,200 $179 $8 $171 1.86¢
SYD → AKL Trans-Tasman Zone 3 (1,201–2,400 mi) 20,700 $380 $70 $310 1.50¢
MEL → DPS SE Asia Zone 3 (1,201–2,400 mi) 20,700 $380 $150 $230 1.11¢
SYD → SIN Asia (Enterprise) Zone 5 (3,601–4,800 mi) 82,100 $3,780 $280 $3,500 4.26¢
SYD → HND Asia (Financial system) Zone 6 (4,801–5,800 mi) 36,200 $1,513 $320 $1,193 3.30¢
SYD → LHR Europe (Financial system) Zone 10 (9,601–15,000 mi) 63,500 $1,331 $580 $751 1.18¢
SYD → LHR Europe (Enterprise) Zone 10 (9,601–15,000 mi) 166,300 $8,726 $580 $8,146 4.90¢
Easy common 2.59¢
Trimmed imply (removes highest & lowest) 2.42¢

Sorted cpp values (QFF): 1.11¢, 1.18¢, 1.50¢, 1.86¢, 3.30¢, 4.26¢, 4.90¢. Trimmed imply removes 1.11¢ (lowest) and 4.90¢ (highest).

5b. Velocity Frequent Flyer

Route Class Companion / Zone Factors Money CC ($) Internet worth cpp
SYD → MEL Home Virgin Australia Zone 1 home 8,900 $179 $10 $169 1.90¢
SYD → AKL Trans-Tasman Virgin Australia Zone 3 Trans-Tasman (1,201–2,400 mi) 17,900 $380 $10 $370 2.07¢
MEL → DPS SE Asia Virgin Australia Zone 3 short-haul intl (1,201–2,400 mi) 17,900 $380 $35 $345 1.93¢
SYD → SIN Asia (Enterprise) Singapore Airways Zone 5 SQ/EY/QR (3,601–4,200 mi) 74,000 $3,780 $200 $3,580 4.84¢
SYD → HND Asia (Financial system) Singapore Airways Zone 6 SQ/EY/QR (4,801–5,800 mi) 42,000 $1,513 $185 $1,328 3.16¢
SYD → LHR Europe (Financial system) Singapore Airways Zone 10 SQ/EY/QR (9,501–15,000 mi) 80,000 $1,331 $310 $1,021 1.28¢
SYD → LHR Europe (Enterprise) Singapore Airways Zone 10 SQ/EY/QR (9,501–15,000 mi) 158,500 $8,726 $435 $8,291 5.23¢
Easy common 2.91¢
Trimmed imply (removes highest & lowest) 2.78¢

Sorted cpp values (VFF): 1.28¢, 1.90¢, 1.93¢, 2.07¢, 3.16¢, 4.84¢, 5.23¢. Trimmed imply removes 1.28¢ (lowest) and 5.23¢ (highest).

6. Notes and Assumptions by Route

Route 1: SYD → MEL (Financial system)
VA makes use of dynamic pricing; 8,900 pts is a consultant mid-range (printed minimal: 5,900)
Route 2: SYD → AKL (Financial system)
QF service expenses ~$70 one-way; VA expenses flat $10 service payment on VA-operated worldwide
Route 3: MEL → DPS (Financial system)
QF MEL-DPS service expenses ~$150; VA service cost $35 for VA short-haul worldwide
Route 4: SYD → SIN (Enterprise)
VA by way of Singapore Airways; service expenses ~$130 USD ≈ $200 AUD for SQ enterprise
Route 5: SYD → HND (Financial system)
VA by way of Singapore Airways SYD-SIN-HND; service expenses ~$120 USD ≈ $185 AUD
Route 6: SYD → LHR (Financial system)
QF service expenses ~$580 one-way to LHR (vital); VA by way of SQ ~$200 USD ≈ $310 AUD
Route 7: SYD → LHR (Enterprise)
Enterprise money fare is the bottom Qantas-sold one-stop fare (an Emirates codeshare by way of Dubai); QF service expenses identical as financial system (cabin-independent); VA by way of SQ ~$280 USD ≈ $435 AUD

7. Outcomes and Comparability

QFF valuation VFF valuation Scope
CCAU (this system) 2.42¢ per level 2.78¢ per level Flight redemptions solely
Australian Frequent Flyer (AFF) 1.6¢ per level 1.7¢ per level All redemption sorts (blended), as of December 2025
Level Hacks ~1.6¢ per level ~1.7¢ per level All redemption sorts (blended), makes use of AFF figures as of December 2025

The CCAU determine is increased than AFF and Level Hacks as a result of we exclude present card, merchandise, resort, and Factors Plus Pay redemptions from our basket. That is intentional: our viewers is bank card prospects who accumulate factors to redeem for flights. Together with present card redemptions (which return 0.4–0.5¢ per level) in a median used to guage a frequent flyer bank card creates a deceptive image of the worth proposition.

“CreditCard.com.au’s flight-only valuation: Qantas 2.42¢, Velocity 2.78¢. This determine covers flight redemptions solely — the redemption kind most bank card prospects goal. AFF’s blended valuation (1.6¢ / 1.7¢) contains present playing cards and merchandise, which pull the typical down considerably.”

What your card spend is value after the October 2026 modifications

From 1 October 2026 the RBA minimize the cap on shopper bank card interchange charges from 0.8% to 0.3% and banned card surcharges. Banks responded by chopping earn charges, including earn caps and worsening factors switch ratios. For many cardholders these cuts matter greater than the small shift in what every level is value.

The desk under multiplies every card’s present earn price by our November 2026 flight valuation (Qantas 2.42¢, Velocity 2.78¢) to point out the worth of each $1 you spend, when the factors are used for flights.

Card Spend tier Factors per $1 Flight worth per $1 spent What modified
Virgin Cash Excessive Flyer First $5,000 per assertion 0.75 Velocity 2.08¢ Was 1 level per $1 on the primary $8,000; annual payment now $349
ANZ Frequent Flyer Black First $7,500 per assertion 1 Qantas 2.42¢ New $50,000 earn cap from 28 October 2026
Westpac Altitude Qantas Black On a regular basis spend 0.8 Qantas 1.94¢ Eating moved to the decrease “different” tier
ANZ Frequent Flyer Platinum First $3,000 per assertion 0.75 Qantas 1.81¢ New $25,000 earn cap from 28 October 2026
NAB Qantas Rewards Signature First $3,000 per assertion 0.75 Qantas 1.81¢ Earn cap minimize to $15,000; annual payment $449 for brand new candidates
MyCard Rewards (to Velocity) Different spend 1.5 MyCard (0.5 Velocity at 3:1) 1.39¢ Improved: was 1 level per $1 at 2.5:1; annual payment now $249
Virgin Cash Flyer First $1,500 per assertion 0.5 Velocity 1.39¢ Was 0.66 factors per $1; annual payment now $169
MyCard Premier Qantas All eligible spend 0.5 Qantas 1.21¢ Was 1 level per $1 on worldwide and on-line spend
NAB Qantas Rewards Premium First $3,000 per assertion 0.5 Qantas 1.21¢ Then 0.25 factors per $1 as much as $6,000
Westpac Altitude Qantas Black Different spend, together with eating 0.4 Qantas 0.97¢ Was 0.5 factors per $1

Financial institution packages that switch to Velocity additionally misplaced worth per level. Westpac Altitude moved from 3:1 to 4:1 on 30 September 2026, so an Altitude level is now value about 0.69¢ on flights (was 0.97¢). NAB Rewards moved from 2:1 to three:1, so a NAB level is now value about 0.93¢ (was 1.45¢).

American Categorical shouldn’t be coated by the interchange cap and has not modified its Membership Rewards switch charges, which makes Amex playing cards comparatively stronger after the modifications. Earn charges and caps are as introduced by every issuer and might change, so verify the cardboard’s present phrases earlier than you apply.

8. Award Chart Sources

Factors necessities sourced from official program charts.

Qantas Traditional Flight Rewards (efficient 5 August 2025)

Zone Miles vary Eco pts Prem Eco pts Enterprise pts First pts
1 0–600 9,200 13,800 19,300 29,000
2 601–1,200 13,800 20,700 29,000 43,600
3 1,201–2,400 20,700 31,100 43,600 65,500
4 2,401–3,600 23,300 34,900 68,400 102,600
5 3,601–4,800 29,000 43,600 82,100 123,200
6 4,801–5,800 36,200 54,300 98,400 147,700
7 5,801–7,000 43,200 64,800 113,900 170,900
8 7,001–8,400 48,200 72,200 130,100 195,100
9 8,401–9,600 58,900 88,300 151,800 227,800
10 9,601–15,000 63,500 95,200 166,300 249,400

Supply: qantas.com/classic-flight-rewards/tables.html (efficient 5 August 2025). Zones based mostly on one-way statute miles.

Velocity Award Pricing — chosen related zones

Chart / Zone Miles Eco min Eco max Prem Eco Enterprise CC ($)
VA Home Z1 0–600 5,900 12,900 9,900 15,500 $10
VA Home Z2 601–1,200 8,900 18,900 14,900 23,500 $10
VA Home Z3 1,201–2,400 13,500 26,900 20,900 35,500 $10
VA Intl Brief Z1 0–600 7,900 — — 15,500 $10
VA Intl Brief Z3 1,201–2,400 17,900 — — 35,500 $35
VA Intl Z5 Trans-Pac 3,601–4,800 27,900 — — 59,500 $35
SQ/EY/QR Z5 3,601–4,200 29,000 — — 74,000 ~$200
SQ/EY/QR Z6 4,801–5,800 42,000 — — 89,500 ~$185
SQ/EY/QR Z10 9,501–15,000 80,000 — — 158,500 ~$310–$435

Supply: velocityfrequentflyer.com reward seat tables (present as of July 2026). Service expenses: verified in VA/SQ reserving flows. SQ service expenses transformed at USD/AUD 0.65 alternate price.

9. Replace Cadence

This valuation needs to be up to date quarterly (January, April, July, October) or instantly following any award chart repricing by both program.

Replace guidelines:

  1. Examine Qantas Traditional Flight Reward chart for any repricing
  2. Examine Velocity award pricing for every accomplice chart
  3. Re-check service expenses by way of reserving circulation simulation for every route
  4. Replace money fares (Google Flights, 6-week advance, mid-week, non-peak)
  5. Recalculate cpp per route, recompute trimmed imply
  6. Replace the creditcard.com.au/frequent-flyer-credit-cards/ web page with new figures and date

Doc produced: July 2026. Final up to date: November 2026 (money fares refreshed, award pricing unchanged). Subsequent overview: January 2027.

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