By Natalie Bochenski

From humble beginnings in the United States in the early 1980s, frequent flyer schemes are now the Grand-daddy of loyalty programs. Almost every airline in the world has one, allowing travellers to accumulate points, typically one per mile (1.6km), with the promise of converting those points into free flights or other services (such as upgrades). Qantas’ program alone has over 6 million members worldwide.

In recent years, airlines have joined with banks to offer co-branded credit cards, allowing those who may not fly that often to continuing accruing points through their spending, typically one point per dollar. Credit cards now account for 60 per cent of all frequent flyer points earned. Despite this, roughly one-third of all points are never claimed.

So why are we still members?

“Frequent flyer schemes are one of the most successful marketing schemes ever invented,” says Christopher Zinn from consumer advocate group Choice. “Even if they’re largely unused, debatably pretty useless - they‘ve captured the imagination of the travelling public, even those who don’t travel.”

The ideal frequent flyer arrangement is having an employer who pays for regular work flights, but lets you pick up the points personally – meaning no outlay, and all reward. But for the rest of us, making the most out of our frequent flyers requires more thought.

Earning Points

The internet is arguably the frequent flyer’s most powerful tool. Clifford Reichlin founded www.frequentflyer.com ten years ago as an online FF points calculator, but it has developed into an independent discussion forum, full of handy hints from experts and punters.

He believes FF points can offer something to the consumer - as long as they’re used correctly. The rule is they’re a bonus, not an incentive – you should never base your purchasing decision on how many points you’ll earn.

Page 1| 2