Flexible points programs explained

Flexibility always comes first

We’ve all been there. You have saved your frequent flyer points for a big trip, and then, when it’s time to search for those reward seats, you’re greeted with a blank screen. Not even an Economy seat is available!

Naturally, this scenario usually plays out when you’re looking to redeem for reward seats during peak holiday periods on a high-demand route. But isn’t this when most of us want to use our points?

Enter the concept of flexible rewards programs. Many frequent flyers are accustomed to being members of a single frequent flyer program, where they earn points only in that program’s currency and look to redeem them with that airline or its partners. This is understandable, as this is how frequent flyer programs originally started. The concept of flexible rewards was born out of these.

What are flexible rewards programs?

To put it simply, flexible rewards programs are loyalty programs that have other loyalty programs as transfer partners. These other transfer partners are generally airline and hotel loyalty programs. But nothing is stopping them from expanding to other loyalty programs, such as car rental or cruise programs, for example.

Two of the largest flexible rewards programs in Australia are American Express Membership Rewards and PayRewards. Many banks also have their own flexible points programs, but these generally exclude Qantas Frequent Flyer as a transfer partner, and are also much more limited in the choice of transfer partners.

No Reward Seats - An all too common problem

Take your mind back to the opening paragraph of this section. You’re dreaming of that great redemption, hoping to slash the cost of your flights. But in one fell swoop, the dream is quashed. There are no reward seats available!

This is an all-too-common occurrence when you rely solely on one frequent flyer program, especially on high-demand routes and during peak travel periods. You are at the mercy of the loyalty program’s revenue management team as to how many reward seats they will release, if any at all.

But what if I told you that you can take greater control to improve the odds of finding a reward seat? Follow our first tip below and you will be well on your way.

Tip: Use flexible rewards programs like American Express Membership Rewards and PayRewards as often as possible!

Why are flexible rewards programs so great?

Flexible rewards programs are great because they provide their members with increased options for finding a reward seat that aligns with their travel plans. These members are not just limited to flying with the airline that is a program partner, but also with the airline partners of that airline.

For example, Singapore Airlines KrisFlyer is an airline partner of PayRewards. This means that PayRewards members can transfer their points to KrisFlyer if they wish to fly on Singapore Airlines. But they can also book flights on any one of KrisFlyer’s other Star Alliance or airline partners.

This fact applies to all of PayRewards’ other airline partners, too. So, if you transfer your PayRewards Points to Qantas Business Rewards, you can fly on Qantas, as well as its other oneworld and airline partners. The same applies to Virgin Australia Business Flyer, Cathay Asia Miles, and all the other PayRewards partners.

And yes, the same logic also applies to American Express Membership Rewards. These members can fly with any of American Express Membership Rewards’ airline partners, plus the airline partners of these partners.

It’s the frequent flyer equivalent of financial compounding! So, you can hopefully now see how flexible rewards programs exponentially increase the flight redemption options of their members.

Key takeouts

• Many people sign up for just one or two direct airline frequent flyer programs, but flexible rewards like PayRewards and American Express Membership Rewards can be much more valuable when it comes to finding elusive reward seats.

• Flexible rewards programs are loyalty programs that have other loyalty programs as transfer partners, which significantly increase your options when finding a reward seat.

• Given the two points above, remember this rule: Use flexible rewards programs like American Express Membership Rewards and PayRewards as often as possible!

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