Tuesday, July 7, 2026

Frequent Flyer Factors Valuation Methodology

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

CCAU Valuation Outcomes (July 2026)

Qantas Frequent Flyer: 2.47¢ per level (flight redemptions solely)

Velocity Frequent Flyer: 2.90¢ per level (flight redemptions solely)

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

1. Goal 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
  • Replicate the worth of factors to bank card clients — 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, automotive rent, and Factors Plus Pay, which constantly return the bottom worth in each packages. That is the first distinction from AFF’s basket, which incorporates all redemption varieties.

2. How AFF and Level Hacks Calculate Their Figures

Understanding the prevailing 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 varieties. The present card flooring (approx. 0.46¢ for QFF, 0.4¢ for VFF) considerably anchors the common downward.

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

Level Hacks methodology

Level Hacks publishes valuations primarily based on a choice of actual redemptions. Their strategy is much less formally documented than AFF’s however equally blended throughout financial system, enterprise, and merchandise. Additionally they think about alternative value (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 particular 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 professional 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: “In case 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 primarily based 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 finest worth, and lots of bank card clients 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) $560
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) $4,200
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) $1,100
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) $1,580
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) $9,500

Money fares: median non-peak mid-week one-way financial system (or enterprise the place famous), checked on Google Flights roughly 6 weeks upfront, early July 2026. Service fees sourced from program reserving flows on the identical date.

4. Components

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

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

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

5. Labored Calculations

5a. Qantas Frequent Flyer

Route Class QF Zone Factors Money CC ($) Web 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 $560 $150 $410 1.98¢
SYD → SIN Asia (Enterprise) Zone 5 (3,601–4,800 mi) 82,100 $4,200 $280 $3,920 4.77¢
SYD → HND Asia (Financial system) Zone 6 (4,801–5,800 mi) 36,200 $1,100 $320 $780 2.15¢
SYD → LHR Europe (Financial system) Zone 10 (9,601–15,000 mi) 63,500 $1,580 $580 $1,000 1.57¢
SYD → LHR Europe (Enterprise) Zone 10 (9,601–15,000 mi) 166,300 $9,500 $580 $8,920 5.36¢
Easy common 2.74¢
Trimmed imply (removes highest & lowest) 2.47¢

Sorted cpp values (QFF): 1.5¢, 1.57¢, 1.86¢, 1.98¢, 2.15¢, 4.77¢, 5.36¢. Trimmed imply removes 1.50¢ (lowest) and 5.36¢ (highest).

5b. Velocity Frequent Flyer

Route Class Companion / Zone Factors Money CC ($) Web 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 $560 $35 $525 2.93¢
SYD → SIN Asia (Enterprise) Singapore Airways Zone 5 SQ/EY/QR (3,601–4,200 mi) 74,000 $4,200 $200 $4,000 5.41¢
SYD → HND Asia (Financial system) Singapore Airways Zone 6 SQ/EY/QR (4,801–5,800 mi) 42,000 $1,100 $185 $915 2.18¢
SYD → LHR Europe (Financial system) Singapore Airways Zone 10 SQ/EY/QR (9,501–15,000 mi) 80,000 $1,580 $310 $1,270 1.59¢
SYD → LHR Europe (Enterprise) Singapore Airways Zone 10 SQ/EY/QR (9,501–15,000 mi) 158,500 $9,500 $435 $9,065 5.72¢
Easy common 3.11¢
Trimmed imply (removes highest & lowest) 2.90¢

Sorted cpp values (VFF): 1.59¢, 1.9¢, 2.07¢, 2.18¢, 2.93¢, 5.41¢, 5.72¢. Trimmed imply removes 1.59¢ (lowest) and 5.72¢ (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 fees ~$70 one-way; VA fees flat $10 service charge on VA-operated worldwide
Route 3: MEL → DPS (Financial system)
QF MEL-DPS service fees ~$150; VA service cost $35 for VA short-haul worldwide
Route 4: SYD → SIN (Enterprise)
VA by way of Singapore Airways; service fees ~$130 USD ≈ $200 AUD for SQ enterprise
Route 5: SYD → HND (Financial system)
VA by way of Singapore Airways SYD-SIN-HND; service fees ~$120 USD ≈ $185 AUD
Route 6: SYD → LHR (Financial system)
QF service fees ~$580 one-way to LHR (important); VA by way of SQ ~$200 USD ≈ $310 AUD
Route 7: SYD → LHR (Enterprise)
Enterprise money fare median; QF service fees similar 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) 2.47¢ per level 2.90¢ per level Flight redemptions solely
Australian Frequent Flyer (AFF) 1.6¢ per level 1.7¢ per level All redemption varieties (blended)
Level Hacks ~1.6¢ per level ~1.7¢ per level All redemption varieties (blended)

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 clients who accumulate factors to redeem for flights. Together with present card redemptions (which return 0.4–0.5¢ per level) in a mean used to guage a frequent flyer bank card creates a deceptive image of the worth proposition.

“CreditCard.com.au’s flight-only valuation: Qantas 2.47¢, Velocity 2.90¢. This determine covers flight redemptions solely — the redemption kind most bank card clients goal. AFF’s blended valuation (1.6¢ / 1.7¢) contains present playing cards and merchandise, which pull the common down considerably.”

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 primarily based on one-way statute miles.

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 Quick Z1 0–600 7,900 15,500 $10
VA Intl Quick 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 fees: verified in VA/SQ reserving flows. SQ service fees transformed at USD/AUD 0.65 alternate price.

9. Replace Cadence

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

Replace guidelines:

  1. Test Qantas Traditional Flight Reward chart for any repricing
  2. Test Velocity award pricing for every companion chart
  3. Re-check service fees by way of reserving move 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. Subsequent overview: October 2026.



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