Frequent Flyer Credit Cards: Do They Go the Distance?

MEDIA RELEASE

30 August 2011

Frequent Flyer Credit Cards: Do They Go the Distance?

An independent analysis of Australian frequent flyer credit cards has revealed that, on an average spend, it can take up to nine years to earn a one-way trip to London. With increasingly pervasive credit card surcharges from retailers, airline taxes and annual fees, points are also being destroying for the consumer.

Leading comparison website WhistleOut.com.au has analysed points earned on 29 cards linked to the frequent flyer programs of Qantas, Emirates, Singapore Airlines and Virgin Australia (Velocity) against the average Australian credit card spend of $1,146[1] per month. Importantly the research used the actual points required for a trip to London in the four frequent flyer programs.

Just nine out of the 29 cards analysed would take less than three years to accumulate enough points for a single person to fly one way to London. The majority of cards take consumers more than three years with some cards taking nine years for an average consumer. The total spends required varied form $42,673 to $130,000-plus across the cards.

However, with average credit card annual fees, retailer surcharge fees and airline taxes, it means consumers will see an actual average cost of $1,613 on these airline cards in earning their flight reward to London. The biggest red flag for consumers this year is the 1-3% extra surcharge on the use of credit cards from one third of retailers, a practice that was banned until 2003. The RBA is now reviewing the practice[2]. Surcharges mean an average of $392.52 in costs on the required points for a trip to London.

Director of WhistleOut, Cameron Craig, says, “Frequent flyer points are the most advertised feature on new credit cards, yet their benefit is very subjective. A spend of fifteen thousand dollars per year is not going to bring you miracles on the average card. We found some standout cards contrasted by some terrible performances on the entry level cards.”

“Between cards, the difference in points earning potential and cost to you is huge. You’ve just got to review them against your spending. On a low spend, you’re hardly going to London,” he says.

To compare frequent flyer credit cards, visit: http://www.whistleout.com.au/CreditCards

FOR INTERVIEWS/ IMAGES & MORE INFO:

Corinne Roberts |The Ideas Suite| m 0447 611 764 | t (02) 9279 3330 | e croberts@theideassuite.com.au

About WhistleOut
WhistleOut is one of Australia’s leading comparison websites, offering the most tailored comparisons available for mobile phone and broadband plans, mortgages, credit cards and more. WhistleOut’s comparison technology is featured on 240 websites with 21 partners, including leading media companies. To find a tailored comparison for you visit: www.whistleout.com.au.