No Such Thing As A Free Flight

[Julian2]

No such thing as a free flight

 

MILLIONS save frequent flyer points but a new survey proves there is no such thing as a free flight.

 

Some card-holders could even save money paying for a flight instead of redeeming their frequent flyer points.

 

Product comparison website WhistleOut released its survey findings of 29 card schemes last week and revealed:

 

ONLY nine card schemes would take less than three years to accumulate enough points for a one-way flight to London based on the average credit card bill;

 

THE total spend on a credit card to earn enough points for this flight varied from almost $28,000 to more than $130,000; and

 

COMBINED card fees, surcharges and airline taxes for this flight range from $778 to $5018 - while buying the flight could be as little as $1300.

 

WhistleOut director Cameron Craig said frequent flyer points were the most advertised feature on new credit cards, which are typically linked to Qantas, Virgin, Singapore and Emirates airlines.

 

The most popular, Qantas, has 7.8 million frequent flyer members, followed by Virgin with 1.5 million members, while two-thirds of all credit cards come with a points reward scheme.

 

Mr Craig said the survey "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," he said.

 

Independent watchdog Consumers SA was surprised at the variance between cards.

 

Spokesman David Schomburgk, a former manager with the Office of Consumer Affairs, said it was important people considered some key factors to determine if a scheme was worthwhile.

 

"People should look at how many points they received for each dollar spent, points required for where they want to fly and if that includes airline taxes and baggage fees, and find out if the points have an expiry date," Mr Schomburgk said.

 

He warned people not to be attracted by spending more on their card to earn more points, only to end up paying exorbitant interest rates up to 20 per cent on their debt.

 

http://www.adelaidenow.com.au/ipad/no-such-thing-as-a-free-flight/story-fn6bqvxz-1226139902251