In the latest pricing strategy of Qantas, members now need 5â20% more points to book the same reward flights. A classic domestic economy flight (SydneyâMelbourne) now moves from 8,000 to 9,200 points. For frequent flyers, this is not just a technical tweakâit sends a serious message about value. And that message risks damaging trust. This serves as a clear warning to any business that relies on loyalty. Because when customers believe loyalty costs more, they stop feeling rewarded.
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Qantas Pricing Strategy and Loyalty Price Adjustments
Adjusting redemption rates is common in loyalty programmes. But the timing, communication, and perceived fairness matter enormously. Qantas says the change is part of its broader Qantas pricing strategy, aimed at ensuring the long-term sustainability of its Qantas Frequent Flyer loyalty programme.
It also denies using personalised or âdynamicâ pricing for frequent flyersâbut perception can be as powerful as reality. Meanwhile, customers already notice fare spikes, limited seat availability, and confusing Qantas frequent flyer price changes when they log in.
Thatâs where trust becomes critical. Even the most efficient pricing model fails if customers think itâs unfair. For airlines and any business with a value-based loyalty programme, fairness isnât just good ethicsâitâs good economics. Once loyalty feels costly, efficiency gains quickly turn into long-term revenue loss.
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When Qantas Loyalty Programme Changes Feel Like a Penalty
For loyal customers, this kind of change stings. Theyâve already lived the frustration of seats hard to find, fares that jump when theyâre logged in, and now higher point requirements without a clear uplift in benefit. Under the current Qantas pricing strategy, many frequent flyers interpret the higher point cost as a devaluation of their loyalty within the Qantas frequent flyer loyalty programme. The online backlash is immediateâcomplaints that loyalty is being punished, not rewarded.
Ultimately, loyalty only works if customers believe itâs earning something, not costing more. When the story becomes âyou must pay more to get the sameâ, goodwill drains fast. And the hardest part for any value-based loyalty programme: goodwill is far tougher to rebuild than yield is to achieve.
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Lessons from the Qantas Frequent Flyer Loyalty Programme
Suppose you run a loyalty or reward programme (or even just variable pricing). In that case, the lesson from the Qantas pricing strategy is clear: govern your pricing algorithms, audit your redemption or pricing ratios, and monitor how customers feel. Start by asking: âDoes a customer recognise the reason for this change?â If the answer is ânoâ, you risk losing control of your value narrative. Data can show yield improvements, but if your customers feel treated unfairly, then retention suffers.
Make fairness a metric alongside yield. Use simple transparency statements: âHereâs why weâre changingâ, âHereâs what stays the sameâ, âHereâs what you gainâ. Show the long-term benefit. A value-based loyalty programme depends on clarity and perceived fairness. If you cannot explain it to your customers, you have already given away control of the value story.
Strengthening a Value-Based Loyalty Programme
As a leader, you must treat loyalty pricing as a trust contractânot a margin lever. The Qantas pricing strategy shows what happens when that balance shifts. When you raise point requirements or prices, align them with meaningful benefits or a better experience. If the value story doesnât improve with the cost story, youâre in trouble.
Business leaders should ask: âDoes this move feel like a reward for loyaltyâor a penalty?â If it feels like the latter, you risk driving your most valuable customers to competitors. Lead the conversation. Communicate clearly. Ensure your loyalty programme changes have a roadmap customers can trust. When points lose value faster than benefits grow, your brandâs most loyal segment starts to question the dealâand you.
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Qantas Pricing Strategy Proves Fairness Is the New Differentiator
The Qantas pricing strategy is not just about airlines. Itâs about any business using loyalty-based pricing. Todayâs consumers demand fairness, clarity, and consistency. They will reward brands that deliver itâand penalise those that donât. In pricing strategy, you can optimise revenue or you can build trustâideally, you do both. But if you choose revenue at the cost of trust, you lose more than you gain.
Fairness, clarity, and transparency are the new competitive edge. We argue that pricing teams must prioritise why the price changes, how the story is told, and what the perceived value is. Whether youâre reviewing Qantas loyalty programme changes or your own value-based loyalty programme, the same rule applies. If you get that right, you donât just maintain yieldâyou protect your most valuable asset: customer trust.
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Closing Insight on the Qantas Pricing Strategy and the Future of Loyalty
Loyalty is built on value, not algorithms. The Qantas pricing strategy highlights what happens when that balance slips. When you raise costs without a clear benefit, you fracture trustâand once itâs gone, you pay for it in retention, reputation, and revenue. As a business leader, rethink your loyalty pricing: reward belief as much as behaviour.
Review your loyalty programme or your reward programmes now. Make sure any changes reinforce trust, not scepticism. Pricing teams should audit algorithms for clarity, fairness, and transparency. If customers canât explain why a loyalty rate changed, youâve already lost the value story.
If youâre rethinking how your business approaches loyalty and pricing, nowâs the time to act. Customers are paying closer attention than ever, and trust is what keeps them coming back. The right value-based loyalty programme can strengthen that trustânot strain it.
We help businesses design fair, transparent, and profitable pricing systems that build lasting customer relationships. Letâs talk about how you can turn loyalty into lasting value. Reach out today and start shaping a pricing approach your customers believe in.
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Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
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