More points being issued, each worth less

Analysis by consulting company Bain shows that average airline or airpoint has devalued significantly in the last few years.

The availability of seats on the airline for redemption, the increasing points required for each of these seats and then the reverse good news of reduced prices for each ticket means that thepoints accrued in 2000 and worth less than half their value today.   

And airfares are still coming down.  We have a host of airlines now crossing the Tasman to choose from (7 at last count including Aerolineas Argentinas, LAN, Jetstar, Pacific Blue, Qantas, Air New Zealand and Emirates) and trips to Aus account for 45%- 50% of our international travel. And, according to the Dominion Post – today’s international airfares are 65% of what they were last year (now $1,599 to London compared to $2,300 last year). And that’s 45% of what the same fare was in 1989 (20 years ago).

More and more – it makes better sense to buy your travel with cash rather than redeeming your points.