UPDATE: Australian American Express cardholders have just over two weeks to act before a staggering devaluation hits the Membership Rewards program. Starting from December 15, Amex points will plummet in value, losing nearly 50% of their spending power when transferred to most airline partners.
This urgent change means that if you’ve been accumulating points for future travel, now is the time to act. Effective midnight on December 15, points will convert at a ratio of 2:1 to airlines like British Airways, Cathay Pacific, and Qatar Airways, but will shift to a less favorable 3:1. This significant alteration impacts your ability to maximize rewards for travel, particularly with high-demand routes.
Steve Hui, CEO of iFlyFlat, states, “No airline would devalue their program by 50% in one hit. For the card company to do so is a massive shake-up.” Hui emphasizes that American Express is likely making this preemptive move to remain competitive in an evolving market.
While some airlines maintain their transfer rates, such as Qantas Frequent Flyer and Virgin Australia’s Velocity program, others are set to see drastic increases. For example, Emirates Skywards will shift to a 4:1 conversion rate, making it less appealing for travelers. The transfer ratio for Singapore Airlines KrisFlyer remains at 3:1, presenting a potential option for savvy cardholders.
For those planning international travel, Hui advises starting with your destination to determine the best transfer strategy. “If you need four business-class seats to Europe, send enough points to cover it now,” he cautions, referring to the current need for 440,000 Cathay Pacific Asia miles or 580,000 Avios points for British Airways.
Furthermore, experts like Adele Eliseo highlight that Amex is shifting its focus from global flexibility to domestic airline programs. “They’ve effectively funneled people into domestic programs by worsening the transfer rates to global partners,” she said. Eliseo warns that this could lead to increased competition for limited Qantas and Virgin reward seats in the future.
With the deadline fast approaching, cardholders are urged to consider their options immediately. “Qatar Airways offers a competitive transfer rate of 2:1 and has great availability for premium cabin seats,” suggests Jodie Land, general manager of reward travel at The Well Connected Traveller. She notes that booking a return business-class seat can be done for as low as 360,000 points.
As the landscape of rewards programs continues to tighten globally, this devaluation serves as a critical alert for Amex cardholders. Many are already exploring alternative strategies, including using overseas cards with lower rates or switching to different reward platforms, although these options come with their own risks.
In summary, if you hold Amex points and hope to travel internationally, now is the time to act. Confirm your plans and transfer your points before the December 15 deadline to avoid losing significant value. The clock is ticking, and the stakes could not be higher.
