money money money

frequent flyer points: the hidden psychology & how to maximise your spend

Oct 29, 2026
David Moloney, management consultant, former banker and author of Points: Mastering the Game of Frequent Flyers, explores the psychology and economics behind loyalty programs. They compare Qantas and Velocity, points and status credits, credit-card rewards and real returns. The conversation covers smart reward stacking, the best redemptions, point inflation, premium-seat opportunities, tax considerations and the dangers of overspending.
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INSIGHT

How Loyalty Programs Turn Habits Into Revenue

  • Loyalty programs monetise repeat customer behaviour, not merely airline seats.
  • Retailers buy airline points to differentiate themselves, expanding Qantas’s program into a broader loyalty economy.
ADVICE

Always Put Price Before Points

  • Compare the underlying price first, then choose the option that also provides points.
  • Do not overpay for loyalty rewards, because points rarely compensate for an inflated purchase price.
ADVICE

Control Spending Before Chasing Points

  • Use rewards cards only if you avoid interest, surcharges, and unsuitable annual fees.
  • Glen James warns that gamifying spending can erase the value of earned points through extra purchases or missed repayments.
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