Woolworths recently changed the conversion rate of Woolworths Rewards point to one Qantas point for two Woolworths Rewards points. So which is better value? Is it better to convert the Woolworths Rewards points to money off your shop, or is it better value to convert the points to Qantas points?
The value of Woolworths Rewards points is easy to calculate. For 2,000 Woolworths Rewards points you get $10 off your shopping.
If you wanted to you could even double the value of Woolworths Rewards points by only buying products that are half price meaning 2,000 Rewards point could potentially get you $20 worth of groceries.
How much is 1,000 Qantas points worth?
Working out how much Qantas points is worth is much harder. The fares for flights can vary considerably. You may even use Qantas points for upgrades or buying products from the Qantas store.
Let's check the value of buying products from the Qantas store.
Logging onto the Qantas store the first item shown was the Tefal UltraGlide Steam Iron for 14,780 points.
A search of Google gives the following prices. Keep in mind the online sites will probably charge postage.
ClearanceOutlet $58.90
Catch.com.au $64.48
Billy Guyatts $62
The Goodguys $69.95
Worst case then the iron is worth around $70. At 14,780 points that gives us 1,000 Qantas points is worth around $4.74 or using Billy Guyatts price of $62, the value of 1,000 Qantas points is $4.19.
Selecting a second item I picked a Fitbit Charge 3. No particular reason except it's a product I recognise. The number of Qantas points required is 36,020.
Officeworks $168.00
Myer $179.00
Bing Lee Electronics $168.00
Using the above the value of Qantas points is from $4.66 to $4.96.
This gives us a guide that buying a product from the Qantas stores isn't good value as 1,000 points is worth $4 to $5. Better to spend it on groceries at $10 or better if spent on specials.
What about Qantas flights?
From the first page we see the following and then I checked the points for a long distance flight.
Melbourne to Sydney for 6,400 points plus $32.37.
Melbourne to Perth for 14,400 points plus $27.42.
Melbourne to London (Heathrow) for 55,200 points plus $199.
NOTE: Return flight taxes and charges are quite a bit higher at 212GBP (approx $398AUD).
The real problem with flights is there's such a range of prices and if you're paying with money you'll probably pick a cheaper flight, but with points the price doesn't change. Changing your day and luggage also can change prices. Qantas isn't the only airline so you have choice of cheaper options.
Let's take a flight over the next couple of days to each location.
Melbourne to Sydney Thursday 24/10/19
Cheapest Jetstar - $131 @ 5:35am
A more reasonable time plus luggage could cost $200-$300.
Melbourne to Perth
Cheapest Qantas - $350 @ 7:10am
A more reasonable time plus luggage could cost $400-$500.
Melbourne to London
Cheapest Virgin - $697 @ 8:00am
Other reasonable prices could range $800-$1,000.
However one way flights from London to Melbourne start at $1,333.
To make things easy lets take the cheapest flight option.
Melbourne to Sydney Jetstar @ $131. That means a 1,000 Qantas points is worth $15.41. That's good as it's better than the $10 for Woolworths Rewards. It only gets better as the prices for flights go up.
Melbourne to Perth Qantas @ $350. That means a 1,000 Qantas points is worth $22.40. Again better than Woolworths Rewards points.
Melbourne to London Virgin at $697. That means a 1,000 Qantas points is worth $9.02. For the return flight 1,000 Qantas points is worth $16.93. Given these are the lowest prices, using Qantas points for long distance flights is looking better than Woolworths Rewards.
Overall using Qantas points for flights is looking better than using Woolworths Rewards points for groceries. I have to admit that was something I didn't expect especially as you have to pay money as well as use points using Qantas Classic Rewards.
This doesn't take into account whether or not you can get a flight sometime around when you want to fly.
The other thing to consider is how long it will take you to build up points. We purchase around $100-$150 a week in groceries. That's $5,000-$7,500 a year. With one point for each dollar spent that's potentially 5,000-7,500 Woolworths Rewards points a year or 2,500 to 3,750 Qantas points. Not even a one way trip to Sydney. That's pretty sad. About two years to get a one way trip to Sydney. Perhaps best to stick with buying half price specials, at least I'd get that reward up to four times a year.
Kelvin Eldridge
www.JustLocal.com.au
The value of Woolworths Rewards points is easy to calculate. For 2,000 Woolworths Rewards points you get $10 off your shopping.
If you wanted to you could even double the value of Woolworths Rewards points by only buying products that are half price meaning 2,000 Rewards point could potentially get you $20 worth of groceries.
How much is 1,000 Qantas points worth?
Working out how much Qantas points is worth is much harder. The fares for flights can vary considerably. You may even use Qantas points for upgrades or buying products from the Qantas store.
Let's check the value of buying products from the Qantas store.
Logging onto the Qantas store the first item shown was the Tefal UltraGlide Steam Iron for 14,780 points.
A search of Google gives the following prices. Keep in mind the online sites will probably charge postage.
ClearanceOutlet $58.90
Catch.com.au $64.48
Billy Guyatts $62
The Goodguys $69.95
Worst case then the iron is worth around $70. At 14,780 points that gives us 1,000 Qantas points is worth around $4.74 or using Billy Guyatts price of $62, the value of 1,000 Qantas points is $4.19.
Selecting a second item I picked a Fitbit Charge 3. No particular reason except it's a product I recognise. The number of Qantas points required is 36,020.
Officeworks $168.00
Myer $179.00
Bing Lee Electronics $168.00
Using the above the value of Qantas points is from $4.66 to $4.96.
This gives us a guide that buying a product from the Qantas stores isn't good value as 1,000 points is worth $4 to $5. Better to spend it on groceries at $10 or better if spent on specials.
What about Qantas flights?
From the first page we see the following and then I checked the points for a long distance flight.
Melbourne to Sydney for 6,400 points plus $32.37.
Melbourne to Perth for 14,400 points plus $27.42.
Melbourne to London (Heathrow) for 55,200 points plus $199.
NOTE: Return flight taxes and charges are quite a bit higher at 212GBP (approx $398AUD).
The real problem with flights is there's such a range of prices and if you're paying with money you'll probably pick a cheaper flight, but with points the price doesn't change. Changing your day and luggage also can change prices. Qantas isn't the only airline so you have choice of cheaper options.
Let's take a flight over the next couple of days to each location.
Melbourne to Sydney Thursday 24/10/19
Cheapest Jetstar - $131 @ 5:35am
A more reasonable time plus luggage could cost $200-$300.
Melbourne to Perth
Cheapest Qantas - $350 @ 7:10am
A more reasonable time plus luggage could cost $400-$500.
Melbourne to London
Cheapest Virgin - $697 @ 8:00am
Other reasonable prices could range $800-$1,000.
However one way flights from London to Melbourne start at $1,333.
To make things easy lets take the cheapest flight option.
Melbourne to Sydney Jetstar @ $131. That means a 1,000 Qantas points is worth $15.41. That's good as it's better than the $10 for Woolworths Rewards. It only gets better as the prices for flights go up.
Melbourne to Perth Qantas @ $350. That means a 1,000 Qantas points is worth $22.40. Again better than Woolworths Rewards points.
Melbourne to London Virgin at $697. That means a 1,000 Qantas points is worth $9.02. For the return flight 1,000 Qantas points is worth $16.93. Given these are the lowest prices, using Qantas points for long distance flights is looking better than Woolworths Rewards.
Overall using Qantas points for flights is looking better than using Woolworths Rewards points for groceries. I have to admit that was something I didn't expect especially as you have to pay money as well as use points using Qantas Classic Rewards.
This doesn't take into account whether or not you can get a flight sometime around when you want to fly.
The other thing to consider is how long it will take you to build up points. We purchase around $100-$150 a week in groceries. That's $5,000-$7,500 a year. With one point for each dollar spent that's potentially 5,000-7,500 Woolworths Rewards points a year or 2,500 to 3,750 Qantas points. Not even a one way trip to Sydney. That's pretty sad. About two years to get a one way trip to Sydney. Perhaps best to stick with buying half price specials, at least I'd get that reward up to four times a year.
Kelvin Eldridge
www.JustLocal.com.au
No comments:
Post a Comment