Reward Flights Explained: Classic Reward vs Points Plus Pay

Many travellers make the same mistake when they first start redeeming frequent flyer points and assume that every flight booked with points is a reward flight.

That's simply not true and often leads to confusion when we talk about high-value reward flights. For example, a Qantas Classic Flight Reward from Sydney to London can be booked for 166,300 Qantas Points in Business Class. That’s the price, and it doesn’t change.

But novice travellers might search for the same route themselves, only to find flights requiring hundreds of thousands, or even millions, of Qantas Points. Naturally, they wonder how we're booking what appears to be the same flight for a fraction of the cost.

So let’s clarify, the reason is that most airlines offer at least two completely different ways to redeem frequent flyer points. One involves genuine reward flights that have limited availability. For Qantas and Virgin Australia, these reward flights require a set number of points based on flight distance and cabin class, plus a cash component that covers taxes and fees.

Then there are the more expensive redemption options, such as Classic Plus, Points Plus Pay and Any Seat. These products almost always offer poor value because they allow members to use points towards the cost of a regular airfare rather than redeeming a genuine reward flight.

Understanding the difference between reward flights and points plus pay redemptions is one of the most important concepts in points travel. Once you grasp this distinction, it becomes much easier to understand why some flights offer exceptional value while others can quickly drain your points balance.

What Are Reward Flights?

The term "reward flight" is often used to describe any flight booked using frequent flyer points. In reality, there are usually multiple ways to redeem points for flights, and not all reward flights offer the same value.

Some reward flights are genuinely rewarding, offer solid value, and are released in limited quantities. Others are cash-equivalent redemptions where points are basically just a form of payment towards a regular airfare.

Airlines use different names for their high-value reward flights. Qantas calls them Classic Rewards, while Virgin Australia uses Reward Seats. Despite the different branding, genuine reward flights share a few common characteristics:

• You pay with frequent flyer points + a cash component
• Points price is based on a region/distance table (some programs use dynamic pricing)
• Availability is usually quite limited, with a small number of seats released on each flight
• The number of points required remains the same regardless of the cash fare

You can use Velocity Points to book Qatar Qsuite Business Class

Why Do Some Reward Flights Cost Millions Of Points?

Genuine reward flights do not cost millions of points. When you see eye-watering redemption rates, you're usually looking at a cash-equivalent redemption rather than a true reward flight. These products allow members to use points as a form of payment towards a regular airfare, with the number of points required linked to the underlying ticket price.

While this approach increases availability, it often provides substantially less value than a genuine reward flight.

Example: Why Loyalty Programs Encourage Low-Value Redemptions

Take this scenario: let's say you're looking at a Business Class ticket from Sydney to Vancouver costing $12,423 when purchased with cash. On the same flight, Qantas offers a redemption option for 944,200 Qantas Points plus $637 in taxes.

At first glance, this appears to be a Qantas reward flight. After all, it's displayed like other reward options in the Qantas booking engine. In reality, this is what Qantas calls a Classic Plus Reward.

Qantas Classic Plus usually offers poor value

Rather than being priced according to a traditional reward chart, the number of points required is linked to the cash fare. In this example, you’d receive around 1.25 cents per point in value.

If you're confused, that's understandable. Qantas displays Classic Plus Rewards alongside Classic Rewards, despite the two products working very differently behind the scenes. The names are also rather similar, making it easy to get fooled.

For comparison, a Classic Reward seat on the same route requires just 130,100 Qantas Points. Based on the same cash fare, that redemption delivers around 9.06 cents per point in value. While both bookings can technically be described as reward flights, one requires more than seven times as many points as the other.

A Qantas Classic Reward is much more valuable

Qantas Reward Flights Explained

Qantas Frequent Flyer offers three ways to book flights using Qantas Points: Classic Flight Rewards, Classic Plus Flight Rewards, and Points Plus Pay.

• Classic Flight Rewards are the genuine reward sets you should be looking for. Redemptions follow a fixed rate of points by distance and travel class as outlined in Qantas’ reward tables, plus a cash co-payment.
• Classic Plus Flight Rewards are dynamically based on the lowest cash fare when searching, and also require a cash co-payment. Most of the time, Classic Plus offers poor value and is more expensive than a Classic Reward.
• Points Plus Pay is a way to offset your cash fare with points on the checkout page. This is the lowest value redemption.

Velocity Reward Flights Explained

Virgin Australia offers two ways to book flights using Velocity Points: Reward Seat and Any Seat.

• Reward Seat offers the best value and is priced based on distance and travel class as outlined in Velocity’s reward tables, plus a cash co-payment.
• Any Seat Virgin Australia's equivalent of Points Plus Pay. It is a way for members to use Velocity Points towards the cost of a regular airfare, and is generally available whenever a flight is for sale. Any Seat normally offers terrible value.

The Secret Weapon To Find Reward Flights

We won’t get too in-depth with locating reward flights in this guide, as it is aimed to give an understanding of what is and isn’t a reward flight. But there are a number of third-party search tools out there that can scan airline websites - including Qantas and Virgin Australia - for reward flights.

Having tried nearly every one, our favourites are Gyoza Flights and Seats aero. These platforms can make it significantly easier to search for reward flights across a range of dates.

Gyoza Flights makes it easy to quickly search & compare reward flights

A Little History Of Airline Points

Here’s the crux of the matter. Airlines attach a certain value to their points, and this value can shift based on various circumstances.

While airlines are always eager to sell as many points as possible, they also need to maintain customer interest in those points. After all, the points themselves don’t have any inherent value. They can be created by airlines at the push of a button, with nothing tangible to back up their worth.

So, how do airlines create perceived value for these points, enticing us to earn more? The answer is straightforward: they offer us things we desire. Predominantly, this is reward flights and upgrades, like those dreamy business and first class flights to Europe.

But airlines didn’t stop at just flights and upgrades, though. They realised that they could widen their customer base by offering other items as redemptions. Just imagine, there’s a whole market of customers who don’t value travel but might want a toaster, a treadmill, or a chainsaw!

What Is The Actual Value Of Points?

Remember the proverbial carrot on a stick? That’s where the concept of frequent flyer points started - a genuine “reward” for earning these points. Something of tangible value.

For Qantas, this is known as a Classic Flight Reward, a fixed number of points that can be exchanged for a ticket in the class of your choice. The number of points required is based on the flight distance in miles. Thus, we have Classic Flight Reward Tables to refer to when calculating the reward seat price.

Naturally, it’s the job of a frequent flyer program to carefully manage supply and demand. For example, if Qantas gives away too many Classic Flight Rewards, people won’t want to pay in cash. On the other hand, if they don’t offer enough reward flights, interest in their frequent flyer program may wane. This could lead to a loss of revenue from the sale of points to third parties such as banks and supermarkets.

Summing Up

While airlines market a range of ways to redeem points, reward flights remain the most valuable option. Their limited availability is precisely what makes them so sought after by frequent flyers.

Whether you're booking with Qantas, Virgin Australia or another airline loyalty program, it's important to understand the difference between a true reward seat and a cash-equivalent redemption. While both may appear in the same search results, the value offered can be dramatically different.