Ultimate Guide To Flexible Rewards Programs
Explore flexible rewards programs for ultimate travel freedom—redeem points across airlines, hotels, and experiences!
At Flight Hacks it’s no secret we love points-earning credit cards. They consistently remain one of the most effective ways to rack up hundreds of thousands of frequent flyer points, but at the same time can be confusing for many.
This article will give you some insight into why flexible rewards programs are often considered one of the best options when it comes to credit card points and reveal why they are vital to the points game.
What are flexible reward programs?
When you go to sign up for a rewards credit card, you’ll find two varieties: co-branded airline frequent flyer cards and flexible rewards cards.
Co-branded cards are simple enough, with every dollar you spend transferring straight into the specified airline frequent flyer program (eg. 1 Velocity point per $1 spent). On the other hand, the flexible rewards system allows you to earn points in a separate currency and then transfer these points elsewhere, such as an airline frequent flyer program. You can also use flexible rewards points for other redemptions such as gift cards and reward store products.
For example, American Express flexible rewards cards collect Membership Rewards points, which can then be transferred to several frequent flyer programs. Funnily enough, the biggest advantage here is flexibility. Flexible reward programs allow you to accumulate points and make a decision on how to use them later.
Advantages of the flexible reward system
- Earn points without being locked into a specific airline
- Ability to research the best airline for redemption while looking at the actual award availability for a specific route and date
- Protection from frequent flyer program devaluations
- Transfer bonus promotions
- Non-travel related redemptions – anything from iPhones to chainsaws!
Disadvantages of the flexible reward system
- Slightly lower earn rate after points transfer compared to co-branded cards
- It can be time-consuming to keep on top of the best ways to use your points (eg. which airline redemption offers the best value and availability)
- Points transfers take time, which can be nerve-wracking when you have a specific redemption in mind as there is always the possibility that your preferred redemption flight may be booked before the points arrive in your frequent flyer account
- Harder to accrue points through sign up bonuses.
Australia’s flexible points programs
Many of the big banks offer flexible points programs, with a fairly diverse card range to choose from.
American Express Membership Rewards
Card range:
Airline frequent flyer partners:
- Air New Zealand Airpoints
- Cathay Pacific Asia Miles
- Emirates Skywards
- Etihad Guest
- Malaysia Airlines Enrich
- Singapore Airlines KrisFlyer
- Virgin Australia Velocity
- Virgin Atlantic Flying Club
Hotel partners:
- Hilton Honors
- Marriott Bonvoy
Westpac Altitude Rewards
Card range:
Airline frequent flyer partners:
- Air New Zealand Airpoints
- Cathay Pacific Asia Miles
- Malaysia Airlines Enrich
- Singapore Airlines KrisFlyer
- Virgin Australia Velocity
ANZ Rewards
Card range:
Airline frequent flyer partners:
- Air New Zealand Airpoints
- Cathay Pacific Asia Miles
- Singapore Airlines KrisFlyer
- Virgin Australia Velocity
Citi Rewards
Card range:
Airline frequent flyer partners:
- Emirates Skywards
- Singapore Airlines KrisFlyer
- Virgin Australia Velocity
CommBank Awards
Card range:
Airline frequent flyer partners:
- AirAsia BIG
- Air France-KLM Flying Blue
- Cathay Pacific Asia Miles
- China Eastern Eastern Miles
- Etihad Guest
- EVA Air Infinity MileageLands
- JAL Mileage Bank
- Lufthansa Miles & More
- Malaysia Airlines Enrich
- Qantas Frequent Flyer
- Qatar Airways Privilege Club
- United MileagePlus
- Virgin Australia Velocity
Hotel partners:
- IHG Rewards Club
NAB Rewards
Card range:
Airline frequent flyer partners:
- Air New Zealand Airpoints
- Cathay Pacific Asia Miles
- Singapore Airlines KrisFlyer
- Virgin Australia Velocity
Amplify Rewards (St. George/Bank of Melbourne/BankSA)
Card range:
- St. George Amplify
- St. George Amplify Platinum
- St. George Amplify Signature
- Bank of Melbourne Amplify
- Bank of Melbourne Amplify Platinum
- Bank of Melbourne Amplify Signature
- BankSA Amplify
- BankSA Amplify Platinum
- BankSA Amplify Signature
Airline frequent flyer partners:
- Malaysia Airlines Enrich
- Singapore Airlines KrisFlyer
- Virgin Australia Velocity
Frequent Flyer Transfers
When selecting the best card for you, it is important to also consider the transfer rate of competing programs. For example, you would receive more Velocity points when transferring from Westpac as opposed to American Express.
While this information can be helpful, it is equally important to realise the earn rate of the card itself. In the previous example, the American Express card may earn 3 points per $1 spent, while Westpac may earn 1 point per $1 spent. This means American Express is the better option, despite the lower transfer rate. (I did mention it can get complicated!)
Below you will find a transfer rate comparison for Australia’s top banks. Note that only comparable airlines have been included.
Non-travel redemptions
While most Flight Hacks readers would be more interested in frequent flyer points, flexible rewards programs also offer non-travel related redemptions. It is important to do your homework here, as these redemptions can often represent poor value, especially retail products.
Non-travel redemption options can be split into three main categories:
- Gift cards – Redeem your points for gift cards to a collection of retail stores
- Entertainment – Redeem your points for experiences such as movie and theme park tickets
- Retail products – Redeem your points for a variety of products from the latest iPhone to chainsaws!
Best Flexible Rewards Cards
American Express Platinum Edge
Signup Bonus: 50,000 Membership Rewards points when you are approved and spend $1,500 on your new card within the first 3 months
Travel Credit: $200 to spend on eligible domestic and international flights, hotels, car hire or unique experiences with American Express Travel
Annual Fee: $195
Earn Rate:
- 3 Membership Rewards points per $1 spent at major supermarkets and petrol stations
- 2 Membership Rewards points per $1 spent in a foreign currency, overseas and online
- 1 Membership Rewards Point per $1 spent on all other purchases
American Express Explorer
Signup Bonus: Up to 150,000 Membership Rewards points. 120k points after you spend $3,000 on your new card and an additional 30k points after 2nd year annual fee charged
Travel Credit: $400 to spend on eligible domestic and international flights, hotels, car hire or unique experiences with American Express Travel
Lounge Access: Two annual entries to the AMEX Lounge at Sydney or Melbourne
Annual Fee: $395
Earn Rate:
- 2 Membership Rewards points per $1 spent
- 1 Membership Rewards point per $1 spent at government bodies in Australia
ANZ Rewards Platinum
Signup Bonus: 100,000 Reward points and $50 back when you spend $1,500 on eligible purchases in the first 3 months from approval
Annual Fee: $99
Earn Rate:
- 1.5 Reward points per $1 spent on eligible purchases up to and including $2,000 per statement period
- 0.5 Reward points per $1 spent on eligible purchases above $2,000 per statement period
Westpac Altitude Black
Signup Bonus: 140,000 Altitude points when you spend $6,000 or more on eligible purchases within 90 days of approval
Annual Fee: $250
Earn Rate:
- 6 Altitude points per $1 spent on flights purchased in Australia directly with Qantas, Jetstar, Singapore Airlines and Emirates
- 2 Altitude points per $1 spent with Uber, Uber Eats, David Jones, Myer, THE ICONIC, Spotify Premium and Airbnb
- 1.25 Altitude points per $1 spent on all other eligible purchases
