Most people redeem points without ever checking if they are getting good value. Running a quick calculation before you book can make a significant difference.
A Real Example: Melbourne to Singapore
A friend was visiting Singapore and I wanted to join for a long weekend. Not a cheap destination at short notice. I checked Qantas classic reward flights and found seats for 29,000 points plus around $150 each way.
Return trip: 58,000 points and $298 in fees, compared to $961 if paying cash outright.
That gap works out to roughly 1.1 cents of value per point.
Why the Comparison Matters
Not all redemptions are equal. A recent Points Plus Pay booking with Jetstar returned around 0.5 cents per point, less than half the value of the Singapore classic reward. Same points program, very different outcome depending on how you redeem.
How to Run the Numbers Yourself
Subtract the cash cost of fees from the cash price of the ticket, then divide by the number of points required. That gives you the cents per point value of any redemption.
As a rough benchmark, anything above 1 cent per point is generally considered solid value for Qantas Points.
Always run the numbers before you redeem. A few minutes of checking can mean the difference between a great use of points and a mediocre one.
Have you ever calculated your points value before redeeming? Comment below.