Qantas Airways Limited has launched its maiden own brand credit card. It hopes to give a fillip to cross-selling opportunities since it targets a 73 percent rise in its frequent flyer division earnings. This increase in profits is scheduled over-coming five years.
The Quantas company, to its credit, is not a bit player in rewards card market. Approximately 35 percent of total Australian credit card spending earns the consumer Quantas points when one uses co-branded cards. About 17 percent of the market of the prepaid travel card is dominated by Qantas Cash card. It follows, as Lesley Grant, the CEO of Qantas Loyalty, that bringing out its own credit card makes perfect sense.
Qantas is also hoping that the credit card will soften a dip in the company's revenues due to the decision taken by Reserve Bank of Australia to cut the fees levied between banks on a few credit cards beginning July 1. This has compelled a few credit card issuers to cut numbers of the frequent flyer points they usually buy from Qantas to reward customers.
The Qantas Premier MasterCard is issued by Citi. It is targeted towards members of Qantas Frequent Flyer scheme. These members will want to maximize the number of points earned by them. They also target people who love to travel and so they can join the program to increase their benefits. Grant said that since consumer behavior is influenced by Qantas Points, it can be assumed that a high earn rate can be attached to this card. This will make the card extremely popular. He added that the card carries extra appeal for regular flyers as it can provide the undeniable benefits of lounge passes and fare discounts.
The card itself is a standard one. The plastic is shipped with an annual fee of $149 during firs year and $299 from the second year. Both cash advance and purchase rates come to 21.99 percent. The Qantas card, however, have some excellent generous rewards. There are uncapped points. The new card's earn rate comes at one Qantas point for every $1 spent on the purchases eligible in Australia. For purchases made overseas, $1 spent equals 1.5 Qantas point. Two Qantas points are accrued for every $1 spent on purchases made through Quantas, including retail items from the airline's online store and flights as well.