Should employees be allowed to keep points earned on staff travel?
Michael Valkevich, Vice President of Global Sales and Program Management, Asia Pacific for CWT, argues that even when a company pays for staff travel, employees should be allowed to keep those frequent flyer miles (and status credits) earned on the trip.
While most companies know better than to get between a bleary-eyed traveling employee and their frequent flyer points, there are a few holdouts who subscribe to the idea that because the company paid for the flight, the company owns the points.
Even if this notion has some basis in law, that doesn’t mean it’s a good idea. It was the employee who suffered through the flight, and this wasn't a holiday. They were in a conference room, not at the beach. For many regular business travellers, time spent in airport terminals is time away from home and family.
So when you take away one of the very few perks of business travel, employees tend to be pretty grumpy about it. Letting employees keep their miles shows them you value their contribution and you recognise the sacrifices they make when they’re on the road.
Secondly, frequent flyer points are worth much more to employees than to the company.
Maybe your company wants to tighten its budgetary belt. That’s fair enough. But there’s a lot of research out there calculating how much airline miles are worth in cash terms. And while the estimates vary, the clear consensus is that they’re not worth much. One points might be worth two cents if it’s a very generous program.
On the other hand, a tired business traveller will surely find a great deal of value in an occasional upgrade to business class or a nicer hotel room. So why not let them have it?
Frankly speaking, miles are a clumsy form of currency. They can only be used in prescribed ways, they expire, and who knows when an airline will suddenly require more of them to book a flight?
If a company could find a way to put all its employees’ miles in a single bucket, it would simply create another mess to untangle.
The administrator of a large travel program could find themselves spending hours properly allocating the benefits to where they’re most useful or finding ways to spend miles before they expire at the end of the quarter.
In fact, given the additional staff hours, it may actually be a cost rather than a saving for the company to keep the miles for itself.
For a company, it’s a headache at best and an expense at worst. For an employee, who only deals with their own miles, it’s not such a problem.
So while the company might have a legitimate claim on an employee’s frequent flyer points, it won’t gain much – if anything – by forcing employees to surrender those points. And given the administrative headaches and general ill will it’ll create, it’s simply not worth it.
Do you get to keep your frequent flyer points when the company pays for your ticket?
Qantas - Qantas Frequent Flyer
11 Dec 2017
Total posts 50
I don’t particularly mind where FF points are going as long as someone gets to keep em! Commonwealth employees don’t get FF points and neither do their employers!!
Qantas - Qantas Frequent Flyer
04 Feb 2016
Total posts 9
Your right. No points for public servants but that does have an impact on the pricing for tickets. I have seen full flex tickets bookable with federal travel agent for less than Red e Deal on on the same Qantas flight.
Virgin Australia - Velocity Rewards
28 Feb 2018
Total posts 2
Employees of the Commonwealth may not
Qantas - Qantas Frequent Flyer
16 Jan 2018
Total posts 129
It’s a matter of time for the airlines to turn around and offer lower rates where points won’t be accrued. More availability for those and less liability in the long run for airlines who have FF members with millions of points banked up to use.
Qantas - Qantas Frequent Flyer
09 Nov 2018
Total posts 104
Short answer yes. As a weekly traveler, i use my points from hotels and flights on my family holiday or long weekends away. This compensates for all the time I spend away.
Qantas - Qantas Frequent Flyer
09 Feb 2015
Total posts 388
I was thinking the same thing myself. And a few points is very small compensation for the time many spend away from their family and friends, often missing out of family events.
American Airlines - AAdvantage
13 Jul 2015
Total posts 276
Yes I don't see why not
28 Mar 2018
Total posts 30
It’s an interesting assumption that companies won’t gain much.
Qantas - Qantas Frequent Flyer
30 Oct 2018
Total posts 6
Agreed, its a business expense for the travel and most businesses would either be charging a customer for travel or beneifiting from training/networking etc from sending the employee in the first place (hopefully) - so let the employee keep the points just like you let them keep the shampoo in the hotel room.
05 Dec 2018
Total posts 146
Employees should definitely be able to keep the miles, it’s a great reward for the sacrifice made.
Qantas - Qantas Frequent Flyer
04 Feb 2016
Total posts 9
For commonwealth bookings you are allowed to retain status points as they don't have a monetary value, unlike FF points.
Etihad - Etihad Guest
02 Jul 2015
Total posts 15
My company allows us to keep our points which I believe is a sensible policy. Most of the flying done by my colleagues and I is outside of core business hours i.e. we are flying in our own time, not in the company's time. For this reason alone it is only fair to allow us to collect the points easrned in the process.
Qantas - Qantas Frequent Flyer
24 Aug 2018
Total posts 6
I wonder if chasing status sometimes means an employee might not act in their company's best interests over the timing of buying a ticket.
02 Apr 2019
Total posts 1
People reaching P1 generally aren't going on saver tickets!
Virgin Australia - Velocity Rewards
02 Feb 2015
Total posts 39
eventually you getgold/platinum then your arguement doesnt hold. Let the staff keep them, there are other penny pinching ideas in the boardroom anyhow
01 Jan 2015
Total posts 3
12 Feb 2015
Total posts 89
Yes. Many years ago points accruals from official travel were meant to be used only for official travel. Obviously difficult to police and very difficult to redeem for business travel which is often at short notice. A few years ago, negotiation of whole-of-government travel contracts involved agreement with participating airlines that they would not award points for government travel (obviously contributing to the discount offered). Status credits are still accrued.
16 Jul 2015
Total posts 2
This is correct, when flying for the government only the SC are kept not the FF points. Doesn't matter if you are a AP3 or Dep SEC
Qantas - Qantas Frequent Flyer
28 Aug 2017
Total posts 4
Kind of. Government fares do not earn points, but they do earn status credits. The traveller is entitled to keep the SCs. Some Government tickets also come with lounge access regardless of class of travel (i.e. VA).
15 Feb 2013
Total posts 163
If you work for a GBE (Government Business Enterprise) you keep both points and SCs. In this case you are not a government employee or working for a government department, you work for a company that is effectively government owned.
Qantas - Qantas Frequent Flyer
04 Feb 2016
Total posts 9
Correct. status is allowed.
Qantas - Qantas Frequent Flyer
23 Mar 2012
Total posts 211
Yes. The interesting part of that was that at one point Aus govt. employees did not get points but of course the political masters did. I believe that has now changed and pollies no longer points either.
16 Nov 2011
Total posts 580
Half true. On Virgin aus and qantas yes.
Etihad - Etihad Guest
01 Mar 2019
Total posts 4
All FIFO workers get to keep their points. I've 'earned' 120,000 in the last 12 months. It's a reward for spending 2/3 of the year away from the kids...
Virgin Australia - Velocity Rewards
02 Feb 2015
Total posts 39
yes me too. We use them to upgrade our overseas holls
QFP
22 Jan 2013
Total posts 94
yes they should
06 Apr 2018
Total posts 5
Harder to enforce BFOD if an employee has something to gain from flying a specific (and probably more expensive) airline.
05 Dec 2018
Total posts 146
Most colleagues I know that have to travel all have it booked for them by the PA or the person in charge of corp travel. So little control to buy when there is a promo like ‘double credits’.
Qantas - Qantas Frequent Flyer
05 Dec 2012
Total posts 24
Its easy, as an employer, we have enrolled in Airline business reward schemes and then everyone is rewarded.
10 Jul 2017
Total posts 32
no they shouldnt be allowed to keep the points nor the socks they wore on the flight
Qantas - Qantas Frequent Flyer
09 Feb 2015
Total posts 388
What about the used tooth brush, hand that back too?
Qantas - Qantas Frequent Flyer
23 Mar 2012
Total posts 211
:) :) :) :) :) :) :)
Qantas - Qantas Frequent Flyer
23 Sep 2017
Total posts 162
Points are tantamount to a fiat currency created by the airlines. The airlines are the ones that own them, not an employer or an employee, and can change the terms when they wish.
Qantas - Qantas Frequent Flyer
28 Aug 2015
Total posts 14
Yes, what should be more important for a company, of any size is - what does the employee do when they get to the destination, do they do their job well, effective and arrive to the destination/home safely. If companies want people to travel for work then keep the points, especially if they do their job well
Qantas - Qantas Frequent Flyer
25 Nov 2016
Total posts 64
Of course, where else would the points go? Some corporate basket? Employees flying often have to get up more early and get home later than if they were going to the office from home. The idea that staying in a hotel in another city is glamorous is very outdated.
22 Dec 2012
Total posts 35
How is the company supposed to claim your points? The T&C only allow transfer to family members.
29 Mar 2019
Total posts 11
Booked through a corporate account the company can have the points allocated to the master account.
25 Feb 2013
Total posts 61
Don't both Qantas (Assure) and Virgin (Accelerate) now give out points to businesses in addition to flyers? I wonder if that makes a difference?
Qantas - Qantas Frequent Flyer
22 May 2017
Total posts 12
My company allows me to keep all of my points and SC when traveling and has always done so. I don't see how doing any differently is fair, it's the smallest reward to give the employee for the sacrifice of being away. No business I know of, if you're on a business trip for 5 days pays you for the 100 odd hours of work you spent away from home, nor compensate you for being away from family/friends/activities, so it's only fair.
25 Feb 2013
Total posts 61
My guess is that the implicit agreement that staff keep the points is why there is enough goodwill that (in most instances) staff aren't charging their travel hours back to the company. If companies started doing this, my guess is those taking the 6am flight to SYD-MEL and the 6pm flight back would be charging their work hours as a 12hr day instead of the 9-5. It's much cheaper to let someone choose airline and keep points than it is to pay an hourly wage for time spent in the air.
Virgin Australia - Velocity Rewards
06 Oct 2017
Total posts 35
Interesting comments with respect to the travel hours -
I would have thought in today's world, for the vast majority of people who are travelling regularly/frequently (and even those with less travel) for work, their overall remuneration package would be taking into consideration the travel requirements - and to extent if it isn't given consideration in the total package, then why work there?!
That said, from a goodwill perspective, I certainly wouldn't want to remove points from staff who are required to travel.
Qantas - Qantas Frequent Flyer
15 Mar 2019
Total posts 4
I once saw an initiative commence in a company to move from employees keeping the points, to them being retained by the company. The reaction from a significant number of (salaried EA) staff was then to say don't ask me to fly in my time - I'll fly in yours. It didn't go ahead.
Qantas - Qantas Frequent Flyer
15 Sep 2018
Total posts 1
I think definatley yes (except if you are a public servant travelling on the taxpayers dime). Small things like this help boost employee morale beyond their worth.
16 Nov 2011
Total posts 580
So if it is s morale boost why exclude public servants? The core issues are the same and it doesn’t matter who is paying, provided that travel is essential of course.
QF
21 Jul 2016
Total posts 32
I totally agree with the sentiments expressed in the article. I get to keep points and SCs. Every time I travel I get home at 1 am at the end of a trip travelling economy (company policy whatever the distance or duration). You can only push the total remuneration concept so far. I regard it as compensation for time away. No credit given for travelling out of office hours. On the other had the company would give me lounge access to one airline of my choice, if I didn't have it because of SCs. That's another pont to consider, my company hasn't paid for lounge access for may years and won't ever if travelling Qantas, as I have LTG.
Jetstar Airways - Qantas Frequent Flyer
03 Jul 2018
Total posts 50
The only flaw to this argument is that if the frequent flyer points are seen as compensation, then it maybe considered taxable income. I think we should allow each company to decide.
Qantas - Qantas Frequent Flyer
19 Jun 2017
Total posts 1
Seems a little hypocritical that we are happy for public servants not to accrue FF points but we won't be giving up ours. Given that many FF are on a salary it is expected you do your work until the work is done, not until the clock strikes 5pm. If you don't like the travel or the hours find another job. I have never taken on a role because one of the perks was frequent flyer points. In fact I have taken on roles that include travel so I don't have to sit behind a desk in an office all day. How many business people look down on fare paying FF passengers in airport lounges/clubs even though the business travellers haven't paid for their ticket, then use their employer paid for FF points for personal/holiday travel. Maybe employers should negotiate a better contract price in return for not accruing FF points. Take the FF points, just not mine!
Qantas - Qantas Frequent Flyer
29 Jan 2016
Total posts 8
Wayne Swan and Lindsay Tanner removed the rights of Commonwealth employees (particularly parliamentarians' staff) to keep their frequent flyer points in around 2010. The justification was that it resulted in a saving to the Commonwealth as part of the renegotiation of the Commonwealth's travel contract.
I was advised by someone very close to that negotiation, however, that it was actually an attempt to *appear* as though the Government was tightening its belt, whereas the airlines themselves put next to no value on the frequent flyer points (presumably because they valued them as a loyalty building measure) and, in practice, this change had zero impact on the dollar value of the new travel agreement.
Now I know that few people are going to shed tears for Commonwealth employees, particularly parliamentarians' staff. But I can assure you that the amount of travel they do is punishing and, as your piece suggests, was seen as one very small compensation for the very many weeks spent away from partners and children. The removal of that - especially for no genuine benefit - rankled a lot of people.
Qantas - Qantas Frequent Flyer
23 Sep 2017
Total posts 162
For the record, I’m not a civil servant, but my opinion is that they should get the points. Denying them the same benefit as others was ridiculous and punitive. Treacherous pollies who all love having their snouts in the trough when they can!
16 Nov 2011
Total posts 580
Unfortunately remuneration (and I consider points a form) in the public service is driven by public opinion.
Qantas - Qantas Frequent Flyer
07 Feb 2018
Total posts 2
For me the simple answer is yes.
Point’s earnt are minimal in comparison to what a happy employee contributes to the ongoing success of a business. Sure there is always a chance of the odd employee doing the wrong thing by the company; however in general, I’d suggest that the right thing is done.
I often use the points to upgrade my ticket so when I do arrive at my international location I’m in better shape than if I’d been squashed down the back of the bus.
23 Feb 2017
Total posts 16
15 Jul 2016
Total posts 6
I’m calling BS on this article. What company’s take their employees points and use them for travel?
24 Mar 2016
Total posts 5
If it lowers the costs of the company's operation, the company should keep all. In the end, staff will get a bonus and travel is written into their PD (position description).
Qantas - Qantas Frequent Flyer
30 Mar 2019
Total posts 1
I haven't read all comments so don't know how often this may also have been mentioned - but it's easier for the private sector to allow it - and they should.
But the public sector is a problem because officials are travllin at taxpayer expense and so the Commonwealth (and some state/Territories) have finally solved the issue by negotiating lower pricesin return for no FF points being credited.
16 Nov 2011
Total posts 580
Public sector employees are only a problem because of public perception that they are getting something for nothing. This despite most private sector employees doing much the same themselves.
Qantas - Qantas Frequent Flyer
23 Sep 2017
Total posts 162
Might be worth reading some comments further back.
QFF
16 May 2016
Total posts 66
A overlooked issue is the impact on travel policy and therefore spend - employees will manipulate their airfare/route search in order to ensure their preferred carrier presents as the "best fare of day" or "lowest logical fare" so that they can fly them and earn points.
25 Feb 2013
Total posts 61
This is something that goes both ways. I've made the point that they can either pay for items such as the extra luggage I need to take on work trips (equipment, documents, etc) when I fly the other airlines, as well as reimburse food and drink at the airport, or they can let me fly Virgin or a partner who will give it to me for free as Platinum perks or lounge access. I've also saved them thousands by being able to fly ahead which has essentially meant the much more expensive flexible tickets aren't necessary
24 Mar 2016
Total posts 5
Qantas staff on duty travel do not get Points and status credits. They are not even allow to the lounge except they are invited by a paid fare customer. What are we talking about? Fair ? You make your decision - the answer is not that difficult!!!
24 Apr 2018
Total posts 8
Topically this very suggestion was aired by my company's travel people as part of a 'review' about 2 weeks back. There was an almighty uproar (this is a MNC, not based in AU) amongst the several hundred regular travellers and the suggestion seems to have been quietly retreated from as a result.
Emirates Airlines - Skywards
20 Jan 2018
Total posts 37
Qantas - Qantas Frequent Flyer
06 May 2012
Total posts 178
I run my own company and allow my team to keep all points they may accrue. In fact I promote they open up a QF or VA account if they do not. I travel every week also and use the points I earn for personal holidays etc. I think its only fair. But that's my opinion and each business owner may be different
Qantas - Qantas Frequent Flyer
13 Nov 2018
Total posts 118
It’s a bit of give and take:
Qantas - Qantas Frequent Flyer
31 Jan 2016
Total posts 89
WRT to government travel the basic reasoning for not being allowed to keep points is probity of the public spend but there are a range of rules between the different states and the Commonwealth. For example the public sector commission in NSW says it is ok for public servants to collect frequent flyer/status points. This was a change from a straight 'no collection of any points' however the new ruling is up to the discretion of each departmental secretary and retained points are to be used for government travel. Qld allows collection of points, but the Commonwealth allows status points only, and universities are there own rule makers.
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