In a surprising announcement that has left many cardholders reeling, HSBC revealed it will be increasing the points required to transfer into Singapore Airlines' KrisFlyer program by a staggering 20%, effective January 16, 2025.

This decision makes HSBC the first bank in Singapore to require more points for KrisFlyer miles compared to its other airline partners, complicating an already intricate points transfer system, which involves as many as five different transfer ratios!

What This Means for Cardholders

Starting January 16, 2025, cardholders will have to redeem 30,000 HSBC reward points to get 10,000 KrisFlyer miles, up from the current 25,000. This shift not only raises the points requirement but also alters the dynamics of how often cardholders might choose to use their HSBC cards for accruing KrisFlyer miles.

| HSBC Points Required | KrisFlyer Miles Received | |---------------------|-------------------------| | 25,000 | 10,000 | | 30,000 | 10,000 |

This devaluation means that the earning rates for KrisFlyer miles are effectively reduced as well. For example, typical earning metrics for the HSBC TravelOne and Revolution cards will now see a noticeable decline in the miles earned per dollar spent. If you're used to a 1.2 miles per dollar rate with the TravelOne card, you will now be looking at a mere 1 mile per dollar!

What’s Staying the Same?

In a small bright spot amidst the gloom, HSBC has announced that its waiver on redemption fees for points conversions—originally set to expire on January 31, 2025—will now continue indefinitely. This decision provides some relief as it allows customers to transfer points without incurring additional fees, though it does little to offset the increased point requirements.

A Shift in Perspective: The Debate Begins

There seems to be a split in opinions on whether this change will matter significantly.

The Skeptics:

Some experts argue that transferring points to KrisFlyer might not be the best strategy anyway. Since many credit cards in Singapore offer competitive earning structures for KrisFlyer miles, they suggest that HSBC points might be better utilized with alternative partners, which will continue to provide favorable transfer ratios.

The Realists:

On the other hand, veteran travelers recognize that for the average cardholder, KrisFlyer remains the primary choice for air travel rewards. Bank executives have pointed out that about 90% of redemptions are still for KrisFlyer, signifying its dominant position in the market.

For many, this change could be a dealbreaker, prompting them to reconsider their loyalty to HSBC cards. Experienced frequent flyers might shrug off the news, while casual users could feel trapped and frustrated.

Can You Still Book Flights with HSBC Points?

HSBC has launched a new feature that enables cardholders to book flights on Singapore Airlines directly through the Rewards Marketplace using their points. However, this method has drawn criticism as it often yields a poor return on value—equally criticized for being less beneficial than redeeming points for award tickets.

Conclusion: A Puzzling Decision

The decision to devalue KrisFlyer transfers raises questions about HSBC's strategies and relationships with airline partners. Perhaps they couldn't negotiate a competitive rate with Singapore Airlines leading to this unprecedented change?

HSBC is providing a one-month notice for customers who wish to transfer their points at the current favorable rate, emphasizing that action is needed by January 15, 2025.

While the indefinite extension of redemption fee waivers offers a glimmer of hope, many users are likely to voice their dissatisfaction with this abrupt devaluation. If you haven’t already, now might be the time to rethink your loyalty to HSBC cards and explore options that might give you more value for your hard-earned points!