PSA: HSBC x KrisFlyer devaluation coming 16 January 2025

Last month, HSBC made a surprise announcement that it would be devaluing points transfers to Singapore Airlines KrisFlyer, hiking the cost of redemption by 20%. 

This devaluation, set to take place on 16 January 2025, will be the first time a bank in Singapore has offered an inferior rate for KrisFlyer miles conversions, compared to other airline partners.

With the deadline just one week away, here’s a remainder of what’s happening, what your options are, and the tricky question facing HSBC Revolution cardholders in particular.

Details: HSBC devaluing transfers to KrisFlyer

To get you up to speed, HSBC will be increasing the number of HSBC points required for KrisFlyer miles redemptions, effective 16 January 2025.

The number of HSBC rewards points required to redeem 10,000 miles will increase by 20% from 25,000 to 30,000 points.

Frequent Flyer Programme	Transfer Ratio (HSBC Points : Partner)
	30,000 : 10,000 25,000 : 10,000 +20%
While the minimum transfer block is 10,000 miles, cardholders can make transfers in blocks of just 2 miles (5 points pre-devaluation; 6 points post-devaluation) in excess of this. For example, you could transfer 10,468 miles, or 30,492 miles.

Transfer ratios to the rest of HSBC’s 19 partners will remain at current levels.

This has implications for the earn rates across all HSBC cards, obviously. While HSBC advertises 1.2/2.4 mpd for local/FCY spend on the TravelOne, and up to 4 mpd on the Revolution, these rates assume a transfer ratio of 25,000 points = 10,000 miles.

When the ratio increases to 30,000 points = 10,000 miles, the earn rates decline accordingly.

So if you use HSBC cards to earn KrisFlyer miles, the TravelOne now becomes a 1/2 mpd card, and the Revolution a 3.33 mpd card. This represents a 16.7% reduction from the current earn rates. 

When should I transfer out my points?

If you’re no longer actively spending with HSBC cards and don’t have any pending points, by all means transfer them to KrisFlyer today. Whether you do it now, or whether you do it on 15 January 2025, your converted miles will be valid till 31 January 2028, per KrisFlyer’s three year expiry policy. 

However, you may very well have to wait till the last minute if you have a HSBC Revolution, where the 10X points from bonus category spending are credited in two batches:

• 1X point when the transaction posts
• 9X points by the end of the following calendar month

The problem is that there’s no fixed date for when the 9X component is credited. Here’s what the community has reported for previous months:

• November 2024 bonus: 18th December
• October 2024 bonus: 15th November
• September 2024 bonus: 9th October
• August 2024 bonus: 19th September
• July 2024 bonus: 17th August
• June 2024 bonus: 19th July
• May 2024 bonus: 14th June

Sometimes the 9X comes on/before the 15th, and sometimes it comes after. So keep monitoring those points balances, and pray hard that December 2024’s bonus arrives before the cutoff!

If it’s any consolation, HSBC rewards points transfers to KrisFlyer are instant, so if your points are credited by 15 January 2024, you can transfer them out immediately and still enjoy the pre-devaluation rate.

Does this devaluation even matter?

As I wrote previously, I’m in two minds about this devaluation.

On the one hand, it feels somewhat glib to say that a KrisFlyer-related devaluation “doesn’t matter”. For better or worse, it’s many peoples’ primary frequent flyer programme, so any kind of devaluation is going to sting.

On the other, given the variety of transfer partners available to HSBC cardholders, it feels a bit wasteful to settle for “mere” KrisFlyer miles. HSBC points can be transferred to 20 airline and hotel partners, some with lucrative sweet spots that offer even better value than KrisFlyer.

✈️ HSBC TravelOne Airline Partners
Frequent Flyer Programme	Conversion Ratio (HSBC Points : Partner)
	50,000 : 10,000
	35,000 : 10,000
	35,000 : 10,000
	35,000 : 10,000
	35,000 : 10,000
	35,000 : 10,000
	30,000 : 10,000
	25,000 : 10,000
	25,000 : 10,000
	25,000 : 10,000
	25,000 : 10,000
	25,000 : 10,000
	25,000 : 10,000
	25,000 : 10,000
	25,000 : 10,000 Till 15 Jan 25 30,000 : 10,000 From 16 Jan 25
	25,000 : 10,000

🏨 HSBC TravelOne Hotel Partners
Hotel Programme	Conversion Ratio (HSBC Points : Partner)
	30,000 : 10,000
	25,000 : 5,000
	25,000 : 10,000
	25,000 : 10,000

Yes, many partners are hamstrung by inferior conversion ratios (Air Canada Aeroplan would be phenomenal otherwise!), but there’s still value in exploring British Airways Executive Club, EVA Air Infinity MileageLands, Flying Blue and Asia Miles, to an extent.

Factor in instant conversions, no conversion fees, and small conversion blocks (after the first 10,000 miles/points), and perhaps this should be the nudge to start exploring elsewhere. 

I’m actually more curious as to why HSBC has decided to take this course of action. Presumably it’s cost-related; Singapore Airlines is known to charge a premium for miles in its home market, even to banks purchasing in large quantities. Still, most banks grin and bear it- what choice do they have, when locals are so fanatically loyal?

It seems like HSBC is gambling that the rest of its transfer partner stable can carry the day, and I’m curious to see whether that hypothesis plays out, given that industry folks tell me KrisFlyer accounts for the vast majority of points redemptions.

Conclusion

From 16 January 2025, HSBC will devalue its transfer ratio to Singapore Airlines KrisFlyer, hiking the cost of redemptions by 20%.

If your heart is set on KrisFlyer, remember to convert your points before the deadline, and keep checking if your December 2024 bonuses for the HSBC Revolution have credited. And after that, stop using HSBC cards, because there’s plenty of other alternatives that don’t involve a haircut (why earn 3.33 mpd when you can earn 4 mpd?).

Otherwise, this may be a good opportunity to start exploring some of HSBC’s other transfer partners, which can offer solid value depending on where you want to fly. 

What will you be doing with your HSBC points?