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Value of Virgin Frequent Flyer Points since Change in Ownership

mica99

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Hi,

Has anyone been able to do a comparison of Virgin Frequent Flyer Points Pre- & Post- Change in Ownership as I get the feeling that the number of points required to do a similar trip 6+ months ago has increased significantly; which will now thinking about it mean the overall cost of the flight has also increased.
 

henrus

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Has anyone been able to do a comparison of Virgin Frequent Flyer Points Pre- & Post- Change in Ownership as I get the feeling that the number of points required to do a similar trip 6+ months ago has increased significantly; which will now thinking about it mean the overall cost of the flight has also increased.

I'm a bit confused. The award chart which outlines the number of points to book a trip has not changed in the last few years (pre/post the change in ownership).

Are you sure you're looking at the right type of fares? Ideally when booking points you want to be ticking the box that says "Use Points + Pay" and then looking for fares labeled as "Economy Reward" or "Business Reward".

Right now for flights booked in business class fares are actually cheaper than before thanks to an ongoing 30% off promo which is valid for flights until the end of January.

If you can give an example of where you think it's more than before I'd love to know.
 

theoracle30

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Hi mica99, you must be mistaken as Velocity hasn't yet increased the number of points needed for reward seat bookings. You were probably looking at Any Seat awards which is the cash value of flights converted into points. These may be higher than usual due to limited seats and higher travel demand.
 

Mattg

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There have been no changes in the cost of Velocity Reward Seats since the change of ownership.

However, one could argue that Velocity points have been devalued because the product has gone backwards while the number of points needed to book a seat remains the same.

A few years ago, Velocity justified increasing the cost of reward seats by saying you now get checked baggage and food on board. No doubt the price won't be reduced when this is taken away...
 
The Qantas Premier Platinum Card delivers up to 100k Qantas Points, 75 bonus Status Credits, complimentary lounge invitations and travel insurance. All this with a reduced first-year annual fee of $199.

Recommended by the Australian Frequent Flyer

antycbr

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They probably haven't gotten to the op's point yet.
They will come to it.
VGW is chopped.
Rise in points needed for awards, bet it will come soon.
They can’t move too far as QF is a natural price setter. Unless they make points easier and cheaper to earn than QF the redemption rate can’t exceed QF for the same sector length. Arguably they need to price between JQ and QF but can’t exceed QF.
 

henrus

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However, one could argue that Velocity points have been devalued because the product has gone backwards while the number of points needed to book a seat remains the same.

I'd argue that they have done a reasonable job by discounting business class award seats. Just last night I booked a Brisbane to Sydney where the difference between the Economy and Business reward was 3000 points. Whilst I get Economy X for free, if you were to use points to buy the economy X it would have been 4400 points. They did have an economy reward sale a month or so ago as well.

They can’t move too far as QF is a natural price setter.
Sadly that correct and whilst now's probably not the right time it's about time they (both VA and QF) made changes to the way earning/redemptions work along with the overall program.

Frequent flyer programs have gotten out of control. Qantas has over 12 million members and Virgin over 10 million. Whilst most strive to achieve a long-haul trip many simply end up redeeming on toasters and gift cards as even domestic business class redemptions can be hard to find. Likewise, Virgin status can be earned by shopping and Qantas is not much better as you can earn credits by signing up for a new credit card.

In the early days of Velocity, you earned 6 points per dollar spent and 5 status credits per dollar. The meant a $4000 spend got you silver and a $10,000 spend got you gold. They only had any seat bookings that worked in a range depending on the time of year.

I can't wait to see what REX comes up with, currently, they have a frequent business traveler program which is fly 18 paid sectors and get 2 free sectors. It remains to be seen what their new program will look like but I hope it retains this simplistic approach something that
 

serfty

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Aside from the OP possibly misconstruing what is an award seat, the jury is still out.

My main use of awards was international and until such may resume and I can ascertain value, I won't be chasing Velocity or Qantas points.
 

jakeseven7

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It’s hard to judge right now but we do know their product is heading down market and routes/frequencies reduced.

For me the value is in international J or above redemptions and I’m not hopeful of this improving in a Bain/VA2 run business - but we haven’t heard anything yet....

As always FF points are worth what they are worth to YOU not others :)
 

trippin_the_rift

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....

I can't wait to see what REX comes up with, currently, they have a frequent business traveler program which is fly 18 paid sectors and get 2 free sectors. It remains to be seen what their new program will look like but I hope it retains this simplistic approach something that

REX is addicted to Government lifelines. They think that by competing in the golden triangle, they'll make some cash. The truth is, REX is doomed. There is NO MONEY in trying to 'be an airline'. Every airline in the world has some major/unfair advantage that boosts their bottom line. Government, military, cargo, loyalty, protectionism..... there's always something that unpins the success. Rex thinks they're going into a sword fight but the reality is that the competitors have laser-guided weapons that fire from outer space.

For me the value is in international J or above redemptions and I’m not hopeful of this improving in a Bain/VA2 run business - but we haven’t heard anything yet....

You can thank Governments on both sides, at all levels for those international J redemptions being a thing of the past.
Tiger2.0 is running the clock down. Get those points out while you can. Hair dryers are looking mighty appealing for many.
 

Must...Fly!

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For me, Velocity points have a greater value to me now than they ever did before. Free and flexible cancellation/change policies means all I am relying on is an available award seat to guarantee travel. I can book several dates in advance in the hope of border restrictions easing, and just cancel and/or reschedule at no financial loss.

Or, minimal financial loss. The credit card surcharge is non-refundable I think. Last one left me a whole 13 cents out of pocket.



REX is addicted to Government lifelines. They think that by competing in the golden triangle, they'll make some cash. The truth is, REX is doomed. There is NO MONEY in trying to 'be an airline'. Every airline in the world has some major/unfair advantage that boosts their bottom line. Government, military, cargo, loyalty, protectionism..... there's always something that unpins the success. Rex thinks they're going into a sword fight but the reality is that the competitors have laser-guided weapons that fire from outer space.
Absolutely right. They've almost come unstuck multiple times just by flying their bread and butter. I know it was cheap but starting with 737s will have them running dry in months.

They seem to think they have more of a chance to succeed than Bain? None of it makes any sense because there sure as hell is not a profitable load to be had on a 737 that's connecting to a few Saab aircraft heading to the regions.
 

AIRwin

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Free and flexible cancellation/change policies means all I am relying on is an available award seat to guarantee travel. I can book several dates in advance in the hope of border restrictions easing, and just cancel and/or reschedule at no financial loss.
No cancellation fee only until 31 October:
 

jakeseven7

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For me, Velocity points have a greater value to me now than they ever did before. Free and flexible cancellation/change policies means all I am relying on is an available award seat to guarantee travel. I can book several dates in advance in the hope of border restrictions easing, and just cancel and/or reschedule at no financial loss.

Or, minimal financial loss. The credit card surcharge is non-refundable I think. Last one left me a whole 13 cents out of pocket.

Good point and another good way for people to use up the last of their Velocity points as well.

Unfortunately Bain/VA2 don’t make much money off that choice but you can’t win them all.
 

Must...Fly!

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No cancellation fee only until 31 October:

True for change of mind (free date changes up until 31 Jan though). But there is an additional clause where silly state government policy forces you to cancel.

  • For cancellations made after 31 October 2020, standard Velocity Terms and Conditions will apply.
    If Virgin Australia cancels your flight and a suitable alternative is not available, we’ll refund your Points/cash in full to the original form of payment (except for any booking or credit card fees) regardless of the date of cancellation.
    Domestic bookings: where your journey has been impacted by Government border restrictions (such as mandatory quarantine or self-isolation, or where entry is no longer permitted) and you can no longer travel, we’ll waive the cancellation fee and provide a credit or refund (depending on the type of fare you have purchased) excluding any booking or credit card fees. Please call our Membership Contact Centre on 13 18 75 to discuss your options.

 

ozstamps

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If Tiger#2 doubled the number of points needed for awards I doubt anything much would change. No-one is actively SEEKING any. The only game in town is BURNING them.

Bain is flogging them relentlessly with bonus offers on buying miles and moving your hotel points across etc. It is pretty much their only income stream these days.

Those stuck with Virgin points can essentially only redeem them now for flights on Virgin domestically and like owning Zimbabwe Dollars, you simply make do with what is offered by those who accept them.

Someone with a million Virgin points KNOWS when Bain goes bust (pretty likely) or changes Velocity dramatically, or both, they are screwed, so will use 40,000 points for a ''free'' flight even it is costs only 20,000 now.

So anyone who did not transfer them to SQ for their own reasons, and does not want a new toaster or hairdryer for 20,000 points etc, might be wise to redeem them FAST, as the only way this graph is headed is dowwwwwwwwwwn.
 

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