VA's Audience Demographic

[clifford]

I have no idea what the current VA management thinks it is, but here's my take.

- small business
- travellers who don't want to pay for Qantas, and who'd not rather not drive or take the train or a bus.

Is this sustainable, I wonder? Depends on pricing, I guess, but with the frequent flyers having been pissed off, who knows?

 

[Saab34]

They say small business, but they would still have eyes on those larger contracts. Bigger corporates are looking for savings, Virgin might offer a better deal. My previous employer (top ASX) pushed most travel to VA a few years ago.

The seem to be after the value customer, those who don’t want to fly the LCC, but those who can’t justify paying the QF premium. Seems to be a profit pool in the middle for them so they have found their niche I think.

Virgin has larger frequency on the Triangle and Transcon compared to Jetstar, this is where they make their money.

Virgin’s earnings should be relatively stable, in comparison to the others they have the bulk of capacity tied to the triangle and transcon, all of which are becoming very slot constrained, especially in peak. Those peak triangle profits are well protected. Unknown how WSI will change up the profit pool in the Sydney basin.

 

[MEL_Traveller]

I have no idea what the current VA management thinks it is, but here's my take.

- small business
- travellers who don't want to pay for Qantas, and who'd not rather not drive or take the train or a bus.

Is this sustainable, I wonder? Depends on pricing, I guess, but with the frequent flyers having been pissed off, who knows?

And the market between ULCC and full service… so between JQ and QF.

I doubt the changes will affect ‘loyalty’, because customers are largely price sensitive. Status was a byproduct of flying, primarily at the cheaper fares.

All the business class pax from VA aren’t suddenly going to switch to QF… they can’t afford it.

And there are just enough perks on VA to keep that middle market… an inch or two of extra legroom, cup of tea of coffee, hand baggage with every fare. And some benefits when getting silver.

 

[jase05]

All the business class pax from VA aren’t suddenly going to switch to QF… they can’t afford it.

Or don’t want to pay it.
For us VA suits is fine.
About 90% of our domestic leisure travel is with VA J as we don’t fly Y if possible.
I still think they offer a solid enough product domestically and QF prices are absolutely exorbitant at times and when we book I’ll choose BJFOD and in that regard VA is nearly always cheaper. If we had to pay the QF price we would so it’s nice to have the option.
Just a pity that VA has a terrible FFP these days so I’ve pretty much given up on the program and switched to alternates