Velocity Chief Nick Rohrlach departs in management shakeup

[ozstamps]

I think that at its core, VA's loyalty team forgot it's a small-ish domestically-focused mid-tier airline with several ad hoc airline partnerships with varying degrees of recognition of VA members. Simply put, they need to make it easier - much easier - to obtain status than Qantas given Qantas' proper alliance membership in Oneworld.

Hopefully, the powers that be are using this promo as a face-saving way to achieve this goal before quietly winding back the changes made last year (or perhaps there'll be nearly permanent 'bonuses' to achieve the same goal).

Let's hope so. Masses of defectors already due to the radical changes, that much is clear, and hard to win back once loyal clients, in ANY industry.

The junior player acting like this, was commercial suicide.

Little wonder no-one has grabbed Rohlach. Decimating a successful FF program is not a great CV highlight! Maccas are hiring, the sign on my local did say today.

 

[MEL_Traveller]

Let's hope so. Masses of defectors already due to the radical changes, that much is clear, and hard to win back once loyal clients, in ANY industry.

The junior player acting like this, was commercial suicide.

Little wonder no-one has grabbed Rohlach. Decimating a successful FF program is not a great CV highlight! Maccas are hiring, the sign on my local did say today.

Customers basing their travel on price are not ‘loyal’.

These changes have had little impact.

Those choosing to fly VA because of $349 business class fares on major eastern trunk routes will continue to do so. They havent all jumped ship to Qantas at $700 one way.

 

[MooTime]

Less status holders is what velocity / virgin are aiming for.
Nobody can argue that.
Next Feb I'll be passing by the lounge entrance..... Well not really cos I often won't even pass thru their terminal.

 

[MEL_Traveller]

Less status holders is what velocity / virgin are aiming for.
Nobody can argue that.
Next Feb I'll be passing by the lounge entrance..... Well not really cos I often won't even pass thru their terminal.

they want valuable status holders… those spending money. They’d be happy with the same number of golds and plats if they all qualify based on $$ (rather than fixed SCs).

 

[MooTime]

Theres no such thing as valuable status holders vs non valuable status holders. You earn it you hold it.
Now that it's a specific cash per SC yes.
They want to make the experience for their most loyal members a better experience, that only means less status members in the lounges. There's no inclination of expanding their lounges in any respect so less members the only answer.
And pretty obvious in past rolarch interviews.
I'm not against it at all, I understand the logic completely.

 

[MH_fan]

Except that it hasn't improved the experience. The lounges are still crowded and I am seeing more people at the service desk checking in with their Velocity Amex card whenever I'm there. The lounge offerings haven't improved either. The whole exercise was to increase profits. They want us to spend more but not make it worthwhile for us to spend more.

 

[odysseus]

Personally, I think it was just him trying to put his stamp on things.

A big revamp, he personally felt it was too easy to 'game' so that was one angle (increasing the cost and making it $ based), prioritisation of VA spend over partner spend, then introduction of lifetime gold viewed as a positive handout, and so sold as a tidy-up that would increase loyalty (by giving a long-term reward), be broadly neutral in cost, and sold to the board to increase spend by capping external earn meaning people would be encouraged to buy VA first (instead of partners), and removing 'discounts' on SCs.

The comments after about lounge numbers which weren't part of anything official was just spin, and not part of the rationale.

Has it achieved those objectives in the short term? Probably mostly. Does that make it a more appealing loyalty program, so encourage people to book VA more because of the program? I doubt it. Does it align with VA's target position of the value section of the market. No.