Quick question, is that total domestic travel figure a +18% in the travel budget or a simple number of flights taken by your company?
I expect that your Virgin account manager has identified a problem in forward bookings and potential cash flow so will be interesting to see what happens there. Just as a question, if you can answer, what is the condition of the status match? How much money/or percentage of the travel budget are Virgin asking for? And is this a case-by-case person-by-person deal, or an across-the-board organisational thing between your procurement team and the Virgin account manager?
Either way, this isn't surprising to anyone as the changes to Velocity look like they have successfully disengaged quite a number of existing status members and potential passengers who are now presumably sending their corporate spend and business solely towards Qantas. I am guessing your co-workers aren't directing their flying towards Jetstar, right? So they've just sent the higher yield corporate flyers into the arms of Qantas, so thats a slow clap there.....
Once they wake up to themselves and/or when Bain and/or the architect of this brain fart are gone, they will have to either walk back some of the changes like the ridiculous spend requirement to retain Velicity status and/or go through a period of some sort of status matching and/or double status credit offers in the future, if their forward corporate and higher yielding discretionary bookings have fallen off a cliff.
Sounds like they have not emptied the lounges and thinned out the ranks yet, but have cut off their forward bookings and customer engagement with Velocity, and have not made the connection in their minds between the two.