In our new “From the AFF Archives” series, we’ve opened up the Australian Frequent Flyer Gazette archives to bring you a selection of historical articles, news items and “travel tips” dating back to the very first Gazette in 2000!
The following article, “Velocity – Our Verdict”, was originally featured in the December 2005 edition of the Frequent Flyer Gazette.
After commencing flights in August 2000, budget carrier Virgin Blue launched its first loyalty program called “Velocity Rewards” in November 2005. This happened around the same time that OzJet entered the Australian domestic market.
Virgin Blue has since rebranded as Virgin Australia, and its loyalty program is now called Velocity Frequent Flyer.
This article was originally published in the Australian Frequent Flyer Gazette in December 2005.
Velocity – Our Verdict
The Australian Frequent Flyer landscape changed dramatically last month with the launch of Velocity Rewards, the much anticipated Virgin Blue Frequent Flyer program.
Similar to the Qantas program, Virgin Velocity points are earned by travelling with Virgin Blue (or its partners) and can then be redeemed for free travel.
However, there are some major differences – such as the ability to redeem Virgin points on any Virgin flight. No more struggling to find a Frequent Flyer seat – if the seat is available for purchase, you can get it with Velocity points. Velocity has no status levels, blackout periods or joining fees, although Qantas doesn’t have joining fees other if you know how to avoid them 😉
From a points value perspective, both programs are very similar. We undertook a detailed Comparative Analysis and concluded that there isn’t much difference between the two programs in terms of earning & redeeming points. The Qantas Frequent Flyer program offers slightly better benefits for leisure and corporate Platinum members; whilst Virgin Velocity offers a better deal for small business and the smaller corporate customers.
One area where Qantas clearly has the upper hand is its status tiers and extensive partner network. Virgin’s partner program is still very much embryonic but does already include other airlines (Virgin Atlantic and Emirates), credit card providers (NAB) and car hire companies (Europcar).
Our Conclusion
For the first time in many years, the Qantas Frequent Flyer program has a serious opponent.
Virgin Blue have done their homework and have come up with a program which addresses many of the gripes Qantas customers have levelled at their frequent flyer program (eg. the lack of available Frequent Flyer seats). The program is particularly attractive to small and medium businesses as it offers better value, as compared to the Qantas program.
Qantas does have a more extensive partner network, offering more opportunities to earn and spend points. Those who frequently travel to the United States or South East Asia (some of the most common destinations) will not be able to earn or redeem Velocity points, as Virgin doesn’t (as yet) have partners in this area.
We believe this is the beginning of yet another great battle between Australia’s two major airlines. Tens of thousands have already signed up with Virgin, and our sources tell us that Qantas is plotting their counter offensive. Watch this space!
Want travel tips that are relevant in 2023?
A lot has changed since this article was written, but the Australian Frequent Flyer Gazette still contains timely travel news, advice and tips! Subscribe to get the latest edition in your email inbox for free each Monday and Thursday.
You can leave a comment on this and other archive content in our AFF Gazette archive discussion thread. Or, if you have another question about travel or loyalty programs in 2023, please feel free to post it elsewhere on the Australian Frequent Flyer forum!
