Virgin changing its fare structure

[ChrisBNE]

Just received this, seems to be more aligned to Air NZ style of fare bands.

This week, you will receive an addendum to your current contract outlining some exciting changes we are making to our fare structure.

We are excited to announce a significant enhancement to our fare offerings, aimed at providing greater flexibility and value for your corporate travel needs. Effective from 22 August, guests will be able to choose from Economy Lite, Choice, or Flex fares at any time during the booking window, provided seats are available. This change is designed to better accommodate the diverse needs of guests and optimize your corporate travel budget.

Key Benefits and Features:

• Greater Choice: Guests can now select from Lite, Choice, and Flex fare types at any point in the booking window, from 311 days prior to departure up to the day of departure.
• Flexibility and Value: Our Flex fares have been made more affordable, offering significant savings and added perks for your business.
• Comprehensive Benefits Comparison:
  • Lite: Includes Velocity Points and Status Credits, but no checked baggage, seat selection, or flight changes.
  • Choice: Offers checked baggage, seat selection, and the option to change flights with a fee.
  • Flex: Provides the most flexibility with checked baggage, seat selection, flight changes with applicable fare differences, cancellation to credit, and more.
  • Both Choice and Flex fare types include a name change fee waiver and fly-ahead options for Gold & Platinum Velocity members.

The slide below illustrates the changes in fare pricing using the MEL-SYD route as an example, highlighting the increased affordability of Flex fares from 22nd August.

Note: Fares are for illustration purposes only



Enhancing Discount Flexibility

• Historically, corporate discounts applied to 14 fare classes across Choice and Flex fare types.
• With the new changes, corporate discounts will expand to 32 fare classes across Choice and Flex Economy fares.

In summary:

• Guests can now select a fare type that best meets their needs, regardless of when they book.
• S and I fare classes will now be eligible for corporate discounts.
• All Virgin Australia corporate fares will continue to waive the name change fee.
• No changes are being made to business class discounts.
• Lite fares do not attract a corporate discount. (You may continue to exclude this fare option if this does not meet business needs)

This enhancement is part of our ongoing commitment to deliver greater value and flexibility to our corporate clients. Should you have any questions or need further information, please feel free to reach out.

Thank you for choosing Virgin Australia for your corporate travel needs.

 

[Bagpuss]

This seems to be for corporate accounts, not the general public or am I missing something?

 

[Mattg]

If this change extends through to regular commercial airfares, it might make my Platinum upgrades a bit easier to use

Hard to see the value in booking Flex and trying to upgrade with prices like these...



or

 

[jase05]

We are excited to announce a significant enhancement

We all know what that means

 

[justinbrett]

 

[ChrisBNE]

This seems to be for corporate accounts, not the general public or am I missing something?

I would expect this will translate to general public fares too.

 

[hwy]

Well somebody sure is getting ready for an IPO.

 

[encryptededdy]

I expect this to be problematic for those crediting VA flights to non-VFF programs, since booking Flex no longer guarantees a higher booking code than Choice, and you may not be able to force a higher fare code (to ensure you earn status credits) when booking online, without engaging a travel agent.

This would be similar to issues crediting NZ to other *A, crediting CX/MH to other OW etc. caused by this sort of fare structure.

Other than that though, I feel this is probably overall a good change if it means Flex will no longer be ridiculously priced

 

[Mattg]

I expect this to be problematic for those crediting VA flights to non-VFF programs, since booking Flex no longer guarantees a higher booking code than Choice, and you may not be able to force a higher fare code (to ensure you earn status credits) when booking online, without engaging a travel agent.

This would be similar to issues crediting NZ to other *A, crediting CX/MH to other OW etc. caused by this sort of fare structure.

Other than that though, I feel this is probably overall a good change if it means Flex will no longer be ridiculously priced

That was also one of my first thoughts.

For anyone not aware of this issue, it's explained here:

How to Calculate the Points You'll Earn Flying Partner Airlines

More airlines are offering branded fare categories that all book into the same fare class (RBD). This can cause confusion when trying to work out how many frequent flyer points and status credits you'll earn when flying partner airlines.

www.australianfrequentflyer.com.au

Many airlines are heading in this direction, but frequent flyer programs around the world have not caught up.

 

[muppet]

Based on that graphic above, you can buy a Y class fare and it’s still non-refundable unless you pay the Flex surcharge?

 

[aus_flyer]

Wow I really hope this applies to regular fares and Virgin Business Flyer. It will drive all my corporate travel for myself and my staff to VA.

 

[ChrisFlyer]

In other words, depending on demand, we're still happy to charge you a price for a ticket that would have previously sold as Flex (eg a Y fare), but only give you the benefits and inclusions of a Choice fare.

In other words, Lite fares don't sell out as demand starts to pick up, they just keep getting more expensive so as to remain available for sale, which means in turn, the other fare categories keep going up as well.

Changes like this aren't made by airlines to reduce their revenues. Why roll out a new strategy to make less money? The real reason for a change is always quite the opposite - because their sums tell them they'll make even more, despite spinning an angle around 'cheaper' based on the comparison of one fare letter at one point during the sales process.

 

[aus_flyer]

I'll happily pay ~$50 more to move from Choice to Flexi. And I suspect a lot of people are willing to do the same. I suspect Qantas will hate this.

 

[TheInsider]

I'll happily pay ~$50 more to move from Choice to Flexi. And I suspect a lot of people are willing to do the same. I suspect Qantas will hate this.

What's to say QF isn't planning fare changes already, and this is just VA getting in before QF.

 

[justinbrett]

In other words, Lite fares don't sell out as demand starts to pick up, they just keep getting more expensive so as to remain available for sale, which means in turn, the other fare categories keep going up as well.

This is basically the JQ model with bundles.

 

[aus_flyer]

What's to say QF isn't planning fare changes already, and this is just VA getting in before QF.

I hope they are. QF's domestic flexi fares are a joke.

 

[moa999]

The "name change" allowances are interesting.
There's a reason most airlines restrict this.

 

[Milefest]

If this change extends through to regular commercial airfares, it might make my Platinum upgrades a bit easier to use

Hard to see the value in booking Flex and trying to upgrade with prices like these...

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My old workplace allowed us to expense Y fares but not J fares even if J fares were cheaper (rigid travel policy). So in istances like this I'd still use one of my free upgrades. I'm assuming this is why the flex fare ceiling isn't dictated by the business fare of the day.

 

[TheInsider]

This is basically the JQ model with bundles.

I think they have finally chosen who and what their target market is. Only taken 20 odd years.

 

[TheInsider]

I hope they are. QF's domestic flexi fares are a joke.

In what way? Cost?