Changes to Velocity status calculation in 2025

[Steven of Mysore]

Good or bad?

I have updated, with more information. Definitely better but it has bugs.

 

[lovestotravel]

Is this Virgins "simpler and fairer" moment?

Enhanced

Post automatically merged: Oct 10, 2024

My app is saying Review Date 00 0 0001

 

[SYD]

My app is saying Review Date 00 0 0001

Binary?

You either have status or your don’t?

 

[ThatMrBlake]

Update overnight has removed the line about the calculation changing. Guess we will all have to find out in the future what simpler and fairer changes are occurring.

 

[ChrisFlyer]

I've long wondered how viable it's been for Velocity to give high status to people who mainly earn on partners, because the revenues are mainly going elsewhere and the partner is basically just paying Velocity an accrual fee for the points. A few accrual fees isn't much at all, despite needing a certain number of VA flights as well. Bain would no doubt want people spending as much with VA as possible (they're not in business to drive bookings to SQ metal and SQ coded flights, for instance), so this will be interesting to watch. I still remember the days where you needed 50,000 SC for Velocity Gold because it was based on spend to earn status, rather than segment length. Especially with private equity running the show, you can bet that 'people spending money with us' will be a huge factor, in one way or another.

 

[Steven of Mysore]

I've long wondered how viable it's been for Velocity to give high status to people who mainly earn on partners, because the revenues are mainly going elsewhere and the partner is basically just paying Velocity an accrual fee for the points. A few accrual fees isn't much at all, despite needing a certain number of VA flights as well. Bain would no doubt want people spending as much with VA as possible (they're not in business to drive bookings to SQ metal and SQ coded flights, for instance), so this will be interesting to watch. I still remember the days where you needed 50,000 SC for Velocity Gold because it was based on spend to earn status, rather than segment length. Especially with private equity running the show, you can bet that 'people spending money with us' will be a huge factor, in one way or another.

It will continue to track QF's system.

 

[MooTime]

I've long wondered how viable it's been for Velocity to give high status to people who mainly earn on partners, because the revenues are mainly going elsewhere and the partner is basically just paying Velocity an accrual fee for the points. A few accrual fees isn't much at all, despite needing a certain number of VA flights as well. Bain would no doubt want people spending as much with VA as possible (they're not in business to drive bookings to SQ metal and SQ coded flights, for instance), so this will be interesting to watch. I still remember the days where you needed 50,000 SC for Velocity Gold because it was based on spend to earn status, rather than segment length. Especially with private equity running the show, you can bet that 'people spending money with us' will be a huge factor, in one way or another.

So how is velocity status system different to any other airline that you can get SCs or the required like to gain status?
Like QF same deal!

 

[ChrisFlyer]

So how is velocity status system different to any other airline that you can get SCs or the required like to gain status?
Like QF same deal!

Velocity has been different than some because historically, the program awards the same SC on partner flights as on VA metal or codes. For many years now, Qantas has introduced a combination of increased SC earn on some QF codes and JV markets, and reduced SC earn on other partner flight numbers, both in general, but even more so in markets where those partners compete with QF.

VA doesn't really have the same overlap and has just been awarding the highest levels of SC earn for all partner flights, albeit with a few tweaks along the way to remove outsized sweet spots (like how many SQ flights could effectively earn double SC for a very little cost difference above the economy sale rate). QF also requires a certain degree of flying on QF numbers to achieve its top status and reserves perks like partner gold for those who've earned significantly on QF/JQ flights specifically. VA's initial problem was just getting people into the Velocity ecosystem, so they couldn't really cut things too much at risk of the program becoming uncompetitive. But if people haven't left VA by now through all the status match offers and after the exit from most international flying, they're probably not going to... and VA seems to have a base of very loyal customers, many of which would also hate Qantas in one way or another. Bain will also want people spending as much of their coin with VA as possible as they approach an IPO or the potential 25% sale to Qatar, so it wouldn't surprise me to see that strategy reflected into the ways in which the airline's most regular customers remain engaged with it. I think the last big shake up would have been when DJ became VA, so it's been quite a while.

 

[justinbrett]

If the program is funded that the operating carrier absorbs the direct costs (ie lounge access and status perks) then it really doesn’t matter who awards the status.

If the program is funded that the loyalty program pays for perks like lounge access, then that’s a badly structured program!

 

[sudoer]

For many years now, Qantas has introduced a combination of increased SC earn on some QF codes and JV markets, and reduced SC earn on other partner flight numbers, both in general, but even more so in markets where those partners compete with QF.

Not everything Qantas does is a good idea. Simpler and fairer was poorly received when introduced and drove many away to other FF programs.

VA also doesn't have the competing international network to "protect" like Qantas does.

 

[AFF Editor]

There are indeed changes coming to the way Velocity calculates status credits, which have been announced this morning.

From April 2025, Velocity will award status credits for Virgin Australia flights based on the amount you spend, rather than the distance you fly and the fare type.

From October 2025, Velocity will also remove the eligible sector requirement and replace it with a requirement to earn at least 50% of the required status credits for each tier from Virgin Australia marketed flights that you've personally flown (i.e. not from partner airlines, Flybuys, credit cards or via family pooling). It will also reduce status credit earn on partner marketed flights.

Details here:

Velocity Introducing Spend-Based Status Earn

Velocity Frequent Flyer will soon award status credits for Virgin Australia flights based on spend. It will also reduce the status credits earned on partner airlines.

www.australianfrequentflyer.com.au

 

[serfty]

[moderator hat]

Please continue Discussion here:

Thread 'Major changes to Velocity Frequent Flyer announced 17/10/24'

Oct 17, 2024

Velocity Frequent Flyer has just unveiled a huge range of program changes, which take effect between now and October 2025.

The changes include:

• Changes to the way status credits are earned, including reduced earn on partner airlines, spend-based earn on Virgin Australia and a new requirement to earn at least 50% of status credits from VA marketed flights
• Changes to the cost of reward seats
• New Forever Gold and Platinum Plus status tiers
• Higher points upgrade costs when upgrading from Economy Flex fares
• Reduced points earn on VA flights, unless you’ve earned points with...

• AFF Editor
• Replies: 701
• Forum: Virgin Australia | Velocity

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[/moderator hat]