Is it Time to transfer/withdraw points from Velocity?

[Bibendum]

Hi All,

I need some advice from the brains trust on this forum.

I, like many on here, have hundreds of thousands of points sitting with velocity. With the current COVID-19 situation and virgins financial position I’m concerned that if the airline was declare bankruptcy points may disappear..

What’s the likelihood of this happening and should I withdraw my points by purchasing gift cards to get some cash value at what I have..?

am I making a mountain out of a mole hill.. or is there a real threat to my velocity points been wiped out..?

 

[beersandwich]

I think Harvey Norman are being dodgy. I have ordered the Bose Soundbar 700 and Base Module 500. So far have received the Soundbar, but the bass is 'out of stock due to Coronavirus'.
Yet if I check website or go into store thy will happily sell me one!
Edit - Ordered Sat 4th April, received Friday 17th (one part of the order...)

 

[Princess Fiona]

Posted on the other thread but
VFF redemptions are now suspended effective immediately.

 

[travelbee26]

Based on that media release - i have a feeling that only the administrators knows what will happen - but I don't see much hope (hope I am wrong on this)

Yes I’m thinking the same thing...but with fingers crossed

 

[knagelli]

Important points from latest email from velocity :

We’ve made the difficult decision to pause all redemptions for an initial period of four weeks, effective immediately. This means you won’t be able to redeem your Points for rewards during the pause.

We know how much you love to plan your travel and use your Points to redeem flights, however the ongoing travel restrictions and reduced flights have limited the options for you to use Points for flights. We’re seeing more members use Points to shop online for items such as gift cards, electronic goods, and wine. This unexpected demand has made it difficult for our suppliers to provide these offers and limits the availability for all members to redeem their Points.

What you need to know:

• Your Points aren’t going anywhere. They will remain in your account.
• Your existing Points will not expire through this period. We will be extending the expiration period for your existing Points by the timeframe of the pause.
• You can continue to earn Points with our partners, although you won’t be able to redeem them during the pause.
• These changes take effect immediately. Although the initial timeframe for this restriction is four weeks, this period may be extended. We will come back to you with an update as soon as we can.

 

[Left_Hand_Drive]

Without Velocity, we should now expect QFF devaluation soon

 

[Mathuselah]

I’m wondering the same. I ordered on 15th and the status is pending, however the shipping tab says shipped What have others experienced? I ordered an Apple Watch and a $100 JBHI Fi voucher.
Does any person know if they will honour orders placed a week ago? This is not mentioned in this media releas.

How do you check the status of a redemption? I got two emails for the redemptions that just said processed for two items on 14 April but no pending or shipped details

 

[knagelli]

How do you check the status of a redemption? I got two emails for the redemptions that just said processed for two items on 14 April but no pending or shipped details

I also want to know the exact same thing , how do I check the status of gift cards processed. I ordered few on 8th Apr but nothing has been delivered yet.

 

[travelbee26]

How do you check the status of a redemption? I got two emails for the redemptions that just said processed for two items on 14 April but no pending or shipped details

I haven't received any emails for my redemptions yet. However, before they shut down the page there were several tabs above the order. One was shipping. If you clicked on that tab it gave you a "shipped" status with shipment number #xx_xx_xx_x. So I'm hoping it means the items have been shipped. I can only wait now. Ive attempted to use the shipping number on Australia post, but it comes up saying no known number.

 

[CaptJCool]

Deloittes

It’s a separate legal entity , points are preserved...

It’s well structured ... on pause for the time being

Scurrah
Separate trust with cash backing

 

[jakeseven7]

Important points from latest email from velocity :

We’ve made the difficult decision to pause all redemptions for an initial period of four weeks, effective immediately. This means you won’t be able to redeem your Points for rewards during the pause.

We know how much you love to plan your travel and use your Points to redeem flights, however the ongoing travel restrictions and reduced flights have limited the options for you to use Points for flights. We’re seeing more members use Points to shop online for items such as gift cards, electronic goods, and wine. This unexpected demand has made it difficult for our suppliers to provide these offers and limits the availability for all members to redeem their Points.

What you need to know:

• Your Points aren’t going anywhere. They will remain in your account.
• Your existing Points will not expire through this period. We will be extending the expiration period for your existing Points by the timeframe of the pause.
• You can continue to earn Points with our partners, although you won’t be able to redeem them during the pause.
• These changes take effect immediately. Although the initial timeframe for this restriction is four weeks, this period may be extended. We will come back to you with an update as soon as we can.

They should just come out and say, we need to save cash to help save our business and our employees. I for one would respect that.

Instead of waffle about their partners (who are probably loving all the business until they realized VA might not be able to pay!)

Seems the VA PR department is still same old same old.

 

[Carrots]

They should just come out and say, we need to save cash to help save our business and our employees. I for one would respect that.

Instead of waffle about their partners (who are probably loving all the business until they realized VA might not be able to pay!)

Seems the VA PR department is still same old same old.

Agree.

Could you imagine what the QF PR department would come up with?

 

[jakeseven7]

I think Harvey Norman are being dodgy. I have ordered the Bose Soundbar 700 and Base Module 500. So far have received the Soundbar, but the bass is 'out of stock due to Coronavirus'.
Yet if I check website or go into store thy will happily sell me one!
Edit - Ordered Sat 4th April, received Friday 17th (one part of the order...)

Have GC orders dating back to 4 April too - and nothing......

 

[Lomandriel]

Without Velocity, we should now expect QFF devaluation soon

Any thoughts on why this would drive a devaluation? Becuase they can? I wonder if QFF will still go for $0.01/c point on ozbargain and the likes....or best to redeem for pick of the crop while there isn't panic over there.

 

[theblank]

They should just come out and say, we need to save cash to help save our business and our employees. I for one would respect that.

Virgin cant take Velocities cash, so thats just not even a thing.

It is what they said it is.

 

[bernardblack]

I redeemed most of my current points last night, to/from the US on Delta in J (Delta One), at the end of the booking calendar (next March). If they survive I may cancel and restore the points; otherwise, if Delta honours the flights and the borders are open I might get a quick trip in a year.

 

[Rich]

Virgin cant take Velocities cash, so thats just not even a thing.

It is what they said it is.

Does Velocity hold cash to the equivalent of the value of points? E.g. $100 for for every 20000 points, which would roughly cover everyone covering all points to gift cards.

 

[woodborer]

Does Velocity hold cash to the equivalent of the value of points? E.g. $100 for for every 20000 points, which would roughly cover everyone covering all points to gift cards.

I believe it is structured that way. The funds are held separately.

 

[DAC1]

I redeemed most of my current points last night, to/from the US on Delta in J (Delta One), at the end of the booking calendar (next March). If they survive I may cancel and restore the points; otherwise, if Delta honours the flights and the borders are open I might get a quick trip in a year.

That’s so long as Velocity pays Delta for your ticket. If Velocity doesn’t pay Delta then I can’t imagine Delta will honour the ticket.

There’s a bit on this concept in this article

Are Partner Airline Redemptions A Hedge Against Bankruptcy? - View from the Wing

A reader asks about the safety of their miles, and if some of the smaller airline currencies they have aren't as safe whether it would be a good idea to book travel now using those miles to fly on one of their partner airlines (that'll still be flying)? Here's what you need to know.

viewfromthewing.com

 

[ff-jr]

Does Velocity hold cash to the equivalent of the value of points? E.g. $100 for for every 20000 points, which would roughly cover everyone covering all points to gift cards.

Points would have a base value rate that they hold as a liability until redeemed or expired.

 

[bernardblack]

That’s so long as Velocity pays Delta for your ticket. If Velocity doesn’t pay Delta then I can’t imagine Delta will honour the ticket.

There’s a bit on this concept in this article

Are Partner Airline Redemptions A Hedge Against Bankruptcy? - View from the Wing

A reader asks about the safety of their miles, and if some of the smaller airline currencies they have aren't as safe whether it would be a good idea to book travel now using those miles to fly on one of their partner airlines (that'll still be flying)? Here's what you need to know.

viewfromthewing.com

Understood, thanks. That's why I hedged with "if".