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

[drron]

I certainly am affected by the changes but all it means for me is that I will remain gold and not ever reach platinum level that I thought possible.
Having lounge access is the only thing that matters at this point in time so no big deal remaining gold.
By the way I am in the SYD VA lounge now and it’s not busy at all.

 

[IainF]

They have sorted out the relevant status credits that apply.
A quick jump onto the chat will get you all of your eligible credits.

 

[jase05]

A mid-tier domestic carrier with near zero overseas options now simply driving off a decent chunk of once loyal clients

I’m certainly not a fan of some of these changes but I’m willing to bet that less than 10% of the genuine Plats are driven off
I guess time will tell and they may have to walk back on a few things.
There needed to be a culling of status but they probably could have found other ways to do.

 

[SeaWolf]

They have sorted out the relevant status credits that apply.
A quick jump onto the chat will get you all of your eligible credits.

Seems life the calculator is already in place so hopefully they'll start displaying it on the website or the app soon. Or at least a bit before 1st Oct 2025.

 

[clifford]

By the way I am in the SYD VA lounge now and it’s not busy at all.

Maybe they've all fled to Qantas. It's business lounge was busy this morning.

 

[eastwest101]

This program change is consistent with their aeroplane refurbishment to remove 1 row of Economy X on every plane. They expect fewer Platinum and Plat+ to take advantage of it.

Also they added 1 row of Y to it so that they can remain price competitive and still make money with watered down Velocity program.

Yeah - seems to be an overall strategy of surrendering anything nice and premium about the airline and moving downmarket towards Jetstar. Now I know that Covid and the administration process has a lot to do with this, but have a look at where VA is now compared to where it was and see if its an attractive proposition to high-value customers:

• where are the nice products and aspirational outlets for the Velocity scheme? A J seat on a B737 to Bali? Bit different to widebodies flying overseas to LAX, HGK and HND with decent Y and J products.
• Where are the partner airlines? Now, there is just a smaller hodge-podge of half-assed international partners than before
• Where are the lounges outside of the big capital cities? VFF really only viable for residents of SYD, MEL, BNE and PER - if you live in anywhere outside those cities then the Velocity lounge network has gaping holes in it that make Velocity almost a deal-breaker if lounge access is your primary goal as a frequent actual bum on seats flyer.
• Virgin has less domestic frequency and network than before, completely missing/AWOL in many regional parts and with less frequency, it takes you twice as long to get anywhere as it did before, sometimes not even possible in one day now.
• The move to a revenue-based SC earn system may seem like a more transparent and direct way of measuring airline loyalty and thus awarding status but will throw up some unintended consequences like driving corporate travel away from VA back to QF.
• Virgin Y airfares have crept up to sometimes be more expensive than Qantas.
• The onboard Virgin J experience is now worse than Qantas with untrained crew, average food, no dividers and separation from the Y cabin, priority boarding has now fallen away to be worse than Qantas and J class missing from many aircraft entirely as an option.
• The onboard Y experience is now sometimes as expensive as Qantas without food, WiFi, thanks to the reconfig now a tighter JQ-esque seat pitch, thanks to lite fares now a s&%t fight for overhead bin space, seat selection fees everywhere, more expensive Economy-X and less of them to choose at unrealistic prices sometimes.
• the Velocity scheme itself did offer easier status retention and was fine for dominantly domestic flyers with family pooling being one of the better and more innovative ways to drag in revenue and differentiate themselves from the QFF ecosystem, it was a classic 'brand challenger product" offering different and sometimes better results than their competitor, albeit missing any alliance and many international partners. I think Bain has mistaken the capacity constraints and subsequent increased yield (thanks to the self-inflicted demise of Bonza and Rex jet services) across the domestic airline industry for some sort of delusional "market power", and they are kidding themselves if they think they can offer a Jetstar product at Qantas prices, with either price-conscious customers or higher value/better yield frequent flyers who will flock back to Qantas if they haven't already.
• The Lifetime Gold is a good idea but the execution of it without telling people how far they have come just smacks of the typical Virgin incompetence where the marketing guys never communicate with the IT people.

I just did the maths on my own current flying patterns, mostly domestic but corporate travel and even though VA don't fly everywhere to where I need to go and at often more inconvenient and less flexible timings, I would still put enough spend through to qualify for VA Gold under the new $12 per SC system assuming a little bit of Family Pooling, but that's really just lounge access in an ecosystem without many lounges at the moment, and with very limited international partners to earn and burn on, so I will do the bare minimum to retain Velocity Gold to keep my options open, and push the remaining spend towards retaining QFF Gold as well, seeing as despite all their issues they do fly everywhere I want to fly to, and have enough frequency and capacity to get me there in a reasonable timeframe. I'm sure that QFF devaluations will be on the way so no point going "all in" on one or the other until we see how things pan out at the QFF end.

There is no doubt that the VA product is now worse than before and by the peculiar happenstance of Covid status extensions and a real capacity constraint in the domestic market then thinning the ranks by going for a more revenue-based loyalty status earn is a bit of a myopic short -term misadventure when they are still the 'challenger" mid-market brand in the domestic market that has made the conscious decision to go downmarket against a well resourced and larger dominant market player (Qantas Frequent Flyer).

Each change to a frequent flyer scheme tends to affect different people in different ways but its an opportunity to throw off the handcuffs for some people and a cost for airlines to poach/status match/churn loyalty.

 

[ozstamps]

Who actually thinks these are good changes?

Very few here, from reading this long 27 page thread.

Virgin are now simply driving off a decent chunk of once loyal clients in a period that Qantas has been getting hammered on every front. With an IPO on the near horizon keeping EVERY rusted on Virgin flyer rusted on, should have been target #1. With Rex gone as a competitor, fare can sneak up easily, and that is great for the bottom line. Stealing a bit of market share from QF is just icing on the cake.

Just fill each plane a tad more than last year, and happy days for the IPO.

They are a mid-tier domestic carrier that can fly you to Bali or Samoa or Queenstown etc if you are really desperate to burn some miles - that is the sum of it. And no lounges, of any kind of course, if you do that!

Dumber than dirt to roll out a whole bunch of complex program devaluations - all at once. Some barely thought through, like Forever Gold that they themselves seem to have zero clue about, re number of relevant SC each member has - much less the poor members! I've asked Platinum Line 3 times for mine in the past week - NADA.

We have full access anyway to all decent Virgin benefits via my United Lifetime Gold Mileage Plus Gold card - lounges, check in, extra luggage, early boarding etc, so makes no difference to us, but sad to see these clowns make such a tangled, mangled, mess of a simple benefit for all others, who have been very loyal to Virgin - as we have indeed been, Virgin Platinum consistently for a decade or more.

Jayney will be long gone and counting her mountain of $100 bills before the short term effects of this become clear. Which will be less passengers, and less revenue. Brilliant vision.

 

[jase05]

The onboard Virgin J experience is now worse than Qantas with untrained crew, average food, no dividers and separation from the Y cabin, priority boarding has now fallen away to be worse than Qantas and J class missing from many aircraft entirely as an option.

The lack of dividers is an issue I agree but the food is better than QF and the staff are miles better than QF IMO. PB has been great on I’d say 70-80% of VA flights but still some shockers from time to time. A PDB or two is also a nice gesture from VA

 

[runwalkrunn]

Bain is importing US aviation "cultural and marketing best practices" upon VA

flying domestic in the US on AA, there is also no divider between J and Y, and Y pax can liberally use J lavs .. US crew also don't interfere with lavs usage for "fear" of undisclosed disabilities discriminatory complains ( there is a whole thread about it on ftalk and reddit )

at this rate, future definitely doesn't look good for VA growing back into a full fledged full service carrier with selected LH routes and her own widebodies

 

[simmomelb]

• Where are the lounges outside of the big capital cities? VFF really only viable for residents of SYD, MEL, BNE and PER - if you live in anywhere outside those cities then the Velocity lounge network has gaping holes in it that make Velocity almost a deal-breaker if lounge access is your primary goal as a frequent actual bum on seats flyer.

They also have lounges in ADL and OOL, Adelaide one is very nice.

So all the major cities are covered. I think it's more important to offer international lounges on VA metal before any other smaller domestic cities, that part is beyond a joke.

 

[kangarooflyer88]

I will need to look up Consolidator Fares, as you suggested. I will also continue to research PQPs as well.

I'd suggest looking at FlyerTalk as there are a number of weirdos who have experience with this technique. Essentially the reason why it works is that some types of tickets result in United not being able to calculate how much $$$ you spent. Consequently they fall back to mileage flown to calculate. It's not as simple as it sounds, and again you'll need to get the details from someone who has actually used them (as I certainly haven't).

Many will find it possible but not sensible, and will take their $$$ elsewhere.

But then the question becomes where? Qantas? This may work for you and I but not necessarily those who status comes from OPM flying where there are BFOD policies. At the same time, we don't know how Qantas will respond. They may very well copy this "innovative" approach used by Virgin Australia, certainly if Virgin proves that the sky doesn't fall after implementing this enhancement. Don't believe me? Look at the US airlines: AA introduced this nonsense and it wasn't long before Delta and United followed suit. I hope I'm wrong on all of this, but it is a possibility and a trend many airlines are moving to.

Me Included. I think the architect of this great work will be gone within a couple of years, when it becomes clear that it isn't producing the promised outcomes.

I'm not so sure about that. This may end up yielding the desired outcomes for Virgin. Those who split travel between Virgin and Qantas (to earn status on both) might end up focusing their spend on Virgin to keep status. To my knowledge, every airline that has implemented revenue based status accrual (either partially or fully) has not turned back, and there are many to point to: Air Canada, United, Delta to name but a few.

-RooFlyer88

 

[Happy Dude]

That’s one skill I think anyone chasing status needs to have is long range planning of their travel. If you know you’re going to go somewhere down the track, start monitoring flights and snap them up when a sale or promotion (DSC) comes along. Speaking of, I would be surprised if Virgin doesn’t offer a DSC promotion before the switch over to cash based accrual of status credits. No doubt we’ll see something in the coming weeks

-RooFlyer88

My prediction is that the next DSC will be on or after 3 April 2025.

Of course, I do hope they have one prior to then, as I'll book 400 SCs for travel after my 2025 renewal date if they do.

 

[ozstamps]

My prediction is that the next DSC will be on or after 3 April 2025.

Yep, and Qantas will be rolling out a Status Match promo as we speak.

They'll be laughing their heads off over this mess.

A rare bright spot, in a truly Annus Horribilus for them. Handed to them on a silver platter.

 

[Sprucegoose]

This got me thinking: with Velocity Frequent Flyer’s recent enhancements, is the program gaining speed but losing direction.

I can understand your thinking, but by switching to a corporate hat, I believe they're revaluing the scheme (over devaluing it) and making it 'harder' to obtain status. Not measurably, but at least by some measure.

They have increased the rewards for people who bring more cash through the door over flying more sectors. They're in the black now and can fund that strategy with a striaghtface.

I would like to see a business lounge created - but I may need to wait until I'm in my next lifetime for that utter joy.

 

[Sprucegoose]

US" have these devaluations yet have plenty competition.

"Ed Bastian, Delta Air Lines CEO, has expressed concerns about the dilution of status benefits. He famously said, "If everyone is elite, no one is." This highlights the challenge of maintaining the exclusivity and value of elite status when too many passengers achieve it"

 

[Sprucegoose]

Maybe they've all fled to Qantas. It's business lounge was busy this morning.

In Sydney?

 

[clifford]

They also have lounges in ADL and OOL, Adelaide one is very nice.

So all the major cities are covered. I think it's more important to offer international lounges on VA metal before any other smaller domestic cities, that part is beyond a joke.

Let's not forget CBR which is also very nice (and generally uncrowded).

 

[clifford]

I'm not so sure about that. This may end up yielding the desired outcomes for Virgin. Those who split travel between Virgin and Qantas (to earn status on both) might end up focusing their spend on Virgin to keep status. To my knowledge, every airline that has implemented revenue based status accrual (either partially or fully) has not turned back, and there are many to point to: Air Canada, United, Delta to name but a few.

Well it's all working beautifully at the moment, mainly because of the post-Covid demand boom, but it will be interesting to see how it goes once another downturn occurs (and there will be one). Then whoever is flying will be more picky, I imagine.

 

[drron]

And today in SYD the tables have been cleared virtually immediately.
But I did see something I never saw in a QF lounge. A lady produced her thermos and emptied the contents of a bottle of white wine into it.

 

[kangarooflyer88]

My prediction is that the next DSC will be on or after 3 April 2025.

It’ll be sooner than that. We are almost certain Qantas will have a DSC sometime in late Feb or March. At the same time Qantas will be chasing those soon to be Virgin Australia refugees. I’ve said it before and I’ll say it again, expect to see a DSC promotion by Virgin before end of year.

Of course, I do hope they have one prior to then, as I'll book 400 SCs for travel after my 2025 renewal date if they do.

Remember flights booked before the changeover date will earn at the current actual rate.

Yep, and Qantas will be rolling out a Status Match promo as we speak.

They'll be laughing their heads off over this mess.

A rare bright spot, in a truly Annus Horribilus for them. Handed to them on a silver platter.

Perhaps. Alternatively they can use this opportunity to also make the switch to revenue since they’ll have some cover with Virgin’s swath of recent enhancements

"Ed Bastian, Delta Air Lines CEO, has expressed concerns about the dilution of status benefits. He famously said, "If everyone is elite, no one is." This highlights the challenge of maintaining the exclusivity and value of elite status when too many passengers achieve it"

Is this the same Delta Airways which require spending $10,000 USD on Delta flights (excluding taxes and surcharges) for mid tier Gold status or $28,000 USD for top tier Diamond status every year? The same one that doesn’t allow their top tier Diamond medallion holders to access their SkyClub lounges unless travelling international on Premium Economy or better? The same one that is limiting the number of free visits on U.S. AmEx Platinum card holders to their lounge to 10 starting next year? The same one that despite these restrictions have lounges packed to the gills? Say it ain’t so!

He does have a point though. U.S. airline elite programs are unique in that one of the publicized benefits are complimentary upgrades on domestic flights for elites. Well if the plane has 60 elite members on it your upgrade list will be 60 long. In essence this makes this a published benefit that in fact you cannot use unless you have super top tier status and are booked on a pricey Y fare. At which point why not just fly J out of pocket?

-RooFlyer88