May Velocity Points bonus incoming....

[levelnine]

I am retired and even before that not a high income earner so I was shut out of credit cards, just hanging on to a Amex Plt edge and a Westpac rewards. It’s infuriating that people with a proven track record of over 20 years 100% pay on time are shut out of this opportunity.

I think this is the perfect situation to convert FB to VFF. I also agree it is infuriating that retired people are shut out of the credit card churning game. It is deeply unfair.

If the need is to get to the next reward quickly so points aren't devalued - and that's a possibility I guess - then surely any method to get your points up is a good one?

Interesting argument, but I would say the answer is still no. Because the cost at which you acquire is more important than the velocity at which you can acquire them. To take an extreme example, if you could acquire 1 million points tomorrow for $10 per point, it would be foolish to buy them even though you're acquiring a lot of points very quickly.

I think acquiring points at $0.01 per point is very borderline in the case of VFF (and QFF) given all the devaluation risks mentioned in my earlier post and that outsized redemptions (eg $0.04 per point for business class) rely on full fare business class prices that I personally would never pay.

When I'm acquiring points at $0.0007 per point, I don't have to worry about devaluation anywhere near as much because even a large devaluation means I still come out way ahead.

To give a very clear example, take the most popular redemption in Australia: the OneWorld Award in business.

It costs 318,000 QFF and about $2,000 in taxes and fees (obviously it varies a lot according to your precise itinerary, but it's a good starting point).

If you purchase those 318,000QFF points at $0.01, you pay $5,180 for the trip. That is borderline not worth it given you can often get round the world fares in business class for $5,000-$7,000 (eg the Finnair RTW fare) and will get status credits and points with that fare.

If you purchase those 318,000QFF points at $0.0007, you pay $2,222 for the trip. That is 100% worth it given you can barely get a round the world fare in economy for $2,000 let alone one in business class.

I invest as much emotional value in points as I do a financial value.

As I said, each to their own. I get the most emotional value out of knowing I'm sitting in business class for less than the cost of economy class .

As for the rest of your post, if you can't churn in high frequencies, then converting FB to VFF certainly makes sense. It's really great to hear you're getting so much value out of them.

 

[Mr H]

It costs 318,000 QFF and about $2,000 in taxes and fees (obviously it varies a lot according to your precise itinerary, but it's a good starting point).

If you purchase those 318,000QFF points at $0.01, you pay $5,180 for the trip. That is borderline not worth it given you can often get round the world fares in business class for $5,000-$7,000 (eg the Finnair RTW fare) and will get status credits and points with that fare.

If you purchase those 318,000QFF points at $0.0007, you pay $2,222 for the trip. That is 100% worth it given you can barely get a round the world fare in economy for $2,000 let alone one in business class.

I have found it very difficult to get information on the prices of commercial RTW fares but I had come to believe that the going rate for business class fares was around $13,000 plus the taxes you mentioned - so about $15,000. Pricing that up at 1c per point looks like good value even if the entire points cost is acquired at that rate - around 4c value per point. And generally we get our points from a variety of sources at a variety of costs. If you can point me to a revenue RTW fare that is roughly equivalent of a OWA for $5,000 including taxes I am very interested.

As for the rest of your post, if you can't churn in high frequencies, then converting FB to VFF certainly makes sense. It's really great to hear you're getting so much value out of them.

You have suggested a number of times that you don't think I churn. I do. I just want to accumulate as many points as I can while I am able, and I reckon points at 1c cost are worth adding to the stash.

 

[mitchd]

Back on topic: does anyone know yet what selecting our favourite rewards program in the original email actually got us? Nothing it seems? Thought maybe we were selecting an offer…

 

[Brizz]

But the journey down the rabbit hole was so much fun….

I think the original email was nothing other than a teaser.

Meant nothing…gave you nothing…

 

[Mattg]

Back on topic: does anyone know yet what selecting our favourite rewards program in the original email actually got us? Nothing it seems? Thought maybe we were selecting an offer…

It wasted your time?

I honestly can't think of much more that it achieved. IMHO Velocity would have been better off waiting until the promotion actually started before sending out that email.

Anyway, the promo is now live. Happy bonus point collecting!

 

[_flyer]

Can’t believe the 10% auto-transfer and 5% manual transfer both apply to new customers. That’s a bit unfair for customers who have been sending points to them since the feature became available. At least people on auto-transfer should get 5%. Decided to turn it off and will now wait for Velocity to offer me something or I will use them for purchases at Coles.

 

[Mr H]

Can’t believe the 10% auto-transfer and 5% manual transfer both apply to new customers. That’s a bit unfair for customers who have been sending points to them since the feature became available. At least people on auto-transfer should get 5%. Decided to turn it off and will now wait for Velocity to offer me something or I will use them for purchases at Coles.

Agreed. You'd feel a bit salty if you'd turned on auto-transfer for one of the previous 500 point incentives. But this seems to be their MO: get people to turn on the auto-transfer and then set/forget. No need for promos, the money just keeps flowing. I think the misjudged it by not setting expectations when they launched it. If they had said 'we used to do 15% promotions and we know many people waited for them. Now we have set a permanent promotion and as an extra enhancement we are going to automatically transfer your points like Woollies do'. Then turn off manual transfers.

 

[GSP]

I note CBA have been excluded from this monthly's offer. It was also excluded in May last year, however did participate in November 21.

 

[levelnine]

If you can point me to a revenue RTW fare that is roughly equivalent of a OWA for $5,000 including taxes I am very interested.

Of course. If you search on Google for business class round the world fares, you'll see a few companies specialise in them. AFF's madrooster has a thread about the Finnair one I mentioned: AY RTW Sale

 

[Mr H]

Of course. If you search on Google for business class round the world fares, you'll see a few companies specialise in them. AFF's madrooster has a thread about the Finnair one I mentioned: AY RTW Sale

Thanks. I was thinking more along the lines of the OW RTW product. The AY one is basically a return fare to a European city served by AY, with an opportunity for a stopovers in Helsinki, USA and at a major hub airport in Asia. Not quite my thang and I'm not sure it is quite a fair comparator for assessing the value of a OWA.

 

[levelnine]

I'm not sure it is quite a fair comparator for assessing the value of a OWA.

It obviously depends on the individual, but the vast majority of people post itineraries on this forum that are broadly equivalent to that (ie a trip that involves stops in a major Asian port, one or two major European cities & one or two US cities). I'd never compare a OWA to a OW RTW because I'd never buy the latter (ie it's a false equivalence), but if you would then that is the fair comparison for your personal circumstances.

 

[burmans]

Can’t believe the 10% auto-transfer and 5% manual transfer both apply to new customers. That’s a bit unfair for customers who have been sending points to them since the feature became available. At least people on auto-transfer should get 5%. Decided to turn it off and will now wait for Velocity to offer me something or I will use them for purchases at Coles.

Can’t believe people still believe fairness has anything to do with FF programs. The airlines (and frankly this is also true of all companies who offer promotions) spend a lot of time and analysis as to how to get people to do things they wouldn’t already do, this is well understood by marketing and promotions people and can be found by the rest of us with only a little searching. Spending money on something that a set of people are already doing is a waste of marketing/promotion money.

You can dislike it all you want but this is basic marketing theory even a first year marketing student would tell you and it’s highly likely to change.

All we can do is fight back by leveraging offers to our own advantage and frankly for me this is one of the main benefits of this site so we can take them on at their own game.

 

[lovetravellingoz]

Can’t believe people still believe fairness has anything to do with FF programs.

Yes if all FF programs were fair, I and my family would have been not have had all the Redemption flights that we have had over the decades, and especially all the ones in the pointy end.

The unfairness has created an array of opportunities over the years to outperform the "FF Market" if one has done one's research and even more importantly has acted on that research often and swiftly when required.

And I would also say that the FF world was even more lucrative when it was less fair than it is now.

The airlines (and frankly this is also true of all companies who offer promotions) spend a lot of time and analysis as to how to get people to do things they wouldn’t already do, this is well understood by marketing and promotions people and can be found by the rest of us with only a little searching. Spending money on something that a set of people are already doing is a waste of marketing/promotion money.

Yes FF programs exist primarily for benefit of the company that runs it.

The companies use them to extract more income (from by flyers and other companies).

It is our role as the FF Member to achieve the best return we can out of them. Fortunately it is relatively easy for the diligent to be at the right end of the bell curve

Though having said that some FF members are going to have more opportunities than others. That is the nature of the world that we live in.

 

[MooTime]

I too have 330k+ FB's and was waiting last 2 years for a bonus offer to transfer to VFF. Did participate in the Millionaire scam, what was I thinking, ha!
Although I have 600k VFF points so am slightly hesitant adding another 165k (+10%) to that via this redemption.
Mainly considering I don't have any plans within the next 18months to travel O/S to use J rewards as have couple young children 3yo eldest atm.

So I read the T&C's that once I turn on the FB auto-transfer option, all my 330k points will instantly transfer over. the 10% will be based on that amount. I failed to read when these bonus 10% will be dropped in my account.

Good points upthread. Any point is a good point as long as it's used on a J seat IMO.

 

[Harthagan]

I transfered all my amex points across to velocity yesterday and only received 15% bonus instead of the 20% advertised

 

[Harthagan]

I couldn't see the value of converting 2,000FB to 1,000VFF when instead I could convert those 2,000FB to $10 and buy the 1,000VFF for 70c from a bank.

Can you clarify how you buy 1000 velocity points for 70 cents?

 

[Brizz]

I transfered all my amex points across to velocity yesterday and only received 15% bonus instead of the 20% advertised

Yeah I just got an email from AMEX letting me know I was eligible for a 15% transfer bonus.

The T's and C's of the offer (Velocity page) state that AMEX is 15%...



So I guess the 20% above it is wrong...

 

[AIRwin]

The T's and C's of the offer (Velocity page) state that AMEX is 15%...

So I guess the 20% above it is wrong...

FAQ:

Velocity 20% transfer bonus

Transfer your reward points from participating partners to Velocity between 1 November 2021 and 30 November 2021 and receive 20% bonus Velocity Points*. Min. points transfer, exclusions & T&Cs apply.

experience.velocityfrequentflyer.com

Terms and Conditions at the bottom of the same page:

 

[levelnine]

Can you clarify how you buy 1000 velocity points for 70 cents?

Through pretty much any credit card sign up offer. For example, the Virgin Money Velocity Card is currently offering 100,000VFF for $65 annual fee in the first year: 65c per 1,000VFF.

 

[SCM]

That strikes me as a huge opportunity cost. You are foregoing real currency (which is way more preferable to loyalty program points) to purchase VFF at 14x the cost of credit card sign up offers.

Is it simply that there are not enough credit card sign up offers to attain the points you need? Or that you don't spend enough to meet all the credit card sign up offer minimum spend requirements?

You can't just apply for infinite cards because of a lack of banks in Aus and it will also hurt your credit rating for every application. The simple answer to your question is - why not do both?