New Velocity Points Table for Virgin Australia Domestic flights

[MELso]

Point Hacks has more details up. Revamped Velocity's first move: a new points table - Point Hacks

Key details are that the points needed for domestic economy awards are being split into three tiers (one higher and one lower than current amounts - e.g. MEL-SYD awards will be 6200, 7800 and 9900 points rather than just 7800 points). Business awards are unchanged. New tables here.

There’s also a ‘1 point reward’ promo available.

 

[aikman]

So the 'milestone announcement', which was announced on June 5 instead of June 1, is a 20% discount on domestic economy rewards during off peak times but a 23-26% increase during peak times? So disappointing.

 

[jakeseven7]

So the 'milestone announcement', which was announced on June 5 instead of June 1, is a 20% discount on domestic economy rewards during off peak times but a 23-26% increase during peak times? So disappointing.

What a wonderful enhancement….

Oh dear

 

[justinbrett]

What a wonderful enhancement….

Oh dear

They did say faster to redeem points; they’ll go 23-26% faster it seems.

 

[esquire]

Usual poor reporting in the cut and paste media - Equally, can easily state VA increases award points for when most people want want to fly....

 

[kangarooflyer88]

So the 'milestone announcement', which was announced on June 5 instead of June 1, is a 20% discount on domestic economy rewards during off peak times but a 23-26% increase during peak times? So disappointing.

Incorrect. Now there are just 2 tiers: Tier 1 (which requires fewer points) and Tier 2 (normal amount of points) through the end of the month. At the same time, a million extra Virgin domestic seats have been made available to members (through the 18 of June). So I think the message from Virgin is clear, if you want to ensure you are booking for the same points (or less) particularly during busy periods, now is the time to book.

In terms of the award rates themselves, well I suppose it depends on the type of fare you book. For me, I tend to book awards with partners or J with VA (i.e. J award or upgrade to J) so this doesn't affect me. At least for the immediate term. What is key though is that Virgin has stayed to an award chart rather than move to dynamic awards, which cannot be said for other airlines like NZ or UA.

-RooFlyer88

 

[MEL_Traveller]

Oh dear… the headline on ET is ‘Virgin Australia, more frequent flyers seats, fewer points’.

Makes it sound like we will earn fewer points on all our flights

 

[TheInsider]

Incorrect. Now there are just 2 tiers: Tier 1 (which requires fewer points) and Tier 2 (normal amount of points) through the end of the month.
-RooFlyer88

There will be 3 tiers though.

 

[Princess Fiona]

Incorrect. Now there are just 2 tiers: Tier 1 (which requires fewer points) and Tier 2 (normal amount of points) through the end of the month. At the same time, a million extra Virgin domestic seats have been made available to members (through the 18 of June). So I think the message from Virgin is clear, if you want to ensure you are booking for the same points (or less) particularly during busy periods, now is the time to book.

In terms of the award rates themselves, well I suppose it depends on the type of fare you book. For me, I tend to book awards with partners or J with VA (i.e. J award or upgrade to J) so this doesn't affect me. At least for the immediate term. What is key though is that Virgin has stayed to an award chart rather than move to dynamic awards, which cannot be said for other airlines like NZ or UA.

-RooFlyer88

There are 3 tiers.
Tier 3 is redemptions at a higher rate than currently.

 

[Saab34]

So they will use Tier 3 on say Fridays/Sunday’s and school holidays instead of offering an originally tiny amount of normal reward seats?

That’s the way I see it, they can use Tier 3 in areas in which are premium periods. They will likely offer the same amount of seats as before but with a higher point total attached. It’s very hard to get a reward seat on some of those days regardless so won’t really impact too many.

 

[Ade]

3 tiers though.

There are 3 tiers.
Tier 3 is redemptions at a higher rate than currently.

Makes me think that they have priced their redemptions the similar way as $ ticktes - lite, choice, flex --> Tier 1, Tier 2, Tier 3 (and added the distance component to justify)

 

[justinbrett]

There will be 3 tiers though.

View attachment 332415

There are 3 tiers.
Tier 3 is redemptions at a higher rate than currently.

Poorly worded, but I think he meant there's 2 tiers until the end of the month, then there will be three. Saying the previous poster was incorrect was a bit much though.

Incorrect. Now there are just 2 tiers: Tier 1 (which requires fewer points) and Tier 2 (normal amount of points) through the end of the month.

 

[kangarooflyer88]

Poorly worded, but I think he meant there's 2 tiers until the end of the month, then there will be three. Saying the previous poster was incorrect was a bit much though.

Correct that's what I was trying to emphasize. If you can make bookings this month please do so since we've got a million award seats released plus the award price will be no more than what you were currently paying.

-RooFlyer88

 

[Spacetravel]

This is basically the start of dynamic pricing with a marketing spin.

 

[Milefest]

Poorly worded, but I think he meant there's 2 tiers until the end of the month, then there will be three. Saying the previous poster was incorrect was a bit much though.

I guess this is the "timely advance notice" the ACCC requires when there is a unilateral reduction in the redemptive value of points

 

[levelnine]

This is basically the start of dynamic pricing with a marketing spin.

Will make it easier for QF to head that way in the future. All the US airlines have now gone there, so only a matter of time before we get to experience the 'joy' of dynamic pricing.

 

[Mattg]

I can't help thinking that Qantas might now take this change as "permission" to introduce tiered Classic Reward pricing in its own program.

Edit: Looks like we both posted the same thing at the same time, @levelnine. Clearly I'm not the only one thinking this

 

[aikman]

When the time comes, I expect Qantas will have 21 tiers of pricing. Simpler and fairer of course.

 

[Milefest]

This is basically the start of dynamic pricing with a marketing spin.

And if you're on the winning side of a dynamic redemption, velocity wouldn't hesitate to claim there was a glitch to make your booking invalid

 

[justinbrett]

I can't help thinking that Qantas might now take this change as "permission" to introduce tiered Classic Reward pricing in its own program.

Edit: Looks like we both posted the same thing at the same time, @levelnine. Clearly I'm not the only one thinking this

That implies QF would release reward seats on premium timed flights and routes, which would make them worse off (vs getting a cash fare) - so I very much doubt they would use anything like this VA model (and clearly QF make changes without waiting for VA). Not to say they wouldn't adopt dynamic pricing at some point in the future, but not this way. I don't believe QF promises to have reward seats on every flight.

If QF are already charging somewhere between VA's Tier 2 & 3, one could argue they're just making a profit on the unwanted seats- and of course they already do JQ flights close to Tier 1 rates.