Velocity reinstates Singapore Airlines redemptions

[AIRwin]

With the date of the 1:55 rate being 28 May 2018 as per the T&Cs on the bottom of the page.

This date in the footnote is referring to the "Earn Points" tab instead of "Transfer KrisFlyer Points":
Earn Points per mile flown when you travel in an eligible class on Singapore Airlines1.

 

[Mr H]

Given that the transfers are coming back, and assuming it is at the old rate, we can perhaps make some inferences about how the transactions operate between SQ and VA. In some cases, that might mean recognising that our prior assumptions were not correct.

My reading of it is that this means transfers are (presumably) profitable to both partners even if the traffic is more one way than the other. It also indicates that the transfer rate is independent of fares - whether cash fares or reward fares. It suggests that the purchase price of a Krisflyer mile is pretty much the same as the purchase price of a Velocity mile and the 0.55 is a level of commission on the exchange that suits the airline whose miles are being swapped out.

Or am I misunderstanding?

 

[RAM]

Given that the transfers are coming back, and assuming it is at the old rate, we can perhaps make some inferences about how the transactions operate between SQ and VA. In some cases, that might mean recognising that our prior assumptions were not correct.

My reading of it is that this means transfers are (presumably) profitable to both partners even if the traffic is more one way than the other. It also indicates that the transfer rate is independent of fares - whether cash fares or reward fares. It suggests that the purchase price of a Krisflyer mile is pretty much the same as the purchase price of a Velocity mile and the 0.55 is a level of commission on the exchange that suits the airline whose miles are being swapped out.

Or am I misunderstanding?

I agree with your premise but since all points schemes have different prices for volume sales of points to different partners - the assumption of the 0.55 being a commission could be a little too simplistic.

Contrast this with the sale of gift cards or e-gift cards (for example) where they are available to the end consumer at discounts (for the same issuer but via different channels) at $1 per $1, 0.98 per $1, 0.97 per $1, 0.96 per $1 and 0.95 per $1 (in the case of Coles) depending on wha affinity scheme you can access.

The same goes for how much 'points' are sold to banks/supermarkets/hotels to onsell/provide to customers.

The actual split and profitability, in this case for VFF & Krisflyer, is something that is virtually never publicly known or even known by the counterparties. It all comes down to who's in the better position +/or a better poker player. I suspect SIA has the upper hand in this instance & knows it.

The reality is that the relative cost per point redeemed will be very different for each party, and due to the added complication (benefit/windfall?) of a three year expiry for Krisflyer points - it is unlikely we will ever know.

 

[NoName]

Given that the transfers are coming back, and assuming it is at the old rate, we can perhaps make some inferences about how the transactions operate between SQ and VA. In some cases, that might mean recognising that our prior assumptions were not correct.

My reading of it is that this means transfers are (presumably) profitable to both partners even if the traffic is more one way than the other. It also indicates that the transfer rate is independent of fares - whether cash fares or reward fares. It suggests that the purchase price of a Krisflyer mile is pretty much the same as the purchase price of a Velocity mile and the 0.55 is a level of commission on the exchange that suits the airline whose miles are being swapped out.

Or am I misunderstanding?

Of course they are profitable for both airlines. It was a real head-scratcher why anyone would think any different. VA earns a certain amount of revenue when people earn/buy their points. It costs them a certain amount to buy KF points. Then they set the transfer rate at a point where the cost of the KF points is less than the revenue they earn from the transferred VA points. No logic at all in thinking they would ever be losing money on the deal.

The only likely reason they were stopped was because of the immediate cash drain on the business when people were transferring them out en masse as it looked like VA could well go belly up.

 

[DJDBA]

So has anyone seen indication of restoration on Velocity site?

 

[HS-TQE]

The transfers betwene Velocity and Krisflyer has been deferred again with no given date, with updated notes on both sites.

This is in conjunction with the hanger event being delayed again.

Singapore Airlines

Earn Points with Singapore Airlines when you travel in an eligible fare class on flights with a SQ flight number that are operated by Singapore Airlines. You can also earn Status Credits and redeem Reward Seat. Learn more now.

experience.velocityfrequentflyer.com

 

[DJDBA]

still on web site

Post automatically merged: Jul 20, 2022

The transfers betwene Velocity and Krisflyer has been deferred again with no given date, with updated notes on both sites.

This is in conjunction with the hanger event being delayed again.

Singapore Airlines

Earn Points with Singapore Airlines when you travel in an eligible fare class on flights with a SQ flight number that are operated by Singapore Airlines. You can also earn Status Credits and redeem Reward Seat. Learn more now.

experience.velocityfrequentflyer.com

what is the "hanger event" please?

 

[andye]

....
what is the "hanger event" please?

Virgin ‘New Era’ event Thur 19th. [*Postponed*]

Virgin Australia will cap off a hectic few months of activity with what it’s promising as “one of the most exciting and unique aviation events of 2022.” Invitations are now doing the rounds for a special event at the Virgin’s Brisbane Airport hangar late next week “to celebrate a new era of...

www.australianfrequentflyer.com.au

 

[Henmo]

The ability to transfer between VFF and KF is now live!

 

[Mr H]

The ability to transfer between VFF and KF is now live!

Great news. And I suddenly find that (a) I no longer have an immediate urge to transfer all my points to SQ and (b) I feel much more enthused to select Velocity earning opportunities.

 

[MooTime]

And to all the experts out there saying the 1.55 per point would be devalued to a lesser amount, well well, hands up those.........silence!!

 

[HS-TQE]

And to all the experts out there saying the 1.55 per point would be devalued to a lesser amount, well well, hands up those.........silence!!

Hands up. Happy to be proven wrong.

Although, the carrier charges to both Velocity and Krisflyer starting 5th of October (per sector. rather than a flat fee on some carriers) probably makes up the extra revenue for both programs.

Velocity to Introduce Carrier Charges on Singapore Airlines

Virgin Australia's Velocity Frequent Flyer program has announced a range of changes to redemptions on Singapore Airlines, and there's both good and bad

www.australianfrequentflyer.com.au

 

[Mr H]

Hands up. Happy to be proven wrong.

Pessimists must find their lives to be a constant succession of pleasant surprises.

 

[HS-TQE]

Pessimists must find their lives to be a constant succession of pleasant surprises.

Also could be taken as expect under delivery and be pleasantly surprised when they over deliver. Which can be said for most airlines, and not just limited to VA.

Of course, the carrier surcharges IMO was bound to come sooner or later.

They were the most popular partner airline in the VA 1.0 days to redeem/transfer awards to for a good reason, so no surprise Krisflyer/Velocity took advantage of that.

 

[andye]

Less of a problem for the pessimists though as they liquidated their VA stash into giftcards pre-Bain

 

[Mr H]

Less of a problem for the pessimists though as they liquidated their VA stash into giftcards pre-Bain

I only had about 140k Velocity which I checked out to KrisFlyer just in time. I would not have redeemed for gift cards because, as I said at the time, the faint glimmer of future premium cabin travel is worth more to me than more useless cough from JB Hifi that I would neither use nor value.

I now have 515k Velocity (will be 590k when my Virgin Money card has fully delivered...) and as things stand I would expect those points to wash through KrisFlyer. But for the time being at least, my earning is outstripping my redeeming.

 

[andye]

I only had about 140k Velocity which I checked out to KrisFlyer just in time. I would not have redeemed for gift cards because, as I said at the time, the faint glimmer of future premium cabin travel is worth more to me than more useless cough from JB Hifi that I would neither use nor value.

I now have 515k Velocity (will be 590k when my Virgin Money card has fully delivered...) and as things stand I would expect those points to wash through KrisFlyer. But for the time being at least, my earning is outstripping my redeeming.

A true pessimist wouldn't have transferred to KF as they would have assumed they would expire before they could be used. You must be at least a part-full VA member
(I agree by the way about the faint glimmer being better than cashing out)

 

[AFF Editor]

This thread is about Velocity bringing back Singapore Airlines reward seats.

Now that transfers to KrisFlyer are back, I've started a new thread dedicated specifically to discussing the conversion of Velocity points to/from KrisFlyer miles, including tips & tricks:

Velocity Points Transfers to Singapore Airlines KrisFlyer - Back from 21/7/22

The ability to transfer Virgin Australia Velocity Points to Singapore Airlines KrisFlyer miles is back! This article explains how and why to do it: https://www.australianfrequentflyer.com.au/transfer-velocity-krisflyer/ This thread is dedicated to discussion about transfers between Velocity &...

www.australianfrequentflyer.com.au

 

[drron]

Less of a problem for the pessimists though as they liquidated their VA stash into giftcards pre-Bain

No I liquidate all my and mrsdrron's VA points to KF before they were blocked. Still glad I did.

 

[MooTime]

I'll keep my Velocity points closing in on a 7 figure quantity to use on SQ, UA, AC or QR J cabin, just have to wait couple years for little ones to grow little bigger.

Prefer not to hold so many points, just that's my situ atm. Earning quicker than redeeming atm also.