What happens to velocity points when Bain capital sells virgin

[erlichbachman]

As per title

Is accumulating a fools game

 

[serfty]

[moderator hat]
Thread title edited ...
[/moderator hat]

 

[Simon Overall]

As per title

Is accumulating a fools game

Velocity is separate to Virgin

 

[GDale]

Given how profitable frequent flyer programs are, I can't imagine any buyer ever wanting to decimate its value... As with every operator, what any buyer will forever be doing is tweaking the program to try and find that sweet spot between maximising revenue, minimising cost, and delivering just enough value to customers so as to not lose them. A frequent flyer program's biggest enemy is airline liquidation/shrinkage, not external investors.

 

[moa999]

Nothing..
Indeed the structure of Velocity (with points cash supported in a trust) thanks to the prior partial sale and buyback to a PE firm actually means we all still have points.

If Qantas had gone insolvent instead points were likely gone.

 

[ozstamps]

Is accumulating a fools game

Yes. In ANY airline or hotel program. Constantly devaluing.

 

[RooFlyer]

Is accumulating a fools game

Nothing wrong with accumulating but holding large numbers of points for long periods isn’t such a good idea.

 

[burmans]

As per title

Is accumulating a fools game

For many, if not most, yes. But not most of those in this forum!

Perfectly happy for those not in the know to feel this way though, there are already enough playing the game.