Virgin loyalty program
 

Just came across this story when browing News.com.au

The link is http://www.finance.news.com.au/story...from=ni_header for those of you who are interested...

Quote:
"The big push is going to be for the business market and we've got a frequent flyer program ... which will, I think, knock Qantas's frequent flyer program into touch," he said in Sydney.

"Qantas's frequent flyer program is not very popular so I think it's a very opportune time for us to come in there and hopefully we can do to the business market what we've done to the economy class market."

Asked if the scheme would give free flights for a number of paid journeys, Sir Richard said: "I think it might be a bit more interesting than that but we'll see. I've asked not to be drawn on it today but I'm sure some of the other Virgin companies will also be involved ... Virgin Credit Card and Virgin Atlantic."


What do you guys think is going to be involved??? Any suggetions?

PS: Is a new Virgin forum going to start on flyertalk once the plans for Virgin FF is released? LOL

Im sure that I recall Virign stating that they have no interest in such programs a couple of years ago, in order to offer their lo fares.

Maybe so, but a couple of years ago Death* didn't exist and DJ was still growing. Unless they can attract the business traveller with a FF program they're going to show us (again) how to create a small business.

Surely this is the key to DJ continued success - dont worry about Blue Plus fares or whatever they recently launched - they need suits and the way to get them would be FF program and even consider joining (gasp) *A and get the flow on from incoming SQ, UA, NZ pax

Don't get me wrong, I would like such a program (although not all that keen on DJ).

I think if they teamed up with Virgin Credit and offered a similar rewards program like ANZ have with QF, it could prove very popular (due to Virgin Credit with their "no annual fee ever" approach).

Well times change. :cool:

Chris Corrigan now owns more than 50% of DJ and he has been strongly on the record they MUST have one, and fast.

By Xmas, I'll bet the house. If not sooner.

As I've posted many times before all they need to do is like SouthWest in the USA (easily most profitable airline in the USA) and offer a free flight for each 10 paid flights.

Simple, attractive, and incredibly easy and cheap to track and maintain and understand. ^ ^

Inventory they capacity control, so effective cost - near ZERO. Extra bookings - a LOT.



Glen

FlyerTalk 'Oz Fest #2' in Sydney May 27/29, 2005. Click for details

Not a bad option, very similar to the REX program. Still, I think something with Virign Credit would be more attractive towards both the business market, while still gaining some private market share.

From today's paper - the plan it seems to me is WELL progressed from this snippet.

==================

http://www.theaustralian.news.com.au...E29098,00.html


Branson's Aussie space plan
Steve Creedy, Aviation writer
April 04, 2005

Sir Richard also indicated Virgin Blue would move soon on its long-awaited frequent-flyer program, saying the scheme would be part of a renewed assault on Qantas now that Patrick Corp's takeover bid had expired.

Asked how Patrick's 62 per cent stake would affect the airline, Sir Richard said he believed it would be "business as usual" and that it had not affected his relationship with Patrick chief executive Chris Corrigan. The Virgin boss and his son are in Australia to film cameo appearances as astronauts in the new Superman movie, which features a Virgin Galactic spaceship.

As bran-e mentioned before, not a bad idea. However, let's look at it this way.....

- Person A travels on mainly 'Happy Hour' or 'Sale Fare' between MEL-SYD-MEL 5 time a year. Total costs: approx $600 ($118X5 based on Happy Hour fares).

- Person B on the other hand, travels for business on the above mentioned route and frequency BUT on he 'Blue Plus' or 'Flexi Saver'. Total costs approx $2300 ($229X2X5 based on 'Blue Plus' fares).

It seems to me that perhaps that Person A would be the greater benefitor of this FF scheme if is based on the 'fly-10-get-1-free' idea. Naturally, I know that companies might pay for business travels (Person B) and the ultimate benefitor would be Person B him/herself anyway, but from this perspective, it would be odd from DJ's view in terms of revenue/profit that they could generate.

Just my 2 cents.

Maybe it could be a rebate on virgin credit card as a percentage of the amount of $$$ you've paid for virgin flights...then that would be fair as people who travel for business who usually purchase more expensive tickets for its flexibility will get more back at a rebate or maybe a virgin blue $$ voucher...but these are just my thoughts

NEVER, EVER forget that 99.99% of the average travelling public are not as savvy as FT'ers. :)

Folks here get to QF Platinum with cunning SC runs that no-one else except a FT'er would ever dream off etc. And at about 10-20% of the cost most other Plats expend I bet.

Guess what awards Qantas mostly redeems?

MEL-SYD
SYD-BNE

Only a brain dead moom would use QF miles for those - IMHO - but they do.

And so it would be with DJ. The travelling public in general do not have a clue. :rolleyes:

Accurate summation the "average" (whatever average means) travelling public. However, whilst average corporate FFer's are not as savvy as FT'ers either, they are certainly more aware of where to get value out of a FF program than average public. And any worthwhile airline could probably do with the odd corporate customer here and there. I'd say very few of my colleagues would book MEL-SYD awards, and many have at least a vague idea about what status means and how to get it.

Even my relatives who fly very infrequently (but have credit cards) seem to know how to get value out of points (I might add without asking me first!) My parents, knew enough to pay for flights MEL-CNS last year, and use their points to go MEL-PER-PBO. Another relative, who has probably flown no more than 10 times in his life, redeemed point for his wife to go to KIX in Japan - quite a good redemption given the fares at the time.

Correct me if I'm wrong and maybe I've missed something here. Don't Virgin Blue have only one class of travel ? Also, from what I've heard their lounges are not in the same class as the QP's. :p

Reading forums on FT, a large percentage of the discussion on FF programs and status in them is about either:

1. Upgrades
2. Lounge Access

If you can't offer either (to a competitive standard), I fail to see how it will knock the socks off QFF.

A *A partner in Australia would be nice and I'm sure there is a possibility to link the Virgin credit card to the scheme as well but how far can they really take it without upgrades and decent lounges ?

I've said it before but I'll say it again.

DJ will not be a Star member.

The closest they could get is Regional Member.

They can't offer all the products expected for a Sta member - multiple class service, lounges, frequent flyer points, status recognition etc etc.

Also don't forget you don't just join up for nothing - there's a considerable cost to joining Star, and then it continues with things like CRS links and the like. Even getting UA codes on some DJ flights was a bit of a major thing because they do NOT have direct links to eachother.

Now, DJ could do things like offer free Blue Room entry for FF elites, and free* upgrades to Blue Zone seats (bulkhead+exit row seats) for same, or perhaps preferred seating... but that's about it.

Having FF programs with points and stuff to track is a cost and we know the QP style lounge is a huge cost that I imagine DJ isn't ready to get into (Patrick or No).

What is perhaps more likely, I reckon, is tie ups with other Virgin Brands like:

- $xx spend on your virgin credit card can get you a $yy travel voucher for DJ
- similar deals with virgin mobiles

It wouldn't be inconcieveable that DJ would team up with a budget hotel chain to offer some kind of discounted rates deal - perhaps they already do (I don't know).

Given that Sir Richard has mentioned VS in the equation - and we know that DJ can't hope to compete with QFF because DJ only has a small international network (NZ, pacific islands) I can imagine some kind of credit system being available for use on VS..

I guess whatever happens it will be interesting to see what they come up with..

Everything else you say is entirely valid, but is multiple class service a pre-requisite (for domestic travel?) The example that springs to mind is NZ, which have no J class domestically any more (OK, OK, I suppose they have few if any domestic flights over 90 mins anyway).