FlyerTalk Forums - 42.5 % devaluation

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42.5 % devaluation

Reports are appearing of upcoming changes to Velocity.

If you earn your points from flying then buckle up for a savage "enhancement".

If accurate, the cited earn rates are going down by 20% regardless of status tier. And the international biz redemption rates are going up by 14% (running the numbers for the current 139,000 tier).

What credit card peddling blogs never do is look at the net return (take into account both earn and burn). In this case, the net impact is a devaluation of 42.53% for those who earn their Velocity points from flying and redeem onto long haul biz.

Grab the popcorn.

It's the international that's the killer - it ultimately drove me away from VA.

I used to hold Plat on both QF and VA for years, but got sick of being punted to the poor's lounges on "partners" like SQ. Just stuck to QF domestically and sent the former Virgin overseas love to the NZ program, easy enough to achieve & maintain Gold.

Really disappointing the downgrade in VA service - better than it going bankrupt though, I suppose...

Quote:

Originally Posted by shillard (Post 36602833)

VA has recorded two years of profit.

17 Oct 2024 VA media --> Velocity Frequent Flyer announces program changes with new Status Tiers and a one million Domestic Reward Seat sale

Quote:

Thursday 17 October 2024: Velocity Frequent Flyer has today unveiled a series of program changes to be introduced over the next 12 months.

The changes – which follow member feedback and extensive research – are designed to deliver on what is most valued by Velocity members: Domestic redemptions and being better recognised for their loyalty.

Overview of Velocity Frequent Flyer program changes

Rewarding long term loyalty to Virgin Australia with the introduction of Velocity Forever Gold Status2.
The recognition of loyalty beyond Platinum, with the introduction of Velocity Platinum Plus Status3.
Faster rewards with Virgin Australia Reward Seats now starting from an even lower base fare of just 5,900 Velocity Points for one-way Domestic economy fares (additional taxes, fees and carrier charges apply) #. Virgin Australia continues to have the lowest lead-in one-way Domestic economy Reward Seat base fare prices of any Australian airline~.
Changing other select Reward Seat pricing on Virgin Australia Domestic services and increasing Reward Seat pricing on Virgin Australia Short-Haul International services as well as select routes and cabins on International Partner Airlines4.
Simplifying the way members earn or maintain Status, including the removal of Eligible Sectors5 and awarding Status Credits based on total fare paid on eligible Virgin Australia flights6.  
Reducing Status Credit earn rates on eligible International Partner Airline flights. 
Maintaining the base earn rate of 5 Velocity Points per $1 spent on eligible Virgin Australia flights for Velocity Points earning credit card holders7, while reducing the current base earn rate for other members to 4 Velocity Points per $1 spent8.
Changes to Companion Platinum9, Companion Gold eligibility10 and Guaranteed Economy Reward Seat benefits11. 
Moving to one single Points price across Choice and Flex fares for UpgradeMe Points; increasing the minimum Points required to upgrade on an eligible fare (excluding Economy Lite fares)13.

<snip>

VA consolidating itself as a domestic airline…

”Forever Gold” aka Lifetime Gold (yours or the airlines - which ever ceases first) has been long awaited but the criteria of 9k SC on VA of the total 12k is going to make it that tad harder and SCs from “Family pooling” (the hack for quick status) will fall into the “enhancement chasm” as far as FG is concerned.

”Platinum Plus” - standby for Platinum perks to be removed and passed to P+ as “exclusive benefits”.

Attaining and retaining status for regular OS travellers will be harder - 50% of SCs need to be on VA (ie codeshares rather than direct to UA, QR, EY, SQ etc)

SC earn based on spend v distance flying VA

Reduced SC earn on partners…

Devaluation of partner redemptions...

Lots of peeps clutching their pearls Down Under.

Dutch auction in full swing here.

QF couldn’t have paid for a better boost.

If people are going to need to pay QF style prices in order to obtain/keep status then you may as well fly QF and get better onboard perks like Wifi and usually a better schedule.

They’ve completely denuded the efficacy of their airline partnerships and likely devalued the airline as it prepares to float.

Pretty poor.

Insane timing seeing they had Qantas on the back foot all year.

Dumber than dirt really. WAY too much change, and all at once.