Virgin Australia is set to introduce sweeping changes to its Velocity Frequent Flyer program, marking the most significant transformation in the loyalty scheme’s nearly two-decade history. These modifications, scheduled to roll out gradually over the next year, will reshape how members earn status, redeem points, and access various perks. From the introduction of lifetime status to a new top-tier level and revised point-earning structures, this comprehensive overhaul aims to reward Virgin Australia’s most loyal customers while aligning the program with the airline’s refreshed business model.
New Elite Tiers: Forever Gold and Platinum Plus
Forever Gold: Lifetime Status Recognition
In a move that will delight long-time Virgin Australia supporters, the airline is introducing a lifetime status tier called “Forever Gold”. This prestigious rank will be attainable from 1 October 2025, offering members the opportunity to secure Gold-level benefits for life. To qualify, frequent flyers will need to accumulate a total of 12,000 status credits, with at least 9,000 of these earned through Virgin Australia-marketed flights flown by the member.
The Forever Gold tier acknowledges the sustained loyalty of Virgin Australia’s most dedicated customers. Members who achieve this status will enjoy perks such as:
- Perpetual lounge access
- Priority airport services
- Enhanced baggage allowances
- Preferential seating options
It’s worth noting that while most Gold benefits will be available indefinitely, some partner-specific perks, like complimentary memberships with hotel chains and car rental companies, will remain one-time offerings.
Platinum Plus: A New Pinnacle of Status
For the ultra-frequent flyers, Virgin Australia is introducing a new top-tier status level called “Platinum Plus”. This elite rank, also launching on 1 October 2025, will sit above the current Platinum tier but below the invitation-only Beyond program. To attain and maintain Platinum Plus status, members will need to earn 2,000 status credits within a 12-month period, with at least 1,500 of these credits coming from Virgin Australia-operated or marketed flights.
Platinum Plus members can look forward to an array of exclusive benefits, including:
- Access to a dedicated VIP Priority phone service
- Four complimentary business class upgrades, usable on both Choice and Flex economy fares
- The ability to gift Platinum status to a companion
- “Fly Later” option for same-day flight changes
- Highest priority for bookings and upgrades
This new tier is designed to reward Virgin Australia’s highest-spending and most frequent travellers, offering them unprecedented levels of service and recognition.
Revamped Status Credit Earning System
Transition to Spend-Based Earning
From 2 April 2025, Virgin Australia will fundamentally change how status credits are earned on its flights. The new system will be based on the amount spent rather than the distance flown, aligning more closely with the airline’s business objectives and rewarding those who purchase higher-fare tickets.
Under this new structure:
- Lite fares will earn 1 status credit per A$24 spent
- Choice, Flex, and Business fares will earn 1 status credit per A$12 spent
This change means that passengers on more expensive tickets, such as last-minute bookings or Business Class fares, could potentially earn more status credits than before. However, those who typically book discounted fares well in advance may find themselves earning fewer credits.
Impact on Partner Airline Earnings
The revamp also affects status credit earning on partner airlines. From 1 October 2025, Velocity will reduce the number of status credits earned when flying with partner carriers. This adjustment emphasises Virgin Australia’s focus on rewarding those who fly primarily on its own network.
Elimination of Eligible Sectors Requirement
In a move that simplifies the status retention process, Virgin Australia will remove the “Eligible Sectors” requirement from 1 October 2025. Instead of needing to fly a specific number of Virgin Australia-marketed flights each year, members will need to ensure that at least 50% of their status credits come from Virgin Australia flights to maintain Silver, Gold, or Platinum status.
Changes to Point Earning and Redemption
Reduced Base Earn Rate on Virgin Australia Flights
From 2 April 2025, the standard point earning rate on Virgin Australia flights will decrease from 5 points per dollar to 4 points per dollar. This 20% reduction applies to new bookings made from that date, with existing reservations retaining the current earn rate.
However, members who hold eligible Velocity-linked credit cards will continue to earn 5 points per dollar on Virgin Australia flights. This change incentivises the use of co-branded credit cards and maintains maximum earning potential for cardholders.
Domestic Economy Reward Seat Pricing
Virgin Australia is introducing a more flexible pricing structure for domestic Economy reward seats. Starting from 21 January 2025, members will see both lower and higher point requirements for these redemptions:
- The minimum points needed for short domestic flights will decrease to 5,900 points, offering better value for budget-conscious travellers.
- A new, higher-priced tier will be introduced, potentially increasing availability but at a higher point cost.
This dual approach aims to provide more options for members, balancing affordability with increased seat availability.
International Partner Reward Pricing Adjustments
From 21 January 2025, the points required for international partner airline redemptions will increase. The extent of these increases varies depending on the route and class of travel, with long-haul Business Class seeing the most significant changes. For example:
- A Business Class reward seat from Melbourne to London via transit will increase from 139,000 to 158,500 points.
- Economy Class rewards will see more modest increases, such as Sydney to Los Angeles rising from 44,800 to 48,000 points.
These adjustments reflect the increasing costs associated with partner rewards and aim to maintain the program’s sustainability.
Modifications to Existing Status Benefits
Changes for Gold Members
Velocity Gold members will experience some changes to their benefits package from 1 October 2025:
- The Guaranteed Economy Reward Seat benefit will be removed.
- Gold members will retain priority boarding, extra baggage allowance, and lounge access.
Adjustments for Platinum Members
Platinum members will also see some modifications to their perks:
- The ability to gift Companion Platinum status will be moved exclusively to the new Platinum Plus tier.
- Platinum members can still gift Companion Gold status, but with new requirements: 1,300 status credits in a 12-month period, with at least 650 earned on Virgin Australia flights.
These changes aim to differentiate the benefits between tiers and encourage progression to higher status levels.
UpgradeMe Points System Overhaul
Simplified Upgrade Pricing
From 18 November 2024, Virgin Australia will introduce a single points price for upgrading Choice and Flex fares using UpgradeMe Points. This change simplifies the upgrade process but also increases the minimum points required:
- Domestic route upgrades will start from 10,000 Velocity Points.
- Trans-Tasman and short-haul international route upgrades will begin at 8,000 Velocity Points.
While this change streamlines the upgrade system, it may result in higher point requirements for some routes and fare types.
Family Pooling and Status Credit Accrual
Impact on Platinum Plus Qualification
The introduction of Platinum Plus status brings new considerations for Family Pooling:
- Status credits earned by family members will count towards the overall 2,000 status credit requirement for Platinum Plus.
- However, only status credits earned by the primary member will contribute to the mandatory 1,500 credits needed from Virgin Australia flights.
This approach maintains the benefits of Family Pooling while ensuring that the highest tier of status reflects significant personal travel with Virgin Australia.
Carrier Charges on Partner Airlines
Increases for Singapore Airlines Redemptions
From 21 January 2025, Velocity will raise carrier charges for Singapore Airlines reward seat bookings. These increases will affect all cabin classes and route lengths, with long-haul flights seeing the most substantial rises.
For example:
- Economy Class carrier charges on flights over 4,201 miles will increase to $65 USD.
- Business Class charges on the same routes will rise to $200 USD.
These adjustments reflect the increasing costs associated with partner airline redemptions and aim to maintain the program’s long-term viability.
Timeline of Implementation
Phased Rollout of Changes
The various modifications to the Velocity program will be implemented in stages:
- 18 November 2024: New UpgradeMe Points pricing takes effect.
- 21 January 2025: Revised reward seat pricing for domestic and international flights begins.
- 2 April 2025: New spend-based status credit earning system and reduced base point earn rate on Virgin Australia flights commence.
- 1 October 2025: Forever Gold and Platinum Plus tiers launch, along with changes to existing Gold and Platinum benefits.
This gradual implementation allows members time to adjust to the new program structure and plan their travel accordingly.
Implications for Different Member Segments
High-Frequency Travellers
The introduction of Forever Gold and Platinum Plus status tiers, along with the shift to spend-based status credit earning, generally favours high-frequency and high-spending travellers. These changes reward those who consistently choose Virgin Australia for their travel needs and are willing to pay for higher fare classes.
Occasional Travellers
For less frequent flyers, the changes present a mixed bag. The lower entry point for domestic Economy reward seats offers new opportunities, but the overall increase in points required for many redemptions may make it more challenging to extract maximum value from the program.
Partner Airline Flyers
Members who frequently fly with Virgin Australia’s partner airlines may find it more difficult to earn and maintain status under the new system. The reduced status credit earning rates on partner flights and the requirement for a higher proportion of Virgin Australia flights to qualify for status could impact these travellers significantly.
Competitive Landscape and Industry Trends
Comparison with Qantas Frequent Flyer
Virgin Australia’s changes to Velocity bring the program more in line with some aspects of the Qantas Frequent Flyer scheme, particularly in terms of lifetime status and spend-based earning. However, there are still key differences:
- Velocity’s Forever Gold requires fewer total status credits than Qantas Lifetime Gold (12,000 vs 14,000).
- Velocity’s new spend-based system is simpler, with just two earning rates compared to Qantas’ more complex structure.
These changes position Velocity as a more competitive option for frequent domestic travellers while maintaining some unique selling points.
Global Loyalty Program Trends
The modifications to Velocity reflect broader trends in the airline loyalty industry:
- A shift towards rewarding total spend rather than just distance flown.
- Introduction of ultra-high tier levels for top customers.
- Increased focus on co-branded credit card partnerships.
By aligning with these trends, Virgin Australia aims to keep Velocity competitive in the global loyalty landscape.
Strategies for Maximising Value Under the New System
Optimising Status Credit Accumulation
To make the most of the new spend-based system, members should consider:
- Booking directly with Virgin Australia to ensure all purchases contribute to status.
- Opting for Choice or Flex fares when the price difference is minimal, as these earn status credits at a higher rate.
- Utilising double status credit promotions strategically to accelerate progress towards higher tiers.
Effective Points Utilisation
With changes to redemption rates, members can maximise value by:
- Booking reward flights before 21 January 2025 to take advantage of current rates.
- Focusing on domestic Economy rewards, which now start at lower point levels for some routes.
- Considering the new higher-priced domestic reward tiers for increased availability during peak periods.
Leveraging Credit Card Partnerships
To maintain the highest point earn rates on Virgin Australia flights, members should:
- Explore Velocity co-branded credit card options to continue earning 5 points per dollar on flights.
- Use these cards for everyday spending to accumulate additional points and status credits.
Conclusion: Navigating the Evolving Velocity Landscape
The extensive changes to the Velocity Frequent Flyer program represent a significant shift in Virgin Australia’s loyalty strategy. While some members may face challenges adapting to the new structure, others will find exciting opportunities to reach new status levels and enjoy enhanced benefits.
Key takeaways for members include:
- The introduction of lifetime status and a new top tier offers fresh goals for loyal customers.
- The shift to spend-based earning rewards those who choose higher fare classes and fly frequently with Virgin Australia.
- Changes to redemption rates and partner earnings emphasise the importance of strategic point use and careful planning.
As the program evolves, members should stay informed about the upcoming changes and consider how their travel patterns and loyalty strategies might need to adapt. By understanding these modifications and leveraging the new opportunities they present, Velocity members can continue to extract significant value from their participation in the program.
Ultimately, these changes reflect Virgin Australia’s commitment to rewarding its most loyal customers while ensuring the long-term sustainability of the Velocity program. As the airline industry continues to evolve, members can expect further refinements and innovations in the years to come, shaping the future of frequent flyer loyalty in Australia and beyond.
