Virgin Australia - Velocity Frequent Flyer

Velocity Frequent Flyer

Virgin Australia launched its frequent-flyer program Velocity Rewards in 2005, with partner National Australia Bank offering a companion credit card. By 2007, points collected from selected Westpac, American Express and Diners Club Cards could be transferred to Velocity Rewards, and effective September 2008, ANZ Reward Visa Card points as well.

Status levels were introduced to the program in late 2007 as part of continued efforts to attract business travellers. Alongside the entry-level "Red" status, frequent travellers were given the opportunity to attain "Silver" and "Gold" status, each with its own set of benefits.

Initially, Velocity was different from most other frequent flyer programs, as points were earned relative to the cost of a flight, rather than distance. Velocity members originally earned 6 points per dollar spent on Virgin Australia flights. This was later altered due to the introduction of status levels; Red members now earned 5 points per dollar, Silver members remained at 6 points, and Gold members earned 7. Points accrual on V Australia, as well as the majority of Velocity's airline partners have always based on distance.

Velocity was the first frequent flyer program in Australia to offer "any seat, any time" reward flight availability. The amount of points required to redeem an award seat directly corresponds to the current fare of that seat, allowing any seat currently available to be redeemed. Qantas introduced a similar feature to their frequent flyer program in May 2008.

In August 2011, the program was relaunched as "Velocity Frequent Flyer" and a Platinum status level was introduced among other changes.

As of April 2009, Velocity Rewards had 1.5 million members and Virgin Australia stated it was considering selling it or entering into a joint venture once its operation was profitable, and considered a membership of 1.6 to 1.7 million members would put the operation in a break-even position.