Velocity Frequent Flyer
|Industry||Loyalty marketing and enterprise services|
Velocity Rewards was launched by Virgin Blue (later renamed Virgin Australia) in 2005, with partner National Australia Bank offering a companion credit card. Initially, Velocity differed from most other frequent flyer programs with points earned being based on the cost of a flight, rather than distance. Velocity members originally earned 6 points per dollar spent on Virgin Australia flights.
As part of Virgin's effort to attract business travelers, status levels were introduced to the program in late 2007. Alongside the entry-level "Red" status, members could attain "Silver" and "Gold" status, each with its own set of benefits. With the introduction of status levels, the earning rate was changed: Red members earned 5 points per dollar, Silver members remained at 6 points, and Gold members earned 7.
Velocity was the first frequent flyer program in Australia to offer "any seat, any time" reward flight availability. The number 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.
By February 2008, Velocity Rewards had 1.3 million members and Virgin Blue 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. The program reached 4 million members by the end of 2014.
In August 2011, the program was renamed "Velocity Frequent Flyer" and a "Platinum" status level was introduced, among other changes. The changes included changes to the bonus system: Red status members now earn 5 points per dollar spent, and Silver members earn a bonus of 50%, Gold members earn a bonus of 75% and Platinum members earn a bonus of 100%.
Other ways of earning points
This section contains content that is written like an advertisement. (May 2018) (Learn how and when to remove this template message)
Velocity co-branded credit card
When using a Velocity co-branded credit card, points based on purchases are automatically allocated to a Velocity account each month. Also, the card can be used with a program partner to earn double points – once on the card and also on the purchase with the partner. Co-branded cards are offered by American Express, Virgin Money and National Australia Bank.
Alternatively, when not using a co-branded credit card, most banks and credit companies have cards which earn points into their awards program, which can then be transferred to another program such as Velocity; but the transfer rate is often not on a one-for-one basis.
Global Wallet card
The Velocity Global Wallet prepaid Visa product is owned by Cuscal Limited and managed by Rev Australia Pty Ltd. The Global Wallet card allows the holder to load money onto the card in Australian dollars (AUD), up to a total value of A$25,000, and then use the AU$ to buy up to five other supported foreign currencies, which are also stored on the card. Supported currencies include Australian dollar, Canadian dollar (CAD), Euro (EUR), Pound Sterling (GBP), Hong Kong dollar (HKD), Japanese yen (JPY), New Zealand dollar (NZD), Singapore dollar (SGD), Thai baht (THB), US dollar (USD) and South African rand (ZAR).
The card can be used as a Visa prepaid card, with the money able to be accessed around the world anywhere where Visa is accepted and at ATMs. However, fees apply, most significantly for use of the card to make purchases in other than Australian dollars, and for withdrawal of cash at ATMs. Also, the exchange rate for the foreign currencies are locked in at the time the currencies are bought, and not at the time of a transaction, as would be the case with a credit card transaction; and the funds held on the account do not earn interest.
When a Global Wallet card is linked to a Velocity account, the cardholder can earn 1 Velocity point per $3 spent in Australia using the card (i.e., a third of a point) and 2 points per $1 spent outside Australia, excluding cash withdrawals at ATMs.
The Velocity Frequent Flyer program, then called Velocity Rewards, won the 2009 Freddie Awards for best frequent flyer program, best award redemption, best affinity credit card, best member communications, best website. This was the fourth consecutive Freddie Awards that Velocity has won.
The Velocity Frequent Flyer program won the "program of the year" award third year in a row at the 2015 Freddie Awards.
- "Virgin loyalty program may be spun off". news.com.au. 21 February 2008. Retrieved 2008-02-21.
- "Velocity Frequent Flyer reaches four million members". Virgin Australia. Retrieved 2015-08-15.
- "Virgin Australia's new Global Wallet travel money card". Australian Business Traveller. Retrieved 2015-08-15.
- Transfer your credit or charge card points to Velocity
- "Velocity voted the world's favourite rewards program!". velocityrewards.com.au. 16 February 2009. Archived from the original on May 11, 2009. Retrieved 16 February 2009.
- Velocity wins again at the 2015 Freddie Awards