Virgin Australia readies Singapore Airlines frequent flyer points swap

Virgin Australia readies Singapore Airlines frequent flyer points swap

Virgin Australia and Singapore Airlines are expected to reveal the ‘exchange rate’ for converting between Velocity points and KrisFlyer miles early next month as part of a November kick-off for the innovative scheme.

Frequent flyers of both airlines are eagerly awaiting details such as the conversion formula – which is not expected to be at a straight 1:1 parity rate – along with any associated costs and annual limits on the number of points swapped between each airline’s reward program.

“The volume of transfers, fees, maximum or minimum numbers, the exact terms and conditions –  we’re going to announce all of that” Neil Thompson, CEO of Virgin Australia’s Velocity Frequent Flyer business, tells Australian Business Traveller, adding that he believes the conversion rate “will be a very good value proposition.”

“We’ve got a lot of travellers who are members of both (Virgin Australia and Singapore Airlines) programs or who fly on both networks” Thompson says, “but what can happen is that you end up with a points balance spread across several programs.”

“Members are often telling us they have points here and points there, and they wish they could put them all together” Thompson explains.

“There’s real value if you have points orphaned in a program, because this lets people consolidate all their points to where it makes the most sense, based on their travel.”

“I think this is going to be very popular in WA, for example”

Australia is said to hold the highest number of KrisFlyer members outside of Singapore, and Thompson says that Virgin Australia has “a very complementary network with Singapore Airlines. Our network is predominately domestic while theirs is totally international.”

One advantage that Virgin Australia Velocity members will have over their KrisFlyer counterparts is family pooling, which can funnel the points earned by several family members into a single account.

Read: Virgin Australia's Velocity family pooling – tips and tricks for sharing your points

Savvy shoppers will also look to both the Velocity eStore and the KrisFlyer Spree online shopping mall to earn more points in each airline's respective currency in order to top up their account balance before a transfer – especially in cases where the same purchase can earn more points in the 'stronger' currency.

The unique points-conversion deal is the first initiative in Virgin Australia’s campaign to drive Velocity to 7 million members by 2017, winning over an increasing number of Qantas frequent flyer in the process.

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David Flynn
David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
 

9 comments

  • smit0847

    smit0847

    16 Oct, 2014 09:08 am

    Hoping for 1.5:1 but fear it will be 2:1.

    No member give thanks

  • SaltyJ

    SaltyJ

    16 Oct, 2014 11:55 am

    Can someone elaborate on why the conversion formula would not be 1:1?

    No member give thanks

  • watson374

    watson374

    16 Oct, 2014 01:00 pm

    Because it's SQ?

    No member give thanks

  • smit0847

    smit0847

    17 Oct, 2014 04:18 pm

    Because SQ points are significantly more valuable than VA points.

    No member give thanks

  • sagidec

    sagidec

    16 Oct, 2014 12:13 pm

    Love it to be 1:1.

    I don't have lots of SQ miles and probably highly unlikely be used.

    A move to VA for the SQ miles would be great to prevent the expiration. Also, keeping VA account alive if one moves abroad and SQ miles are easier to obtain since SQ miles accrual is almost worldwide with overseas credit cards and Star Alliance.

    No member give thanks

  • Say Mee

    mspcooper

    16 Oct, 2014 08:15 pm

    I wonder if you could sign up for SQ membership, fly Thai, which gets SQ points as part of star alliance, then transfer to velocity, more like proxy Star Alliance. This would be fabulous, wouldn't it?

    No member give thanks

  • Jokerowl

    Jokerowl

    16 Oct, 2014 02:16 pm

    Is there any talk about status matches between Velocity and KrisFlyer? Would Gold/Platinum with VA give me Gold Elite and subsequently StarAlliance Gold? 

    No member give thanks

  • David Flynn

    David

    16 Oct, 2014 08:27 pm

    No talk of status match at this stage, it's just points.

    No member give thanks

  • undertheradar

    undertheradar
    Banned

    16 Oct, 2014 04:28 pm

    [this content removed as it was considered offensive - ed] dont expect 1:1 

    No member give thanks

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24 May, 2019 11:31 am

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