As its venture capitalists drum up investor enthusiasm for a possible buyout, Virgin Australia has given more than 11 million frequent travelers more options to redeem these points. This week, the airline announced a multi-year partnership with Luxury Escapes, one of the world's fastest-growing travel agencies.
What is happening to the Velocity program?
Virgin Australia Velocity Frequent Flyer The loyalty program (Velocity) and Luxury Escapes are joining forces in an exclusive new strategic partnership that will benefit millions of Australians. Their partnership means Velocity's 11 million members and Luxury Escapes' three million Australian customers will be able to earn and redeem Velocity Points on vacation packages, hotels, cruises, tours and experiences on Luxuryescapes.com.
Photo: Virgin Australia
The proposed partnership, which is expected to take effect from mid-year, will also allow members to use their points to pay for part or all of their Luxury Escapes reservation. It is a well-known fact that Australians, including Velocity and Qantas Frequent travelers have been stockpiling their points during COVID, racking up big balances as they shopped online for everything from pizza to a home loan.
Airlines now want to see them frequent flyer points used and off balance sheet, so attractive new initiatives like this will be adopted by members. Welcoming Luxury Escapes, Nick Rohrlach, CEO of Velocity Frequent Flyer, said it would be one of the most exciting travel partnerships to launch this year, “creating more choice, value and rewards for millions of Australian travelers.
“Luxury Escapes is one of the fastest growing travel companies in the world, and Velocity members will benefit significantly from the great value, choice and rewards on offer every time they book a vacation or experience Luxury Escapes.
“We know Australians are feeling the impact of the rising cost of living, and this is another way our members can use their Velocity Points to increase their investment when booking their next vacation.”
Australians have travel on their minds
According to the Luxury Escapes Travel Trends Report, around 90% of Australians intend to travel domestically or internationally in 2023, with some of the most popular destinations being Fiji, Bali, the Gold Coast and Cairns. For a partnership to be sustainable, benefits must flow both ways, and Luxury Escapes members will benefit from a suite of Velocity gifts when the partnership launches.
Photo: Virgin Australia
According to Adam Schwab, co-founder and CEO of Luxury Escapes, the partnership was born from a shared ambition: to provide the best possible travel experience to consumers. He also said the company has an “unwavering commitment” to providing its members with the best possible experience, quality and value.
“Velocity shares this commitment and we are excited to partner to bring the best of both brands to Australian travelers.” From expanded earning and redemption opportunities to a suite of Velocity benefits for eligible members, such as complimentary lounge access, priority boarding, preferred seating and higher checked baggage allowances, we can't wait to welcome a new era of travel for all our members.
For Virgin Australia, the partnership will solidify Velocity as the exclusive airline loyalty program for Luxury Escape members, undoubtedly adding to its existing base of approximately eleven million members.
What do you think of these types of partnerships and are they profitable? Let us know in the comments.
