Velocity has added a new redemption option – the ability to use point to purchase flights with Tigerair Australia. In addition, it is possible to use Velocity Points to pay for other items in the booking process, such as Baggage, Seat Selection, and Food. Note that insurance looks to be an exception, and points cannot be used ofr this.
Unlike Virgin Australia flights, there are no specific Award seats put aside for redemption. Basically, if there is a seat avaliable on a flight, then you can use points to purchase the flights. In this respect, it is most similar to the existing Any Airline, Any Seat option that is already available to purchase seats on a wide range of airlines.
In order to redeem your Velocity Points for Tigerair services, you search and select flights on the Tigerair site as you do now. Once you have proceeded to the payment page, you will have an option of paying with Velocity Points. In order to do this, you will have the option of logging into your Velocity account to process the transaction.
There is a minimum payment of 3,100 points that need to be made. A few tests of the booking process suggests that Velocity are valuing the points at 0.65 cents each. So, for example, the minimum 3,100 points is equivalent to just over $20 when redeeming for a Tigerair flight.
While 0.65 cents per point is generally within the ballpark for various options where points are used as a cash equivalent, there is still bettter value in a redemption for a Virgin Australia Reward flight. A few searches suggest that in many cases, you would be better off redeeming for a Virgin Australia reward flight.