If you transfer points between Velocity and KrisFlyer, we have some bad news for you. As of January 1, 2019 the transfer rate between the two programs will get worse. From that date, the transfer rate will change from the current 1.35 ratio to a 1.55 ratio. This means you will receive about 13% less points when you make a transfer between the two programs.
KrisFlyer, Velocity Transfers
The ability to transfer points between the two programs was introduced in 2014. Since that time, the transfer rate has been set at 1.35 points (miles) from the sending program being converted to 1 mile (point) in the destination program.
As a result, when you convert from KrisFlyer to Velocity, you need 1.35 KrisFlyer Miles to get 1 Velocity Point. The reverse is also true – 1.35 Velocity Points converts to 1 KrisFlyer Mile.
Today, KrisFlyer and Velocity jointly announced changes to the conversion rate. The conversion rate will be changing to 1.55 as of January 1, 2019.
In the words of KrisFlyer:
You can transfer points/miles in either direction, with a rate of 1.35 points/miles in the origin program equating to 1 point in the destination program. After 1 January 2019, you will receive 1 Velocity Point for every 1.55 KrisFlyer miles converted, and Velocity Points will be credited directly to your Velocity Frequent Flyer account from then. A minimum of 5,000 KrisFlyer miles is required for each conversion. Please note that all miles converted cannot be reversed.
In the case of Velocity:
From 1 January 2019 Velocity Frequent Flyer members will convert their Points to KrisFlyer Miles at a rate of 1.55 Velocity Points to 1.00 KrisFlyer Mile[1]. The change in conversion rate reflects the differing reward program currencies within which each airline program operates and transacts.
By the numbers
On the minimum transfer of 5,000 points, you would receive 3,703 points in the target program. As of January 1, this will reduce to 3,220 points. Overall, this reduction represents a decrease of 13% in the number of points you will receive.
Lets take a look at it the other way. Let’s say you wanted 10,000 KrisFlyer miles. As of today you would need to transfer 13,500 Velocity Points. Come January 1, this will require 15,500 Velocity Points (or about 15% more).
Thoughts
Transferring Velocity Points to KrisFlyer has long been a useful benefit for Velocity members. Moving Velocity Points to the KrisFlyer program unlocks a number of redemption opportunities.
As Singapore Airlines is a member of Star Alliance, it opens up a range of options across the Star Alliance. This includes a range of carriers that would otherwise not be available to Velocity members. In particular, with Virgin Australia and Air New Zealand parting ways, the only way to redeem on Air New Zealand will be via the KrisFlyer option.
Another option that becomes available is the discount Spontaneous Escapes promotion. This provides discounted options on both the Singapore Airlines and SilkAir networks.
As can be seen, this is quite a devaluation. Members should look at their options and consider getting any transfers between the program done by the end of the year. Be aware, though, that once the points are in KrisFlyer they have a hard lifetime of 3 years – so be sure you will be using them in that time.