Velocity has moved to restrict some of the redemption options available in the program. So far we have seen two different restrictions. Firstly, redemptions for Gift Cards are now restricted to one per day. Secondly, Velocity and KrisFlyer have suspended transfers between the two programs.
A little background
It’s no secret that the travel industry is struggling generally, and the airlines specifically. On top of that, we may only be at the beginning of some lean times for the industry.
The airlines are doing it hard, and in Australia, Virgin Australia seems to be fighting for its life.
Of course, none of that is secret. As a result, those folk invested in Virgin Australia through their Velocity memberships have been considering their options over the last week or so.
On top of that, thousands are out of work and looking for ways to make ends meet.
Even if you think flight redemptions give you the best bang for your points, you still need to guess when flights may be around to take.
Flight redemptions require you to take a guess as to when we might see the airlines take to the skies again. As a result, For those wanting to cash their points in, there have been two main approaches – gift cards, or KrisFlyer transfers. Indeed, if you read the forums and social media, there seems to have been a run on these two options.
Now Velocity has clamped down on things.
Gift Card Limits
Gift Cards may not be the best redemption option. However, if you want your Velocity Points out, or you just need some spending money, then they could be a viable option. And many have taken this path over the last week.
Velocity kicked off its clampdown with a restriction of Gift Cards. When browsing to redeem a Gift Card, you are confronted with this banner:
If you are looking at Gift Cards as an option, you should look at redeeming for the largest denomination you can.
KrisFlyer transfers
The other restriction that has come into play, is to stop transfers between Velocity and KrisFlyer. This had been an option allowing members to ship their Velocity Points across to KrisFlyer.
If you try to do this now, you will get the following message:
Thoughts
No one really knows where we are heading. If you are in Velocity, or any other program, you have two choices. Ride it out, if you have confidence in the business returning, or cash your points in.
If you choose to cash out, unfortunately, you would be taking a punt with a flight redemption. That leaves other redemptions, such as through the Rewards Store. Not the best value, but if you are worried about your points disappearing, then it may be your best bet at the moment.
