Velocity updates point expiration policy

Virgin Australia today announced two areas of change to the Velocity Frequent Flyer program. The changes affect areas related to the expiration of points within the program and the cost of Reward Bookings. This post will take a look at the expiration policy changes. A separate post will look at the change to the points redemption tables.

From 1 June 2016,  Velocity will change to expiration rules of the program which will result in points in an ‘inactive’ account expiring after 24 months of inactivity. This is a change from the current policy, which gives members a 36 month period in which to earn or redeem points in the account.

In addition to this change, Velocity will also start to exclude any points received through either a Points Transfer, or as the beneficiary of a Family Pool. The Velocity justification for this is that receiving points in this way is not really through a points earning process.

One thing to watch out for with these changes is that there will be a difference in the retrospective application of the two changes.

The rules, as written by Velocity are:

  • If a member earns or uses any Points before 1 June 2016, their Points won’t expire until 36 months after the date of their last eligible activity before 1 June 2016 (excluding Family Pooling and Points Transfer – Family activity).
  • If a member earns or uses Points after 31 May 2016, their Points will expire either 36 months from the date of their last activity before 1 June 2016, or 24 months from the last date they earned or used Points after 31 May 2016, whichever is the later  (excluding Family Pooling and Points Transfer – Family activity).

For any member that has a point balance that has had only Family Pooling or Family Points Transfer in the prior 36 months, they will have until 30 June in order to earn or redeem points to keep them alive.

The changes bring Velocity more into line with the Qantas Frequent Flyer program that has a policy that will cause points to expire after 18 months of inactivity. Qantas also exclude any points that are transferred between accounts. The Qantas program does not have the concept of family pooling.

Further details on this change can be found on the Velocity website.

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