Virgin Atlantic adopts dynamic pricing model for loyalty program awards

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Virgin Atlantic adopts dynamic pricing model for loyalty program awards

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Mackenzie Roche Editor | The Points Guy

By Sky Industry News

Oct 28, 2024

Virgin Atlantic is implementing significant changes to its Flying Club loyalty program, with a shift to dynamic pricing for award redemptions starting on October 30. This change will allow members to use Virgin Points to book any seat on Virgin-operated flights. The airline promises increased flexibility and choice for customers but also introduces variable pricing based on demand.

"Flying Club members will be able to use Virgin Points to pay for any seat on the plane on any date, offering absolute choice and flexibility for our loyal customers," stated Virgin in a press release. "The price of seats will vary in line with demand, in a similar way to standard tickets."

Despite potential concerns about devaluation, Virgin assures that over half of its economy reward seats will maintain or lower current prices. Additionally, many Upper Class cabin seats are expected to remain at existing prices or lower.

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From October 30, every seat on a Virgin Atlantic-operated flight can be booked using points. This marks an expansion from the previous system that offered 12 award seats per flight since 2022. However, with dynamic pricing, there may be disparities in award costs once cheaper options are exhausted.

To counterbalance this, Virgin is introducing "Saver reward seat" products that lock certain fares at current or reduced rates. The availability across different cabins remains uncertain as clarification is sought from Virgin Atlantic.

Further changes include adjustments in how Companion and Upgrade vouchers can be used. Post-October 30, voucher usage will extend across all cabins but their value will depend on Flying Club status—up to 75,000 points for Red tier members and up to 150,000 points for Silver or Gold tier members.

In addition, earning opportunities will increase with travelers gaining up to 50% more points on Upper Class fares and up to 75% more on Premium tickets after the changes take effect.

These developments represent a substantial transformation of the Flying Club program. Further analysis is anticipated following the rollout of these changes.