Virgin Australia matches Qantas loyalty offer in frequent-flyer bonanza

Qantas and Virgin Australia are competing fiercely for frequent flyers, but who offers the better perks?

Virgin Australia has stepped up its bid to match Qantas. Picture: Bloomberg

Virgin Australia’s bold move to counter Qantas’s latest loyalty initiative gives top-tier frequent flyers the option to achieve gold status with both carriers, should they desire.

In a feast for travellers who value the perks of loyalty programs, Qantas is offering gold status for Virgin’s top-tier customers, providing they earn 100 status credits with the airline within three months.

Virgin’s Velocity program has responded by offering the same for equivalent members of Qantas’s frequent-flyer program, as long as they earn 80 status credits and take one eligible flight within 90 days.

The offers are each intended to undermine the competition by luring away loyal passengers with the promise of perks such as lounge access, priority boarding and seat upgrades.

Of course both airlines believe their proposition is the better one, with Virgin Australia granting eligible customers an additional “gold” Velocity status for a friend or relative, and Qantas citing the “certainty” of its offering.

“People know exactly what to expect when they fly with Qantas, whether it’s complementary food and drinks, baggage, Wi-Fi or access to dozens of lounges around Australia,” a Qantas spokeswoman said.

Her comments were intended to highlight the fact that Virgin Australia is still in the process of reviewing its business-class offering, has reduced its network of lounges to six, and remains undecided about the future of in-flight Wi-Fi.

“We launched our status fast-track offer in response to a large volume of inquiries about switching to Qantas Frequent Flyer,” she said.

“We’ve had a really positive response, receiving thousands of applications since launching it less than a week ago.”

But for Point Hacks editor Daniel Sciberras, the choice is not that clear cut.

While there are many similarities between the gold status perks offered by each airline, there are a couple of key differences, he said.

Access to the Qantas London lounge is among the perks it offers top-tier frequent flyers. Picture: Qantas

For example, Virgin Australia permits gold members to bring a guest plus three children into its lounges, whereas Qantas allows a guest plus two children.

Virgin also provides access to flexible flights for its gold members, allowing them to change services subject to space availability at no extra cost.

“There are a few things that Velocity do better, but it’s not until you step up to platinum that the two programs really start to differ,” Sciberras said.

“Velocity’s platinum members are allowed four free upgrades, which is a great perk, but then Qantas’s platinum members get business lounge access, and internationally it’s a much better proposition.”

He said it remained to be seen what Virgin Australia’s international partners would look like, or if the airline would become part of an alliance, like Qantas’s OneWorld links.

“Everyone’s wondering if it is worth chasing or not, and a lot of people are saying ‘we just need to get a bit more information’,” Sciberras said.

Qantas’s emphasis on certainty was important, judging by a Point Hacks survey, he said.