Velocity Frequent Flyer

Velocity Frequent Flyer is the name of the frequent-flyer program operated by Virgin Australia.

When introduced in 2005, Velocity differed from most other frequent flyer programs with points earned being based on the cost of a flight, rather than distance. On domestic VA flights, Red Velocity members earn 5 points per dollar spent, Silver members earn a bonus of 50%, Gold members earn a bonus of 75% and Platinum members earn a bonus of 100%. On international flights (previously V Australia), as well as the majority of Velocity's airline partners, including 'VA' codeshare flights, points are based on fare class and distance, with the same bonus points applying.

Velocity was the first frequent flyer program in Australia to offer "any seat, any time" reward flight availability. The number of points required to redeem an award seat directly corresponds to the current fare of that seat, allowing any seat currently available to be redeemed. Qantas introduced a similar feature to their frequent flyer program in May 2008.

Velocity Rewards was launched by Virgin Blue (later renamed Virgin Australia) in 2005, with partner National Australia Bank offering a companion credit card. Initially, Velocity differed from most other frequent flyer programs with points earned being based on the cost of a flight, rather than distance. Velocity members originally earned 6 points per dollar spent on Virgin Australia flights.

By 2007, points earned in loyalty programs operated by Westpac, American Express and Diners Club could be transferred to Velocity Rewards, as well as from the ANZ loyalty program from September 2008.

As part of Virgin's effort to attract business travelers, status levels were introduced to the program in late 2007. Alongside the entry-level "Red" status, members could attain "Silver" and "Gold" status, each with its own set of benefits. With the introduction of status levels, the earning rate was changed: Red members earned 5 points per dollar, Silver members remained at 6 points, and Gold members earned 7.

By February 2008, Velocity Rewards had 1.3 million members and Virgin Blue stated it was considering selling it or entering into a joint venture once its operation was profitable, and considered a membership of 1.6 to 1.7 million members would put the operation in a break-even position. The program reached 4 million members by the end of 2014.

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