Virgin Atlantic shifts to dynamic pricing this week: Why you might want to redeem your points now
Last month, Virgin Atlantic announced it would soon make some huge changes to its Flying Club loyalty program, including (among other things) a shift to a new dynamic pricing model. If you've been sitting on a stash of Virgin points, now might be the time to redeem them.
The changes are set to roll out on Wednesday, Oct. 30, and while the airline is promising a slew of new opportunities for Flying Club members to earn and redeem their points — including making every seat on Virgin-operated flights bookable with points — it's hard to ignore the fact that they'll also be introducing dynamic pricing for award redemptions.
While it's difficult to say just how much of a devaluation Flying Club awards will see before Wednesday, it's likely that there'll be a lot more variation in the redemption opportunities that are currently on offer — particularly on Upper Class seat redemptions.
We'll carry out a more detailed analysis on Wednesday once the changes roll out, but in the meantime, here’s a breakdown of what we already know about the changes that will soon be in play.
A move to dynamic pricing
While Virgin’s communications surrounding the changes were unsurprisingly focused on the benefits (more on this below), it’s also impossible not to notice the subtle reference to a new dynamic pricing structure.
"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,” said Virgin in a press release. “The price of seats will vary in line with demand, in a similar way to standard tickets.”
Related: Dynamic airline award pricing is out of control — here are some ways to beat it
It’s a short and succinct line, but it’s nonetheless clear that the airline will adopt dynamic pricing to set award fares based on demand. Invariably, this doesn't often end well for award travelers.
Virgin has done its best to reassure its customer base that more than half of its flights with economy reward seat availability will see prices that are the same or lower than they are right now. The airline also says that a “large” number of reward seats available in the Upper Class cabin will be bookable at the same price or lower than they are currently.
It remains to be seen how this could affect Flying Club loyalists, for better or worse. However, it's worth noting that Virgin has not revealed whether it will cap the maximum or minimum award fares.
More award availability
OK, now that we’ve mentioned the dynamic-shaped elephant in the room, let’s look at the good stuff.
From Oct. 30, Virgin’s Guaranteed Availability system for award bookings will, depending on how you look at it, undergo something of an enhancement.
From Wednesday onward, every seat on a Virgin Atlantic-operated flight will be bookable using Virgin points — including upgrades. This is a significant shift from the current Guaranteed Availability system, which, since 2022, has made 12 award seats available on every Virgin-operated flight.
Looking at this positively, it means that you’ll have much more opportunities to redeem your points, with more seats being available. On the downside, given the new dynamic pricing structure, it’s likely that there could be a pretty wild disparity between the award prices of these seats. And once the cheap spots are gone, you can expect to splurge more points for the exact same seats.
New chances to save on award seats
In an effort to combat this, Virgin will lock prices on a select number of seats per flight in a new "Saver reward seat" product. This will lock a number of award fares at the same prices available today or even lower.
It’s currently unclear as to whether these Saver reward seats will be available across every cabin, or whether Virgin will designate a set number of seats per flight. TPG has reached out to Virgin Atlantic for clarification.
The company says that Flying Club members should see some of their lowest-ever points prices — including reward flights from the U.K. to New York City for as little as 6,000 points. Those prices are nothing to sniff at if you can take advantage of these offers before they’re snapped up.
Changes to award vouchers
We’re also going to see some changes to the way the Flying Club members can use Companion and Upgrade vouchers.
Currently, the cabins for which you’re able to redeem these vouchers are determined by your Flying Club status. Going forward, from Oct. 30, you’ll be able to use your vouchers to book in any cabin.
However, there is a catch: Your Flying Club status will determine the maximum value of your voucher.
From Oct. 30, the voucher will be valid for up to a maximum of 75,000 points for Flying Club Red tier members or 150,000 points for Flying Club Silver or Gold tier members based on your status at the time of voucher redemption. While you’ll be able to book seats that cost more points than this, you’ll be required to top up the difference.
If you were planning on using a voucher for a big return trip for two, this might be a real loss in value for some Flying Club Red members.
Increased earning opportunities on flights
The final change announced is the difference in the amounts of points travelers will earn on cash fares. Once the changes roll out, Flying Club members will earn up to 50% more on Upper Class fares and up to 75% more on Premium tickets. A new earnings chart that fully explains the amount will be available from Oct. 30.
Bottom line
Virgin Atlantic Flying Club will move to a dynamic pricing model beginning on Oct. 30. They'll also introduce new saver award redemptions and modify how award vouchers can be redeemed as well as how much overall award availability will be open on each flight.
Stay tuned for our full analysis once the changes are fully rolled out.
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- 6 real-life strategies you can use when your flight is canceled or delayed
- 8 of the best credit cards for general travel purchases
- 13 must-have items the TPG team can't travel without
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.