V-Flyer

So I just tried to do an LAX > LHR upgrade from Premium (underlying fare of Economy Delight) to Upper.

Quoted circa $550 in tax difference from V or $400 if it was done from P (the incorrect way).

Apparently, phone agent told me (confirmed in a second call), that the taxes were re-adjusted on 10th Jan and the YQ has gone up significantly as a result, making these previously cheap ex-USA upgrades extremely expensive. Previously I paid $52 to upgrade from Premium to Upper or about $150 ish to do Economy Delight to Upper with miles.

Anyone else experienced this? Quite displeased to say the least.

They've also sneaked up the taxes on Upper rewards again to £658 on "some" - they did that a few months ago and then reduced it (maybe after all the mumps) but its up again.

Problem is, it doesn't appear to be on all flights ??

LHR - JFK

5th -16th March 95,000 miles and £ 658.77 VS137 on an Airbus A350

5th - 17th March 95,000 miles and £ 558.77 VS137 on an Airbus A350

BUT same route on Delta (3rd - 17th March) 95,000 miles and £ 458.77



David

I had a cursory look at the fare for a reward ticket from LAX to LHR in Upper on VS metal. The total payable (beyond miles) was $450 (confirmed), and the breakdown appeared to show that nearly all the $450 payable was for YQ, not taxes. If I understand correctly, YQ is set entirely at the airline's discretion.

If that's accurate, then this would appear to be a swingeing devaluation in FC benefits that hasn't been caused by tax changes (in theory beyond VS's control), but rather by VS policy.

While I've given VS my business for over a decade, and have finally reached FC Lifetime Gold, if ex-US upgrades to Upper become this expensive, I'll seriously have to look at taking my custom elsewhere. Simply put, non-extortionate upgrades to Upper from Economy ex-US are (were? ) one of the best values in VS's product.

Is there some way we V-Flyers can express our disapproval to VS's management en masse, so that they understand the business they stand to lose with this sort of policy decision?

-Brad

david wrote:
Problem is, it doesn't appear to be on all flights ??

Correct. Not even all regions either probably. YQ was implemented in the current way specifically to allow airlines to bump up prices for certain routes or regions separately to the main fare's. That means that they can just plug in a new YQ number for cabins on a particular route, without needing to re-calculate potentially hundreds of fares and it also means their corporate contracts that offer discounts on fares are un-affected and therefore do not require renegotiation. It's sneaky, but effective.

bnkarp wrote:I had a cursory look at the fare for a reward ticket from LAX to LHR in Upper on VS metal. The total payable (beyond miles) was $450 (confirmed), and the breakdown appeared to show that nearly all the $450 payable was for YQ, not taxes. If I understand correctly, YQ is set entirely at the airline's discretion.

Absolutely correct, yes. The difference from Premium to Upper was about $400, whereas if they undid the Premium upgrade (which they should) the difference would increase to about $550 from Economy Delight. That's a jump of around 10x vs prior to the Jan changes.

bnkarp wrote:If that's accurate, then this would appear to be a swingeing devaluation in FC benefits that hasn't been caused by tax changes (in theory beyond VS's control), but rather by VS policy.

While I've given VS my business for over a decade, and have finally reached FC Lifetime Gold, if ex-US upgrades to Upper become this expensive, I'll seriously have to look at taking my custom elsewhere. Simply put, non-extortionate upgrades to Upper from Economy ex-US are (were? ) one of the best values in VS's product.

Is there some way we V-Flyers can express our disapproval to VS's management en masse, so that they understand the business they stand to lose with this sort of policy decision?

I emailed customer relations. I simply laid out the facts, and made the exact same point that you have. I continued to say that if it becomes this uneconomical to use miles on upgrades and redemptions, I may as well just fly the cheapest carrier (which almost certainly won't be VS), and not bother with loyalty at all. The raise in YQ is essentially just penalising loyal customers by outright stopping them upgrading. It's less of a problem with a revenue fare because the price is all inclusive, and it's either within your budget or it isnt. Very black & white. But upgrades are a different kettle of fish.

The email reply I got was very sympathetic, and certainly not a boilerplate reply. From the tone, I suspect others have emailed in with the same complaints. I was assured the feedback will be passed on to the loyalty team (maybe, who knows), and that feedback from Gold's was a pretty important source for them. The reply even went as far to say that they "do believe the comments you've made regarding YQ taxes are more than valid."

I'd encourage as many people to complain as possible. These things can be undone. VS have done it before, as have BA. Enough people shout and there may be a change.

I've now complained to Customer Relations.

For Virgin's most loyal customers, one of the most significant benefits of FC has been upgrading using miles on ex-US flights without huge cash charges.

If you agree that changing YQ (not taxes--this goes straight into Virgin's pocket) to be 3X what it was previously on ex-US upgrades (to $450 and more from what was previously around $150) is no way to treat Virgin's most loyal customers, please write to Customer Relations so that our voices will be heard, and management gets a sense of how many loyal customers will consider taking their business elsewhere without the incentive of miles upgrades without further piles of cash.

Thanks,
-Brad

An active thread over on Flyertalk suggests BA has just imposed a similar sharp increase in YQ for ex-US Avios upgrades.

Coincidence? I think not.

Juat done same-- have over 200K VS miles and might as well book cash. Really disappointed VS FC after 20 plus years. Incredibly saddened. Have always been a true VS fan, can't believe miles and tier limits have been so devalued. Have same @ miles other airlines with reasonable surcharge. What's the point of awards? Going to use them all on a farewell NZ trip.

The spreadsheet hamsters at Puzzle Palace are on the move again. United just changed its frequent flyer qualification program for 1K and for many international flyers that don't fly business it is unattainable. The educated wisdom is "United has all the data and knows what it is doing". However, and although any frequent flyer forum is not necessarily representative of the general flying population, the mood seems to be "I will now look elsewhere". Certainly that was my approach with United and for the first time in many years (apart from my annual VS pilgrimage to worship at the altar of Las Vegas) I flew another TATL carrier rather than go out of my way to fly United (which meant making a connection). Granted, I may be just the person that they do not want or care about ('cos they have the data) but I do wonder about this approach. What is it they say that it is cheaper to keep a customer and costs you 10x as much to get them back? Anyway, the incentive for me now will be to look at other carriers and not think "Virgin, Virgin, Virgin".