Are the new Virgin credit cards a good reason to start collecting Flying Club miles?

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Following the launch of the new Virgin Atlantic credit cards this week, I thought I would take a broader look at Virgin Flying Club.  Is there an opportunity, even for someone without a Virgin Flying Club account at the moment, to build up a pile of miles from scratch very quickly?  And should you?

(This is the last article on the new Virgin cards for a while, promise!)

It is not up to me to tell you if this is a good idea FOR YOU or not.  However, this article sets out a few reasons why you might want to consider it.

As a reminder:

You CAN apply for these cards – and get a sign-up bonus – if you already have the MBNA Virgin Atlantic credit cards

The free Reward card has a 5000 miles sign-up bonus, earns 0.75 miles per £1 and comes with a 241 or upgrade voucher for spending £20,000 per year

The £160 Reward+ card has a 15000 miles sign-up bonus, earns 1.5 miles per £1 and comes with a 241 or upgrade voucher for spending £10,000 per year

The cards are issued by Virgin Money so it is very unlikely that you will be conflicted due to having any other cards from the same bank

You can apply for the free Reward card here and the £160 Reward+ card here.   You can compare the cards side-by-side here.

I need to tell you that the free Reward card has a representative APR of 22.9% variable.  The Reward+ card has a representative APR of 63.9% based on a notional £1200 credit limit and the annual fee.  The representative APR on purchases is 22.9%.

Reason 1:  Diversification

British Airways can fly you to pretty much anywhere that Virgin Atlantic can. However, that doesn’t mean they can get you Avios seats when you want them. Having a balance in another programme gives you more chance of getting seats on the dates you want them.

Both BA and Virgin allow one-way redemptions, so with a Virgin balance you could mix and match a trip as availability allows. Virgin also partners with Delta in the US and a number of other airlines.

However, Virgin and BA are both UK-focussed airlines, so you are likely to face an identical squeeze around UK school holidays.  You may want to expand into Star Alliance and redeem on, say, Lufthansa if you want a better chance of seats at – say – UK half-term.  The good news is that Virgin Atlantic will soon be offering redemptions from Air France and KLM after the airlines bought a shareholding.

Reason 2:  Lower taxes in Economy

Virgin Atlantic generally has lower taxes in Economy than British Airways when redeeming.  Whilst most Head for Points readers like to focus on premium redemptions, there are times when Economy may do, or when you are redeeming for teenage kids!  If we’re honest, a day flight to, say, New York is also manageable in Economy if necessary.

The new Virgin Atlantic Mastercard credit cards come with a 2-4-1 voucher for an Economy redemption.   (A Silver member can also redeem in Premium, a Gold member can also redeem in Upper Class.)

Here is a comparison of Economy taxes and charges on a redemption:

New York £264  (British Airways: £371) – you save £107

Barbados £245  (British Airways: £278) – you save £33

Las Vegas £233  (British Airways: £366) – you save £133

Hong Kong £282  (British Airways: £341) – you save £59

Dubai £247  (British Airways: £260) – you save £13

Virgin Atlantic is often noticeably cheaper.  A couple would save £266 if you used a Virgin 2-4-1 voucher to visit Las Vegas compared to using a BA Amex 2-4-1 voucher.  Whilst Economy redemptions are generally poor value with Avios because of the taxes, they are clearly a slightly (just slightly) better deal with Virgin.

Reason 3:  Availability

I rarely redeem on Virgin, so cannot comment on how easy or hard it is to get availability.  In general, though, Upper Class cabins have fewer seats than BA Club World cabins, with subsequent squeezes on availability. Is it easy to get 4 Upper Class seats on Virgin for a family? I don’t know. It isn’t a problem with BA on many routes.

You can check availability on the Virgin website without having enough miles in your account to do the redemption.  You should spend some time researching your favourite routes before deciding whether to commit miles to Flying Club.

Should you collect Virgin Atlantic Flying Club miles?

Reason 4:  The new credit cards also have the option of an upgrade voucher

If you don’t want to take the 2-4-1 voucher, you can get a voucher to upgrade Economy redemptions to Premium for no extra miles.

Extra taxes would be due, unfortunately, as Premium incurs the higher rate of Air Passenger Duty.

The spending criteria for earning the 2-4-1 voucher or the Premium Economy upgrade voucher is:

  • £10,000 in a card year on the £160 Reward+ Mastercard (sign-up bonus 15,000 miles)
  • £20,000 in a card year on the free Reward Mastercard (sign-up bonus 5,000 miles)

Reason 5:  If Virgin doesn’t work out, you can transfer to Hilton Honors or IHG Rewards Club

Rare among airline schemes, Virgin lets you transfer miles out into Hilton Honors (1:1.5) or IHG Rewards Club (the Holiday Inn etc scheme) at 1:1.

If you found yourself struggling to use your Virgin miles, you could also move them across.

As an extra benefit, transfers into IHG Rewards Club count are treated as status points.  I earned Spire Elite this way for 2016 as I wrote here.

Of course, if your main aim is to earn IHG Rewards Club points then you are better off with one of the two IHG Mastercard credit cards.  The Hilton Honors Platinum Visa is no longer available to new applicants so the new Virgin credit cards are an – admittedly poor – way of accumulating Hilton Honors points from a Visa / Mastercard.  For places that take American Express, you would be better off earning Hilton Honors points via the (free in Year 1) Amex Gold which earns 2 Hilton points per £1 spent.

Reason 6:  The Heathrow Clubhouse

The Virgin lounge at Heathrow, for Upper Class passengers, is widely regarded as one of the best airport lounges in the world. Get a haircut, have a massage, eat a proper meal, chill out in the audio or TV rooms or do one of many other (admittedly ‘boys toys’ type) activities.  It is well worth trying once in your life.  Here is a review of my last visit to the Virgin Clubhouse in Heathrow and there will be another review on the site soon.

Note that, whilst full fare cash tickets in Upper Class also get a free chauffeur to and from the airport, reward tickets and cheap revenue tickets do NOT get this.

Reason 7:  It is easy to collect additional miles

It is now almost as as easy to collect Flying Club miles as it is Avios.   The new credit cards offer 5,000 miles for getting the free Reward card and 15,000 miles for getting the £160 Reward+ cardThere is no spending target, you simply need to make one purchase within 90 days.

You can also transfer from:

Tesco Clubcard (with regular 20% transfer bonuses, making it 300 miles per £1 voucher)

Amex Membership Rewards (so the Amex Gold bonus is worth 20,000 miles, the Amex Platinum bonus 30,000 miles and the Starwood Amex bonus 10,000 miles)

Heathrow Rewards (a 3,000 point sign-up bonus is available)

….. as well as all the major hotel schemes.  As I wrote here, some major hotel chains do not give Avios but do offer Flying Club miles.

Other partners include:

Hertz (1,000 miles per rental)

Red Carnation Hotels (2,000 miles per night)

Virgin Money ISA (8,000 miles for opening a stocks and shares ISA)

Virgin Wines (3,000 miles with your first case)

Virgin Trains 

Virgin Money International Money Transfers (3,000 miles with your first transaction)

Texaco Star Rewards 

Conclusion

So, a few things to think about.

One of the emerging features is that Flying Club has a bit more than Avios to offer to the person who redeems in Economy. You pay lower taxes and have the ability to upgrade to Premium Economy for free via the credit card voucher.

You even get the option of selected long haul departures from Manchester and Glasgow, which BA abandoned long ago.

For business class redemptions, it is less clear cut.  Smaller cabins, a smaller route network and fewer daily flights may make it trickier to find seats whilst the taxes and miles required tend to mirror British Airways.

In general, there is never any harm in spreading your bets especially if negative changes are coming to Avios in the next 12 months.

The application pages are here for the free Virgin Atlantic Reward and here for £160 Reward+ credit cards.  My two articles from Wednesday describing the package of benefits are here and here.  The main card website is here.

(Want to earn more miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history.  By recommending credit cards on this site, I am – technically – acting as a credit broker.  Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.

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Comments

  1. Malibu Stacey says:

    But a couple can churn the Gold card between them earning sign up bonuses and never incurring a fee. How much would you need to spend earning an extra 0.25 HH to recover the £160 fee?

    • Malibu Stacey says:

      Sorry this was a reply to Alan.

    • Genghis says:

      I make it £160k at 0.4p/HH valuation

      • Guys I am not suggesting signing up to the reward+ solely for HH points, please reread, so the argument re the fee is irrelevant. Purely saying if you have both in your pocket then this has a higher HH rate, if you were so inclined to use it for that purpose.

        I have the Amex platinum card already, like a lot of people here, but I don’t refrain from spending on that card due to the fee- if you already hold the card, the fee is irrelevant.

        • Malibu Stacey says:

          Fair point but the £160 card is a non starter for anyone not seriously collecting FC miles. You might take the free card for non Amex spend if HH is your thing.

  2. I currently have the Virgin Black cards.

    For someone with no status with virgin and generally after redemptions not in economy this card won’t make sense for me.

    I will see this black card anniversary out then move to HSBC and concentrate on avios only.

    I currently have 60k points with VA. Is there a half decent conversion to Avios?

  3. My wife and I joined the Avios came about 3 years ago and have exclusively been flying BA. During that time we’ve collected over 250,000 points but yet we never manager to ever climb out of Blue tier (we travel on average 3 times a year short and long)
    I can’t even imagine making the jump to Virgin and trying to make it to Gold.

    I fear now that BA will follow and redementions will start to be tied to status which means it will be the end of Avios and credit card churning for me at least.

    Guess I’ll be able to break my loyalty and start trying out Emirates, Etihad and co

  4. re “Tesco Clubcard (with regular 20% transfer bonuses, making it 300 miles per £2.50 voucher)” – typo ?
    it is usually 625 miles per 2.5 + 20 % ?

  5. We are users of VS miles. One thing to point out that I didn’t see in the article is that the deal with Delta adds some interesting quirks when travelling in economy (which we are doing)

    On the LHR-JFK route (where I have found good availability in Economy), it costs an extra 10,000 miles return to use Delta metal over the VS metal, however, the fees and charges are £100 lower (£161 return).

    We ended up booking VS outbound and Delta back for an extra 5,000 miles each but saving £50 per person (there are 3 of us). I will make these points back when I upgrade my gold card to platinum

    • Forgot to say, whilst availability in economy on this route was good, in other cabins it was a bit more sketchy. There was still availability but not for every flight.

  6. simon says:

    When will we know what changes are afoot with the BA cards?

    I’m about to get a new credit card to collect avios or FC miles, and a loss of the BA 2-4-1 voucher or restrictions would steer me towards contuing with the Virgin miles collection.

    I’m like many readers – don’t fly enough for status, collect a fair number of miles through other means, but not rapidly enough for a yearly full miles redemption in UC or CW for myself and my wife.

    Much as I would love to do a 2-4-1 return in UC or CW as I do like a flat bed on a 6+ hours flight, I think i could do a premium economy day flight and return overnight with a bed which would make the Virgin offer work for me, but would prefer a full BA 2-4-1 for obvious reasons!

    • simon says:

      Although having just checked the ‘will you be accepted’ process looks like Virgin won’t accept me anyway!!

  7. What would be handy is some examples a comparion of how many Avios vs FC miles would cost for some routes.

    Any chance?

    • Chris A says:

      I was in JNB last week, and a one way flight redemption back to London in premium economy was 32.5k miles with Virgin, and 50k with the (inferior) BA. Taxes roughly the same. You can guess which one was booked!

      • The fact that both airlines now have peak and off-peak calendars, which don’t match up, makes that a bit messy. I would have done it otherwise.

  8. I think the one article a lot of people would probably appreciate is How fast and what quick routes one can take to make it to Silver / Gold Tier for Virgin

    • no real option as you will need to get the 200 TP tickets. So mostly all fare class I and up. one return fling in UC at that fare class will give you silver. you will need 2 UC returns at fare class I or above + one one way to get gold. I think their partner earnings (even if code share) are dramatically lower but I have nt looked at the details there. Plus gold in FC is useless from partner benefits etc. its great if your routes are covered by VS, but otherwise its rubbish. Cause they premium eco is very good . so US outbound in PE and return on night flight in flat bed with clubhouse access both ways is a good overall proposition.

  9. Steve R says:

    We’ve flown a few times from Man to Orlando, PE during the summer holidays

  10. Lumma says:

    For people who are happy with flying economy occasionally I find Virgin is good value flying upper one way and economy the other. For example, off-peak LHR-DEL costs 37500 miles one way plus around £350 in taxes, but if you add an extra 10000 miles and £50 in taxes you can add a return in economy.

    It’s similar for flying to the USA east coast, albeit 10000 miles more than Delhi. Taxes are slightly lower if you book the upper class leg from America which people might prefer as it’s overnight, although you’d be missing out on the clubhouse at Heathrow

    As the taxes in these examples are similar to what you’d pay for a cash economy ticket, I look at it like using 47500/57500 miles to upgrade from economy to upper class in one direction

  11. I have my credit cards registered with Virgin rewards, don’t really think about it or shop anywhere on purpose but I have earned a few thousand miles just because.

    never know when you might need them

    • paulm says:

      Can I ask who you directed your complaint to? Was it just the general contact or someone specific ? Getting near to the stage myself where I can’t be bothered with them!

    • Barnaby100 says:

      They took almost 200,000 off my husband. They were points earned on Hilton stays. They also took all of his points and purchased miles booster for a NYC flight which I assume was as he had previously used some of the points earned on Hilton. There is no way of appealing this and we got nowhere. It seemed to be linked to using a corporate rate at a specific London hotel although never chose the rate that specifically stated that referral sites were not eligible. Hi

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