Late last week, Thrifty Traveler reported that Virgin Atlantic substantially increased surcharges on their own flights, hiking the charge displayed as “taxes & fees” by 50% or more. There are still opportunities to get a good deal when mileage prices are at their least expensive, but there is no doubt that the increase in fees stings quite a bit here.
When Virgin Atlantic went to variable award pricing last October, the unexpected plus side was that we saw a drastic decrease in taxes and fees and, in some cases, mileage prices at certain times of year. To some extent, both the points cost and the fees were variable, but we were seeing awards from just 29,000 points and about $250 in taxes & fees.
However, as they have made a habit of doing in recent years, Virgin Atlantic has raised the taxes and fees without notice or notification. While we are still seeing some business class redemptions from 29,000 miles one way, the taxes and fees have now increased to $592 one-way departing the United States. That’s an increase of more than 100%. Premium economy redemptions have seen a similar increase of more than 100% in taxes and fees, jumping from around $100 one-way to around $250 one-way.
Even the taxes and fees on economy class awards have increased by about 50%, with awards from New York to London now starting at 6,000 miles plus $111 in taxes & fees. Previously, these routes carried $75 in taxes & fees.
Even with these increased taxes & fees, awards remain a good value compared to cash prices in many instances, but there is no doubt that the scale of the increase hurts. As someone who typically travels as a family of four, my cash outlay on business class awards to London would increase by $1,000 in total.
These new surcharges are still significantly lower than what Virgin Atlantic used to charge on award tickets before the move to dynamic award pricing last year. However, there is no doubt that this is a negative change for anyone who has been stockpiling Virgin points with an aim for a big redemption, particularly if that redemption were in premium economy or business class.
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It’s The Delta Effect: If people are getting value from you then you fix that problem.
Does the fee increase only apply to routes departing the US? Or does it also apply in reverse (e.g. UK to US)? Also, are increased fees being observed for non-US routes? I realize most readers of this blog work and reside in the US, but it would also be great to always consider the “global” perspective as well.
This latest increase is a shame but if you live in Boston or New York they still represent good value,especially in Y, I was going to do a speculative transfer when the next transfer bonuis opportunity came around but those plans are canceled now.
Wow, so it wasn’t my imagination. I am getting ready for my reservation window to open for a trip to the UK next year and I thought the fees jumped over the past couple of days. Combined with no current transfer bonus and I think I need to keep looking elsewhere.
Virgin seems continues to “tweak” its program to the horror of its customers