Virgin Atlantic’s Shift to Dynamic Pricing is … Good News?! Biz Class from 29K!

In the world of points and miles, dynamic award pricing almost always leads to sky-high rates and “enhancements” are a code word for devaluations. So when Virgin Atlantic proudly announced last month that it would make “enhancements” to “revolutionize” its valuable Flying Club mileage program, we (and many others) feared the worst. 

Today's the day: As of Wednesday, Oct. 30, Virgin is rolling out its new, dynamic award pricing system … and it's mostly good news! 

For starters, these changes haven't affected award pricing on Virgin's slew of partners like Delta, Air France, KLM, or ANA – at least not yet. But more importantly, this change has resulted in some outstanding deals for flying Virgin Atlantic itself … for a fraction of the miles and fees Virgin charged just a day ago, like: 

• Economy flights to London-Heathrow (LHR) as low as 6,000 points and $73 each way
• Premium economy from 10,500 points plus $105 in taxes and fees each way
• Or business class from East Coast cities like Boston (BOS), New York City (JFK), Washington, D.C.-Dulles (IAD), Orlando (MCO), or Atlanta (ATL) for as low as 29,000 points and $255 in taxes – half the mileage and a quarter of the fees Virgin previously charged!

Whether this is a mistake or an intentional effort to build a buzz around its recent revamp is anyone's guess. Regardless, it's unlikely these dirt-cheap redemptions will last long. If England's on your list, book ASAP!

While we're thrilled to see these lower award prices, it's worth noting that today's changes aren't all positive: The cost to change or cancel an award ticket doubled to $100 for flights departing the U.S. and 70 GBP for flights leaving the U.K. With dynamic pricing now in place, these higher fees are no doubt intended to cut down on travelers looking to rebook when a price drops. 

Virgin Atlantic Flying Club has longe been a great option for travelers looking to redeem points – you can transfer them from all the major banks. But for years, we've cautioned against booking flights on Virgin itself: While the rates to book Virgin Atlantic Upper Class were reasonable at under 50,000 points each way, the airline was notorious for charging north of $1,000 in fees on premium cabin awards.

For example, Virgin previously charged 47,500 and a whopping $1,032 for a one-way in business class from Boston (BOS) to London. Here's what you can book it for today: 

Since you can transfer points to Virgin from all the major credit card programs like American Express, Bilt, Chase, Capital One, Citi, and even Wells Fargo, you may have the points to book whether you know it or not. And if you've got Chase Ultimate Rewards, you're in luck: With a massive 40% transfer bonus to Virgin Atlantic, you could book one-way business class awards for as few as 21,000 Chase points – or economy awards for just over 4,000 points! 

These deeply discounted rates aren't just available for a trip to London in the dead of winter, either. When we first spotted this deal (and sent it to Thrifty Traveler Premium members), take a look at how easy it was to book a business class seat to London in the peak summer for just 35,000 points!

Of course, dynamic award pricing is a double-edged sword. You can get dirt-cheap deals like these … but with award rates that vary based upon the cash price and time of year, you may also see much higher prices, too: Double the lowest economy rate and business class redemptions that cost you hundreds of thousands of points.

In an oddity, Virgin seems to be using dynamic pricing for its fees, too. Exactly what you'll pay in fees hinges on how many points you need: The higher the award rate, the more money you may have to pay in taxes and fees as well. So while the cheapest business class redemptions will cost you a flat $255, pricier awards may incur fees closer to $500. 

Virgin tacks on higher taxes and fees for pricier economy and premium economy redemptions, too: They start at $73 or $105 each way, respectively, but can climb from there as award rates increase. 

But time it right, and the savings under Virgin's new pricing system can be substantial no matter what seat you book. Booking economy to London for 6,000 points and under $75 in fees is a steal compared to what Virgin previously charged. Or you could save some points (and cash) and fly in Virgin's Premium Economy cabin for just 10,500 points and $105 in taxes and fees. You won't find that kind of pricing anywhere else. 

You'll find the cheapest award rates flying from major East Coast hubs like New York City (JFK), Boston (BOS), Washington, D.C.-Dulles (IAD), and Atlanta (ATL). Even Virgin's goofy flights between Orlando (MCO) and Manchester (MAN) price out as low as 29,000 miles in business class.

Don't live on the East Coast? No problem! Even on longer flights, like this nearly 11-hour trek from Los Angeles (LAX) to London, Virgin has cut rates and fees – though you're more likely to see award rates north of 100,000 points each way for business class. 

Meanwhile, one-way economy awards from Los Angeles can be had for as few as 9,000 points and $79 in taxes and fees. 

To be perfectly clear, you won't see this rock-bottom pricing across the board. Virgin might increase these rates over time: Since these awards are now dynamically priced – meaning they no longer follow an ironclad award chart to determine the points price – there's no telling how long these bargains will stick around.

But if your travel plans are flexible, it sure looks like you can score some seriously great deals under the new system. For now, Virgin's “enhancements” are just that – and that's a big win for travelers. 

Bottom Line

Virgin's new dynamic pricing has officially rolled out for flights operated by Virgin itself … and it's shockingly good news for travelers.

While we were expecting the worst, we're seeing plenty of business class award tickets over to London or back for just 29,000 points each way – with a fraction of the taxes and fees Virgin previously charged, too. While award rates are all over the map, there are massive savings no matter what seat you book.

There's no telling if these ultra-low prices are just part of the initial rollout or if it will be a fixture of the program going forward. But for now, things are looking up for Virgin Atlantic Flying Club.