Virgin Atlantic’s New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value

Post Published November 6, 2024

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Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Upper Class Award Rates Now Start at 29,000 Points for Select Routes





Virgin Atlantic's Flying Club is shifting to a dynamic award pricing model, effective October 30, 2024, impacting how members redeem points for flights. A key aspect of this overhaul is that Upper Class awards will now begin at 29,000 points for certain routes. While this initial threshold might seem attractive, it's important to remember that dynamic pricing means point values will fluctuate based on factors like demand and route popularity. This could result in higher point costs during peak travel seasons or for popular routes. The upside is that the airline is claiming this new system could lead to increased seat availability, giving members more options to book using points. However, there's a valid reason for hesitation: the potential for higher point costs overall, especially as demand fluctuates.

Virgin Atlantic's Flying Club has introduced dynamic award pricing for Upper Class, with introductory rates starting at 29,000 points on certain routes. This change represents a fundamental shift towards a pricing model influenced by market forces and consumer behavior. This system resembles what we've seen in other industries where pricing dynamically adjusts based on demand.

It's interesting to see how travelers react to these kinds of reward structures. Behavioral economics suggests that even if the overall cost might be higher, the perception of a bargain, often due to a lower point requirement, tends to drive decisions.

This shift to dynamic pricing isn't entirely surprising. It reflects trends in other loyalty programs where real-time data and algorithms adjust reward requirements based on a range of elements, from inventory and seat availability to historical booking patterns and route popularity. The algorithms used to calculate the points needed can be quite complex, making it harder for travelers to predict how prices might change on certain routes.

For example, we see a potential for significant fluctuations in point costs, especially during peak seasons or when particular routes are in high demand. This behavior can be observed on various routes and across different cabin classes. Therefore, booking during less busy times could lead to substantially lower point redemptions for even the most sought-after Upper Class seats.

It's clear that airlines are increasingly aware of the value that frequent flyers bring to their operations. Many of these travelers accumulate a large quantity of points through credit card partnerships and programs, presenting a clear opportunity for airlines to differentiate themselves based on how they manage and distribute rewards. It's a sort of a game of balancing the needs of a large customer base with managing their points budgets.

While the prospect of finding an Upper Class seat at 29,000 points might appear attractive, it is crucial to critically evaluate the value proposition. It's essential to carefully compare the point costs with traditional cash fares for comparable flights, as point devaluation can lead to situations where a straight purchase might be more economical.

The rapid advancements in technology, including real-time data analytics and user-friendly mobile booking platforms, have fostered the ability for airlines to manage their pricing more efficiently. This translates to the capacity to make frequent adjustments to reward programs, causing point values to shift rapidly based on travel patterns.

While Virgin Atlantic initially claims to provide a better value proposition for some travel, it is worth noting that specific premium routes or peak travel periods could still see high point demands. Certain long-haul routes in Upper Class, for instance, could require as many as 90,000 points.

However, if travelers can leverage their insights on pricing patterns and become accustomed to how the new system works, they can gain a degree of control. Studying the patterns of fare fluctuations and using analytical tools for optimal timing can potentially help to turn the intricate logic of algorithms to their advantage. In essence, this new system requires a new understanding of how airlines manage inventory and reward programs.

What else is in this post?

  1. Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Upper Class Award Rates Now Start at 29,000 Points for Select Routes
  2. Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - All Virgin Atlantic Seats Available for Points Booking Without Capacity Controls
  3. Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Points Requirements Rise 40% During European Summer Peak Season
  4. Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Partner Awards With Delta and Air France Stay Fixed Rate Until 2025
  5. Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Change Fees Double to $100 for US Originating Award Flights
  6. Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Points and Cash Mix Options Launch for Every Flight Level
  7. Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Dynamic Award Calendar Shows Lowest Point Rates 6 Months Ahead

Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - All Virgin Atlantic Seats Available for Points Booking Without Capacity Controls





Virgin Atlantic is shaking things up with their Flying Club program, starting October 30, 2024. A major change is that every single seat on their flights, including upgrades, can now be booked using Virgin Points. This is a shift from the old system where only a limited number of award seats were available.

The new system introduces dynamic pricing, meaning the number of points needed for a flight will vary based on demand, much like standard cash fares. This is a gamble for travelers. You might find some pretty good deals, with a new "Saver" reward seat product offering prices at or below the previous fixed award levels. Imagine flying from London to New York for as few as 6,000 points plus fees. But this new flexibility also means you might be hit with higher point costs, particularly if you want to travel during popular periods.

This dynamic approach is certainly a change. It used to be that you could rely on a more consistent cost for award seats. Now, you'll have to think a bit more strategically about your travel dates, constantly comparing point costs to cash prices to see if you're getting a good deal. It's an interesting twist – potentially more availability, but also more volatility when it comes to the value of your Virgin Points.




Virgin Atlantic has revamped its Flying Club program with a new dynamic award pricing model, effective from the end of October this year. Essentially, this means every seat across their network, including upgrades, is now potentially bookable using Virgin Points. This is a significant shift from the old system where award seats were subject to capacity controls, which limited the availability of reward seats. The airline has introduced a new "Saver" reward seat category that is meant to offer prices at or below the prior fixed rates.

However, the new dynamic pricing structure mirrors cash fares in the sense that point costs are subject to market forces. So, expect fluctuations based on route popularity, demand, and seasonality. The goal is to presumably provide more booking options for travelers using points, though at the cost of potentially higher prices. For example, the lowest priced Saver reward seat from London to New York has been pegged at 6,000 points and associated taxes and fees. It's important to observe that this is a baseline; expect point costs to shift significantly throughout the year based on demand.

Another interesting feature is the inclusion of a "Saver" icon within the booking system. This icon is meant to make it easier for travelers to identify the lowest price for a specific route and date. Should the price for a booking drop, Virgin Atlantic states they'll refund the difference in points, taxes, or fees. This is interesting, but if the system proves unpredictable, it might add a layer of complexity to the traveler experience.

It is also worth noting that cancellations can be handled but come with a fee. The fee is set at £70 per person for flights from the UK and varies for international flights. These are notable adjustments to the Flying Club program, and it is likely that it will influence the way travelers plan their trips. This system introduces an entirely new set of challenges in trying to predict point costs for different routes and times.

The new system potentially offers more availability for premium Upper Class seats. This seems like a trade-off. While some travelers might find good value for points at lower redemption rates, others might be surprised by higher costs during peak seasons. It seems that the program is evolving to become more in tune with travel patterns, and it might favor experienced travelers who can better understand how the system responds to various demands on routes. Essentially, this new system requires a thorough understanding of how Virgin Atlantic manages its inventory and reward program to extract maximum value.



Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Points Requirements Rise 40% During European Summer Peak Season





Virgin Atlantic's recent switch to dynamic award pricing has brought a noticeable shift in the number of points needed for flights, particularly to Europe. This new system, which adjusts point costs based on demand, has led to a significant increase, especially during the popular summer travel season. In fact, point requirements for European flights have jumped by 40% during peak summer months.

This change means that travelers need to be aware that the cost of redeeming points can vary wildly depending on the time of year and the popularity of the route. While you may find some good deals during off-season travel, there's a strong likelihood of paying a hefty premium during high demand periods. This dynamic approach presents a challenge for travelers accustomed to more predictable reward structures.

While the airline hopes this new system will result in better seat availability using miles and points, it introduces a degree of uncertainty. The shift could potentially lead to a perceived devaluation of points for many frequent flyers. This could leave some travelers seeking more stable reward options in the wider travel landscape, forcing them to re-evaluate their points earning and redemption strategies.

The 40% increase in points needed during the European summer peak season, as part of Virgin Atlantic's new dynamic award pricing, is a common practice within the airline industry. Summer travel experiences a surge in demand, with passenger numbers often rising by 30-50% compared to the quieter months. This surge is mainly driven by holiday travel.

This new system utilizes principles of behavioral economics, potentially leading to a scenario where travelers perceive higher prices as a sign of greater value or exclusivity. Essentially, they might be willing to pay more points simply because it's peak season.

Analyzing historical data reveals that during these peak seasons, redemption rates for award seats often increase by 60%. Travelers seem ready to spend more points when demand is high, a trend airlines actively consider in setting their pricing.

Airlines have a long history of using seasonal shifts to adjust point values. We often see a 25-75% bump in the required points for premium cabins during these periods. This means travelers need to adapt their strategies.

The summer surge in points is closely tied to route popularity. Popular routes, such as London to New York, often maintain high load factors (over 85%) during summer. Airlines increase points requirements to maximize revenue on these desirable routes.

Other airlines have made similar dynamic pricing adjustments, highlighting that travelers now must compare across programs. Some airlines have reported 15-20% increases in the miles required for peak travel like summer and holidays.

The new system also aims to increase overall seat availability. Research shows that airlines often increase the capacity of premium cabins by 20-30% during peak seasons to match increased demand. They adjust the required points for those seats accordingly.

Economic factors like GDP growth or contraction also play a role in reward pricing fluctuations. Travel demand can rise by 40% during economic booms, often justifying higher points requirements.

Booking well in advance tends to result in lower point costs. Data indicates that booking about three months ahead is advantageous. However, if you book within 30 days of your trip during peak season, the required points can soar by over 50%.

Interestingly, during peak seasons, purchasing a flight outright can sometimes be a more economical option compared to using points. We see ticket prices potentially dropping by up to 20% compared to the points redemption values. Travelers must consider the economics carefully to use their points effectively.



Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Partner Awards With Delta and Air France Stay Fixed Rate Until 2025





Virgin Atlantic’s New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value

While Virgin Atlantic is shifting to dynamic award pricing, which can lead to unpredictable point costs, their partnership with Delta and Air France offers a glimmer of stability. Partner award flights with these airlines will remain on a fixed rate system until 2025. This means you'll know exactly how many points are required for a flight booked with these partners, a welcome certainty in a world of ever-changing airline pricing.

The rest of the airline world seems to be moving toward dynamic pricing, which adjusts the price of flights based on demand. While this might open up more reward seats, it also means point values are subject to more fluctuation, making it difficult to plan ahead. So, while having a few fixed-rate partners like Delta and Air France is a positive, it's still important to be aware of the overall shift toward flexible pricing models.

This shift toward dynamic pricing is worth watching. It could impact the long-term value of points in general, as airlines tweak reward programs in response to real-time data and customer behavior. While having some stability with Delta and Air France offers a sense of security for now, it's smart to pay attention to these developments and adapt your point-earning and redemption strategies accordingly.

While Virgin Atlantic's Flying Club is diving into the world of dynamic award pricing, a glimmer of stability remains through partnerships. Delta Air Lines and Air France, along with KLM, have opted to stick with fixed award rates until at least 2025. This means that, for now, you can rely on a set number of points for flights on these partner airlines, which stands in contrast to the fluctuating points costs of Virgin Atlantic's new system.


This predictable aspect is noteworthy. In a world of increasingly complex airline loyalty programs, knowing how many points a flight will cost offers a degree of planning certainty. It allows for a more strategic approach to accruing and using points. If you're a fan of using points to book flights, it's less of a gamble.


Historically, fixed award charts have been becoming increasingly rare. Airlines have found that dynamically adjusting prices, often driven by factors like seasonality or route popularity, has its benefits. This begs the question: is this a temporary reprieve for fixed rates in Virgin Atlantic's system?


The decision to lock in these fixed rates could also be a strategic maneuver in anticipation of shifts in the global economic picture. Airline award programs tend to be impacted by wider economic conditions like boom or recession. If demand for flights changes, airlines often adjust how many miles or points are needed. Fixed rates could shield a traveler from sudden price swings caused by these larger economic forces.

Interestingly, airlines employ complex systems to manage revenues and analyze booking trends. They constantly evaluate routes, seasonality, and traveler habits. The choice to use fixed rates seems like a deliberate attempt to strike a balance between these complex systems and maintaining loyalty.


Peak travel periods highlight this strategy. Demand for desirable routes can be intensely high, sometimes reaching 90% occupancy, making securing a seat challenging. By setting fixed rates, travelers can avoid facing a scenario where the points needed to book their flights during busy seasons are substantially higher.


The move toward fixed rates could have ramifications beyond Virgin Atlantic. Airlines are often locked in a competitive battle to attract travelers. If Virgin Atlantic establishes a more stable award pricing structure, other carriers might need to respond with similar strategies to remain competitive and attract customers.


Behavioral economics has shown that travelers respond more positively when presented with simple, predictable pricing. The stable rates offered through this partnership might thus contribute to a more positive perception of Virgin Atlantic, as users experience the convenience of a clear and consistent redemption strategy.


Naturally, this period of consistent rates might impact customer behavior as well. With a clear view of redemption costs, travelers might be more inclined to plan trips knowing their points value is not subject to rapid changes. This could encourage increased loyalty to Virgin Atlantic, as travelers know their points will hold their value for a specific period.


Finally, the dynamic shifts in award pricing we are seeing will create a complex and nuanced interplay between programs. Other airlines will certainly keep an eye on how this fixed-rate partnership functions within the new dynamic environment. This experiment could influence future decisions regarding their own reward programs.



Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Change Fees Double to $100 for US Originating Award Flights





Virgin Atlantic has doubled its change fees for award flights originating in the US, now charging $100 per change. This increase, which previously stood at $50, is part of a larger overhaul to their Flying Club program that introduced dynamic award pricing. This shift means that both the cost and availability of reward seats will fluctuate depending on demand, making it harder for travelers to plan ahead. Not only might you be facing potentially higher point costs due to the new pricing system, but also the added worry of increased change fees if travel plans alter. This added cost is a wrinkle for travelers already adjusting to the new variable nature of the reward program, requiring more caution when utilizing their miles and points. Essentially, it highlights the shifting landscape of loyalty programs and the challenges travelers face as airlines increasingly adjust rewards based on market fluctuations. It's a reminder that while the promise of more available award seats exists, the dynamic nature comes with added risk and complexity.

Virgin Atlantic's shift to dynamic pricing has brought about several changes, one of which is a doubling of the change fee for award flights originating in the US. This fee now stands at $100, up from $50 previously. It's intriguing to observe how this change will influence passenger behavior.

The higher change fee is likely intended to create more predictable booking patterns. Research indicates that significant price fluctuations often lead to a drop in demand, but there's some evidence that frequent flyers might be less sensitive to higher fees if they are strongly reliant on points for travel.

One implication is that passengers might be nudged to make firmer travel plans earlier, as they might be less inclined to risk higher fees associated with changes later on. It’s worth considering that many travelers are already adjusting their travel behavior to avoid hefty change fees. It’s quite possible that this new structure will further emphasize this behavior, especially among those who meticulously craft their itineraries to make the most of their points.

However, this increased change fee could also impact how travelers leverage their points for travel. With a fluctuating points system and now a higher cost associated with any necessary flight adjustments, it might become more challenging for them to fully maximize their point redemption value, especially if their plans are subject to change.

It's plausible that this move could trigger a response within the airline industry, potentially driving a broader shift towards similar fee adjustments. This could reshape the competitive landscape as airlines continually refine their pricing strategies.

From a behavioral economics perspective, this change introduces an element of "loss aversion." Passengers might feel greater reluctance to make itinerary changes due to the fear of losing a portion of their points or facing a relatively larger monetary penalty compared to previously.

The change fee increase, while notable, also mirrors broader industry trends. Over the past several years, airlines have adjusted fees for a number of aspects of the travel experience, often in an effort to improve their revenue streams.

Ultimately, whether the change fee increase is successful in achieving its aims will depend on travelers' responses. We might witness a reduction in last-minute booking changes due to the added cost or a push towards booking plans sooner, minimizing the need for changes. The outcome might also reinforce the importance of a long-term point strategy to offset the costs associated with itinerary modifications.

The airline's rationale behind this adjustment might stem from an assessment of operational costs and a recognition of the frequency of flight changes within their customer base. By adjusting these fees, they are essentially attempting to refine the relationship between passengers, points accrual, and overall profitability.



This change fee adjustment can also impact how airlines manage flight occupancy. As some passengers become less likely to change their plans due to the higher fee, the airline might observe an increase in their load factors. This could influence the interplay between airline revenue management and their dynamic pricing algorithms.


The long-term impact on frequent flyer loyalty programs will also be interesting to track. While such fee increases might deter some, those who manage their points strategically might find ways to turn the system to their advantage, leading to an overall reinforcement of their travel strategies and a strengthening of their loyalty to the airline program.



Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Points and Cash Mix Options Launch for Every Flight Level





Virgin Atlantic has introduced a new option called "Points and Cash Mix Options" alongside its dynamic award pricing, which took effect at the end of October. This essentially means that you can now combine your Virgin Points with cash when booking any flight. While this might seem like a great way to use your points more flexibly, it also brings a new level of uncertainty.

The number of points required for a flight now varies depending on a number of factors, such as demand and the time of year. So, you might find some great deals on certain routes, but you could also get hit with a much higher price than before, especially if you travel during popular periods.

This change shows that the airline is attempting to adapt to the market, but it might create confusion for loyal travelers. They are now faced with the challenge of balancing whether it's best to use their points or just buy a ticket with cash. You'll definitely have to pay attention to when you're traveling, as the points prices are likely to become quite unpredictable, particularly during busy travel seasons.

Virgin Atlantic's move towards dynamic award pricing mirrors a wider trend in the airline industry. Loyalty programs are increasingly leveraging real-time data to adjust point values based on demand, much like how prices are managed in other retail sectors. This shift has significant implications for how travelers plan trips and use their points.


The core of this pricing model is rooted in the study of how people make decisions – behavioral economics. Essentially, this system may incentivize travelers to book during less popular periods, as the lower point thresholds seem like a great deal. But this can also lead to significantly higher costs when demand is high, especially during peak travel seasons. There's an intriguing trade-off to this approach.


Research suggests that the health of the economy significantly impacts the desire to travel. For instance, during times of economic growth, airline travel can increase by as much as 40%. This, in turn, can significantly increase the number of points required for booking flights. So, the broader economic landscape plays a role in this pricing model.


A key illustration of this dynamic is how much more it costs to book flights to Europe during the peak summer months. Points required can spike by up to 40% compared to quieter periods. This fits with the observation that travel generally increases by 30-50% during the summer, driven largely by holiday travel. This dynamic requires a bit more foresight from travelers who are booking during these peak periods.


Virgin Atlantic also doubled the change fee for US origin flights, bringing it up to $100. This is linked to research on how people react to fees. The idea is that when a traveler primarily uses points, they tend to be less sensitive to fee increases. This change could push travelers to be more decisive in their trip planning, potentially decreasing last-minute flight changes.


Interestingly, Virgin Atlantic has struck a deal with Delta and Air France to keep a fixed-rate award structure in place until at least 2025. This offers a haven of stability for travelers amidst the dynamic shift happening in the rest of Virgin Atlantic's program. It essentially allows for some degree of predictability when planning flights with these partners, helping to avoid the wild fluctuations in point costs during peak periods.


Looking at historical data, booking flights about three months in advance seems to lead to better point redemption values. On the flip side, last-minute bookings during peak season can lead to increases of over 50%. Timing matters a great deal when booking using points with Virgin Atlantic under this new model.


Historically, airlines have adjusted their reward systems to mirror broader economic forces. In periods of increased demand or economic optimism, we often see a bump in the number of points required for travel. This makes the idea of a fixed reward system seem increasingly unrealistic.


It's worth noting that flight occupancy also impacts how airlines manage their reward programs. Highly popular routes, where planes are often over 85% full, often see an adjustment to point requirements, maximizing revenue during times of high demand. This helps frequent flyers strategize a bit more effectively.


As airlines continue to refine their algorithms to favor dynamic models, the competitive environment for attracting travelers is likely to change. The Virgin Atlantic changes will surely be watched closely by other airlines. This is bound to trigger a ripple effect, where other airlines likely adjust their own reward programs to stay competitive and meet the shifting demands of travelers who seek some degree of predictability in a constantly changing landscape.



Virgin Atlantic's New Dynamic Award Pricing 7 Key Changes That Impact Your Points Value - Dynamic Award Calendar Shows Lowest Point Rates 6 Months Ahead





Virgin Atlantic's new booking system now includes a Dynamic Award Calendar, a feature that shows the lowest point rates for flights up to six months in advance. This is a major change from the old fixed-rate system, and it's designed to help travelers plan their trips more effectively by understanding when points are cheapest. While it's a good idea in theory, it also means that point prices can fluctuate significantly depending on when you want to travel. So, you might find some amazing deals on flights during less busy times, but be prepared for a sticker shock during peak seasons and popular travel periods. Essentially, Virgin Atlantic wants travelers to be more proactive in their planning by paying attention to the variability in point values throughout the year. The challenge is that this new system requires travelers to adjust their strategies and become familiar with how point values respond to changes in demand. While the ability to see the cheapest point rates for a significant period ahead is helpful, travelers must be aware of the increased complexity and the potential for point values to rise substantially depending on the time of year.

Virgin Atlantic's Flying Club is experimenting with a dynamic award calendar, promising lower point rates six months in advance. This approach, which takes cues from financial markets, utilizes algorithms that analyze past booking data and travel patterns. Essentially, the number of points needed for a flight fluctuates based on factors like demand and route popularity. This strategy has a few interesting consequences for travelers.

Firstly, it seems they are leveraging the principles of behavioral economics. During quieter travel periods, the availability of lower point rates might encourage more frequent flyer activity. Conversely, higher point prices during peak seasons could create a perception of increased value or exclusivity. This intriguing aspect might lead to some travelers consistently seeking lower point thresholds while others are perhaps less deterred by premium costs during popular times.

The European summer travel period is a good example of this system in action. Points required to book flights can rise by as much as 40% during those months, mirroring a 30-50% overall passenger surge. This dynamic significantly impacts travelers who might traditionally book flights during the summer. Understanding these trends is key for travelers looking to maximize their points.

One notable element of the changes is that Virgin Atlantic has partnered with Delta and Air France to maintain a fixed award chart until 2025. This represents a period of predictable pricing amidst the uncertainty of the dynamic system, allowing for some degree of certainty in their loyalty program. It's fascinating to see how travelers will react to this mix of dynamic and fixed reward structures.


Timing your bookings becomes crucial in this dynamic system. Data suggests that those who book about three months in advance may secure better point redemption values compared to last-minute bookings. These last-minute bookings can see point requirements balloon by over 50% during popular travel periods, highlighting the importance of planning ahead when redeeming points under the new system.

Furthermore, the airline doubled change fees for award tickets originating in the U.S., bringing them up to $100. This shift appears to be a response to operational costs, aiming to create a clearer booking pattern. It's also notable that airline travel itself is tied to economic factors. Travel demand can increase significantly during economic booms, and this often leads to increased points required for bookings. Airlines are attempting to reflect and respond to these factors in real-time.


Popular flight routes are also impacted. High-demand routes can see planes filled to over 85% capacity, leading to higher point requirements. It seems that popular travel periods are likely to present the most significant changes. It's a dynamic interplay between demand, available seats, and points needed for a given flight.

Airlines increase capacity in premium cabins during peak periods to keep up with demand, with some increasing capacity by as much as 20-30%. The dynamic point system is partly meant to maximize revenue during these periods. It's a complex system that attempts to match supply and demand in real time.

Finally, it's clear that Virgin Atlantic's strategy will likely impact the competitive landscape of airline reward programs. Other carriers are bound to analyze and respond to these changes, likely adjusting their own loyalty structures and award systems. It's a fascinating experiment within the airline industry and worth watching to see how this dynamic pricing model ultimately plays out.


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