< Back to 68k.news AU front page

Virgin passengers were told they'd won a free cruise, but some can't redeem the prize

Original source (on modern site)

Morgan* won a cruise with Virgin Voyages — but cashing in on the trip would mean having to spend $8,000 on flights, more than the value of the original prize. 

"We definitely don't love Virgin at the moment," she said.

"I think we feel pretty used to be honest."

The card given to winning passengers.(Supplied)

Morgan won a twin share cruise in November last year.

She was flying Virgin Airlines to her home state of Tasmania after a work trip in Melbourne when she noticed something unusual at the departure gates.

"They had a lot of cameras around, there was dancing … they asked everybody to wear sailor hats when we boarded our flight."

Once on board, the air steward called Virgin boss Richard Branson on Facetime, who announced everybody had won a free Virgin Voyages Cruise.

"We were thrilled," Morgan said.

"Everyone around me was so excited."

Here is how Virgin promoted the event:

Loading Instagram content

Cruise winner left high and dry

Morgan runs a small business, so gathering together savings and taking time away for a holiday for her and her partner is always tough.

"It was just nice … to get us through a bit of a tough year … to know at the end of the year we could take a break and have this free cruise," she said.

The couple used their prize to book a cruise out of Brisbane, but in February this year they were told all of Virgin's Australian cruises had been cancelled because of ongoing tensions in the Red Sea.

Morgan contacted Virgin's public relations team to see whether she could still redeem the prize and was told her only options were to take a cruise out of Europe or the Caribbean.

She discovered two return flights to the Caribbean would cost $8,000, more than the $7,000 value of original prize.

"When I clarified this with Virgin's PR team they stopped responding," she said.

The conditions of the competition, as seen on the reverse of the card given to winners.(Supplied)

Morgan said she is keen not to appear entitled but points out that "Virgin got precisely what they wanted; a massive amount of media coverage".

"We know this because people sent us messages from all over Australia saying they saw me on the news winning a cruise.

"It feels like they got all the benefits and we got nothing but cancellation fees."

Sir Richard Branson announces via a Facetime call that passengers have won.(Instagram: Virgin Australia)

The couple had to change the flights they booked to meet the cruise, at a cost of around $150.

"We were genuinely shocked, we thought Virgin would provide us with an alternative prize like a flight credit … or they would allow us to rebook on a later season," Morgan said.

"They sort of gave up on us … like 'you're a bit of a problem now'.

"It just feels very corporate for a brand that tries not to be very corporate."

A marketing strategy that works

Virgin "relies on winners to become brand ambassadors by sharing their stories with friends, family and social media followers," Dr Balkrushna Potdar, lecturer in marketing at the University of Tasmania, said.

Balkrushna Potdar says a "winner's negative experience may become a cautionary tale" for potential future customers.(Supplied: Balkrushna Potdar)

Dr Potdar said while Virgin benefitted from showcasing winners, it was essential the company honoured promises made during the promotion.

He said with the cancellation of Australian cruises, Virgin should provide a replacement prize or compensation — if that doesn't happen, the company risks damage to its brand and people may lose trust in Virgin and see their marketing practice as deceptive.

"The winner's negative experience may become a cautionary tale dissuading potential customers from engaging with the brand," Dr Potdar said.

He said Virgin should consider some form of damage control including a "heartfelt apology" and an offer of compensation.

"This could include covering the cost of flights to Europe or the Caribbean, offering a free cruise credit, providing additional perks and benefits," he said.

Virgin apologises but said safety must come first

In a statement, a Virgin Australia Group spokesperson said "we apologise to our winners who can no longer redeem their prize due to the cancellation of Virgin Voyages' Australian and New Zealand cruises amid the conflict in the Red Sea".

The spokesperson said safety was always its priority.

"We are grateful that Virgin Voyages have offered all impacted guests the opportunity to take complimentary cruises on its other international sailings, including in Europe and the Caribbean."

The value of the replacement cruise is $10,500.

Morgan has described Virgin's response as "tone deaf".

* name has been changed

< Back to 68k.news AU front page