original post #95, http://www.flyertalk.com/forum/ameri...l#post16849327

Or Hilton and AA:

A beginning it is not; AA miles have been devaluing constantly at a rate of at least 3-4% annually, without factoring in the huge devaluation from the introduction of the YQ on certain awards.

When I joined AA in 1984, I was promised that for 20,000 accumulated miles and no cash I would:
fly roundrip on any US/CA flight as long as a single economy-class seat was available for absolutely free (they picked up all taxes/fees);
sleep one night for free at a Marriott or similar;
and drive a midsize car for free for 2 weekend days (IIRC).

In 2010:
flying roundrip on any US/CA flight as long as a single economy-class seat is available costs 50,000 miles plus those taxes/fees that they no longer pay for;
sleeping one hotel night at a Holiday Inn costs 31,250 miles and doesn't include "resort" charges;
driving a midsize car rental for 2 days is 16,000 miles (extra charges unknown);
for a total of 97,205 miles plus cash to pay for taxes/fees and "resort" charges.

In other words, 1000 AA miles of 1984 are now worth less than 389 miles (less because I am not counting in the value of the cash co-pays).

That's an annual devaluation of the accrued miles of 3.58%

It's a safe bet to predict that our miles will continue to lose a similar, if not higher, amount per year in the future. As such, I would not be surprised in the least that AA's decision to invest its very scarce IT resources to develop the "dynamic air awards" system is to support this trend.

I can guarantee that Hilton points will be devalued in the future; I can't say when or, or how much, but that doesn't matter in these threads does it?