Originally Posted by
3Cforme
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?
while I wasn't playing this game in 1984, something strikes me as wrong with this
In 1984, did you have the Avis First program or the ability to earn free weekend rentals or the Hertz program to get points in their program? I don't think so.
Was there a Priority Club in 1984, especially a priority club that gives away 31,000 points with ease like they do today?
while your 20000 aa miles may not get you what you could 27 years ago, you have a gazillion more means of earning points for ways that you never had in 1984 so really AA has shifted some of that burden from Aadvantage to the other vendors themselves.