FlyerTalk Forums - View Single Post - Award accelerator just got cheaper?
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Old Apr 27, 2014 | 10:49 pm
  #13  
KenInEscazu
 
Join Date: Sep 2012
Location: MDE
Programs: AA EP, CM PP, AV GM, UA Silver, SPG Gold, Hilton Diamond, Hyatt Plat, Marriott Plat, Accor Plat
Posts: 1,002
Originally Posted by 5khours
I've been saying now for awhile that it has to come down. I think it will fall below 2cpm. If they were effectively optimizing in the past when 2.1 or even 1.9 was the going price, then in order to optimize now, they will need to be below that since the average price for redemptions has gone up.

Either, the price will go down more, or...

a) they were doing some wrong before, or
b) the principles of supply and demand have changed, of
c) UA management will continue to insist on their infallible strategic decision making prowess.
While I understand your point and don't disagree with it, the overwhelming majority of award redemptions are for domestic travel. Most people buying accelerator RDMs without the PAMs are doing so to get to a domestic location for less money than it would cost them if they had to pay out of pocket.
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