Originally Posted by
imapilotaz
I understand what the OP is trying to argue. In the past accruing 300k RDMs for about $4k was easy. Today to get 300k RDMs would cost $27,200. So while before you could literally spend airline miles like funny money (and many, many people did), it would make sense to evaluate does it make sense at that XYZ redemption to use miles, or to pay cash. Before, outside of very minor instances it was almost always better to use miles (cash is king). How many of us were flying to Asia for $500 and then getting 35k RDMs for it? So spending 25k miles on a $300 ticket wasn't absurd.
Today, unless you MS the vast majority on here will earn fewer RDMs, which in a sense make the miles accrued "more valuable", since the ability to replenish our supply of them went up in price. So while "hoarding" makes no sense, the ability to easily earn 400k RDMs a year is gone for many of us, and so the willingness and ability to spend in large amounts diminishes.
In theory over the long haul, this should help increase the availability of awards as people earn fewer miles and ultimately use more than they are earning each year.
This is more along the lines of my contention in my original post which perhaps could have been better articulated by me
yes programs are always devalued.
but AA has already gutted the program, it cant get any worse imho. We are at the "rachet" point. Either stays this way or gets better. no downward risk.
if they allowed 1 cent towards a rev tix for cc holders like delta that would be an enhancement in my view . think rev fares of long haul business class in I fare bucket of heavily discounted $$
also its Barclay only which you can no longer apply for. More members are former aa flyers not former us air flyers.
remember we are outlier consumers. Flyertalkers are not representative of the Macro consumer market.
the majority of AA flyers would not have thought to get an Aviator card pre- merger.
"since in theory AA will have to find a way to keep these 'super profitable' customers happy." said sukn
"In the past accruing 300k RDMs for about $4k was easy. Today to get 300k RDMs would cost $27,200. " said imapilotaz"
The BA approval so long lobbied for and so long opposed by Govt was good for accrual opportunities for high yield rev business flyer.
Good for accrual.
For redemption, it effectively pulled AAdvantage rewards from the USA - Europe market as awards are now on BA metal with "fuel surcharges "that can approximate outright purchases.
Its a loyalty/affinity program. What is the guy who spent $27,200-- going to say when his miles are worthless for European redemptions and his AA miles are of such nominal value elsewhere?
AA will need to restore value as its now angering a customer who spent $27,200 and not the former bottom feeder ( Me :0 ) who spent $4K.
The BA approval so long lobbied for and so long opposed by Govt was good for accrual opportunities for high yield rev business flyer.
Good for accrual.
For redemption, it effectively pulled AAdvantage rewards from the USA - Europe market as awards are now on BA metal with "fuel surcharges that can approximate outright purchases.
Its a loyalty/affinity program. What is they guy who spent 27,200 going to say when his miles are worthless for European resumptions and his AA miles are of such nominal value elsewhere?
AA will need to restore value as its now angering a customer who spent $27,200 and not the former "bottom feeder" -- Me
-- who spent $4K