Originally Posted by
Bubbles09
paying more for greater availability surely IS dynamic pricing. High demand for the standard avios price has triggered the double avios cost?
Originally Posted by
brunos
That is dynamic pricing, albeit a simple one.
For a given flight you have either 1x (say 50k), 2x (100k) or no availability.
A given flight might be offered at 1x, then move to 2x as availability decreases, then no award.
AF has a more refined dynamic pricing, it could start at 1x, (standard award) then 1.5x, then 1.75x, then 2x, then 2.25x....
AGain, partners like VS might only be offered AF award when availability on the 1x standard award.
Originally Posted by
IAN-UK
Paying more for greater availability is the very essence of dynamic pricing. Maybe some IT systems will be able to handle a smooth avios mirror of the cash cost of a selected fare class, but QR has opted for a far simpler system where (expected) demand triggers a doubling of the avios required. Simple, massively clunky, but effective.
personally, paying more for greater availability is not the essence of dynamic pricing. the essence of dynamic pricing to me is uncertain award prices and that cash price will be co-related with award price. this means that the very first award ticket could already be at a very high price. i see this with flying blue, where even award tickets 1 year out is at a totally unreasonable redemption rate. as a result, there is technically no longer a need to limit award availability because award prices are now pegged to cash price, and together with the monetization of ffp, you could argue that airlines are essentially selling tickets in their own currency (therein lies the tax implications). it is possible to get cheap award flights, but it is a flight that they couldnt sell anyway. we also cannot value our points easily and accurately, hence it is more opaque to us if there is a devaluation or not (you may think that the high prices are due to high demand instead of airline just arbitrarily increasing the award prices). imo, there are much more upsides for the airline than for us
on the other hand, qr and sq have fixed price, so although they do release more awards at a higher price, these prices are fixed and know beforehand , hence i do not view this as dynamic pricing and the implcations are quite different. although i take the point that it could be viewed as dynamic since the price changes in a way.