Why aren't J redemption levels in line with prices?
Aug 20, 2016, 8:49 pm
#31
Join Date: Jan 2016
Location: YYZ
Programs: Only J via Peasant Points, 777HDPeasant or The Unexpected Virtue of Ignorance and Narcissism.
Posts: 5,988
Aug 20, 2016, 10:31 pm
#32
Join Date: Jul 2013
Location: MLL / AC Cafe
Programs: It's hard to get status when the website won't let me book flights.
Posts: 5,706
Aug 20, 2016, 10:56 pm
#33
Join Date: Jul 2013
Location: MLL / AC Cafe
Programs: It's hard to get status when the website won't let me book flights.
Posts: 5,706
This is largely a devil's advocate thought exercise, but out of curiosity, why do you think it is that you can redeem for a J product for roughly 1.5x that of a Y, but if you pay cash, you will pay something like 5x? Similarly, earnings wise, why if you pay 5x for J, do you only get maybe 1.5x the miles(depending)? I can at least sympathize with companies' moves to a purely revenue based model.
To me this seems like the heart of the problem from AE's perspective with people like us redeeming 150k points for $20k Mini RTWs. I think it could even be argued so far that this arbitrage is the foundation of mileage running as a whole.
If you had to "work" (ie fly) 5x as much for a J redemption, just like you did if you were paying cash, basically it would kill mileage running entirely, and make J/F products more in line with what the airlines really want. (spending 25k+$200 for a YYZ-FLL Y redemption or 125K + $1k in J).
While probably something that would have had to been done from the get-go, I'm just curious why we feel that such a discount in points when compared dollars is reasonable?
To me this seems like the heart of the problem from AE's perspective with people like us redeeming 150k points for $20k Mini RTWs. I think it could even be argued so far that this arbitrage is the foundation of mileage running as a whole.
If you had to "work" (ie fly) 5x as much for a J redemption, just like you did if you were paying cash, basically it would kill mileage running entirely, and make J/F products more in line with what the airlines really want. (spending 25k+$200 for a YYZ-FLL Y redemption or 125K + $1k in J).
While probably something that would have had to been done from the get-go, I'm just curious why we feel that such a discount in points when compared dollars is reasonable?
Aug 20, 2016, 11:38 pm
#34
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,844
Actually, awards may very well be in line with actual prices.
Consider, maybe half of the J cabin may be filled with upgrades. Some on flex, many on Latitude. P fares, which are about three times lowest Tango.
Bottom line: Aeroplan is too big a customer fro AC to give the freebies. Other side of the coin: Aeroplan for most people (apart from SEs) is not worth the hassle.
Consider, maybe half of the J cabin may be filled with upgrades. Some on flex, many on Latitude. P fares, which are about three times lowest Tango.
Bottom line: Aeroplan is too big a customer fro AC to give the freebies. Other side of the coin: Aeroplan for most people (apart from SEs) is not worth the hassle.
Aug 21, 2016, 9:59 am
#35
Join Date: Sep 2014
Location: sqrt(-united states of apologist)
Programs: *$ Green
Posts: 5,403
Actually, awards may very well be in line with actual prices.
Consider, maybe half of the J cabin may be filled with upgrades. Some on flex, many on Latitude. P fares, which are about three times lowest Tango.
Bottom line: Aeroplan is too big a customer fro AC to give the freebies. Other side of the coin: Aeroplan for most people (apart from SEs) is not worth the hassle.
Consider, maybe half of the J cabin may be filled with upgrades. Some on flex, many on Latitude. P fares, which are about three times lowest Tango.
Bottom line: Aeroplan is too big a customer fro AC to give the freebies. Other side of the coin: Aeroplan for most people (apart from SEs) is not worth the hassle.
*prices do not include YQ
Aug 21, 2016, 12:35 pm
#36
FlyerTalk Evangelist
Join Date: Jun 2003
Location: YYC
Posts: 23,844
Non-SEs should not value their points at 3 cents. Probably more like 1.5 cents. Remember they sell miles to Amex and the like at around 0.6 to 0.8 cents.