Further changes: Origin and destination pricing as of June 2018
#46
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I do this personally once or twice a year fo some personal (revenue) long-haul trips in premium cabins. May be I will do it also now for awards, but this will certainly not be my routine for the reasons I have explained + the additional time it takes before and after the trip.
#47
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Just a point of terminological clarification: POS refers to point of sale of the ticket, not to point or origin of the trip. Thus if I buy from KL in China a ticket from ATH to AMS, the POS will be China, not ATH. I do not think that the POS has any relevance here.
#49
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It has but that is not what the OP was talking about. POS affects the availability of a booking class. The OP is talking about differential pricing. There is no such thing as POS differential pricing with AFKL, The only thing there is is POS differential availability.
If the dynamic pricing of award tickets are based on class availability, it could very well be that there are POS-induced variations on award pricing too. This, of course, assumes that awards are priced and issued locally rather than centrally. I do not know whether this is the case.
If the dynamic pricing of award tickets are based on class availability, it could very well be that there are POS-induced variations on award pricing too. This, of course, assumes that awards are priced and issued locally rather than centrally. I do not know whether this is the case.
Last edited by NickB; Mar 18, 2018 at 4:57 am
#50
Moderator: Aegean Miles+Bonus
Join Date: Oct 2009
Location: AMS / ATH
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You are absolutely right NickB, the term POS is not right for what I wanted to describe. I indeed meant the point of origin. Of course, often POS and point of origin are the same, but that is not necessarily always the case.
The broad point remains the same though: With cash fares there are a bunch of methods to fit the price of a ticket to the majority of pax flying that route - and that seems not to be the case for these awards. While the city pairs do define the pricing, the direction between those cities (Which of the two cities one originates from) does not affect price (While it does for cash tickets). AMS-ATH is perhaps a great example for that as the AMS market is quite different from the ATH market. Cash fares reflect that beautifully: Originating from ATH is about a third cheaper than when originating from AMS.
If there will be a set conversion rate between cash<>miles for these award tickets, this may mean that the most expensive direction will be used to base the award price on. Which would be a pity (and not fair to the people originating from the other direction)..
The broad point remains the same though: With cash fares there are a bunch of methods to fit the price of a ticket to the majority of pax flying that route - and that seems not to be the case for these awards. While the city pairs do define the pricing, the direction between those cities (Which of the two cities one originates from) does not affect price (While it does for cash tickets). AMS-ATH is perhaps a great example for that as the AMS market is quite different from the ATH market. Cash fares reflect that beautifully: Originating from ATH is about a third cheaper than when originating from AMS.
If there will be a set conversion rate between cash<>miles for these award tickets, this may mean that the most expensive direction will be used to base the award price on. Which would be a pity (and not fair to the people originating from the other direction)..
#51
Join Date: Oct 2016
Location: AMS
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Slightly related. It does seem KLM has somewhat caught up with hidden city round trip tickets, for a lot of tickets the return leg can't go over AMS anymore where you skip the last leg, it'll add full AMS-based pricing when you select a flight that has Schiphol as an intermediate return hub that you'd want to exit at.
#52
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All in all, it seems to me that the relationship between cash fares and award costs is not linear but rather of a a broad fuzzy logic nature, with plenty of exceptions and what would look like oddities if we were looking for a direct parallel. This has already been the case to some extent since they moved away from unitary award pricing towards a more flexible system in a few years ago. It looks like this one is just one step further towards fine tuning award costs between city pairs rather than regions but perhaps not a revolution.
To add another data point, between LON and Provence-Cote d'Azur,, LHR-MRS is cheapest at 8K, followed by LHR-NCE at 9K and LHR-TLN at 10K. This does not quite match up with cash fares. Typically, cheapest theoretical cash fares are virtually identical. As to 'real life' fares, TLN is too recent an introduction to judge but, anecdotically, it is IME on balance a little easier to find cheaper flights to NCE than MRS out of LON.
To add another data point, between LON and Provence-Cote d'Azur,, LHR-MRS is cheapest at 8K, followed by LHR-NCE at 9K and LHR-TLN at 10K. This does not quite match up with cash fares. Typically, cheapest theoretical cash fares are virtually identical. As to 'real life' fares, TLN is too recent an introduction to judge but, anecdotically, it is IME on balance a little easier to find cheaper flights to NCE than MRS out of LON.
#53
Join Date: Nov 2017
Location: Netherlands - AMS
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The minimum price for a J award ticket between EU-US seems to be 53K miles. There are some big differences, like LAX-DUS = 72k and LAX-PRG = 53k, probably both going through AMS.
I hope the lowest prices are reasonably well available. I am also curious if we are going to see any difference in surcharges.
I hope the lowest prices are reasonably well available. I am also curious if we are going to see any difference in surcharges.
#54
Join Date: Jun 2009
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It will be interesting to see what happens with the changes, currently the classic award prices are ridiculous versus paid prices. I am looking at flying MUC-CDG, one-way in September.
Cash price: €110.57 (and as a Gold I will get 444 FB miles credited plus a mighty 5 XPs)
Award ticket: 15,000 FB miles and €36.57 in taxes
Ignoring the XPs, the value per mile is €0.0048 each. OK, so this is better than spending my miles in the FB store but on competitive routes like this why would anyone use their miles if they are getting less than 0.5 €c each?
Cash price: €110.57 (and as a Gold I will get 444 FB miles credited plus a mighty 5 XPs)
Award ticket: 15,000 FB miles and €36.57 in taxes
Ignoring the XPs, the value per mile is €0.0048 each. OK, so this is better than spending my miles in the FB store but on competitive routes like this why would anyone use their miles if they are getting less than 0.5 €c each?
#55
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It has but that is not what the OP was talking about. POS affects the availability of a booking class. The OP is talking about differential pricing. There is no such thing as POS differential pricing with AFKL, The only thing there is is POS differential availability.
If the dynamic pricing of award tickets are based on class availability, it could very well be that there are POS-induced variations on award pricing too. This, of course, assumes that awards are priced and issued locally rather than centrally. I do not know whether this is the case.
If the dynamic pricing of award tickets are based on class availability, it could very well be that there are POS-induced variations on award pricing too. This, of course, assumes that awards are priced and issued locally rather than centrally. I do not know whether this is the case.
One aspect, extensively discussed above, is the itinerary itself, and therefore the point of origin. On revenue tickets a LHR-CDG-HKG ticket is cheaper than a CDG-HKG ticket. The same seem to now apply to awards. But as Goldorak pointed out, the difference can be huge for revenue tickets in premium classes, but seems low for minimum-miles award. Hence not worth the positioning effort, at least for the minimum-miles levels.
Another aspect is the point of sale (POS). For revenue tickets, availability of fare buckets varies across POS for the same itinerary. AFKL retain the same pricing and applies an exchange rate if needed. BUT, prices can be quite different on different AF national websites (different POS) because fare bucket availability is different. This has been amply discussed in other threads. The interesting question is whether a similar methodology will apply to awards. If so, get ready for POS and POO hunting.
#56
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Location: London, UK and Southern France
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Another aspect is the point of sale (POS). For revenue tickets, availability of fare buckets varies across POS for the same itinerary. AFKL retain the same pricing and applies an exchange rate if needed. BUT, prices can be quite different on different AF national websites (different POS) because fare bucket availability is different. This has been amply discussed in other threads. The interesting question is whether a similar methodology will apply to awards.
#57
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Even if there is, it is by no means certain that 'hunting' will be possible, in that it is not clear that you can get a local POS to issue an award ticket. If I am a French resident with a FB account, can, say, AF Ecuador issue me an award ticket or is the ticket always issued by FlyingBlue in France on AF paper (and therefore a France POS)?
#59
#60
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I'm curious to see what it will be tomorrow (in the new system) knowing how crazy its can be with the current one in its last day of life
I was looking for a PAR-MPL round trip in may for a weekend. At the times I want/need, it is quite costly (320 EUR ). I never use miles for short- and medium-haul but by curiosity I looked at award tickets for the same flights....They want 50,000 miles + 50 EUR taxes
WHAAAAT ?????
when you think that 50K is "normally" what they ask for France-USA round trip in Y.
I will look tomorrow with the new dynamic redemption scheme.
I was looking for a PAR-MPL round trip in may for a weekend. At the times I want/need, it is quite costly (320 EUR ). I never use miles for short- and medium-haul but by curiosity I looked at award tickets for the same flights....They want 50,000 miles + 50 EUR taxes
WHAAAAT ?????
when you think that 50K is "normally" what they ask for France-USA round trip in Y.
I will look tomorrow with the new dynamic redemption scheme.