Jan 7, 2020, 1:43 pm
Last edit by: Prospero
Dynamic Award Pricing means award “prices” in miles will present with pricing dependent in accordance with supply and demand driven cash prices rather than by displaying static award prices on a published chart. Delta and United Airlines, among others, already offer dynamically priced awards, rather than pricing static miles costs on a chart.
Dynamic Award Pricing was initially introduced with multi-tier AAnytime awards, and expanded with the Economy Web Special awards listings added to the standard award display at the end of October, 2018 and fully operational in 2019. This means an award can price as a a lower than usual Economy Award Special or an AAnytime award as high as >400,000 miles for a one way longhaul award.
Links
Link to Economy Web Special" Award (dynamic price, fewer miles, more restrictions Oct 2018) (FT, 29 Oct 2019)
Link to AAnytime award dynamic tiers: higher costs coming to S Pac "late" Sep 2016 (AAnytime to SoPac can price at 375,000 J and 420,000 miles F.)
Link to Anytime / AAnytime award / awards [master thread] (Discusses three tiers and hidden fourth tier for AAnytime Award Pricing)
Articles:
link to American Airlines Dynamic Award Pricing is Here (Alongside Regular Awards) by Gary Leff on April 18, 2019
link to American Airlines Says Dynamically Pricing Awards is Coming by Gary Leff on May 30, 2019
Link to American Airlines Confirms That Dynamic Award Pricing Is Coming by Darren Murph May 30, 2019
Dynamic Award Pricing was initially introduced with multi-tier AAnytime awards, and expanded with the Economy Web Special awards listings added to the standard award display at the end of October, 2018 and fully operational in 2019. This means an award can price as a a lower than usual Economy Award Special or an AAnytime award as high as >400,000 miles for a one way longhaul award.
AA effectively moved toward dynamic pricing with the roll out of Economy Web Specials in October, with JT Genter noting the following: “The appearance of ‘discounted’ awards costing 9,500, 10,000, 10,500 and even 13,500 miles on a route where the standard rate is just 7,500 miles is quite concerning. Hopefully this is just a bug in the rollout, and not the first step toward a revenue-based redemption program like what we’ve seen Delta transition to over the past few years.” - JT Genter, quoted in TPG - link
(On 30 May 2018) Senior Vice President of Revenue Management Don Casey said dynamic pricing of awards is a strategy they’re using to drive higher revenue from the loyalty program. More mileage redemptions means recognizing more deferred revenue, and redemptions at a higher mileage price does too. = G. Leff, see below for link
“We’ve said publicly we’re adding dynamic awards called web specials. Because we’ve received positive customer feedback so far and we will continue to roll out web specials. Some of the coverage we’re seeing now is pure speculation – more web specials only mean more web specials for now. No decision has been made on anything beyond that. That said, we love when customers redeem miles. If TPG readers are thinking about a big, fancy trip, we hope they take it. We’d love to serve them soon.” AA to TPG, 30 May 2019 (link below)
Link to Economy Web Special" Award (dynamic price, fewer miles, more restrictions Oct 2018) (FT, 29 Oct 2019)
Link to AAnytime award dynamic tiers: higher costs coming to S Pac "late" Sep 2016 (AAnytime to SoPac can price at 375,000 J and 420,000 miles F.)
Link to Anytime / AAnytime award / awards [master thread] (Discusses three tiers and hidden fourth tier for AAnytime Award Pricing)
AAnytime awards
With no blackout dates, you can use AAnytime awards for any seat on an American Airlines or American Eagle® flight for as low as 20,000 miles each way, plus any applicable taxes and carrier-imposed fees.
AAnytime award levels vary by date (including time of day) and region. There are select dates that require a higher number of miles (in addition to Level 1 and 2 awards, there is a hidden level 3 based on aspirational value and premium product and even some hidden level 4 award space released on Flagship transcontinental flights). When you search for awards while booking, you’ll see the applicable available award level.
With no blackout dates, you can use AAnytime awards for any seat on an American Airlines or American Eagle® flight for as low as 20,000 miles each way, plus any applicable taxes and carrier-imposed fees.
AAnytime award levels vary by date (including time of day) and region. There are select dates that require a higher number of miles (in addition to Level 1 and 2 awards, there is a hidden level 3 based on aspirational value and premium product and even some hidden level 4 award space released on Flagship transcontinental flights). When you search for awards while booking, you’ll see the applicable available award level.
link to American Airlines Dynamic Award Pricing is Here (Alongside Regular Awards) by Gary Leff on April 18, 2019
link to American Airlines Says Dynamically Pricing Awards is Coming by Gary Leff on May 30, 2019
Link to American Airlines Confirms That Dynamic Award Pricing Is Coming by Darren Murph May 30, 2019
Dynamic AAdvantage Award / Drastically High Pricing (master thread)
Jun 12, 2019, 10:37 pm
#46
Join Date: Jun 2007
Location: SBA & LAX
Programs: AA Lifetime Gold, BA Lifetime Blue, Marriott Gold, and many others
Posts: 1,152
I just checked on LAX-LHR and things don't look any different than they've looked before. Looked at some near-in dates and some next spring. All the same as they've been for quite a while from what I saw.
Jun 13, 2019, 1:23 am
#47
Join Date: May 2017
Location: San Francisco
Programs: AA EXP
Posts: 369
Check the award chart, your 280,000 R/T J ORD-HKG award is a standard AAnytime Level 1 rate.
Jun 13, 2019, 1:36 am
#48
Join Date: Jun 2019
Posts: 66
Suppose you have two flights which are basically identical (same flight times, same duration, same quality of service etc.) except that they are operated by different carriers. Loyalty may be able to "nudge" people towards one carrier if the prices of the two flights are close. But if flight 1 costs 2k, but flight 2 costs 3k, most people will choose flight 1. Ofc, it would be a triumph if loyalty could sway people to book flight 2 still. But it is rarely so powerful.
So then, AA and others have figured that relatively small incentives are sufficient to give that "nudge." So AA has reduced benefits just like other carriers.
AA still makes good money with its loyalty program, primarily through co-branded credit cards. But loyalty has become relatively less important and revenue management relatively more important. (Let's not forget the CC's are not just about loyalty. The co-branding is a marketing tool. But they're not primarily issuing CCs to generate loyal AA flyers. They're issuing CCs to make money with CC fees.)
Last edited by nosedive; Jun 13, 2019 at 1:43 am
Jun 13, 2019, 6:44 am
#49
Join Date: Jan 2018
Location: BGI | MIA
Programs: AA Platinum Pro | Hyatt Globalist | HH Diamond | SPG Gold
Posts: 316
What you have just discovered is called "AAnytime awards". They have been around for many years. SAAver awards are lower-priced, and so far their prices are fixed; but since they are not available here, the price does not matter.
AA is presenting these mileage costs without identifying them as AAnytime. That is relatively new.
AA is presenting these mileage costs without identifying them as AAnytime. That is relatively new.
i had searched those routes a couple days ago and was seeing the much lower prices. I know that availability changes but I Suppose I wasn’t expecting such a rapid shift in a award prices.
Jun 13, 2019, 7:02 am
#50
Join Date: Feb 2003
Location: On strike
Posts: 8,135
I just find the dynamic award pricing confusing, and that is what will anger frequent fliers the most, and delight the Kettles at the same time. For example, my Mother and I are traveling to Rome next month, and I started looking weeks ago. To my amazement, there was saver coach everywhere from SLC to FCO, no business. Then I checked PSP to FCO, and while horrible red-eyes and layovers, saver J was peculiarly available on some of the SAME flights I was only seeing available in coach from SLC (PHL-FCO). So I booked the horrible itinerary for both of us (yes TWO AA sAAver J seats were available, my heart almost stopped). I checked from ONT, SNA, LAX, BUR, and the same seats could not be replicated.
A week later I checked again, still no luck out of SLC, but suddenly ONT-FCO opened in J for 2 at sAAver with a much better itinerary, so I rebooked the ticket. But LAX, SNA, BUR, PSP...no love. And checking the non-stop long haul to Europe that I was about to book (DFW-MAD) of course showed no sAAver J space. So while it worked out for us, this whack-a-mole strategy from AA is really obnoxious and just makes frequent flyer programs even more of a complexity that average fliers will love to hate. Why can't we just have more transparency???
A week later I checked again, still no luck out of SLC, but suddenly ONT-FCO opened in J for 2 at sAAver with a much better itinerary, so I rebooked the ticket. But LAX, SNA, BUR, PSP...no love. And checking the non-stop long haul to Europe that I was about to book (DFW-MAD) of course showed no sAAver J space. So while it worked out for us, this whack-a-mole strategy from AA is really obnoxious and just makes frequent flyer programs even more of a complexity that average fliers will love to hate. Why can't we just have more transparency???
Jun 13, 2019, 2:56 pm
#51
Join Date: Jun 2007
Location: SBA & LAX
Programs: AA Lifetime Gold, BA Lifetime Blue, Marriott Gold, and many others
Posts: 1,152
I should have been more specific. Last night, when I looked, there were still no changes that I saw in the Saver availability or pricing. I looked at flights this summer, in the fall, and next spring. Everything was as it has been for some time. I know because I fly this route regularly.
Jun 15, 2019, 7:54 am
#52
Join Date: Nov 2002
Location: NYC/MIA
Programs: AA:Lifetime Platinum; MR:Lifetime Titanium
Posts: 500
Miles discrepancy
I am planning open-jaw flights (NYC-SEA/SFO-NYC) burning miles. AA's Multi-city site says each leg is 12,500 miles which is what I would expect. However, if I price them as two one-way tickets, AA prices the NYC-SEA leg at 6,000 miles (Economy Web Special). The return being 12,500.
I am not complaining but wondering if this is a computer glitch. Does Multi-city not offer Economy Web Specials? Am I missing something?
I am not complaining but wondering if this is a computer glitch. Does Multi-city not offer Economy Web Specials? Am I missing something?
Jun 15, 2019, 8:43 am
#53
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,055
More than likely there are fare combination restrictions and fare can only be purchased as a one-way or as part of a round-trip (A-B-A routing). Basic Economy revenue fares often have such restrictions.
Jun 22, 2019, 9:27 pm
#55
Join Date: Sep 2016
Location: LAX/BUR, RDU
Programs: DL SM, AAdvantage, SPG
Posts: 1,360
I'm still not entirely clear on whether dynamic pricing has officially started yet. I tried searching for a RDU-SJO roundtrip in March, and for a Saturday to Saturday roundtrip, it showed up as 130,000 miles, which is much higher than any AAnytime Level to Central America. Is this the new dynamic pricing for a peak time, or are there just new AAnytime levels?
Jun 22, 2019, 9:36 pm
#56
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,597
is it in line with anytime level 2 award chart https://www.aa.com/i18n/aadvantage-p...ward-chart.jsp
Jun 22, 2019, 9:51 pm
#57
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,055
AAnytime Level 2 would be 37.5K. It would seem the following applies in this case --
"AAnytime award levels vary by date and region. There are select dates that require a higher number of miles (in addition to Level 1 and 2 awards). When you search for awards while booking, you’ll see the applicable award level."
Seeing awards as high 80K in some cases from SJO (returns on Dec 2nd for example).
"AAnytime award levels vary by date and region. There are select dates that require a higher number of miles (in addition to Level 1 and 2 awards). When you search for awards while booking, you’ll see the applicable award level."
Seeing awards as high 80K in some cases from SJO (returns on Dec 2nd for example).
Jun 23, 2019, 10:08 am
#58
Join Date: Jul 2016
Programs: American Airlines
Posts: 141
Confused
I’m really confused as to why AA has continued to ask me and other decisions at my company why we no longer fly AA.....do I really have to explain why abandoned loyalty to any airline? CFO crunched numbers and stated we were not saving enough from sitting all of our business with AA, to let employees book whatever airline they want with a few control parameters.
As I travel mostly to Asia, of everyone in my company I’m guessing losing my business was the most lucrative.
Cheers,
TG
As I travel mostly to Asia, of everyone in my company I’m guessing losing my business was the most lucrative.
Cheers,
TG
Jun 23, 2019, 10:15 am
#59
Suspended
Join Date: Mar 2001
Location: FIND ME ON TWITTER FOR THE LATEST
Posts: 27,730
I’m really confused as to why AA has continued to ask me and other decisions at my company why we no longer fly AA.....do I really have to explain why abandoned loyalty to any airline? CFO crunched numbers and stated we were not saving enough from sitting all of our business with AA, to let employees book whatever airline they want with a few control parameters.
As I travel mostly to Asia, of everyone in my company I’m guessing losing my business was the most lucrative.
Cheers,
TG
As I travel mostly to Asia, of everyone in my company I’m guessing losing my business was the most lucrative.
Cheers,
TG
Regardless, good choice on you/your company's part and glad you'll be on your way.
Jun 30, 2019, 12:12 pm
#60
Join Date: Oct 2010
Location: San Diego, Ca
Programs: AA 2MM LT PLT; AS MVP Gold75k; HHonors Diamond; IHG PLT
Posts: 3,502
X require more miles than U/Z TATL
My wife will be traveling to France in April, we have been looking at award availability SAN-CDG.
There is a fair amount of "saaver" X availability through DFW, ORD and CLT on 787, 777 and 330 - for 75k miles.
Thanks to EF (and FT), I was able to find "F" saaver availability on TN LAX-CDG, T availability SAN-LAX - for 57.5 miles.
Was necessary to call to create a PNR for the TN flight, agent confirmed that saaver X is often more expensive than U/Z.
Part of the new dynamic pricing policy? Many companies will pay for TATL / TPAC W, but not J/F?
There is a fair amount of "saaver" X availability through DFW, ORD and CLT on 787, 777 and 330 - for 75k miles.
Thanks to EF (and FT), I was able to find "F" saaver availability on TN LAX-CDG, T availability SAN-LAX - for 57.5 miles.
Was necessary to call to create a PNR for the TN flight, agent confirmed that saaver X is often more expensive than U/Z.
Part of the new dynamic pricing policy? Many companies will pay for TATL / TPAC W, but not J/F?