Go Back  FlyerTalk Forums > Miles&Points > Airlines and Mileage Programs > American Airlines | AAdvantage
Reload this Page >

Dynamic AAdvantage Award / Drastically High Pricing (master thread)

Community
Wiki Posts
Search
Old Jan 7, 2020, 1:43 pm
FlyerTalk Forums Expert How-Tos and Guides
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.

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)
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)

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.
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
Print Wikipost

Dynamic AAdvantage Award / Drastically High Pricing (master thread)

Thread Tools
 
Search this Thread
 
Old Dec 18, 2019, 8:27 am
  #151  
 
Join Date: Aug 2005
Posts: 398
I am super duper glad I mostly emptied my account into the TN availability mix up two weeks ago. It appears those miles just became worth a whole lot less.

CYAA!

saunders111
saunders111 is online now  
Old Dec 18, 2019, 8:43 am
  #152  
 
Join Date: Dec 2004
Posts: 7,904
Originally Posted by donotblink
I wonder if this will reduce spending on the Barclays and Citi co-branded cards. Somehow I have a feeling Doug Parker is going to lose money again, because that revenue is what's keeping AA afloat!
That's impossible since Doug said they'll never lose money again.
rrgg is online now  
Old Dec 18, 2019, 8:49 am
  #153  
FlyerTalk Evangelist
 
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,041
Originally Posted by saunders111
I am super duper glad I mostly emptied my account into the TN availability mix up two weeks ago. It appears those miles just became worth a whole lot less.

CYAA!

saunders111
Good way to use them and I did the same thing. And there are still plenty of one-way biz flights for 80K out there, LAX to PPT and back. I don't think it was a mix-up.
josephstern is offline  
Old Dec 18, 2019, 8:59 am
  #154  
 
Join Date: Aug 2001
Location: MUC <-> SFO
Programs: UA *G MM, SPG LTG, AA, LH
Posts: 446
Probably the wrong thread, but how can I search for BA F awards now? I saw some availability recently, but now it's just Y, PE and J. What am I missing?
Thanks!
roesner is offline  
Old Dec 18, 2019, 9:05 am
  #155  
 
Join Date: Jun 2010
Location: ROC/NYC/MSP/LAX/HKG/SIN
Posts: 3,212
Without notice?

Wow, what a new low that AA has become.
PaulInTheSky is offline  
Old Dec 18, 2019, 9:06 am
  #156  
 
Join Date: Apr 2003
Location: Austin, Texas, USA
Programs: AA Platinum Pro, Hilton Silver, Marriott Titanium Elite, AS MVP Gold 75K
Posts: 130
Originally Posted by roesner
Probably the wrong thread, but how can I search for BA F awards now? I saw some availability recently, but now it's just Y, PE and J. What am I missing?
Thanks!
This probably is the wrong thread, but to follow-up, BA is replacing 777 and 747 equipment on some North American routes with the A350 which is eliminating F from some markets. This could be the reason you're seeing no F availability.
MikeShores is offline  
Old Dec 18, 2019, 9:08 am
  #157  
 
Join Date: Jan 2012
Programs: DL, WoH
Posts: 1,253
Originally Posted by PaulInTheSky
Without notice?

Wow, what a new low that AA has become.
You haven't been following the accounts restricted thread have you? This is nothing compared to what's going on.
hurnik likes this.
ricohitman is offline  
Old Dec 18, 2019, 9:11 am
  #158  
 
Join Date: Aug 2001
Location: MUC <-> SFO
Programs: UA *G MM, SPG LTG, AA, LH
Posts: 446
Originally Posted by MikeShores
This probably is the wrong thread, but to follow-up, BA is replacing 777 and 747 equipment on some North American routes with the A350 which is eliminating F from some markets. This could be the reason you're seeing no F availability.
Thank you, but I was specifically looking at the LHR-SJC/SFO route and it had a mix of 777 and 747 F availability in January.
Question is - should I see a tab for F?

Oh well...
roesner is offline  
Old Dec 18, 2019, 9:12 am
  #159  
 
Join Date: Jun 2010
Location: ROC/NYC/MSP/LAX/HKG/SIN
Posts: 3,212
Originally Posted by ricohitman
You haven't been following the accounts restricted thread have you? This is nothing compared to what's going on.
Just a little bit, but I believe restricting accounts due to CC churning/abusing has nothing to do with the dynamic pricing that we are seeing here. UA gave months of advance before the dynamic pricing award goes online.
JonNYC likes this.
PaulInTheSky is offline  
Old Dec 18, 2019, 9:16 am
  #160  
 
Join Date: Apr 2008
Posts: 615
I notice I can no longer find redemptions to VVI. Is it possible with this rollout that AA is significantly scaling back on certain routes? Previously I could find JFK-VVI or even MIA-VVI. Now I can't seem to find any routings for this.,
gumercindo is offline  
Old Dec 18, 2019, 9:18 am
  #161  
 
Join Date: Sep 2017
Location: DCA/IAD & BUF
Posts: 1,400
Originally Posted by roesner
Probably the wrong thread, but how can I search for BA F awards now? I saw some availability recently, but now it's just Y, PE and J. What am I missing?
Thanks!

Yep, believe it or not, I noticed same thing myself this morning, and scratched my head on it. 4-5 routes with BA Business & F, Savers I'd been monitoring in the background as backup in case I can't get a route I want with Eithiad or Qatar, completely gone. There was a crapload of BA Saver availability last week in the April time frame on European routes. This morning, seems like not even an isolated day here or there still available. Two or three months out even. It's like they've been completely and purposefully removed. Nothing but economy.

If not temporary, worries me far more than the AA dynamic pricing domestically -- makes me wonder if they were removed to make way for an introduction of dynamic pricing on select Partner routes. I was hoping to get another year out of decent Partner awards to burn my last 200K while they still had value. :-(
cmtlatitudes is offline  
Old Dec 18, 2019, 9:31 am
  #162  
 
Join Date: Jan 2002
Location: Missouri, AA EXP
Posts: 923
Originally Posted by gumercindo
I notice I can no longer find redemptions to VVI. Is it possible with this rollout that AA is significantly scaling back on certain routes? Previously I could find JFK-VVI or even MIA-VVI. Now I can't seem to find any routings for this.,
AA no longer serves Bolivia at all. They ditched La Paz quite a while back and the last flight to Santa Cruz was in early November of this year. The only way there now on Oneworld is via LATAM, which you have to call into AA for redemption bookings, and they are leaving Oneworld soon.
djcrooks is offline  
Old Dec 18, 2019, 9:32 am
  #163  
 
Join Date: Jul 2014
Location: JFK / LGA.. EWR is not part of NYC!
Programs: Brand loyalty is for suckers
Posts: 1,047
We're more or less at the point where the only reason to use AA/UA/DL miles is on partner redemptions. And who knows how long they'll go before that gets devalued as well.

Another reminder that points and miles are subject to inflation just the same as cash. Except the value of a (US) dollar doesn't drop in half overnight.
OhDoctor is offline  
Old Dec 18, 2019, 9:49 am
  #164  
 
Join Date: Jan 2012
Programs: DL, WoH
Posts: 1,253
Originally Posted by PaulInTheSky
Just a little bit, but I believe restricting accounts due to CC churning/abusing has nothing to do with the dynamic pricing that we are seeing here. UA gave months of advance before the dynamic pricing award goes online.
I'm not saying they have anything to do with each other, but odd how they both of coincidentally happened. I'm saying that this dynamic pricing isn't the worst thing going on right now with AA.
ricohitman is offline  
Old Dec 18, 2019, 10:03 am
  #165  
 
Join Date: May 2011
Location: NYC (LGA, JFK), CT
Programs: Delta Platinum, American Gold, JetBlue Mosaic 4, Marriott Platinum, Hyatt Explorist, Hilton Diamond,
Posts: 4,895
Glad I switched to DL this year - though miles I earned through flying and credit card spend, I was able to snag 2 RT business class tickets to Barcelona at 98,000 miles each during their flash sale. It's basically impossible to find any similar inventory to Europe outside of five or six weeks away on American. Partner redemptions to Asia are still there, but who knows how long that lasts.
Adelphos is offline  


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.