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Dynamic AAdvantage Award / Drastically High Pricing (master thread)

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Old Jan 7, 2020, 1:43 pm
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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 weve 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 theyre 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
Weve said publicly were adding dynamic awards called web specials. Because weve received positive customer feedback so far and we will continue to roll out web specials. Some of the coverage were 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. Wed 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, youll 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
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Dynamic AAdvantage Award / Drastically High Pricing (master thread)

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Old Dec 18, 2019 | 2:31 pm
  #181  
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I think for the first time ever I am leaving a year with close to ZERO mile balance with any airline.

I've had 12 months of paying ridiculous amounts for reward redemption on DL, UA and AA. I've found DL to be the worst. I'm embarrassed to publish how many mile i'm using SJC-SLC in F. UA is a close 2nd with also ridiculous redemption rates in F SJC-DEN. With AA I've always been able to find something decent in F or J but using 1 stops instead of non stop or going out of SFO but coming back into SJC etc. For international AA has done a decent job of putting me on BA instead of their own metal with much better redemption rates and availability. UA also usually gives me a better shot on LH as does DL with Virgin.

Just remember airline miles are just like Sushi. If you don't eat it quickly it goes bad.
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Old Dec 18, 2019 | 2:44 pm
  #182  
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Originally Posted by sdix
I think for the first time ever I am leaving a year with close to ZERO mile balance with any airline.

I've had 12 months of paying ridiculous amounts for reward redemption on DL, UA and AA. I've found DL to be the worst. I'm embarrassed to publish how many mile i'm using SJC-SLC in F. UA is a close 2nd with also ridiculous redemption rates in F SJC-DEN. With AA I've always been able to find something decent in F or J but using 1 stops instead of non stop or going out of SFO but coming back into SJC etc. For international AA has done a decent job of putting me on BA instead of their own metal with much better redemption rates and availability. UA also usually gives me a better shot on LH as does DL with Virgin.

Just remember airline miles are just like Sushi. If you don't eat it quickly it goes bad.
Yes, DL award levels can go quite high. On the other hand, many routes have fairly predictable pricing if you look at the fare rules for the awards which DL discloses. FC awards for SJC-SLC are currently available from 23K roundtrip (11.5K each way). As disclosed in the fare rules, this level has a 21-day advance purchase requirement as well as requiring Tue/Wed/Sat travel. Low-level awards for travel on other days of the week are 1K higher each way. Obviously, if you are booking at higher demand times the lowest levels will likely not be available. If you are a last minute booker, it pretty much guaranteed DL will only have availability in the highest award levels. Your options with DL are pretty much adjust your booking strategy, or move elsewhere. But at least if you are looking at something that is 3+ weeks out, you know with certainty that level will no longer be available once you pass the 21-day mark (similar to advance purchase revenue fares) and you need to be looking at that advance time horizon to find best awards. There can also be awards (not on this particular route) where a round-trip purchase is required to get a lower award level. There will be a min stay requirement in the fare rules for these and the fare basis codes will have an 'R' in the middle for them.

Last edited by xliioper; Dec 18, 2019 at 3:09 pm
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Old Dec 18, 2019 | 3:01 pm
  #183  
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OK, just trying to see if someone would know why I used to be able to book a non-stop super saver business on BA using AA miles, or other AA flights if i wanted a connection, but now all that's coming up is via Boston. But guess all I can get is obvious answers.
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Old Dec 18, 2019 | 3:09 pm
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Would the addition of the Club Suite from AUS-LHR effect this?
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Old Dec 18, 2019 | 3:10 pm
  #185  
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It is probably connected with this topic:
https://www.flyertalk.com/forum/amer...-now-live.html

I searched a little in June/July and I did find some, "web special," business awards on AA going through ORD and PHL. But I didn't see decent, "prices," for anything through DFW, and I didn't see the AUS-LHR nonstop listed at all.

The copay amounts I saw listed were very high ($600+), even for AA flights, which just doesn't sound right. I don't redeem miles for award travel often, but when I used AA miles for Qantas SYD-DFW I paid about $100 each.


Have you looked into just buying a coach ticket and using a miles + $$$ copay to upgrade? I'm seeing quite a bit of inventory (via Expert Flyer) for C (so immediate availability) for DFW-LHR-DFW (along with some other options). If you do this, at least you'll earn some miles, plus they'll count for 2020 status.
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Old Dec 18, 2019 | 3:46 pm
  #186  
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Originally Posted by MikeShores
I don't understand why they can't just assign a value to the miles...1/2 cent, 1 cent, etc. and use them as currency instead of these complex and convoluted redemption schemes. 100 miles = $1. If I find an airfare for $480, that'll be 48,000 miles. Thank you, please drive through. If I want to upfare from Y to J and the difference is $800, that'll be 80,000 miles. It would simplify things, make the mileage-earners more secure in knowing what they're getting, and would eliminate the ridiculous AUS-CLT [overnight in CLT] - PHL [overnight in PHL] - LHR for a "saver" award in J for 160000 miles each way.
.
It could do that - Air New Zealand's scheme does just that - 1 airpoint is worth $1
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Old Dec 18, 2019 | 3:47 pm
  #187  
 
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AFAIK there is no direct AA operated (AA metal) flight to LHR from BOS. All flights are BA operated so you will
pay high fees...
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Old Dec 18, 2019 | 3:56 pm
  #188  
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Originally Posted by flyalways
AFAIK there is no direct AA operated (AA metal) flight to LHR from BOS. All flights are BA operated so you will
pay high fees...
There will be as of March 29, and it looks like award availability on it is pretty good.
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Old Dec 18, 2019 | 3:57 pm
  #189  
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Originally Posted by ricohitman
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.
Every single penny counts for the accounting types approaching quarter end and those trying to impress their own masters. But account shutdowns are almost certainly a drop in the bucket compared to the bad hit that this devaluation delivers against standing AA program account balances.
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Old Dec 18, 2019 | 4:04 pm
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MikeShores Unless you only care about seats in economy dont you think that would be far worse? This thread is about premium seats and youd never see anything close to a J/F saver price again outside the US.
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Old Dec 18, 2019 | 4:41 pm
  #191  
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Originally Posted by rrgg
MikeShores Unless you only care about seats in economy dont you think that would be far worse? This thread is about premium seats and youd never see anything close to a J/F saver price again outside the US.
I think that it really depends on what you want from a scheme. Comparing with hotels, some have points rates for a free stay and others ( e.g. Accor ) assign a value to points

I find the latter works much better - I can book the hotel I want and can use what points I have to reduce the cost of the stay rather than having ( as I often find with IHG ) that I cannot book the hotel that I want using points and would have to stay somewhere less conveniant if I wanted to use points - also with a direct valyue correlation, do not end up with hotels where using points is useless due to the cost in points vs price in cash
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Old Dec 18, 2019 | 4:43 pm
  #192  
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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!
I dumped mine. The Chase card eliminated the 10% "rebate" on award redemptions and gutted the travel benefits.

I am truly disgusted. I was hoping to get Award travel to Europe in the Fall and MileSAAver awards in Business look to be 115,000 miles RT. I remember when my late husband and I were able to get Business Class to Madrid for 100K. RT. Both of us. I may end up booking another airline in one direction and paying for it- whichever direction/schedule works for me. Hopefully it will get me a layover in a Polaris lounge, which is head and shoulders above the Admiral's Club, at least at ORD.
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Old Dec 18, 2019 | 4:44 pm
  #193  
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Originally Posted by rrgg
MikeShores Unless you only care about seats in economy dont you think that would be far worse? This thread is about premium seats and youd never see anything close to a J/F saver price again outside the US.
Actually, this thread isn't limited to F/J discussion, as the dynamic award levels apply across all fare classes. This is a substantial devaluation (at least 67% from my limited evaluation) and we should all let the folks in Dallas know what we think. Do I think that will get them to change anything? No. But, if you remember when Oasis rolled out, Doug Parker's fallback comment was "we haven't heard any discontent among the ranks of our frequent flyers." Let's make that not the case this time. I have already hit them on all fronts: twitter, facebook, and email. With this new pricing, I won't see any kind of an award, domestic, international, Y/F/J/Toilet in a couple of years, as I typically only earn 110-125K miles per year.
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Old Dec 18, 2019 | 5:23 pm
  #194  
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I doubt that most people are going to be able to earn or collect enough usable miles to stay interested in frequent flyer programs over the long term. And, as we are learning on another thread, there's no big payoff in credit card scams either. In ten years, or possibly much less, most of these programs will be gone.
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Old Dec 18, 2019 | 5:26 pm
  #195  
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I don't see how it can be called a devaluation - the other awards have not been removed , these are additional awards

Writing in to say that you don't want to use these new awards and to complain about that existence, I have trouble seeing anyone caring
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