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-   -   Dynamic AAdvantage Award / Drastically High Pricing (master thread) (https://www.flyertalk.com/forum/american-airlines-aadvantage/2000290-dynamic-aadvantage-award-drastically-high-pricing-master-thread.html)

rumboj Jun 1, 2019 3:04 am


Originally Posted by saunders111 (Post 31158839)
Only on EVERY FERLIPPIN FLIGHT I'VE BEEN ON FOR THE LAST YEAR on which the flight attendants tell me 60,000 Barclay bonus miles are enough for two round trip tickets to (thank God I've drowned it out by now).

:) :)

saunders111

Saying that 60,000 miles are enough for two RT tickets is definitely not the same as implying awards are “available at sAAver levels on every flight”. Also, you might be surprised if you spoke with those individuals who happily fill out the application. Many of them are just using the miles for two short hops to see grandma. They get excited at the prospects of doing it twice per year instead of once...and all for free.

I guess the pitch does not bother me because I’ve been able to use CCs to generate and use over 300,000 AA miles per year for international award redemptions, including two long haul legs on AA metal.

beachfan Jun 1, 2019 3:21 am

I figure the value will be set at somewhere around a penny a mile. So J from LAX-LHR on a 77w nonstop will be upwards of 500k miles fairly often.

The pitch drives me nuts with its blatant fraud. Even with noise reduction headphones on.

no1cub17 Jun 1, 2019 1:34 pm


Originally Posted by JDiver (Post 31157278)
What makes you think it’ll be that cheap? South Pacific awards have been as high as 375,000 miles one way Business and 420,000 one way First since September 2016. (Current chart cost are 40,000 Y, 80,000 J, 110,000 F for MileSAAver, to compare.) It might be that st times, but when demand is high, I’d expect higher costs.

I know it won't be just 70k - I was just picking a relevant number to compare. As an example *A saver availability to Europe is 70k but has much more availability than AA at 57.5. That's all I was comparing. Just one theoretical scenario.

Max M Jun 2, 2019 1:37 am

We have Southwest to thank [blame] for this.

They were the first U.S. Airline to establish dynamic pricing, correlating to fare value, for frequent flyers, with RR 2.0

It wasn't terrible until Southwest went away with their cheap, last minute fares.

Now Southwest's last minute fares are laughable.

xliioper Jun 2, 2019 4:32 am


Originally Posted by Max M (Post 31161924)
We have Southwest to thank [blame] for this.

They were the first U.S. Airline to establish dynamic pricing, correlating to fare value, for frequent flyers, with RR 2.0

It wasn't terrible until Southwest went away with their cheap, last minute fares.

Now Southwest's last minute fares are laughable.

WN was the first major US carrier, but VX and B6 predated them by several years. More than likely, WN got the idea from those carriers. The reality is that the legacy dynamic awards are more of hybrid system where redemption values tend to more closely follow revenue fares, but the correlation is not nearly as predicable as with WN.

cova Jun 2, 2019 9:36 am


Originally Posted by no1cub17 (Post 31155145)
Meh I have mixed feelings. I'd much rather have Europe-US J availability 70k than no availability at 57.5k. Pick your poison I guess.

Be thinking what UA is now charging for their flights to Europe - 57K for Economy, 120K for Premium Economy 155K for business (one way). At least for now, partner flights are still at the old levels (as well as less popular UA routes) at 30K Economy.

Reetmafreen Jun 2, 2019 11:17 am

Looks like they will have to modify the credit card spiel to say “60,000 miles MIGHT get you two round trip rewards, depending on the time of day/year and current flight loads, but don’t bank on it”! ;)

sam007 Jun 2, 2019 12:22 pm

folks - has AA implemented this for all routes? I'm planning for a trip 10 months out to india where J has traditionally been 70k o/w and plenty of availability if you book this far ahead

thx

JDiver Jun 2, 2019 1:08 pm


Originally Posted by sam007 (Post 31163247)
folks - has AA implemented this for all routes? I'm planning for a trip 10 months out to india where J has traditionally been 70k o/w and plenty of availability if you book this far ahead

thx

We won’t know the full effects until an official announcement is made. But it would be easier to inflict, er apply, this to all routes than to some, IMO.

beachfan Jun 2, 2019 3:51 pm


Originally Posted by sam007 (Post 31163247)
folks - has AA implemented this for all routes? I'm planning for a trip 10 months out to india where J has traditionally been 70k o/w and plenty of availability if you book this far ahead

thx

what are you waiting for? Book now if you see availability. Date changes are free (as of now),.
In my experience, traditionally Etihad has been a pain (at least for F), not sure about QR but plenty of availability sounds like a pretty ancient tradition

Max M Jun 3, 2019 5:50 pm


Originally Posted by xliioper (Post 31162159)
WN was the first major US carrier, but VX and B6 predated them by several years. More than likely, WN got the idea from those carriers. The reality is that the legacy dynamic awards are more of hybrid system where redemption values tend to more closely follow revenue fares, but the correlation is not nearly as predicable as with WN.

xliioper

Yes, B6 and VX had Dynamic Award pricing first, but again, the blame falls on WN.

B6 and VX had Dynamic Award Pricing since the inception of their programs; WN did not. B6 and VX had nothing to change in terms of their Award Pricing.

The Big 3 Legacy carriers were waiting for one of the other Big 3 carriers to first change their FFP’s Award redemption structure to Dynamic Award Pricing model. Except Southwest beat them to it instead.

Perhaps WN picked up their model from B6 or VX, but as you agree, Southwest was the first *major* carrier to adopt the change from a static redemption to a dynamic model.

The change WN did is having a ripple effect which will eventually have all the Big 3 carriers also change their FFP’s Award Pricing.

quinella66 Jun 11, 2019 11:16 am

What is ironic is that on every AA flight, they tell you that if you sign up for a credit card you get a (for example) 50k mileage bonus “enough for two round trip flights in the US” as a selling point. Not any more!

If you remember many years ago when miles were earned on distance and then the credit cards appeared awarding 1 mile to the dollar, at that point, due to inflation, they had no choice but to eventually get to a revenue based system. They have done it gradually, shifting the earn to revenue and now the burn.

I prefer the way hotels like SPG handled it by having a chart and just bumping categories when necessary - at least it gave you something to target with your point earnings. Now, with dynamic pricing, they don’t have to wait for an annual chart rollout, they can bump prices daily and make points as worthless as they want.

Part of the allure in the points game is finding a sweet spot. If they go all revenue and don’t give good value opportunities for using points, they will be hurting the mile selling industry they created as people won’t be as likely to use the credit cards.

Shadowfactor Jun 12, 2019 9:11 pm

Huge AA devaluation. Dynamic pricing has started ?
 
Was doing some searches this evening for awards.

seems like dynamic pricing is already in effect.

DFW-MEX in December 80,000 miles for a 2 hour hop in economy. 😲

RT to HongKong for 280,000.

Major blows to the AA program


https://cimg8.ibsrv.net/gimg/www.fly...ba307536e9.png
https://cimg9.ibsrv.net/gimg/www.fly...30e66b8490.png

denCSA Jun 12, 2019 10:09 pm

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???

SeeBuyFly Jun 12, 2019 10:23 pm


Originally Posted by Shadowfactor (Post 31197379)
Was doing some searches this evening for awards.

seems like dynamic pricing is already in effect.

DFW-MEX in December 80,000 miles for a 2 hour hop in economy. 😲

RT to HongKong for 280,000.

Major blows to the AA program

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.


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