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 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)
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.
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.
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)
Oct 25, 2019 | 4:24 pm
#106
Join Date: Jun 2019
Location: CLT
Programs: AA
Posts: 503
I mean sure I guess there was a time when a hamburger was $0.15... but minimum wage was $0.75/hr and the 707 hadn't taken flight yet...
Oct 25, 2019 | 4:25 pm
#107
Join Date: Jan 2017
Posts: 824
The miles game is like the finance game to Chrysler and GM, it's where they make all their money.
Oct 25, 2019 | 6:52 pm
#108
Join Date: Jun 2007
Location: SBA & LAX
Programs: AA Lifetime Gold, BA Lifetime Blue, Marriott Gold, and many others
Posts: 1,152
I have seen it happen when things are really slow for LAX-LHR like February. Last minute availability for Business Savers happens a lot more on BA metal with the high fees. I still do it sometimes because even with the fees I'm still flying Business although Club World leaves a lot to be desired. If it's a last minute situation I won't take it if I'm going to end up with one of the "coffins" in the middle. Good luck.
Oct 25, 2019 | 7:01 pm
#109
FlyerTalk Evangelist
Join Date: Oct 1999
Posts: 11,882
I have seen it happen when things are really slow for LAX-LHR like February. Last minute availability for Business Savers happens a lot more on BA metal with the high fees. I still do it sometimes because even with the fees I'm still flying Business although Club World leaves a lot to be desired. If it's a last minute situation I won't take it if I'm going to end up with one of the "coffins" in the middle. Good luck.
Oct 25, 2019 | 10:20 pm
#110
Join Date: Jun 2007
Location: SBA & LAX
Programs: AA Lifetime Gold, BA Lifetime Blue, Marriott Gold, and many others
Posts: 1,152
F on BA is very good. If you have the miles for an F Saver I'd take it in a flash. At least you get an excellent product for the ridiculous fees.
Oct 26, 2019 | 7:46 am
#112
Join Date: Jun 2007
Location: SBA & LAX
Programs: AA Lifetime Gold, BA Lifetime Blue, Marriott Gold, and many others
Posts: 1,152
Dave, I agree with you. I meant it in the context of being able to pull an F Saver LAX-LHR as opposed to BA's Club World where at the last minute you might well end up in one of the "coffins" in the middle -- one of the worst J products in the sky these days.I do think that BA F is better than AA F, but regardless, it is light years better than BA J. The comment was strictly about cesco's mention of being tempted by seeing an F Saver on BA.
Oct 26, 2019 | 8:44 am
#113
Join Date: Mar 2007
Location: Los Angeles, CA
Posts: 1,332
SEA based as well and feel your pain, but there are some strategies...
Book far out, book as many connections as you can, add an Alaska Airlines segment on for good measure... and guess what, there WILL be a schedule change and then they will put you on a great single connect of your choice.
when Spring schedule changes hit.
The key is to pick something that will get screwed by a time change of any one segment and then you are golden.
Book far out, book as many connections as you can, add an Alaska Airlines segment on for good measure... and guess what, there WILL be a schedule change and then they will put you on a great single connect of your choice.
when Spring schedule changes hit.
The key is to pick something that will get screwed by a time change of any one segment and then you are golden.
I am now holding an AS-only SNA-SFO-JFK ticket. If it falls below MCT, will they put me on AA prime nonstop instead after they split later this year?
Oct 26, 2019 | 8:47 am
#114
Suspended
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Location: Wesley Chapel, FL
Programs: American Airlines
Posts: 31,464
Oct 26, 2019 | 5:42 pm
#115
FlyerTalk Evangelist
Join Date: Oct 1999
Posts: 11,882
Dave, I agree with you. I meant it in the context of being able to pull an F Saver LAX-LHR as opposed to BA's Club World where at the last minute you might well end up in one of the "coffins" in the middle -- one of the worst J products in the sky these days.I do think that BA F is better than AA F, but regardless, it is light years better than BA J. The comment was strictly about cesco's mention of being tempted by seeing an F Saver on BA.
Oct 31, 2019 | 12:10 pm
#116
Join Date: Sep 2008
Location: AUS
Programs: AY+ Platinum, BAC, AA, Hyatt Globalist, Amex Plat
Posts: 7,523
Oct 31, 2019 | 1:00 pm
#117
Join Date: Mar 2016
Location: SAN
Programs: AA CK, Hyatt Globalist
Posts: 839
I remember as a small child, my father taking me out for a $0.29 hamburger on my birthday and then afterwards we stopped at a gas station and he commented that a gallon of gas was the same price as a hamburger, which thinking about it today, is close to the same. And yes, $7-8 is a cheap dinner.
Oct 31, 2019 | 2:09 pm
#118
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,077
Green Stamps lasted a lot longer than some of its customers expected, but eventually they became mainly irrelevant except as an example of how a loyalty program and its currency can lose all its clout.
The price per mile sold by the US3 airlines is definitely not something that has been rising in real terms compared to how it went for the better part of the last 20-35 years.
What AA has been doing in following DL with regard to mileage ticket pricing will eventually undermine the real price and pricing power the airline has in selling miles. Its a matter of when, not if.
The price per mile sold by the US3 airlines is definitely not something that has been rising in real terms compared to how it went for the better part of the last 20-35 years.
What AA has been doing in following DL with regard to mileage ticket pricing will eventually undermine the real price and pricing power the airline has in selling miles. Its a matter of when, not if.
Oct 31, 2019 | 7:33 pm
#119
FlyerTalk Evangelist
Join Date: Jan 2007
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Posts: 14,593
This thread: AA - Dynamic Pricing STINKS
Another thread: AA Dynamic Pricing Gone Amok - 6K to SYD/AKL - WOW!!
And one wonders why I take these nonstop complaints about AA with the proverbial grain of salt....
Another thread: AA Dynamic Pricing Gone Amok - 6K to SYD/AKL - WOW!!
And one wonders why I take these nonstop complaints about AA with the proverbial grain of salt....
Nov 1, 2019 | 9:41 am
#120
Join Date: Jun 2015
Location: DAY
Programs: Rapid Rewards, Skymiles, Hilton HHonors, SPG/Marriott Rewards
Posts: 6,563