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)
Apr 19, 2019, 1:25 am
#1
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Dynamic Award Pricing has arrived via tweak to Economy Web Specials
Looks like the first foray into dynamic award pricing is here. Check Economy Web Specials - they're not just cheaper saver awards anymore, they appear fully dynamic in their pricing.
Interesting that it appears alongside saver awards for the time being. And it's also for economy only. So I'm sure there is more to come.
In the immediate term, this has introduced some very interesting award opportunities around expensive holidays like Thanksgiving that you may want to book while they are still figuring out how to properly fleece us with dynamic awards.
Interesting that it appears alongside saver awards for the time being. And it's also for economy only. So I'm sure there is more to come.
In the immediate term, this has introduced some very interesting award opportunities around expensive holidays like Thanksgiving that you may want to book while they are still figuring out how to properly fleece us with dynamic awards.
Last edited by javabytes; Apr 19, 2019 at 9:38 am
Apr 19, 2019, 1:33 am
#2
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Relevant article: https://viewfromthewing.boardingarea...egular-awards/
Apr 19, 2019, 5:22 am
#3
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These "web special" awards have been pricing this way for months. I first posted observations of this back on Jan 2...
https://www.flyertalk.com/forum/30600724-post6.html
https://www.flyertalk.com/forum/30600724-post6.html
Apr 19, 2019, 8:08 am
#4
formerly known as daveland
Join Date: Oct 2003
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I started trying to figure out what value for miles AA intends to give with dynAAmic pricing. It was far from a definitive conclusion after testing multiple routes and dates. What have you been seeing? Would love additional data points....
https://milestalk.com/american-airli...alue-per-mile/
https://milestalk.com/american-airli...alue-per-mile/
Apr 19, 2019, 8:23 am
#5
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Yup, I noticed this a couple of days ago when I was looking at fares for MCO-DCA. Some days were very cheap (of course, certain flights on certain days) while others were sky-high.
I wonder at least if they will be at least somewhat reasonable in allowing more seats to be booked with awards in advance. I was looking at SAN-DCA flights for July (90+ days out) and AA basically had no availability at less than 25,000 one way (unless you wanted Alaska). By contrast, United had ample availability on the specific days that I wanted.
I wonder at least if they will be at least somewhat reasonable in allowing more seats to be booked with awards in advance. I was looking at SAN-DCA flights for July (90+ days out) and AA basically had no availability at less than 25,000 one way (unless you wanted Alaska). By contrast, United had ample availability on the specific days that I wanted.
Apr 19, 2019, 9:39 am
#6
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These "web special" awards have been pricing this way for months. I first posted observations of this back on Jan 2...
https://www.flyertalk.com/forum/30600724-post6.html
https://www.flyertalk.com/forum/30600724-post6.html
Looking at your post there, I also see the same thing about Y booking class, but they do still seem capacity-controlled... not every AAnytime flight is available under Economy Web Specials.
Apr 20, 2019, 6:28 pm
#7
Join Date: Jan 2015
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Interesting. I didn't notice this then... guess they have rolled it out to a lot more routes now.
Looking at your post there, I also see the same thing about Y booking class, but they do still seem capacity-controlled... not every AAnytime flight is available under Economy Web Specials.
Looking at your post there, I also see the same thing about Y booking class, but they do still seem capacity-controlled... not every AAnytime flight is available under Economy Web Specials.
Apr 22, 2019, 8:18 am
#8
Join Date: Nov 2001
Location: RDU
Posts: 2,262
So definite award pricing changes going on.
I've booked some RDU-YYC award flights for June. When I booked them, 30k/one-way was the 'anytime' fare, with no saver available.
Now, same flights, anytime is pricing at 50k/one-way, and over a 7-day period, the economy web special ranges from 29k-49.5k, with no 2 days having the same pricing.
I've booked some RDU-YYC award flights for June. When I booked them, 30k/one-way was the 'anytime' fare, with no saver available.
Now, same flights, anytime is pricing at 50k/one-way, and over a 7-day period, the economy web special ranges from 29k-49.5k, with no 2 days having the same pricing.
Apr 25, 2019, 6:46 pm
#9
Join Date: Oct 2009
Posts: 236
Searching for DFW- MIA or FLL availability on June 5.
There are nine different non-stop flights available for 12.5k miles.
There is one web special available for 9.5K miles that connects with a 5.5 hour layover. Or multiple web special connections available for between 39k to 45K miles.
I think they have a few kinks to work out.
There are nine different non-stop flights available for 12.5k miles.
There is one web special available for 9.5K miles that connects with a 5.5 hour layover. Or multiple web special connections available for between 39k to 45K miles.
I think they have a few kinks to work out.
May 30, 2019, 5:13 pm
#10
Join Date: Oct 2017
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Dynamic AAdvantage Award / Drastically High Pricing (master thread)
per gary leff:
need to dump all my aa miles from the barclays and citi cards.
The@AmericanAir SVP Revenue Management Don Casey just said dynamic pricing of awards is coming while speaking at the Bernstein 35th Annual Strategic Decisions Conference.
Last edited by aztimm; May 30, 2019 at 5:48 pm Reason: Rule 7: Linking to external content
May 30, 2019, 5:29 pm
#11
Join Date: Mar 2005
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Don't know that was a secret. Dynamic pricing on domestic awards may not be the worst thing in the world. If they leave the partner awards alone, it might work out ok. Of course, I tend to be an optimist .....
Safe Travels
Safe Travels
May 30, 2019, 5:40 pm
#12
Join Date: Mar 2007
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If that happens to partner awards I am going to delta. Might as well fly an airline with a decent operation if the miles are going to be “worthless”
May 30, 2019, 5:45 pm
#13
Join Date: Aug 2012
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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.
May 30, 2019, 5:51 pm
#14
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May 30, 2019, 7:03 pm
#15
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Am hoping all these AA customers follow through & leave for Delta/UA, freeing up seats for the rest of us, driving down demand & allegedly dynamic prices
