355F1

It appears Saver/Anytime Awards are going bye-bye, according to TPG.

As part of the airline's revamped AAdvantage program announced on Thursday, American shared that it'll exclusively offer "fully dynamic mileage awards" next year with the introduction of "a new, simplified award chart" for travel on American...

https://thepointsguy.com/news/americ...-award-charts/

guv1976

The article does indicate that the partner award chart is not changing.

Now the question is: What will be the criterion for deciding which flights on AA metal will be made available for redemption by other FFPs, like BAEC and Etihad Guest?

Cledaybuck

I don't get it. Their awards are basically fully dynamic already. Looking at just one domestic route in one month I can find anywhere for 8.5k to 32.5k. Who cares about a chart if fares hardly ever conform to the chart?

blug

I'm hoping "simplified award chart" means "anything priced below X miles is considered saver award and available for partner redemption".

SteveinA2

If AA move to a straight redemption value per mile, say 1AA Mile = $0.01then why would anyone use an AA credit card? I have a card that offers 2.65% (all purchases) to 5.25% (Travel and select categories) cash rebate.

Typically I see awards at around 1cent per mile value but the value to me is finding awards at 4-5 cents or more per mile value. I've got 8c per mile value on some last minute fares. If these value points disappear then the AA program becomes less valuable

Also this will have an impact on Bask Bank. Today at Bask miles are "purchased" by the consumer at 2 cents a mile (Tax implications excluded) So if AA set anything worse than this no one will keep a Bask bank miles account.

stefg1007

+1 to this. I don't remember the last time I was able to find a business award ticket to Europe that included a OW connection with AA Transatlantic.

inlanikai

As one who has been in Advantage since the day it was created and have had AA's miles earning CC since it was first introduced, I have to say I no longer care what all these airlines, particularly AA, does with their FF programs any more. It used to be that the only way to earn miles was BIS. There was just one elite level, Gold, and it really meant something. Now? Fugeddaboutiit!

As pointed out above, I can get 2-3% cash back on a non-airline credit card when buying any airline ticket and use it for spending on anything. The airlines are increasingly trying to sell via various near-departure methods upgrades that previously went to elites. I know, cash is king. Fine, then don't place so much value on free upgrades in the airlines' promotions. Award/Upgrade inventory where there was always a certain amount of premium cabin inventory loaded 330 days out on leisure routes is now gone. Lounge access rules based on a myriad of variables now needs the wisdom of a savant to figure out if you can get in.

Will I keep on collecting miles? Of course, but it won't be factor at all in who I fly with. I still travel frequently for leisure and family trips usually in premium cabins. Price, routing, timing and service/comfort will be the only factors. The miles and any elites status earned will be merely consequential and certainly not a goal. Maybe by the time I collect enough miles someday I can use a 6-figure amount to get a coach seat to somewhere on a red-eye.

Just my perspective from one who has been in this game for over 40 years. Thanks for listening.

Herb687

Because like a good heroin dealer AA got people hooked on using their credit cards by offering big discounts (better value per RDM) at first.

And also because people play the status game. AA tells them they are special and people seem to believe it.

It's no coincidence that the LP scheme and getting people hooked on AA CCs happened about a year before the massive devaluation of RDMs.

I've been getting a lot of value out of AA RDMs. It's not status (nearly worthless) that has kept me spending on an AA CC this year. It's the strong value proposition of RDMs. When that goes away, I will also switch to a different card and focus on the cash benefit of that card rather than the fake status conveyed by airlines/hotels.

Yep. But will consumers be smart enough to realize that or will they continue to be blinded by status?

nomiiiii

You no longer care because clearly your financial position now is much better compared to the times when you did care about it. Of course someone who can afford to just buy a $2000+ flight in premium cabin will not care about miles anymore.

But if you're someone fresh out of college with not much money, the card signup bonuses and getting miles is absolutely a good way to subsidize travel at a time when you can't afford it.

What AA and all other airlines are doing is teaching the GenZ-ers that its absolutely not worth being loyal to one airline, which may or may not work out for them in the long run as the next gen learns to price-shop on google flights instead of going directly to delta.com or aa.com to buy whatever they offer.

355F1

Because LPs.

Not everyone cares about RDMs but status is always important.

rrgg

I don't see why any of this is specific to one's age.

javabytes

Won't happen that way under a dynamic program... and likely can't. Number of miles needed is defined by a fare, while availability is controlled independent of pricing. Obviously the intersection of fares and availability is needed in order to price a given itinerary, but the fact that both pieces separately exist makes it exceedingly unlikely that such a paradigm will be put in place.

jordyn

Is status worth thousands of dollars in opportunity cost vs. what you'd get on another card? I'm skeptical.

Adelphos

"Thousands of dollars" of opportunity cost implies over $100,000+ in spend at least - that's not what most are talking about. Spend may be a quarter, or half of that.

jordyn

Depends on the spend. If it's all on restaurants or travel or various other categories that other cards provide 5x earning for, you really only need $25K in spend to give up $1K in opportunity cost.