florens

Is this going to be network wide including RFS or only for longhaul flight?

Crampedin13A

How would this effect UuA? Airlines like AC that have Dynamic Pricing don't have that option as it's done with certs

cysyuen

Why don't they just improve pay with Avios function to a level that a revenue can be paid in full with points?

Also, I sense that all Avios programmes may merge...

jason8612

Doesn't sound good. We'll, I plan to book some CW with 2 4 1 in the beginning of the year, so assuming that the changa won't happen overnight, I'll burn all my avios for those.

sch7458

Both. It could be higher and lower redemption prices depends on the season or any other factors. Air Canada has both scheme (dynamic and static pricing).
I think this is not a good move. SQ and LH have something similar -but not dynamic since it's still discrete pricing scheme- it's called Flex Award by charging much higher mile requirement.

But also this will probably affect their own chart (BA/IB/EI) and partner chart wouldn''t be affected I believe.

jason8612

But then who actually uses avios to fly on BA (longhaul) ?

sch7458

For longhaul PE in off-peak, the price was actually lower than pre-devaluation. Especially good if you only need one-way or depart from any other European countries than UK. (If you depart from the UK, the gov tax will overwhelm the mileage value of course). But again, check whether there's offer or not with revenue ticket. Last Sept I flew AMS-NYC only for 700 EUR in BA Y+. Also BA PE is not that bad. For sure the service is inferior to SQ or CX, but the leg room wasn't very much different.

sxc

Anyone think that there is going to be a oneworld initiative so that there is a centralised platform to somehow exchange "supply/demand" information so that dynamic pricing can be extended to partner redemption as well?

sch7458

That would be highly difficult as each airline has different strategy. I doubt they'd reveal that information to their partner. Also alliance was a thing from the past. Nowaday, the strategy is either intra-alliance JV (e.g. LH-SQ) and/or inter-alliance codeshare such as LH-CX.

Hannibal Lecter

Flying Blue has just presented their version of dynamic pricing


"Change 3: dynamic pricing of award tickets (on AF/KL/HV)"

Upcoming changes to Flying Blue in 2018

ANstar

"Will the Miles needed for a reward ticket change?
From June 2018, the Miles needed for a reward ticket will change from prices according to zone and date to prices according to origin, destination and date."

Quite. It looks like it will follow the trends with revenue pricing.

ie a redemption AMS-LAX on KL will be more expensive than say a redemption LHR-AMS-LAX on KL.

Sixth Freedom

I eagerly await more information about what will be involved in the 'dynamic pricing' of reward flights. Possibilities from my brain dump include, in no particular order:

(i) Point-of-origin/point-of-turnaround logic replaces sector logic in determining the number of Avios required for a flight

(ii) Point-of-origin/point-of-turnaround logic replaces point-of-sale logic in determining inventory availability

(iii) The Avios component of the fare changes at different points in the booking window

(iv) The surcharge component of the fare changes at different points in the booking window

(v) Different passengers experience different inventory availability, even when seeking to book the same itinerary at the same time in the booking window

(vi) Length of stay restrictions are implemented, e.g. no return without a Saturday night stay, and potentially managed actively

(vii) One way and return fare logic is changed, and potentially managed dynamically

(viii) Penalty restrictions are implemented, e.g. no changes no refund, and potentially managed actively

(ix) Avios-cash equivalence is introduced and the exchange rate is potentially managed actively, either on a seaonal or itinerary-specific basis.

Exciting times!



Once upon a time BA were the greatest carrier in the world when it came to pricing and revenue management. They understood that if you simultaneously achieve the cheapest and most expensive fares in the market, across all cabins, you are doing something right. Now I think BA are losing their way a bit at the moment, but potentially we could see great things in this space if pricing, loyalty and CRM are allowed to act as three sides of the same three-sided coin. While the average redemption price might rise, we could see some great "sale" and "ex-EU" type Avios deals.

orbitmic

The details of the FB changes will only come later for implementation from June, but my sense from preliminary noise is that the award price will be based on the paid price. For instance, if applied to BA, this would likely mean that a LHR-SFO would become more expensive as an award than a ARN-LHR-SFO and conversely, a MAN-LHR-SIN would become slightly more expensive than LHR-SIN in most cases.

My understanding is that the move to dynamic pricing will also allow part-pay and is effectively quite similar to what NZ or indeed DY are doing (although I hope more generous than the latter!). The NZ system has been in place for a long time and I think should be looked at carefully.

ermen

This would just kill the BAEC program and devalue the value of avios?
And how would they price say a gold priority award or a GGL joker or an upgrade award?

orbitmic

All good points. Of course it is all speculation at this stage, but i'm guessing that UUA would be based on difference in fares between the booked and upgraded class at time of upgrade.

GUF could remain as is but Gold priority awards and jokers would presumably need to be rethought completely or replaced by alternative benefits (e.g. as award discount vouchers or further GUFs??).

There is no doubt that this would be a bit reshake and there would be more losers than winners.