Reward Flight 'Dynamic Pricing' Discussion
Nov 3, 2017, 7:57 am
#1
Original Poster
Join Date: Dec 2010
Programs: BA Gold, CX Gold, VS Gold, HH Gold, Amex Plat
Posts: 127
Reward Flight 'Dynamic Pricing' Discussion
From the BA Capital Markets Day 2017:
The last Avios devaluation was in 2015 which also introduced Peak and Off-Peak pricing.
Some discussion points:
Progressive introduction of Dynamic Pricing from 2018
Some discussion points:
- Do you expect dynamic pricing to mean lower as well as (assumed) higher redemption prices?
- Will you book ahead before the end of 2017 to avoid redemption hikes?
- Is this a good thing?
Nov 3, 2017, 8:03 am
#2
Join Date: Jul 2014
Programs: Mucci de l'Arbitrage
Posts: 927
Given it is BA I only expect more costly redemptions.
Leaving that point aside, I support dynamic pricing if it truly works, e.g. I can pick up a J return to NYC at a week’s notice for 20k Avios if no one else has booked it, and conversely I’d like to be able to unlock the same redemption, also at a week’s notice for 500k Avios on a busy flight (GGL Joker style, where the Joker is replaced by a strong multiple of Avios).
Leaving that point aside, I support dynamic pricing if it truly works, e.g. I can pick up a J return to NYC at a week’s notice for 20k Avios if no one else has booked it, and conversely I’d like to be able to unlock the same redemption, also at a week’s notice for 500k Avios on a busy flight (GGL Joker style, where the Joker is replaced by a strong multiple of Avios).
Nov 3, 2017, 8:27 am
#3
Join Date: Jun 2003
Programs: BA, IHG, 5C
Posts: 4,413
A couple of interesting links from Googling "Avios Dynamic Pricing" (from 2016).
https://developer.avios.com/docs/product_pricing
An introduction for "Partners" looking to utilise the facility. "Pay with Avios Dynamic Discount Pricing Service allows Partners to setup discount prices which are dynamic in nature" sounds like it will be dynamic discounting, presumably to drive volumes when default pricing is not competitive (or misses the chance to drive loyalty or price-discriminate). Also refers to "default pricing points" which will therefore seemingly remain.
https://jobs.avios.com/jobs/vacancy/...e-90a96704ebf0
Job description with responsibility for this. Motivation "to best maximise margin and the satisfaction of members to drive engagement", is a bit more double-edged.
https://developer.avios.com/docs/product_pricing
An introduction for "Partners" looking to utilise the facility. "Pay with Avios Dynamic Discount Pricing Service allows Partners to setup discount prices which are dynamic in nature" sounds like it will be dynamic discounting, presumably to drive volumes when default pricing is not competitive (or misses the chance to drive loyalty or price-discriminate). Also refers to "default pricing points" which will therefore seemingly remain.
https://jobs.avios.com/jobs/vacancy/...e-90a96704ebf0
Job description with responsibility for this. Motivation "to best maximise margin and the satisfaction of members to drive engagement", is a bit more double-edged.
Nov 3, 2017, 10:00 am
#5
Join Date: Oct 2011
Location: London
Programs: BA Silver
Posts: 1,282
The regular Qatar deals have rendered BA's long haul J redemptions obsolete for many esp because of their high surcharges. Maybe dynamic pricing will bring lower charges on less busy flights but I thought they had already done that with peak/off-peak reward charts?
Nov 3, 2017, 12:13 pm
#7
Join Date: Feb 2009
Location: YYC
Programs: BA bronze, Aeroplan peon
Posts: 4,746
Or Air Canada as I mentioned in this post https://www.flyertalk.com/forum/29014308-post84.html
Nov 3, 2017, 1:40 pm
#9
Join Date: Jul 2014
Programs: Mucci de l'Arbitrage
Posts: 927
Or Air Canada as I mentioned in this post https://www.flyertalk.com/forum/29014308-post84.html
Nov 3, 2017, 1:58 pm
#10
Join Date: Dec 2007
Location: Earth
Programs: AA - EXP 1MM, Marriott/SPG Plat, Hilton Gold, BA, DL, TWA Royal Ambassador
Posts: 309
Gotta love the word "perception" in the description for the Head of Global Pricing!
https://jobs.avios.com/jobs/vacancy/...e-90a96704ebf0
https://jobs.avios.com/jobs/vacancy/...e-90a96704ebf0
Nov 4, 2017, 1:01 am
#13
Join Date: Nov 2004
Programs: BA GGL, LH FTL
Posts: 3,578
Airline business is highly transactional. Dynamic pricing fits with that strategy.
Nov 4, 2017, 10:49 am
#14
Join Date: May 2014
Posts: 411
A couple of interesting links from Googling "Avios Dynamic Pricing" (from 2016).
https://developer.avios.com/docs/product_pricing
An introduction for "Partners" looking to utilise the facility. "Pay with Avios Dynamic Discount Pricing Service allows Partners to setup discount prices which are dynamic in nature" sounds like it will be dynamic discounting, presumably to drive volumes when default pricing is not competitive (or misses the chance to drive loyalty or price-discriminate). Also refers to "default pricing points" which will therefore seemingly remain.
https://jobs.avios.com/jobs/vacancy/...e-90a96704ebf0
Job description with responsibility for this. Motivation "to best maximise margin and the satisfaction of members to drive engagement", is a bit more double-edged.
https://developer.avios.com/docs/product_pricing
An introduction for "Partners" looking to utilise the facility. "Pay with Avios Dynamic Discount Pricing Service allows Partners to setup discount prices which are dynamic in nature" sounds like it will be dynamic discounting, presumably to drive volumes when default pricing is not competitive (or misses the chance to drive loyalty or price-discriminate). Also refers to "default pricing points" which will therefore seemingly remain.
https://jobs.avios.com/jobs/vacancy/...e-90a96704ebf0
Job description with responsibility for this. Motivation "to best maximise margin and the satisfaction of members to drive engagement", is a bit more double-edged.
Nov 4, 2017, 3:35 pm
#15
Join Date: Mar 2007
Posts: 4,974
I dont disagree, but airlines still have minimum BIS miles etc as yet another hurdle for "loyalty benefits" since even if you spend $20K on a first class one-time ticket they still dont really consider you a great customer. You may get more miles, but not the status. Yet another reason why the lower cost carriers are going to eat the legacy lunches. When price rules all, the legacy carriers will not be able to keep up.