Atmos Rewards Partner Award Booking Fee Increasing To $20 (From $12.50)

They also stopped allowing most partner award changes and require cancelling and rebooking with payment of new partner booking fee.

Fees, fees, fees. Very European airline of them. It's actually a mistake, because it's the one area of parity that DL/UA/AA have - no fees, just use your miles. Makes them seem second tier. An extra $7.50 is not driving CC sign-ups except for real power users.

I'm not sure why you're not strongly against this on principle, not based on how it affects you personally. Normally you call out the companies much more strongly than you did here over crap like this. The thing is... when it's glossed over by people like you and other bloggers, other airlines get the idea and implement it as well. Guess what? Other credit cards don't have the partner booking fee waiver, so when American or someone else implements it - then YOU ARE affected! It'll be too late then b/c the airlines are much monkey see, monkey do.

Again, Ben let's 'em slide by with some ripoff fee since it drives him more credit card buiness. In reality, it is a BIG deal, and it's yet another reason that Alaska is leading the race to the bottom.

I really appreciate how AS tries to deflect the macro-economic pressures away from its best customers (Atmos elites and Summit card holders) by raising fees that are easily avoided (like partner award booking fee and checked baggage fees) rather than increasing base fares or devaluing the award chart. Thank you!

@ Johnny -- I totally hear you, and to be clear, my lack of objection isn't just that I don't have to pay the fee. I have similar feelings about the Aeroplan and Lifemiles fees, which I do have to pay.

Ultimately I look for programs that deliver value in terms of outsized redemption opportunities. What's funny is that Aeroplan, Atmos Rewards, and Lifemiles, all have these fees, yet they're all programs committed to actually offering outsized values on redemptions. I of course understand the math has to work as well, because these redemptions come at a cost.

Let me contrast those programs to ones that don't have fees, like Delta SkyMiles. Talk about a program where outsized opportunities are a lot more limited. Should I be more on the team of liking Delta SkyMiles because they don't have the fees but have high redemption rates, or liking Alaska Atmos Rewards because they do have fees, but have reasonable redemption rates?

Or let me give another example, with a program that does actually deliver value. When I want to fly from Miami to Tampa, I can either redeem 4,500 Atmos Rewards points, or 7,500 AAdvantage miles. The former is a better value for me than the latter, even if I had to pay the partner booking fee. So should I slam Alaska for the fee, while ignoring the 3,000 points savings, or what?

It's no big deal only if you click on the link so Ben can get a referral on a credit card that allows you to avoid the fee. For the rest of us, it's a huge deal.

@Gene said:
"Again, Ben let's 'em slide by...Alaska is leading the race to the bottom."

I'm sure AS didn't bother to contact Lucky to ask his opinion on how they set their fees and if you think AS is leading the race to the bottom among the airlines, you REALLY don't get out enough.

@Johnny said:
"...when it's glossed over by people like you and other bloggers, other airlines get the idea and implement it as well."

Lucky writes great content and is the hardest workin' man among the rabble of P&M bloggers but, even so, I'm the decision makers have better things to do with their time than read the scribblings of a bunch of self-interested bloggers and that goes double for their grumbling commenters. The airlines don't need any help at all figuring out new and creative ways to screw over their customers

@ bo -- That's not what I'm saying. My point is that even after factoring in the $20 fee, you're often going to get a much better deal through Atmos Rewards than through other programs. You have to factor in the overall redemption value, including the points requirements, the cash outlay, flexibility offered by tickets, etc.

@ Gene -- You really think Alaska is leading the race to the bottom? Like, you think ahead of Delta? You don't think that's a bit hyperbolic?

@ Peter_ -- In fairness, there was no parity before this change, so whether the fee is $12.50 or $20, Atmos Rewards is at a disadvantage. But you have to view that in the overall context of the value offered by redemptions.

Also, regarding European airlines, there's a big difference between a $12.50-20 fee, and $1,000+ in carrier imposed surcharges.

I have to agree. I have the card, so I'm immune (for now). But generally, this sets a very bad precedent and the fee is high. To pay $20 for a short haul flight that sometimes sells for around $40 or $50 is absurd.
Junk fee as Ben put it, but there should be more pushback/negative coverage.

I’m curious how you deal with this in terms of travel insurance? I try to put all airfare and hotels on the CSR. Obviously I don’t love that with Alaska awards, since I have the Alaska credit card too, but I want the CSR’s travel insurance, especially since I have my hotels booked with that too.

Next stop - goodbye distance based partner awards. Kicking myself for wasting valuable credit space for signing up for an Atmos card earlier this year

Dude, you really have no clue. I know my stuff from many millions of miles of travelling. Alaksa is masterfully fooling everyone as they rip off their passengers. It is truly impressive how they have pulled the wool over everyone's eyes. Wake up and smell the coffee, dude.

Honestly, I think the changes in the last 24-36 months by Alaska have been far worse than any changes by Delta over that same period.

i think the existence of the fee also partly has to do with dissuading serial booking/cancelation cycles - presumably there's some backend cost for issuing the ticket that becomes deadweight loss if the user cancels, especially repeatedly (that said, i suspect the current fee is probably sufficient for these purposes, so the increase is probably driven by the factors discussed in the article)

I will agree with the hyperbolic part. I think Delta's horrible changes over the past 15 years have numbed everyone to the point where they don't accurately see the Alaska changes for how terrible they truely are.

I view it as a cancellation charge equivalent - just even worse because it’s upfront. $20 upfront to Alaska versus $75 to cancel a FlyingBlue award or CAD$150 to cancel Aeroplan (unless you do the trick of changing to flexible and then cancelling and then it’s CAD$100 for the change).

I also think there is a psychological difference between $12.50 and $20. $20 starts to feel more like real money.

Either way, I doubt it’s really going to drive credit card sign ups. So it’s just a money grab.

And Atmos can have huge fees. BA flights via Atmos from JFK are often 45k / ~$1000 fees versus AA 57.5k/ ~$750 fees.

It’s been a great program for AA short haul bookings though.

I appreciate that the fee can help their economics work, but didn't Alaska devalued miles anyway on short haul AA awards?

https://liveandletsfly.com/alaska-airlines-atmos-american-airlines-awards/

Effectively, another Atmos devaluation. Forcing people into the premium credit card. Yes, I have the card, and I am Titanium -- and still think this is another slap in the face to customers

This fee has always struck me as shady, as if there is an extra cost for AS to issue partner airline award tickets. Those partner airlines don’t charge their customers extra when booking AS award flights. Disappointing to see AS doubling down on this practice.

Given the AA award limitations on partner airlines just implemented, this is combining to to a pretty significant devaluation.

The partner booking fee increase to $20 will impact the value on AA domestic short haul 4.5K redemptions, and other domestic partner awards. The math won't be as favorable for flyers in the future. For international long haul business class, the $20 booking fee won't make much of a dent. Surely the AS Atmos taxes and fees are still lower than fuel surcharges charged by some of the foreign airlines.

Not sure this makes sense. If what you say is true, wouldn't it make more sense to apply a cancellation fee? Instead of a partner award booking fee?

I am done with Alaska. Yesterday, my son needed 2000 miles xfered for a ticket. What a surprise that it cost $45! $20 miles cost, $25 service fee...their computers had to work so hard.
Seldom can I find AA flights that in the past were majorly populated in the FF lists. Former AS MVP75k and current lifetime platinum with AA.
I agree with others that mileage game has gone to hell and paying cash can be better. Best flights.
Alas, I have 1.2 mm miles to try and spend.

Total BS fee that’s becoming even more egregious. Look, airlines pay their IT PSS provider on a PPB (per pax boarded) basis. So regardless if a booking is created and subsequently canceled, it costs AS nothing to service beyond minor IT conveyances. It’s just a cash grab, pure and simple. A 60% increase is absurd.

Then don’t book w them Gene. Simple solution. As for me I get great value booking AA awards with Atmos and don’t mind paying a small fee. Similar to how I use Flying Blue to book domestic Delta awards. Even with fees it is a much better value

BTW all businesses are raising prices and fees. Get over it instead of acting so outraged. I have 8 million butt in seat miles since mid 80s so have seen the good and bad of all programs.

The "pearl clutching" by people on blogs anytime there is a change that, God forbid, makes them pay a little more or doesn't let their miles (which many of you get only from OPM travel) go as far is frankly pathetic. These are businesses, not charities. They can do whatever they want. Your option is to not fly them but, good luck finding a better overall domestic program than Alaska.

Look I don't want to pay any more than I have to but accept that costs go up. Also, the point inflation with all the sign up fees and credit card miles are driving this. Finally, jet fuel is much more expensive. I suspect this is the tip of the iceberg you will see from programs around the world over the next year or so. Then you have the push to cut exchange fees in Congress (which fund all your benefits).

Frankly, the "glory days" are over. Use the points and miles you have to get the best value but whining about change or that you aren't getting as good a deal as before will get you nowhere!

As they are also more and more offering free wifi, that value of the Summit card has become less. So while I don’t love the fee, I know the card regained some value that was no longer there.

Your 1.2 million Atmos miles will take you and a friend to Asia and back just once in Business class at prevailing Atmos pricing. Gone just like that.

Although I am not a fan of the fee keep in mind that you are redeeming points for it. Furthermore, the fee shows the priorities of the company. Not to redeem partner rewards on their airline and to get their credit card.

Wow, I wasn't expecting all this hate in the comments. I do agree that Alaska MP has gone downhill since the HA integration, and still benefits from a halo effect from bloggers. How are people spending their Atmos -- Condor and AA? CX, QR, JAL and Finn awards impossible to find. All you see are BA awards with their outrangous taxes. I miss when you could find QR saver awards on Alaska.

This sucks!! Keep in mind this is on top of USA TSA fees so a roundtrip AWARD now costs $52.50 per person just to fly to…Iowa, etc… obviously I’m thankful for the relative ease of earning points through cards but when you have to pay fees to redeem them, it begins to deflate the purpose.

Only use I get from Alaska miles is redeeming for domestic AA flights.