In late 2022, American AAdvantage announced that it would introduce ”fully dynamic” award pricing, with a ”new, simplified award chart.” This change is now live. There’s no longer an award chart with exact published award costs, and both MilesAAver and AAnytime awards have been eliminated. Despite that, not much is actually changing in practice. Let’s…
Continue reading: American AAdvantage “Fully Dynamic” Award Pricing Now Live
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Ben,
Come on, how long is it going to change to make partner awards dynamic or at least inflated like Delta with no notice?
Cashback is king
ROTFLMAO !
The other day, I stated in this space that if, rather than Hilton Honors, it was World of Hyatt that had replaced continental breakfast in the US with F&B vouchers, self-anointed "travel gurus" would have touted it as a superlative benefit that offers unprecedented 'flexibility' or whatever other fabrication they would have come up with. Furthermore, to hear them describe it or write about it, self-anointed "travel gurus" have unanimously decreed that dynamic award pricing and the associated demise of static award charts automatically spell devaluation -- a verdict that self-anointed "thought leader in travel" expressed quite succinctly a couple of week or so ago:
Dynamic pricing means no longer getting great value for points.
Now read the post here, titled "American AAdvantage “Fully Dynamic” Award Pricing Now Live", and the one on the same subject over at VWFT, titled "7 Quick Takeaways From American Airlines Eliminating “Saver” Award Travel", and see how suddenly the standards by which they judged other programs that transitioned to dynamic award pricing no longer apply. Back then, there were no caveats. The judgement was swift and harsh: "With its adoption of dynamic award pricing, program XYZ has been irremediably gutted. It's no longer possible to great value for points !"
Now, it's like, "Nothing to see here. Move along..."
Well, to make a short story even shorter, I will simply quote a commenter at VFTW, who succinctly captured the hypocrisy and double standard (emphasis added):
Let’s see, when other airlines went fully dynamic, it was all the uproar.
This chart is useless…there will be prices below and above it. It’s a huge devAAluAAtion, Even less transparent than other airlines.-- Jason, April 5, 2023 at 5:26 pm, VFTW Comments Section
AMEN! We provide the facts, you decide!
@ ffI -- It's anyone's guess when American will make partner award changes. In fairness, the airline hasn't made partner award changes in several years, and when the program has made these changes, it has consistently been with notice. That's not the case with MileagePlus or SkyMiles.
Do keep in mind that partner award redemptions aren't particularly costly for most airlines, as the reimbursement rates are pretty low. Meanwhile for AAdvantage awards on American, there's a much bigger back and forth between the loyalty folks and the revenue management folks.
@ DCS -- I can't speak for other bloggers, but if you'd like to address anything I said, I'm open to it. And if World of Hyatt replaced breakfast with a food & beverage credit that wouldn't be enough to cover breakfast I absolutely wouldn't spin it as a positive.
How do these changes affect Business Extra Awards? Right now you need saver availability to book a Plan Ahead Award.
@ P S -- Nothing changes, because the fare buckets used for saver awards continue to be available. So just as you can book AA awards through partner programs, you can continue to book Business Extra awards.
At @Ben: I stated my piece already. It speaks for itself. I will just quote what you wrote (predicted would be more accurate) right after Bonvoy announced the plan to transition to dynamic award pricing:
Marriott Bonvoy will be introducing dynamic award pricing as of March 2022. With this, the program will eliminate award charts, and instead use flexible redemption rates, with no minimum or maximum number of points required for redemptions.
There’s no way to sugarcoat it — for those of us who like maximizing our points by redeeming for aspirational Category 8 properties, this will almost certainly be terrible news. The only question is how high Marriott’s award pricing will get.
That is mindset I alluded to. I just did a quick search to find what I just quoted above but I am sure that you can tell us what you wrote when other programs transitioned to dynamic award pricing. My bet would be that there was no attempt to find a sliver lining or make it seem as it was not a big deal (before the actual implementation of the scheme):
Bottom line
American AAdvantage has finally rolled out its new “fully dynamic” award pricing. In practice, not a whole lot has changed as of now. American has transitioned to a new award chart that just shows “starting at” prices, which in no way reflects the actual “starting at” prices. Then again, American’s old award chart also wasn’t useful in telling you how much you’d actually pay for an award.
Fortunately there are no changes to partner award tickets, whether you want to redeem AAdvantage miles on a partner airline, or miles with a partner airline on American.
@ DCS -- I mean, look, you're kind of just yelling into an echo chamber, not actually reading what I wrote, or making any attempt to understand it. Marriott Bonvoy had consistent award pricing when there was an award chart, which is why the changes to dynamic pricing have been bad.
American had an award chart, but didn't actually charge what was on the award chart. That's why the change isn't initially as bad, because the old award chart was meaningless. Marriott Bonvoy's award chart, meanwhile, wasn't meaningless.
@Ben --Please read what I actually wrote.
It may well be that AA's dynamic award pricing changes nothing, at least right now, as you claim, although I would suggest waiting until it's been around for as long as other programs' have been to make bold pronouncements one way or the other. However, like other travel bloggers, you had a dim view of the scheme and the associated demise of award charts. That is my point, which someone else just made again over at VFTW:
Gary must be like a pretzel this morning with the amount of bending he’s doing to spin this as positive. If Delta did this, the article would have the complete opposite tone.
-- 305, April 6, 2023 at 6:27 am, VFTW Comments Section
Note that the comment speaks to the mindset, which you unquestionably shared (unless you no longer do as of today), and not about the whether or not AA's dynamic award pricing is brutal, which I cannot speak because I have no idea how it'll work in practice. I can tell you precisely how HH's dynamic award pricing works because I have thoroughly modeled. The same thing may be doable some day for AA's scheme, but not today.
Ben, AA award visibility on partner platforms is problematic. Could you write an article dedicated to 1) finding AA award space on partner platforms and 2) how to book it? For example, Alaska or Qantas might show availability on a particular date, flight, and cabin class but BA doesn't . . . but you want to use BA points. That would be a huge help. Thanks for the consideration.
Don't decide whether this change is positive or negative until after you've seen a Marriott property at 150k points per night.
Ben: "Do keep in mind that partner award redemptions aren't particularly costly for most airlines, as the reimbursement rates are pretty low."
What do you estimate the range of reimbursement to be? For instance, it is 80k miles one way to fly North America - Japan in JAL F. Is that $2k? $1k?
No doubt partner redemptions are the best value. Why hasn't AA changed that (I hope it doesn't!) like DL. Why? Is it AA's aging IT?
"now everything is bolded!"
Thank god, no way I could have understood your ranting without it being bolded.
I believe they said partner devalues wouldn’t hit this year, so it’s definitely coming early 2024. Spend your AA points!
It’s interesting that even though partner award reimbursement rates are fairly low, United charges more for Star Alliance awards vs. on United metal. What gives? I think partner awards in general for all airlines is in flux, and will evolve in near future to close out most sweet spot opportunities. There are way too many UA/AA/DL loyalty members chasing too many international partners premium cabin awards that it becomes unsustainable for these non-US airlines.
I do not go by @DVS, but who says that there cannot be cross talk, one the best weapons for exposing "collusion"...?
The lively exchange of opinions delivers an enjoyable morning read. The key takeaway is that with dynamic pricing, awards become less predictable and maybe -or maybe not- less valuable.
We will see what the future brings for for AAdvantage - AA may offer continue to be great award redemption or it may go in the direction of Hilton's "Premium Room Awards" which are prohibitively expensive even if though they suggest award availability.
We will see what the future brings for for AAdvantage - AA may offer continue to be great award redemption or it may go in the direction of Hilton's "Premium Room Awards" which are prohibitively expensive even if though they suggest award availability.
Well, the only problem with that statement which, if true, would mean a truly massive devaluation of AA awards is that Hilton Honors standard awards are NOT dynamically priced; only "premiumawards are (see here: http://bit.ly/40XpJMu ). That would be akin to AA getting rid of their MilesAAver awards and offering only dynamically priced AAnytime. It would be a virtual bloodbath.
“Fortunately there are no changes to partner award tickets”
Disagree. For those of us who don’t live in hub cities where AA’s partners fly, like MIA, the fact that award itineraries cannot be changed once ticketed, will be a significant devaluation more often than not.
Finding a connecting flight on AA in saver inventory to meet a partner flight has become increasingly difficult. The way I usually book these itineraries is by ticketing the partner flight first and adding the AA segments when they open up, weeks or months later. Because the new rules prohibit changes to ticketed itineraries, this will almost never be possible now (unless partner award inventory goes back into the system immediately, which is unlikely).
This is horrible Ben, absolutely trash from AA.
Look at MIA-GRU for example, every single date is now 150k-300k one way in business! that is insane!
MIA-LHR now it is 141k to 291k throughout the schedule. There are 6 dates on the entire year for 57.5k.
This is a massive devaluation. Pure trash from AA.
@ frank -- That sounds very similar to what award pricing has been for a very long time, no? It's not like AA had saver award space readily available before...
It’s been that way for years. Any award to Europe for 57.5 is inevitably is through LHR on BA with a fuel surcharge. To fly AA metal has meant paying at least 2x or more likely 3x or 4x - for at least the last 5 years.
United charging more for partner awards v United metal is only true with respect to the equivalent of Saver awards. The cost of an anytime Business award on United metal is generally much, much higher.
It is sort of interesting to me how AA has shaped expectations by theoretically having a set award for chart for Saver awards but making such awards so rare for so long (while simultaneously introducing some dynamic pricing with web special awards) such that when it actually gets rid of that award chart and moves to fully dynamic pricing, it’s seen as not that big of a deal.
I suspect that AA may go the route of AS when it makes changes to partner awards.
Just booked an all business class/first class on BA and AA, with 4 segments for 57.5 from Oslo to Savannah. Yep, paying fuel surcharges, but cheaper than paying coach. Just booked on AA 15 minutes ago.
Disappointing to say the least. We put off a trip to Australia in March of 20 due to Covid, booked business round trip for 175k each (350k round trip). Getting ready to try again next year and every award starting on 1/1/24 is 900k roundtrip!
I certainly hope they will put out some web specials - I guess time will tell.
It’s time to use miles and then free agency. Good for retires who can buy tickets from EU to US and ROW lower priced than flights ex US. End of mileage game is in sight. 3-4 years max, all good things will come to an end. AA will kill the product they invented.
The problem with dynamic pricing is the mileage cost is now directly tied to the ticket price. So high fare tickets will inevitably have astronomical costs with no ceiling. This definitely devalues points.
Ben, thanks for the analysis here. I think one major consequence will be including an AA leg on a partner award. I have numerous award flights booked originating in major cities across the US but can’t for the life of me find the AA flight at the right (former sAAVer award) level to combine and actually get to those gateway cities. What is the best way to look for those bc on AA you won’t be able to tell what is inventoried for those former rates? BA seems to be a good resource but open to other suggestions. Thanks
The new chart is pretty much useless. Show South Pacific/Asia from 95K J. Issue is J to Australia is now 450K one way, 900K RT. So you need to spend $900K on your CC to get a ticket. A rebate card seems better at this point.
If you have a ticketed partner only flight, are you are saying that AA later add an AA segment to the gateway and reticket?
What I seem to find is that if AA goes to reticket the reward has to be available all over again (this was not the case in the past).
Keep in mind when American reconfigures their planes with 50 or 70 something business class seats there will be opportunities for upgrades at a lower price.
I called a few times last year and was able to add 2 aa segments to a One World award. For the love of my life they wouldn’t budge this spring I called several times. I have BOM-DOH-JFK and wanted to add AA legs to get home to Houston. They wouldn’t budge . Saying Qatar has no availability on AA. Makes no sense.
This is the relatively new way airlines are making money from their loyalty programs. By charging dynamic pricing then they can charge more points or miles for the busy peak times of flights or days of travel. It is just another form of devaluation.
Dear John: Other than stupid ad hominem, got anything informative to contribute to the discussion or specific beef with anything I wrote that I can actually address?
If not, then why not just canning it and getting lost ?
I was looking at US-India awards in Business. Nothing available below 300,000 miles per person one way.