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 look at the details.
In this post:
American AAdvantage’s new award chart
Let’s rip the band-aid off. Below is American’s much feared new award chart, reflecting dynamic award pricing.
As a point of comparison, below is American’s old award chart, reflecting different tiers of award pricing.
Let me note that these award charts are specifically for travel on American, and not for travel on partner airlines (which I’ll talk more about below).
On the surface the new chart is much less transparent. It only lists “starting at” prices, rather than actual prices you could expect to pay. But I’m not sure that represents much of a change compared to what we were previously used to.
The reality is that the old AAdvantage award chart for travel on American didn’t really tell you a whole lot about how much you’d pay when redeeming miles on American. That’s because a vast majority of American awards were already priced dynamically, either below or above the published award pricing.
Heck, the new award chart isn’t useful either, because the “starting at” prices aren’t the prices at which awards start.
For example, the chart claims that one-way economy awards within the United States start at 7,500 miles, but you can still book some awards for just 6,000 miles.
The chart claims that one-way business class awards from the United States to South America start at 90,000 miles, but you can still book some awards for significantly less than that.
So yeah, American’s old award chart wasn’t very useful, and American’s new award chart is even less useful, and doesn’t reflect reality. Why even bother having an award chart? It looks like not much has changed in practice when it comes to award pricing, though the chart suggests otherwise.
No more itinerary changes are allowed
American used to have three kinds of awards — Web Special, MilesAAver, and AAnytime. All of these award types have been replaced by Flight Awards, which is the name of American’s new award concept.
Under the old system, a vast majority of awards for the past couple of years have priced as Web Saver awards, which already followed dynamic pricing.
Those awards could be canceled and redeposited for free, but you couldn’t change a segment of an itinerary. That’s because this kind of award pricing was based on your origin and destination. It’s no different than when paying cash — a Tampa to Dallas to Los Angeles itinerary will cost you a different amount than a Dallas to Los Angeles itinerary, and the latter could be more expensive.
This same policy of no changes now applies to all awards for travel exclusively on American. If you’re just flying on American, then you can cancel and redeposit your award at no cost, but you can’t just change one segment of it. You can, however, change American segments if they’re part of an award that also includes travel on partner airlines.
Nothing changes to AAdvantage partner awards
The great news is that these changes only apply to travel on American, and not to travel on partner airlines. The best way to redeem American miles is on partner airlines, and that award pricing isn’t going fully dynamic.
So unlike Delta SkyMiles, there’s no indication that American AAdvantage is going to be punitive with partner awards just for giggles. The same partner award chart is published, as before. Here’s to hoping that doesn’t change anytime soon…
Nothing changes to American awards booked through partners
Sometimes there’s value in redeeming partner airline points currencies for travel on American, either because the pricing is good, or because those points are easiest to rack up. For example, people might want to redeem Alaska Mileage Plan miles or British Airways Executive Club Avios for travel on American.
Fortunately nothing is changing there. While American is technically no longer marketing the concept of “saver” awards (which would be needed for a partner airline to have access to the space), the inventory isn’t going anywhere.
So you can continue to redeem partner miles on American, and nothing major should be changing. After all, that same saver inventory would be required if you wanted to book an award through AAdvantage that included travel on American and a partner airline.
My take on these AAdvantage changes
In practice, as of now, these AAdvantage changes mean very little. American has transitioned from one award chart to another, and neither chart reflects the reality of what award pricing actually is:
- American’s old award chart didn’t list all the award prices you could expect to pay, and didn’t account for Web Special award pricing
- American’s new award chart has higher “starting at” prices than you’ll actually find in practice
The new award chart is less transparent in theory, but the old award chart was kind of useless anyway, so there’s not really a major difference.
The good news is that nothing is changing to partner awards — you can keep redeeming AAdvantage miles on partner airlines at the same rate as before, and you can keep redeeming miles with partner programs on American in the same way as before.
Now, in theory it goes without saying that these changes are more concerning. American’s new “starting at” prices are in many cases much higher than the current prices that you’ll find. Is that a mistake, or a reflection of an imminent devaluation?
What I do have to give AAdvantage credit for is that it’s the only one of the “big three” US loyalty program that actually has industry leading partner award redemption rates. MileagePlus can’t compete with Aeroplan and LifeMiles when it comes to award pricing, while SkyMiles is almost useless for most partner awards.
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.
What do you make of these AAdvantage changes?
I was looking at US-India awards in Business. Nothing available below 300,000 miles per person one way.
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.
@DCS used harp on and on and on about being attending two(!) Ivy League colleges. Make of that what you will..
@DCS also says "G'day" at the end of her rants. Every Antipodean knows that salutation belongs at the start, not the end of a rant. Make of that what you will..
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 ?
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.
@Randy
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.
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...
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
Use ExpertFlyer and look for Z/U/T class inventory
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.
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.
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.
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.
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.
“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...
“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).
@ Diego Dave -- AA segments can be changed if they're part of partner awards.
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).
@Ben
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.
I believe they said partner devalues wouldn’t hit this year, so it’s definitely coming early 2024. Spend your AA points!
Don't decide whether this change is positive or negative until after you've seen a Marriott property at 150k points per night.
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.
Thank you, bucket is looking rather empty
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.
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...
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:
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):
AMEN! We provide the facts, you decide!
@ 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.
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:
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:
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):
now everything is bolded!
@ 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...
@ 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...
@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:
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.
"... I cannot speak to..."
@DVS
Calm down. No cross talk about other blogs on here.
I do not go by @DVS, but who says that there cannot be cross talk, one the best weapons for exposing "collusion"...?
"now everything is bolded!"
Thank god, no way I could have understood your ranting without it being bolded.
Know anything about HTML? I thought so...
G'day.
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.
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...
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.
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
@ 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...
@ 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.
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?
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.
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...
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.