Ouch: Lifemiles Devalues Award Ticket Costs

The avianca lifemiles program is known for being useful for Star Alliance redemptions. Not only does lifemiles often sell miles at an attractive cost, but the program also partners with major transferable points currencies. Unfortunately the value of lifemiles has just decreased a bit, as many award costs have quietly been increased.

The lifemiles program increases award costs by up to 50%

While lifemiles no longer publishes award charts, the program does have consistent pricing between regions for travel on partner airlines, so we always have a sense of what pricing should be like. Unfortunately overnight, many award costs have increased considerably.

For example, up until now, a one-way transatlantic award (between the United States and Europe) booked through lifemiles cost 30,000 miles in economy, 63,000 miles in business class, and 87,000 miles in first class.

Those prices have now been increased to 35,000 miles in economy (a 17% increase), 70,000 miles in business class (an 11% increase), and 130,000 miles in first class (a 50% increase). This applies regardless of which partner you redeem on.

There are similar increases in other regions. For example, a one-way first class award between the mainland United States and North Asia used to cost 90,000 miles, and now costs 120,000 miles (a 33% increase).

Now, there are some regions where costs haven’t gone up. For example, a one-way award between Hawaii and North Asia continues to cost 27,500 miles in economy, 48,000 miles in business class, and 66,000 miles in first class.

My take on lifemiles award pricing changes

It goes without saying that no one likes a devaluation, so of course any and all price increases are an unfortunate development for consumers. To lifemiles’ credit, the program hasn’t had a widespread devaluation in award costs in… well, a very long time. For example, Lufthansa first class awards across the Atlantic have cost 87,000 miles one-way for as long as I can remember.

Furthermore, as you can see, the scale of the increases varies greatly:

• Transatlantic business class awards increasing in cost from 63,000 miles to 70,000 miles doesn’t seem like that huge of an increase, and it’s still basically the best pricing you’ll find in the industry, especially with the lack of carrier imposed surcharges
• Transatlantic first class awards increasing in cost from 87,000 miles to 130,000 miles stings a lot more, as that’s a huge percentage increase; booking Lufthansa first class with points is now a much better deal through Air Canada Aeroplan

In terms of my overall take on this devaluation, let me say that the folks behind lifemiles are savvy, and they work hard to offer value. This isn’t like Delta SkyMiles or United MileagePlus, where they don’t have to offer much value on the redemption side, because people will be loyal no matter what. Those programs make devaluations because they can, and because they want to condition people to thinking that miles in their currency are only worth X amount.

In the case of markets outside of Latin America, executives behind lifemiles know that the appeal of the program is good award pricing, so the program has to balance earning a fair profit while offering value. There are still lots of markets where lifemiles offers attractive pricing, though unfortunately Lufthansa first class awards through the program aren’t what they used to be…

Bottom line

The avianca lifemiles program has just increased many award costs without notice. In some cases the changes aren’t that bad (like business class awards across the Atlantic going from 63,000 miles to 70,000 miles), while in other cases the changes sting (like first class awards across the Atlantic going from 87,000 miles to 130,000 miles).

Ultimately the miles & points game is always evolving, and the same sweet spots don’t always stay the same. The lifemiles program had the same award pricing in many markets for a long time, so I can’t say I’m surprised by a devaluation.

What do you make of this lifemiles devaluation?