American Airlines puts an end to dynamic pricing is shaking up its loyalty program by phasing out its traditional frequent flyer award chart and implementing dynamic pricing for mileage redemptions. The new system will be called “Flight Awards,” and American will publish starting levels for how many frequent flyer miles are likely required to redeem for a ticket in certain regions. This shift means that redemption levels will now be based on supply and demand, with prices fluctuating accordingly.
American Airlines puts an end to dynamic pricing
This is not the first time that American has introduced dynamic pricing for award tickets; they did so in 2019, and it has since become the product that their members have gravitated towards. According to Chris Isaac, American’s director of loyalty, this category required the same number or fewer miles than the awards that were set in the chart “up to 85% of the time over the last few years.”
Henry Harteveldt, the founder of Atmosphere Research Group, a travel industry consulting firm, says that the new system will align the award chart with where American is today. “To tell [travelers] that an award ticket is going to cost them a certain number of miles is no longer accurate,” he says.
The move to dynamic pricing for mileage redemptions comes after American announced in December that it would be getting rid of different redemption categories, MileSAAver and AAnytime awards, which have set minimum rates. Instead, the Flight Awards chart will serve as a reference guide, showing starting levels for the number of frequent flyer miles required to redeem for a ticket in certain regions. It’s worth noting that award tickets on American and other airlines can also vary based on the time of year.
American Airlines puts an end to dynamic pricing
Effects on Flyers
Overall, this shift in American’s loyalty program is a big deal for frequent flyers, as it marks a departure from the traditional award chart system. While to American Airlines puts an end to dynamic pricing, dynamic pricing can be frustrating for some travelers, it also means that award tickets may be easier to book during off-peak travel times. As always, it’s essential to stay up to date with changes to loyalty programs and read the fine print to ensure that you’re getting the best deal possible.
