American AAdvantage “Totally Dynamic” Award Pricing Coming 2023

Earlier I wrote about main American AAdvantage program modifications coming in 2023. There’s one matter I didn’t tackle within the earlier put up, as I wished to put in writing about it individually, on condition that it doubtlessly has main implications.

American’s award pricing will go totally dynamic

On the web page outlining the AAdvantage program modifications, American introduced a (theoretically) main change to award pricing:

Introducing totally dynamic mileage awards

In 2023, award journey on American turns into totally dynamic with a brand new, simplified award chart.

American AAdvantage is introducing dynamic award pricing

As you may see, the main points listed below are very restricted. Right here’s all we all know as of now:

  • These modifications are taking place in some unspecified time in the future in 2023, although we don’t know when
  • This solely impacts award redemptions for journey on American, and never for journey on companion airways
  • American pricing can be “totally dynamic”
  • American may have a “simplified award chart”
  • American will remove the idea of MileSAAver and AAnytime award ranges
  • American will proceed to supply final seat availability on awards
Count on AAdvantage award pricing to alter in 2023

What might this appear like? Ought to we panic?

Some is likely to be stunned to listen to this, however I’m not immediately panicking, and am not essentially assuming that is going to be horrible. Don’t get me mistaken, it’s in all probability not good, however I’m not satisfied that loads will change both?

Initially, the excellent news is that these modifications solely apply to journey on American, and to not journey on companion airways. One of the best ways to redeem American miles is on companion airways, and that award pricing isn’t going totally dynamic. So not like Delta SkyMiles, there’s no indication that American AAdvantage goes to be punitive with companion awards only for giggles.

I discover it fascinating how American says that award pricing can be going “totally dynamic,” and on the similar time says that there can be a “simplified award chart.” As a lot as I’d like to clutch my pearls and declare that American eliminating MileSAAver and AAnytime award pricing is unhealthy information… have you ever seen the present state of American’s award pricing?

The truth is that the AAdvantage award chart for journey on American doesn’t actually inform you a complete lot about how a lot you’ll pay when redeeming miles on American. That’s as a result of a overwhelming majority of American awards are already priced dynamically, both beneath or above present award pricing.

For instance, beneath is American’s financial system class award chart for journey originating in the USA.

AAdvantage award chart

Then beneath is the calendar displaying the precise pricing between Miami and Los Angeles. As you may see, normally at the very least one flight every day is cheaper than the bottom value listed.

AAdvantage award calendar

As one other instance, beneath is American’s enterprise class award chart for journey originating in the USA

AAdvantage award chart

Then beneath is the calendar displaying the precise nonstop pricing between New York and Tel Aviv. Whereas the very best AAnytime Stage 2 price is 155,000 miles, award pricing on this market for a lot of months is 180,000-300,000 miles, which no indicators of even the very best revealed award price.

AAdvantage award calendar

If the award chart has no resemblance to precise award pricing and what you may count on to pay, then is there even a degree to the award chart? I’d argue not.

There are two methods American might go along with these modifications in 2023:

  • American might basically simply be extra clear within the sense that it’ll now not have an award chart that doesn’t replicate what persons are at present paying, since award pricing is already dynamic
  • American may very well be going the route of Delta SkyMiles, and basically pegging every mile to 1 cent towards the price of a ticket

Personally I believe the previous is extra probably than the latter, however solely time will inform. Why do I imagine that? As a result of if pricing have been strictly tied to the income price of a ticket, American wouldn’t even hassle with having a “simplified award chart.”

I don’t essentially suppose the implications can be large

Backside line

American AAdvantage is anticipated to introduce “totally dynamic” award pricing in 2023, and also will introduce a “simplified award chart.” Whereas that sounds scary, American already has dynamic award pricing, and the award chart doesn’t really replicate how a lot most individuals pay for award tickets.

I are likely to suppose that for all sensible functions, American already has dynamic award pricing and doesn’t even have a helpful award chart for journey by itself flights, so I don’t essentially view this as an enormous deal. Solely time will inform how this performs out.

What do you make of those AAdvantage modifications?

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