If you thought the elimination of close-in award bookings fees on American (to match Delta and United) was simply a gift, you have not been paying attention. Have you seen what “AAnytime” awards are suddenly pricing at?
American Airlines Eliminates Close-In Booking Fees On AAdvantage Awards
Earlier this week, American Airlines eliminated the pesky $75 close-in booking fees for non-elites. You’ll no longer have to drop an extra $75 per ticket if you are booking travel within 21 days of departure.
The move matches what Delta did years ago and United did last November. United may have cut the cash close-in booking fee, but added a mileage surcharge for close-in bookings ranging from 2,000 to 3,500 miles. I’m still fuming about that, since elites were exempted from the prior fee but everyone now pays the close-in booking mileage booking fee.
American is walking a tightrope between dynamic revenue pricing and fixed priced awards. Unlike Delta and United, it still publishes an award chart for so-called “saver” and partner awards. The removal of the close-in booking fee did not accompany the removal of the award chart…thankfully. And to American’s credit, its so-called “web specials” do occasionally offer tremendous value under saver prices.
But in case you missed it, the other shoe has already dropped
Exponential Inflation On “AAnytime” Awards
More and more at Award Expert, my award consulting firm, we are booking AAnytime awards, American’s pricier awards which offer greater access to American flights.
Up until earlier this week, these awards were within reason. Many, however, have more than doubled in price overnight.
For example, I’ve got a client in Philadelphia who is very particular about travel dates and flying nonstop. They need to go to Rome and we’ve been waiting for them to make a decision on an upcoming trip.
After pricing at 175K one-way for weeks, a one-way award in business class between Philadelphia and Rome is now pricing at 400K each way!
So let’s see. We save $75 but now pay 400K miles instead of 175K…nice.
#deal_of_the_century
These numbers are even worse than Delta, though I expect both Delta and United to soon start marching lock step.
By the way, that 800K trip to Rome is about $7,000 round-trip, meaning AA is valuing its miles at less than a penny each. That’s pathetic.
CONCLUSION
We see it this week with American Airlines but we’ve seen this a general trend: the next frontier of devaluations is not on so-called “saver” awards (though those are going up in price too). Instead, more flexible “standard” awards have essentially quadrupled in price over the last four years….that’s a huge devaluation that again calls into the question the value of loyalty.
As for American Airlines, while it is great that last-minute saver awards will no longer carry the $75 fee, nothing ever comes for free. I expect we’ll also see AA eliminate award charts altogether later this year, leaving Alaska Airlines as the lone holdout.
> Read More: American Airlines’ Devaluation Without A Devaluation
image: American Airlines
I’m shocked that they could be so evil as Delta. See? Here’s my shocked face:
😐 “Uhhhh…!”
Yeah I’m burning up my points quickly. No loyalty to any of these greedy pricks anymore.
I have been loyal to American for most of my life. Their cancelation of first class seats by plane change on a long time booked overseas flight is horrible. Now miles increase. What is the incentive to continue to use their credit card? They can only push people so far.
@Matthew — Even 350,000 is a ripoff, so the price is the same in my book (one I would never pay).
It feels like US airlines are using miles-redemptions as a clearinghouse for seats that they expect to fly empty.
I was a strong believer in loyalty to an airline and in my case my chosen airline was American Airlines. I even obtained one of their credit cards. I have now realized that it is very difficult to get elite status on these airlines. I traveled on 2 international trips ( London and the DR) and 4 domestic trips and still could not qualify for even their lowest elite status. Furthermore, when I recently redeem my miles for a trip to London, I paid an additional 200 dollars in fees and used a good amount of miles. So a free ticket is not really free. I am done been loyal to any airline.
I finally hit Platinum with AA, so i decided this year to make an effort to use them more as i split 4 to 5 Airlines based on Price. This makes me feel like im on Delta in section you paid to little so we dont like you, yeah you have flown with us 20 times round trip this year but you bought the cheap tickets. If they dont care about my 48 to 60 round trips a year who does.
It’s why I dumped AA years ago, even as a 2MM miler. Been loving free agency, International Carriers for their business class, and mostly SWA domestically. At 400K per one way redemption, what’s the point of loyalty….there is none.
The only loyalty left is to yourself it seems. Fly the best you can for you from point A to point B and screw the idea that anyone actually cares about you.
I think the point of loyalty is the 40k one way redemptions in j for an international flight 3 weeks out (saver award, saw it about a week ago). Sure it sucks if you look for the least practical possible redemption. There are still tons of good value to be had.
SHOCKED! Not really, we all knew it was coming.
More seats in premium cabins for non-revs now. Quite frankly, The Legacy carriers can Kiss my Grits.
Don’t worry, Alaska will be next and soon we will all talk over a Negroni and Cigar about the old days of flying premium cabins as the legacy carriers scratch their heads and wonder why their elites are diminishing and the premium cabins are full of entry level flight attendants going to London for the weekend and sitting in 4A.
And the credit card companies will wonder why no one is buying into their scam any longer.
Actually Stuart, those premium seats are being taken by upgrades. I work for a major and fly non-rev … the odds of my flying up front are basically zero. For example, noon flight this past Friday DFW-PHL had over 60 upgrades for 2 available seats in first. My connect over to Europe had no seats in business available even for upgrades, of which there were several. Now if you’re talking a midweek flight to LHR that has 50-60 premium seats, pretty sure there will be some open for the flight attendant that has the next 7 days off but anytime I think about going somewhere I’m lucky if coach has some available … even our trusty red-eyes (or non-rev specials as we like to call them) are full. Don’t get me wrong, I am very thankful for the opportunities I had to visit places all over the globe for essentially taxes and small fees … and I’d be happy to join you for that Negroni (I prefer Spaten dunkel poured from the tap in Munich) and talk about the old days of flying … have I got some non-rev stories.
I e been an ExP on AA for several years. I still have 3 Systemwide upgrades left over from 2019. Couldnt even use them! Yeah I had 40 upgrades in 2019 hr mostly short hops like BOS to CLT. Never on cross country flights. Only good thing left about EP is the same day flight change.
Need me to burn them for you? 😉
I’ve been EP for the past 10 years. The program has devalued to the point of irrelevance. I got exactly 4 upgrades in 88k miles flown last year. Yes, it makes me Platnum Pro w only 12K to EP. Why waste my time?? I am no longer allowed to work w the EP agent who has booked all of my trips for all of that time, SWU’s are useless- I cannot find any flights where I can use them. I’ve suffered thru repeated cancellations, flights so over sold there were 35+ on the upgrade list and 60 stand-by , lost luggage and truly terrible Customer Service. They are rude, and not willing to help in any situation. I’m a million miler. I be had it. I quit. I am a free agent. Doug Parker and his cronies have ruined a once outstanding airline. Whoever takes over after him, will have a huge job trying to lure any of us back.
When they sell miles, you use a certain valuation based on current pricing for award tickets. Can they just switch the pricing anytime? Isnt this a bait and switch? If so, why buy miles from airlines at all?
This is the case, but it’s not bait and switch because the space is subject to availability the 30 pages of terms and conditions none of us ever read. You’ve surmised correctly, however, you no longer should buy miles on speculation of an award you may want to take but rather if you’re just a few short and need a few thousand to complete an award.
The idiots at the top of the airlines have forgotten these are LOYALTY PROGRAMS!! And EVERY time they jerk us around it makes us HATE them even more. They have lost my loyalty. I now vote Everytime I purchase a ticket with my $$$ don’t care which airline I fly.
Has this impacted partner award pricing like united?
Airline award pricing shenanigans are the best thing that ever happened to the cruise and rental car industry! If you don’t like what the airlines have been up to, put on your deck shoes and vote with your feet or grab a rental car and go for a ride instead of being taken for a ride.
I have flown American for years, back when the predecessor was called US Airways., Loved then BTW. But stayed with American through the cancelled flights, delays, and unhappy employees. For almost 10 Years. 140 flights a year and over 100k spent on the American MasterCard a year. I did this for the rewards for flights for our vacations. I called American to find a flight to anywhere in Europe business class between March and August.l for a reasonable amount of miles. It only existed not on British airways. However the fee was as much as I could but the ticket outright for. I saw the writing on the wall after I told them several times I was going elsewhere for my air travel. Not a call email or anything when I called and cancelled my cards. I have sense moved to Delta, got status but I see points there are pretty high as well. So as your article already states. There is no perks anymore. So cheap, nonstop and most convenient is how I will be going for the next 10. WAKE UP AIRLINES.
Why is this any different then any other form from car rentals and hotels. High season cost more. To bad the article never mentions the deals on shoulder or low season flying.
Didn’t some blog tell us just a few weeks ago that eliminating award charts would be “good for consumers”? Can’t remember which blog that was …
Oh wait, found it! https://liveandletsfly.boardingarea.com/2019/12/22/american-airlines-shows-advantages-of-eliminating-award-charts/
Anyone booking AAnytime awards is already setting their miles on fire. Nothing to see here.
A relatively un-noticed side effect of this AA dynamic award pricing is that AA seems to be releasing FAR less award space to partners (BA for instance).
I use Avios all the time to fly short haul from CLT – with no issues finding availability on most days to really any short haul route.
Now? Since the shift to dynamic? Space using Avios is few and far between – few dates open, and those that are open are for 5am or 11pm departures.
I find it amusingly bad how AA has decided to take a sledgehammer to literally its only profit center. They’ve fundamentally changed (and ruined) the only part of their company where they actually make money.
As a CLT-based flyer, I want to root for AA, but their current operation and leadership makes that insanely hard to do.
Good point. I’ve written about this for premium cabins, but also see it for economy class now too.
Yeah, it’s really bad. Even worse to the Caribbean. We use avios for CLT-GCM 3-4x per year, and availability has drained to near non-existent in the last few weeks. Of course we want the nonstop flights due to lesser Avios costs and bc we fly with a lap infant, so direct is better.
Have seen limited options via MIA, but most are the 10pm to MIA; overnight and the early morning MIA-XXX Caribbean destination.
As before said: BUNCH OF CROOKS, (for I was criticized by other fellow Platinums). Now maybe they understand.
I’ve left comments about this a few times on another travel blog but yours is the first post I’ve seen to highlight this change. This is a far greater devaluation than an updated award chart as they have just thrown it out the window rather than raising the pricing. I don’t get how they explain charging these award prices while still publishing an (irrelevant). award chart.
My wife and I have switched our credit cards because of this. We accumulate several million miles a year this way and overnight American basically made those miles worthless to us. We only use them for business class to Europe. Supposedly, AA went to some kind of dynamic pricing model. Nobody is redeeming any miles at these prices. I suspect prices will go down but by that time, all the places you want to stay will be booked by Europeans who don’t have to get screwed in this way. Whether it takes 1 or 3 years for the genius MBAs to admit they blew it and they’re losing revenue on selling miles is the question I have. Dynamic pricing is ok so long as you start at a reasonable estimate. 800k for a roundtrip is idiotic. Even AA’s workers who I spoke with said those prices were a waste. This devaluation is a so massive to almost constitute a fraud on Citibank card holders. Imagine a currency that was devalued close to 100% overnight? That’s what they’ve done.