Dynamic pricing has gone live on United Airlines awards booked via Air Canada Aeroplan and the new pricing represents a steep devaluation with no corresponding benefit, at least not yet.
United Airlines Redemptions Go Dynamic On Aeroplan: Worse Than Expected
Yesterday, I predicted we’d see across-the-board price increases on United Airlines redemptions via Aeroplan, specifically stating, “My guess is that prices will rise exponentially on some routes with the outsized value of 6K short-haul economy or 60K transatlantic business class redemptions no more than a vestige of the past.”
That is indeed the case: short-haul United awards have gone from 6K in economy class and 15K in business class to 10K in economy class and a whopping 30K in business class. Transatlantic awards have gone from 60K to 80K and United flights between South America and the US have gone from 60K to 100K in business class.
Interestingly, you can travel from London to São Paulo in business class for the same price (on United) as you can from Newark to São Paulo…at least for now.
Even worse? Aeroplan does not appear to have access to any additional United space…at least not yet. United releases a lot more space to its own members (also dynamically priced) and there was a hint that Air Canada would have access to this space as well. Nope, at least not yet.
Thus, this devaluation could hardly be worse: pricing has gone way up on saver awards and there is no access to additional inventory.
As I said yesterday, I suspect the reason for this change was “pressure on the part of United to equalize redemption rates” and I stand by that assessment (the alternative theory being that reimbursement rates went way up).
Other Dynamic Pricing
Etihad awards have also gone dynamic. The good news is that business class awards on Eithad are once again bookable. The bad news is the rates are terrible. For example, traveling from Abu Dhabi to London will cost you over 108K miles:
The same award is 42.5K AA miles in business class.
Canaidan carriers like Calm Air, Canadian North, and Provincial Airlines have also gone dynamic.
I thought about booking a trip on Canadian North…the Canadian Arctic is a part of the world I have never been to and would love to…but I just don’t have the time this year and so that trip will have to be at a later point at a higher price.
CONCLUSION
The devaluation of United awards booked with Aeroplan miles is steeper than I thought since there appears to be no access to additional award space. That’s quite unfortunate and makes United redemptions more attractive on United since United charges no change or cancellation fees. It also makes the overall Aeroplan program less valuable.
But here’s the thing (because one of you already asked). I’m not calling for a boycott of Air Canada because at least it gave us several weeks of notice…that’s the only thing I ask for in a loyalty program beyond not sugarcoating negative changes as positive.
What are your thoughts on the negative Aeroplan developments?
image: United Airlines
@ Matthew — Isn’t everything about this game worse than expected these days? We are going tback to hard-core churning — annual fees will ONLY be paid if there is a SUB — plus, we are never buying points from anyone (stopped that a while ago), and we are never paying to enter a lounge, including never paying a $500-$700 AF to enter “free” unless there is a SUB. It will be like the good old days when we were young and broke. The gate area should be pretty cozy these days with free wifi/5G cellular service and with a majority of the customers stuffing there faces in the lounges. I am done with it all. The ONLY thing left worth bothering with is Hyatt Globalist and InterContinental Royal Ambassador, but those will be ruined at any time with no notice. The nouveau rich are the gate area dwellers….
There is nothing “dynamic” about the new Canadian North pricing. Iqaluit-Ottawa went from 10k to 18.1k and Iqaluit to Montreal went from 10k to 17.7k, with no additional availability and no variation in award prices throughout the next 11 months.
Ouch. Thank you for this datapoint.
Another one- Toronto/Inuvik was 12.5k Monday and is now 21k. Second flight in itinerary is Canadian North. ☹️
‘and there was a hint that Air Canad would have access to this space as well. Nope, at least not yet.’
Canad ?? You foool
Foool?
Elbows up LOL