Ugh: Aeroplan Devalues United Airlines Redemptions With No Access To Extra Space
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 Canad 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
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