OPPORTUNITIES FOR OUTSIZE VALUE ARE REMOVED
The fixed prices offered by award charts have the potential to create “sweet spots”, redemptions where the mileage requirement is disproportionately low to the cash fare.
For example, one of the best-value KrisFlyer awards is a Business Class ticket from Singapore to Cape Town, a 13-hour flight which costs just 56,500 miles each way. That same flight could cost more than S$4,000 if purchased with cash.
Dynamic pricing eliminates these opportunities because mileage requirements now track cash fares much more closely. It limits the ability of savvy members to obtain outsize value for their miles, and if taken to the extreme, can turn a frequent flyer programme into a glorified cashback scheme, with no real way to come out on top.
