Now that the new AIR MILES Flights booking platform has been out for a couple of weeks and more people including ourselves have been able to test it out further it does seem like the general consensus is that it is bringing disappointment - at least for our readers that is.
For the first few days after it launched there did appear to be some opportunities where you could get some outsized value for your miles when redeeming for travel. That is, more value than our old valuation of 11 to 15 cents per mile. That seemed to be corrected quickly by AIR MILES and now it seems extremely difficult to find any travel that exceeds that. In fact I conducted about dozen or so random searches and the highest redemption value I came across was 11.1 cents for a flight between Toronto and Winnipeg. All the rest of the searches were in the 7 to 11 cents per mile range. Some of those were with Gold member discounted pricing included! And what we hear from our readers is that they are seeing the same thing.
✈ Rwrds reminder: The new AIR MILES Flights is here! A hands on look at the value of flights in the new program (Part 2) ✈
Here are some of the comments we are hearing:
I just tried searching for flights. I used to use air miles exclusively to visit my dad on the east coast. The cost of those has now tripled. I had enough air miles for 10 flights (accumulated over COVID since I couldn’t travel). Now it’s less than 3. I will be cancelling my BMO air miles world elite card as the only reason I had it was to collect miles to visit my dad. I’m extremely disappointed in this change.
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Also I just used airmiles new system. I said we should use airmiles to go a funeral. Well ... we paid 13500 from Grande Prairie to Brandon return. No funeral discount. “After the fact “ or before either. Fri am early until Sunday noon. Not all fares were available as with cash I was told. I still have tears running down my cheeks.
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So if I have to go on what our readers are telling us, there is disappointment with the new AIR MILES flights platform. However, if I was to take a guess, the majority of AIR MILES members would say they are happy with the changes as they have a couple more opportunities to earn miles (Card linked offers being the big one), receiving elite status with their BMO cards and to actually be able to redeem for flights. The biggest issue AIR MILES had with all members (general Canadians and the enthusiasts) was not being able to find flights. It is the new flexibility, the ability to book flights outside of Canada and to be able to book business and first class fares that have inherently given the program better value. The average Canadian will be happy to see they can actually redeem for a flight between Toronto and Calgary whenever they want. And they may be super excited to see it for as little as 1,200 miles + taxes/fees when they were used to booking at amounts higher than that in the old system (and note that there are still flights higher than that between the two cities) What they don't realize is that with the flight for 1,200 miles they are getting only $80 in value (this is based on some flight searches I actually just did a few days ago). But to them that doesn't matter - they most likely aren't price shopping and are happy they got a flight by using miles. So inherently there is better value in the new flights platform. Mathematically there is not.
You also still have the option to redeem for other travel like hotels and vacation packages via AIR MILES
and there does appear to be some higher value there than for flights. We did a random hotel search prior to writing this and it
had a value of 11.9 cents per mile. While Vacation Packages remain at their flat rate 909 miles for $100 which works out to 11 cents per mile. Also in the past you could easily
get over 20 cents in value for some car rentals so we'll check that out
in the near future as at the moment car rental bookings are unavailable online as AIR MILES works to update that option.
With all this being said I have decided to adjust Rewards Canada's minimum AIR MILES Valuation of 11 cents per mile to 9.5 cents per mile when redeeming for flights. This is a full cent below the flat rate Cash Miles valuation of 10.5 cents. Overall this is unfortunate as AIR MILES had told me there will be more value per mile when I specifically asked them if we would see better value than our previous 11 to 15 cent valuation.
Wrapping it up
If history has taught us anything, when a loyalty program moves to dynamic pricing for award flights it ends up for the most part being a devaluation of that program. Such has been the case around the world as we have seen so many airlines move to dynamic award pricing - it happened to Aeroplan when they first introduced Market Fare reward flights years ago but the relaunch of the program actually seems to have curtailed some of that. In fact, most likely due to carrier surcharges no longer being charged on Aeroplan award tickets there seems to be better value in a lot of their awards tickets - not 100% across the board as there are still some insanely high redemption requirements on some premium class flights but in general the change was big enough that we actually increased our valuation of Aeroplan points earlier this year from 1.2 to 1.5 cents per point. Alas, that does not seem to be the case here with AIR MILES based our own research and from the feedback from our readers.
We'd love to hear your comments on this and if you have conducted any searches on your own to see what values you are seeing. The more data points we have the better we can cover this topic and provide updated valuations of AIR MILES. Let us know in the comments section below.
FYI Here are some but not all of the searches I conducted:
- YYZ-YWG Economy Apr 11 - 15, 2022: 11.1 cents
- PHX- JFK Economy Mar 11 - 14, 2022: 9.9 cents
- YVR-SYD Economy Oct 4 - 18, 2022: 9.85 cents
- YEG-YYZ Economy Jun 11 - 15, 2022: 8.66 cents
- YYZ-YVR Economy Jan 13 -16, 2022: 7.3 cents
- YYZ-LAX Business May 22 - 29, 2022: 11 cents
- YYC-YQR Economy Dec 24 - 27, 2021: 10.6 cents