United Moves Toward Dynamic Pricing for Loyalty Seats
United is moving to a form of “dynamic pricing” for frequent flyer point redemption. The new system will be based on such factors as supply and demand and time of year. The change will be implemented starting Nov. 15 of this year. The strategy will enable the carrier to move award prices upward when demand is high for a particular flight and lower prices when there are more seats available. The new system is in contrast to the traditional method of tiered booking where seats are priced into specific blocks available to consumers. Under the previous system, a traveler might pay 25,000 miles for a standard domestic roundtrip economy ticket no matter the demand. Dynamic pricing would allow that price to float up or down demanding on inventory. Other legacy carriers have already moved in this direction so that by the end of the year only American Airlines will retain it.