Knowledge Hub · Glossary
Dynamic Pricing
Dynamic pricing is when a program ties the points cost of a reward to the cash price instead of a fixed chart. As the cash fare rises and falls with demand, so does the number of points you need. It generally makes points worth a flatter, lower rate and removes most of the bargains a chart would create.
What it means in practice
With dynamic pricing, a flight or hotel does not have one award price. It has a different price every day, moving with the cash rate. On peak dates you can pay enormous point totals for an ordinary seat or room, while off peak dates can still be reasonable.
The upside is there is almost always award space, since any cash seat can be bought with points. The downside is the ceiling on value gets lower, because the program is pricing your points at a rate it controls rather than letting a chart leave gaps.
Example
A hotel room might cost 25,000 points on a quiet weeknight and 70,000 points the night a big event hits town, tracking the cash rate the whole way.
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