CEO Blog

Written by Ravindra Bhagwanani on . Posted in News

In many programs, the value of upgrade awards is at least questionable – but Etihad has just taken this doubt to new levels: After a branding of its fare categories, Etihad Guest members can now upgrade to Business Class by purchasing a ticket at the lowest fare category, Sale. But doing so doesn’t cost you just “a bit” more than redeeming your miles straight away for a Business Class award flight: For instance, a one-way upgrade from London to Abu Dhabi would cost 181,705 miles in conjunction with such purchased ticket in the Sale fare category. Costs for redeeming a Business Class award ticket start, however, at 62,500 miles – provided you are lucky to find a ticket at that price under their dynamic pricing system. But even with their award prices running an average of double the lowest prices displayed, these new upgrade prices still don’t make any sense. Yes, sometimes the pricing logic of airlines is kind of hard to understand…