What is Devaluation?

A devaluation is a worsening of a programme’s redemption terms: the same award costs more miles afterwards, or it stops being bookable at all.

Also called: Programme devaluation.

How it works#

Devaluations are not a malfunction of the system, they are its normal state. Miles are a currency whose issuer sets the purchasing power and has promised nothing about holding it. Most arrive without notice and take effect immediately. That leaves one rule that actually holds: miles are not savings but a balance carrying expiry risk, so they are redeemed soon rather than hoarded.

Not to be confused with#

A devaluation is not the same as mileage expiry: expiry removes the balance itself, while a devaluation leaves the balance in place and simply makes it buy less.

In German#

The German term is Abwertung. German version of this term

Related terms#

• Award chart: An award chart is a published price list stating how many miles an award flight costs in a given region and cabin, independent of the cash price of that flight.
• Dynamic award pricing: Dynamic award pricing is a mileage price tied to the cash fare of a flight, which is why it moves daily instead of sitting in a fixed chart.
• Mileage expiry: Mileage expiry is the loss of a balance when an account shows no activity for a defined period, or when a fixed deadline runs out.

Articles that use this term#

• What happens to my points during a devaluation?
• What is a sweet spot redemption?
• When collecting points isn’t worth it
• What is a point actually worth, and how do you work it out yourself?
• What is the difference between an award chart and dynamic pricing?
• What is the difference between points and miles?