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MileagePlus Premier Qualifying Dollar (PQD) Requirement Discussion [ARCHIVE]

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Old Jun 18, 2013, 7:18 am
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Last edit by: iluv2fly
Please read these sources before posting in this thread:
If you have calculated the PQDs for a trip at less than 80% of the total cost, you are very likely doing something wrong. Have you made sure to include the International Surcharge (YQ)? Have you read all of the materials linked above, and the frequently made points listed below?

Specific Unanswered Questions
Please limit these to specific, technical questions about the implementation of the PQD program.
  • Will there be a calculator that shows PQD, and will that calculator be accurate?
  • What exactly will count toward PQD?
    United states:
    Base fare and carrier-imposed surcharges
    Flights flown by United, United Express, or Copa Airlines
    Flights operated by a Star Alliance® or a MileagePlus partner airline and issued on a United ticket (ticket number starting with 016)
    Economy Plus purchases

    will count towards PQD.

    Thus:
    • The amount of co-pay when using miles to upgrade..
    • The cost of PQMs/RDMs purchased when using the premier / award accelerator..
    • The value of ETCs (or is it considered a discount from the fare?). (still uncertainty on this since prelim PQDs appeared to include) -Note: the Mileage plus site indicates ETC's count towards PQD (12/16/13 imgonnafly)
    • The face value e-certs and travel vouchers.. (still uncertainty on this since prelim PQDs appeared to include)
    • The cost of a paid upgrade..
    • An extra seat purchase (such as for a customer of size or a musical instrument); it does not presently count toward PQM.
    • Change fees.
    will not count toward PQD.
  • How will PQD be determined for UA metal segments without 016 stock ticket?
  • What happens if I depart in December and return in January?
    Just like PQM, PQD for the applicable part of fare for the segment is credited based on the departure date (year) of the segment flown. Segment fares are calculated using standard rules of the past. For the case cited there would be PQD credited in DEC 2013 (no value) and PQD applied to 2014 applicable to 2014 and 2015 status renewal.
  • How will UA evaluate the address issue for the PQD exemption?
  • It is not clear how the timing of achieving the minimum PQD requirement will impact earning RPUs and GPUs. Examples:
    • If someone crosses 75K PQM in say April, but doesn't hit $7500 PQD until December by which time has accrued 200K PQM, will he/she get 10 RPUs all at once? (and 10 GPUs assuming $10k PQD in December)
    • Do only 1Ks/GSs earn additional RPUs by flying beyond the 100k mark?
    • If a 1K crosses the 100,000 PQM mark in January 201x, the $10,000 PQD mark on December 31 201x, and ends up flying a total of 200,000 PQMs for the year 201x, how many RPUs / GPUs will be earned?
    • Will Platinums earn 2 RPUs when crossing the 75k mark but none at incremental levels thereafter (e.g. a Plat who flies 100k EQMs, but does not meet the 1K spend, would *not* earn two more RPUs)?
  • How does IRROPs affect earning of PQDs?
FMP (Frequently Made Points)
The following points have been made repeatedly in this thread (please feel free to add more concise points):
  • You might not be hitting the PQD minimums as easily as you think you are, given exceptions, taxes, and the existence of cheap fares.
  • It is possible for leisure travelers and even some business travelers to average well under 10cpm. This doesn't just affect "leisure 1Ks" and people on the edge of categories.
  • Presidential Plus card members (exempted from Silver/Gold/Plat PQD requirements) are most likely exempted because the FlexPQM program would complicate matters.
  • Manufacturing $25,000 spend might not actually be so hard. There's a whole forum on it.
  • The exceptions don't really make sense where there is a revenue-sharing joint venture in place, such as with LH on TATL routes.
  • Leaving UA for AA over objections to dollar-based status may be futile because all the majors will likely go to this model with the possible exception of the AS program which allows you to bank your DL and AA miles into one account (DL has already).
  • UA is tracking spend on UA metal now.
  • YQ, also known as the "international surcharge," is a carrier-imposed surcharge and is included in PQD.
Related Threads
Moderator's Note:

2014 version of this thread can be found here:


http://www.flyertalk.com/forum/united-airlines-mileageplus/1536552-mileageplus-premier-qualifying-dollar-pqd-requirement-discussion-thread-2014-a-15.html

iluv2fly
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MileagePlus Premier Qualifying Dollar (PQD) Requirement Discussion [ARCHIVE]

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Old Jun 19, 2013, 8:34 pm
  #1501  
 
Join Date: Apr 2009
Programs: UA 1K, AF FB silver
Posts: 211
Originally Posted by IainC
UA will shut down (entirely likely given the mismanagement by the CO CEOs that have taken control of UA) before this happens.
Good! It seems that's what they would deserve

Originally Posted by jasondc
Despite being "partners" in an alliance, UA would always rather have you on their metal if that's an option. Same with all the other carriers. That's to say, they are all still competitors. To a greatly reduced extent if you're on any of the JV carriers such as LH or NH, but still- UA makes more money by having you on their metal. And these new rules reinforce that.
Yeah, that is right... then perhaps people like me, traveling internationally, should start using more often those carriers, where you get better food, free alcohol, better service, instead of counting how many $ I give UA...

Originally Posted by IFlyHarder
I am shocked, nay mortified, that United would require an expenditure of $ to be considered a loyal, elite customer.
Take away the elite for a moment... FFP exist to value loyalty, which means that customers would be willing to spend more money on a carrier to get some perks. I am not mortified, I am disgusted. Forcing a customer to look at whether the ticket has been issued with 019 digits? That is pathetic and disgusting. They should be mortified for having proposed this.

Last edited by iluv2fly; Jun 19, 2013 at 8:53 pm Reason: merge
easte is offline  
Old Jun 19, 2013, 8:50 pm
  #1502  
Moderator, Omni, Omni/PR, Omni/Games, FlyerTalk Posting Legend
 
Join Date: Oct 2004
Location: Between DCA and IAD
Programs: UA 1K MM; Hilton Diamond
Posts: 67,106
Originally Posted by Vulcan
I predict the big problem for UA will come on 2/1/15 when MP members who think they are safely 1K (or PP, Gold, Silver), find out they are not.
I would not want to be answering the phones at UA on this day.
Assuming UA gives a PQD tracker--which they've said they will--I think the bigger problem will be on 4/23/15 when UA finds some "mistake" and claws back PQD from thousands of elites who thought they were secure based on the display of the tracker. And there's precedent for that!

Originally Posted by LEONIDES
My company issues Amex cards to its employees. I am required to charge 100% of my reimbursable travel on my Amex cards. We don't get to keep the points - these corporate Amex cards come with no points. And no, there is no way that what I purchase on my personal credit card comes to $25,000 per year. No way.
Somewhat OT, but most Amex corporate cards are eligible for employee-purchased Membership Rewards membership. Obviously, your employer may say that's not allowed (and the annual fee does get billed to the account and would be visible to your employer, to whom Amex supplies the full transaction data), but Amex themselves allow it as a policy. You should ask your employer if you can pay for Membership Rewards, anyway.

Last edited by iluv2fly; Jun 19, 2013 at 9:12 pm Reason: merge
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Old Jun 19, 2013, 8:56 pm
  #1503  
 
Join Date: Jun 2008
Posts: 4,187
Originally Posted by easte
Take away the elite for a moment... FFP exist to value loyalty, which means that customers would be willing to spend more money on a carrier to get some perks.
Logical fallacy there. FFP customers will pick between the various airlines, all other things being equal, the one which values their loyalty. It is a big leap from there, IMO, to assume that a customer will pick an airline based on membership in an FFP when things are not equal - viz. when the FFP airline she/he is a member of offers a high fare or lower quality service. Some how many passengers, and the airline industry itself, forget the base purpose of FFP plans.

Originally Posted by easte
I am not mortified, I am disgusted. Forcing a customer to look at whether the ticket has been issued with 019 digits? That is pathetic and disgusting. They should be mortified for having proposed this.
Prefix of 016, not 019. And one need not look at the entire ticket number, only the prefix -- or simply the airline's name in the "Issued by" box.
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Old Jun 19, 2013, 9:16 pm
  #1504  
 
Join Date: Apr 2009
Programs: UA 1K, AF FB silver
Posts: 211
Originally Posted by Indelaware
Prefix of 016, not 019. And one need not look at the entire ticket number, only the prefix -- or simply the airline's name in the "Issued by" box.
Whatever... it can be 123 or 456... I think people have, at least I have more important and meaningful things to do in my life than checking the prefix of a ticket. I am not paid (and don't pay my co-workers) to check the prefix of their tickets. UA may also decide to ask their premier customers to bark when they buy their flights... I think all this is becoming unreasonable burden on customers, and their priorities.
easte is offline  
Old Jun 19, 2013, 9:20 pm
  #1505  
 
Join Date: Jul 2002
Location: Virginia, USA
Posts: 4,506
Because there still seems to be some confusion: The Presidential Plus card, which apparently is exempt from all spending requirements up to the Platinum level (at least until 2015), is an old CO-branded card that is no longer available but is still valid. It is not a Mileage Plus Explorer card. Many CO loyalists still have it and it provides some benefits that at one time were very CO-specific, such as Flex PQMs up to the Platinum level and President's (United) Club membership. And for whatever reason, it will provide some new, although possibly temporary, benefits for its holders.
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Old Jun 19, 2013, 9:23 pm
  #1506  
 
Join Date: Apr 2009
Programs: UA 1K, AF FB silver
Posts: 211
Originally Posted by mkrecek
I'm not sure. Maybe it's not as bad as I thought :

FARE INFORMATION
Fare Breakdown
Airfare: 774.00 USD
U.S. Federal Transportation Tax: 34.40
September 11th Security Fee: 5.00
International Surcharge: 516.00
U.S. Customs User Fee: 5.50
U.S. Immigration User Fee: 7.00
U.S. APHIS User Fee: 5.00
Germany Airport Security Charge: 17.40
Germany Passenger Service Charge: 51.80
Finland Security Charge: 5.60
Finland Passenger Fee: 11.00
U.S. Passenger Facility Charge: 7.50
Per Person Total: 1,440.20
USD
eTicket Total: 1,440.20
USD

The airfare you paid on this itinerary totals: 774.00 USD
The taxes, fees, and surcharges paid total: 666.20 USD

In regards to Less Elites = more upgrades: As I mentioned to UA, who says they won't sell more upgrades for cheap.
People, do we realize that we are ending up caring about the Finland Security Charges for 5.6 USD or PQD to guarantee our status?
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Old Jun 19, 2013, 9:25 pm
  #1507  
 
Join Date: Jul 2004
Location: HNL
Programs: United Gold
Posts: 1,581
Originally Posted by JetAway
Because there still seems to be some confusion: The Presidential Plus card, which apparently is exempt from all spending requirements up to the Platinum level (at least until 2015), is an old CO-branded card that is no longer available but is still valid. It is not a Mileage Plus Explorer card. Many CO loyalists still have it and it provides some benefits that at one time were very CO-specific, such as Flex PQMs up to the Platinum level and President's (United) Club membership. And for whatever reason, it will provide some new, although possibly temporary, benefits for its holders.
Almost switched to the 1.5mile/dollar card after having a friendly chat with one of the credit card representatives at a kiosk outside the United Club at EWR. So glad I didn't. Hopefully I'll still be glad after 2015, but who knows.
love_to_travel is offline  
Old Jun 19, 2013, 9:29 pm
  #1508  
 
Join Date: May 2001
Location: Portland, OR, USA
Programs: UA 1K 3 Million/ex-many year GS, AA PLT/2 Mil, AS MVPG, HH Dia, Starwood Life Plat, Hertz PC
Posts: 1,401
I wonder if they really mean to exclude PP from earning more RPUs if they fly another 25K miles but don't qualify as 1K for dollar reasons. It seems odd since RPUs are a perq of PP so I would think that being a PP should entitle one to earn an additional RPU pair for each 25K flown (even though you wouldn't get any GPUs since you didn't make 1K). Seems as likely to be simply sloppy thinking on UAs part as they wrote the FAQ as a plan. Overall, I think this is a reasonable change in principle but that a lot of the details are screwy or not fully fleshed out. One can argue if the 1K target should be 10K or 8K I suppose but the concept that one should hit a cpm number that is somewhere near UAs average really doesn't seem unreasonable. However, since most elite benefits really don't cost UA much reducing the size of the elite pool at each level only really makes sense if it either truly saves UA material amounts of money (not clear it does since they sell upgrades out from under elites freely) or if it allows them to create an elite program, particularly at the 1K level, that is more desirable and therefore that attracts more high value business. If it is the second reason, though, then they really have to do something to make 1K worthwhile which at least so far they haven't. Heck - I didn't even think it was worth making the effort to keep GS this year after having been on since the start. And lately, enough money to guarantee my requal at 1K has gone from UA to AS who provides an all around more pleasant experience flying PDX-DC than UA. So it remains to be seen what is really motivating UA to make these changes.

Full disclosure: I am a 3MM and so 1K in any case for now (UA promises being what they are) so I don't have an immediate horse in this race. However, in all my 1K years I would always have qual'd under the proposed revenue rules so I think I can comment.
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Old Jun 19, 2013, 9:29 pm
  #1509  
 
Join Date: Jul 2002
Location: Virginia, USA
Posts: 4,506
Originally Posted by love_to_travel
Almost switched to the 1.5mile/dollar card after having a friendly chat with one of the credit card representatives at a kiosk outside the United Club at EWR. So glad I didn't. Hopefully I'll still be glad after 2015, but who knows.
Yea, I kept it for the Club membership but now, whenever I pull that little sucker out of my wallet I can't help but smile. It seems to be a lucky charm.
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Old Jun 19, 2013, 9:53 pm
  #1510  
 
Join Date: Dec 2004
Location: SEA
Programs: Million Miles achieved | 2017 Delta Platinum, United NADA, Global Entry, PreCheck, NEXUS
Posts: 1,295
Originally Posted by charliechill
This is unfortunate for me. This is the first year I have tried for status ever, and by the end of the year I'll be Gold with UA, all on my own dime and all with leisure travel. I had to choose one airline to be loyal to, and I was excited and pleased with the thought of a long relationship with UA (even with all its faults). Sadly, now with the PQD idea, I just can't justify any loyalty. I'll go back to doing what I did last year and the years before that--find the cheapest fare on any airline and forget about loyalty or status.

I live in a DL hub. Last year I flew UA once, and by the end of this year I'll have six flights on UA because I saw value in trying to achieve status. Now that the value is gone, I can only assume I'll go back to how I did things in previous years, and fly UA less frequently. Tell me how this is good business, please.
+1
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Old Jun 19, 2013, 10:12 pm
  #1511  
 
Join Date: Aug 2012
Location: Charlottesville
Programs: UA Gold, VX Gold, AA PLT, DL Gold, MR Gold, HH Diamond, Hertz 5* Gold
Posts: 469
Originally Posted by Bear4Asian

Originally Posted by charliechill
This is unfortunate for me. This is the first year I have tried for status ever, and by the end of the year I'll be Gold with UA, all on my own dime and all with leisure travel. I had to choose one airline to be loyal to, and I was excited and pleased with the thought of a long relationship with UA (even with all its faults). Sadly, now with the PQD idea, I just can't justify any loyalty. I'll go back to doing what I did last year and the years before that--find the cheapest fare on any airline and forget about loyalty or status.

I live in a DL hub. Last year I flew UA once, and by the end of this year I'll have six flights on UA because I saw value in trying to achieve status. Now that the value is gone, I can only assume I'll go back to how I did things in previous years, and fly UA less frequently. Tell me how this is good business, please.
+1
charliechill is not the only one. This is my second year with status.

I got Silver last year after switching from AC in the middle of the year on the recommendation of the only one of my friends who flies UA. (The rest of my friends refuse to fly UA.) If I had credited all my 2012 flights to MP, I would have gotten Gold in 2012.

I just got Gold last week and am gearing up for Plat or 1K in 2013.

When the new Silver Line opens on the DC Metro, I will have access to DCA and the new US/AA hub there. VX flies IAD-SFO/LAX for the same price (or less) as UA. B6 flies IAD-BOS for a lot less than UA. US has reasonable non-stop A fares to PHX. Alaska flies non-stop to SEA/PDX. And WN just introduced a non-stop route to DEN!

I would appreciate if UA Insider could ask SMI/J why I should bother with UA beyond Gold (so I can feel like a human being when I travel to places like RAP, CHS, SLC, BOI, GJT, ABQ, ORD, etc.) - and I can get Gold based on base airfare spend alone (I audited my records this evening), ignoring the MP Explorer card I have (and might payoff and close if I'm not flying UA as much any more).

Last edited by vandrei; Jun 19, 2013 at 11:07 pm
vandrei is offline  
Old Jun 19, 2013, 10:15 pm
  #1512  
nsx
Moderator: Southwest Airlines, Capital One
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Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,618
I'm curious about the $25k spend option. Normally all the benefit of that spend would flow to Chase, with Chase paying United 0.8 cents per mile or whatever their negotiated rate is. Does this change mean that Chase will give United a bonus, a threshold payment if you will, for customers who exceed $25k in a calendar year?

I realize that I'm asking for speculation, whether informed or not.
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Old Jun 19, 2013, 10:17 pm
  #1513  
 
Join Date: Jun 2005
Location: NYC and SFO
Programs: UA 1MM (former 1K, Delta Platinum))
Posts: 1,244
Originally Posted by exerda
I think the bigger problem will be on 4/23/15 when UA finds some "mistake" and claws back PQD from thousands of elites who thought they were secure based on the display of the tracker.
Going over this year's flights, every future EWR-SFO round trip has repriced on me. For example, I purchased one trip at 389.00 + 21.80 = 410.80, which now breaks down as 361.86 + 48.94 = 410.80. Several more were 344.00 + 21.80 = 365.80, and are now 320.00 + 45.80 = 365.80.

My best guess is that when taxes go up between purchase and departure, United fixes the fare to compensate, rather than asking us to pony up more money. Will this effect drag people under, who were just making the spend according to their planning? Has United realized this could be an issue yet?

(I realize that this is becoming a write-only thread except for diehards. I pay eGullet $50 a year and I'd gladly pay flyertalk $50 a year, for some pro services like "thread on one page" to facilitate this-thread-only searches. I tried tuning SiteSucker to just fetch the pages of this thread, but gave up, not worth it.)
Syzygies is offline  
Old Jun 19, 2013, 10:19 pm
  #1514  
 
Join Date: Aug 2011
Programs: UA 1K
Posts: 8,634
Originally Posted by nsx
I'm curious about the $25k spend option. Normally all the benefit of that spend would flow to Chase, with Chase paying United 0.8 cents per mile or whatever their negotiated rate is. Does this change mean that Chase will give United a bonus, a threshold payment if you will, for customers who exceed $25k in a calendar year?

I realize that I'm asking for speculation, whether informed or not.
There's a 10,000 mile bonus on the Explorer card at $25k. Not sure what the economics of that are, but they probably involve Chase paying UA a bunch of money.
mgcsinc is offline  
Old Jun 19, 2013, 10:22 pm
  #1515  
 
Join Date: Jun 2011
Location: San Francisco, CA
Posts: 251
Originally Posted by Syzygies
Going over this year's flights, every future EWR-SFO round trip has repriced on me. For example, I purchased one trip at 389.00 + 21.80 = 410.80, which now breaks down as 361.86 + 48.94 = 410.80. Several more were 344.00 + 21.80 = 365.80, and are now 320.00 + 45.80 = 365.80.

My best guess is that when taxes go up between purchase and departure, United fixes the fare to compensate, rather than asking us to pony up more money. Will this effect drag people under, who were just making the spend according to their planning? Has United realized this could be an issue yet?

(I realize that this is becoming a write-only thread except for diehards. I pay eGullet $50 a year and I'd gladly pay flyertalk $50 a year, for some pro services like "thread on one page" to facilitate this-thread-only searches. I tried tuning SiteSucker to just fetch the pages of this thread, but gave up, not worth it.)
That's just a limitation of the website. It always shows less taxes at the point where you buy the ticket and get the confirmation compared to the formal eTicket and receipt that arrives shortly thereafter. I always wait for the eTicket and receipt to put the fare/taxes into my tracking spreadsheet.
scottish_colin is offline  


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