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

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Old Jun 18, 2013, 7:18 am
FlyerTalk Forums Expert How-Tos and Guides
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
Moderator, UA
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MileagePlus Premier Qualifying Dollar (PQD) Requirement Discussion [ARCHIVE]

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Old Jun 19, 2013, 3:30 pm
  #1381  
 
Join Date: Jan 2010
Location: EWR, NJ
Programs: UA 2 MM, UA 1K
Posts: 663
Originally Posted by bloodyeyeballs
More than 1300 posts in a day about this?!?
Maybe I am being too nonchalant as I easily hit 10K spend, but isn't it difficult to fly 100K miles on UA metal without spending 10K?

I mean this comes out to $100 spent per 1000 EQM's flown. With the exception of a few deep discounted international tickets and transcons, I would find it difficult to do 100K miles on less than $10K.

I realize this weeds out some mileage runners and segment runners, but isn't this really a small percentage of those with status?

Disclaimer: I didn't read all 1350 posts, so if this was said and commented on before, please reply with the post numbers.
No, as a leisure traveler, it is very easy to earn over 100K miles and spend considerably less than $10K. I will end the year with 112K miles at a cost of under $7000. 12 trips done for my leisure/vacation. This includes 2 AA flights not included in the totals. Adding them gets me about 142K and under $9000.

When I flew for work I would have had no problem meeting the $ requirements as most of it was business class. Now I buy W fares on long-haul flights to use my GPUs and to get my miles up. I add other trips when I find an interesting fare to a place I want to go.

I have been a loyal CO/US flier for over 30 years. I have the credit card so I will be able to hit Platinum next year but after that, who knows. I will not spend more on fares just to hit Platinum. I may take a few more trips if something is of interest and I'm close to the $ threshold, but that's it.

This mindset that you are either a "kettle", MRer or business traveler funded by work with no problem hitting the 1K bar is tiresome. There are a lot of us who like to fly and do so to get to places we want to visit. And we look for the best fares to do so.
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Old Jun 19, 2013, 3:32 pm
  #1382  
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Location: Northern Calif./Eastern Ida.
Programs: Amethyst Premier Plutonium Medallion
Posts: 20,642
Originally Posted by mgcsinc
That would be incredibly silly nickel-and-diming that would be incongruous with the other Plat benefits.
the benefits that will continue to be eroded? it wont look like nickel and diming when the other benefits are gone, it will look like a good will gesture from UA to give gold/plat/1k a discount

maybe eventually they'll figure out how to actually auction off F and that will come with an elite discount too instead of the inverse right now.


This mindset that you are either a "kettle", MRer or business traveler funded by work with no problem hitting the 1K bar is tiresome. There are a lot of us who like to fly and do so to get to places we want to visit. And we look for the best fares to do so.
well said. i went to KOA on the <$300 deals that were out there. wouldn't have done it if not for a cheap fare, not my problem UA published it and i found it and they are willing to give me credit for it. i'd have taken the trip even without credit for the G fare.
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Old Jun 19, 2013, 3:37 pm
  #1383  
 
Join Date: May 2012
Location: Westchester NY
Programs: UA GS 4+ MM
Posts: 373
Originally Posted by Red_Rob
No official answer, but my guess is basically to "Protect" the value of 1K (i.e. dont give it out like candy with buy ups, Flex EQM's etc).

"In Theory" fewer 1K's means better treatment for existing 1K's. I suspect that wont really pan out in reality though.
IMO, don't think so. Value of 6 GPUs and 4 RPUs is easily in excess of $3,000 and perhaps as high as $8000 (unless, of course, the seat would otherwise go empty or the instruments go unused). So the spend United would have to mandate for a 1K waiver using a Chase credit card is out of reach for most of the public. The PR backlash of mandating $100,000+ annual card spend isn't worth the benefit.
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Old Jun 19, 2013, 3:39 pm
  #1384  
 
Join Date: Nov 2010
Location: DEN
Programs: 2012 Plat-2013 Plat-2014 Silver-2015 GM
Posts: 818
Originally Posted by jlivengo
This is an incentive to attract new flyers, and have silver's purchase E+. Nothing more. In no way will they remove E+ for Gold's and higher. Pure paranoia.
From your keyboard to my eye's, we'll see. Remember, we have a Management group that is scrambling to save their jobs. They need REVENUE. Nothing better than a year-long subscription for E+ with varying costs for each elite level. But, I personally think all this concern is for naught. Reason being, I don't think Smi/J and some of his Executive team will be around to implement it.
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Old Jun 19, 2013, 3:39 pm
  #1385  
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: 67,136
Originally Posted by DaviddesJ
No, they don't. They can add or remove flights, or use larger or smaller planes, to adjust how many seats they want to offer.
There are costs to doing so dynamically enough to actually prevent many empty seats from going out. Aircraft utilization is high at UA, so it's not like they can easily swap a smaller a/c in a few hours before the flight--because that (larger) plane is needed at the next stop for another flight. And don't minimize the issues of poor IT: plane swaps even among similar equipment cause lost seat assignments, with pax calling in or taking more time at the gate (and building ill-will) to get things fixed--these are costs, too.

Now, UA can certainly adjust future schedules more easily than short-term schedules... but no airline ever shrunk its way to profitability, either. @:-)



Originally Posted by DaviddesJ
What's not so profitable is people who are flying to manipulate the system by always choosing longer routes and lowest (or even "mistake" fares).
You're buying into a boogeyman which doesn't exist. The fraction of pax who actually do the majority of their flying on mistake fares and who extensively game the system is very small. You're seeing significant selection bias by observing FT where people who do those things congregate en masse--though even here, you clearly can see they're a minority.
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Old Jun 19, 2013, 3:40 pm
  #1386  
 
Join Date: May 2011
Programs: UA GS, UA 2MM, HH LT Diamond, Bonvoy Titanium
Posts: 1,803
Originally Posted by SEA1K4EVR
I don't do many mileage runs.. I've done a few at the end of the year to top off the account if I need to..most of my travel is either business where I use Concur and have to book the lowest coach fare..or planned personal trips.

I've been a 1K since the late 90s and I don't know what my actual spend has been each year..but I'm pretty sure it's under $10,000 per year and that's including taxes (I estimate $5,000-$8,000..probably on the higher end of that in recent years). Many of my flights are >10 CPM (in reality it'll need to be >~.11 to account for taxes). When I fly internationally 2-3 times per year I always buy W or higher to use GPU's so those are generally at least 10cpm..but I also fly quite a few transcon flights that cost <$400 round trip. If I maximize the routing on those I'll get over 6,000 pqm's reducing cpm by quite a bit.

Those that make it on segments or who fly heavily on shorter routes will have an advantage on the spend requirements. But those like me who mostly fly longer distances will be at a disadvantage.
I got tired of wondering about my situation so I pulled my 2013 records and tallied everything up so I'd have some idea of what these changes really mean to me. Most years I have no international travel (including 2013 YTD)

I was surprised with my YTD completed travel (excludes booked travel not yet completed):

PQS 63.5
PQM 50,961
FARE $10,621
Taxes $1,470
CPM $0.21
Avg Tax 14%

I obviously take a lot of shorter flights Based on the numbers, it looks like the MP changes will not affect me negatively.
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Old Jun 19, 2013, 3:43 pm
  #1387  
 
Join Date: Jan 2006
Location: DEN
Programs: UA 1K (MM), DL, AA, AS, HHonors, SPG, Kimpton, Hyatt, IC PC, Marriott Titanium (LT PLT), Hertz PC
Posts: 7,231
Originally Posted by SEA1K4EVR
I'm going to Boston in a few days. I could have booked SEA-ORD-BOS-ORD-SEA and gotten 5,174 PQM round trip. Instead I booked SEA-IAH-BOS-SFO-SEA which was the same price and I'm getting 6,854 PQM. The fare is a W @$596 ($516 without tax)..so if I went through ORD I'd be right at 10cpm but since I chose IAH/SFO it's going to be 7.5cpm.

The IAH/SFO routings are perfectly legal.. I'm not adding in 6 different stops all over the country.. I'm flying on the same number of flight segments that would be required to get from SEA-BOS (2 each way). If they wanted to discourage it they would simply disallow the IAH/SFO connections and force me to go through ORD, DEN, EWR, or IAH..but they don't.

I get the reason for the change.. miles flown all by itself is not the best indicator of profitability when someone can pay the same fare for 2 different routings with significantly different PQMs. Still, it's disappointing to me and it may make it more difficult or impossible for me to keep earning 1K each year. I'm not going to be irrational about it...if I as a customer no longer meet their standards at the level that I've grown accustomed I'll have to deal with it and explore other options.
I do the same thing all of the time, but it's important to remember that the 7.5 CPM vs. 10 CPM doesn't really mean much in this scenario (at least not to us). You need to fly the longer routings to get to the 100k MQM required for 1K. What UA is telling you is that 100k MQM alone is not enough. You're still going to need to do the longer routings if you want any shot at 1K, but you're also going to need to fly some additional trips OR start flying more expensive fares.

I think that the attitude you express in your last paragraph is the best way to go forward. Figure out what you can do and what you can't do, and make the most of that. Personally, I'll be 1K some years, and a high-mileage Platinum other years. I'm not totally convinced that life as a platinum is going to be all that bad since I won't be the only one impacted by these new rules. Time will tell...
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Old Jun 19, 2013, 3:44 pm
  #1388  
 
Join Date: Aug 2011
Programs: UA 1K
Posts: 8,634
Originally Posted by limey1K
I got tired of wondering about my situation so I pulled my 2013 records and tallied everything up so I'd have some idea of what these changes really mean to me. Most years I have no international travel (including 2013 YTD)

I was surprised with my YTD completed travel (excludes booked travel not yet completed):

PQS 63.5
PQM 50,961
FARE $10,621
Taxes $1,470
CPM $0.21
Avg Tax 14%

I obviously take a lot of shorter flights Based on the numbers, it looks like the MP changes will not affect me negatively.
Folks toward the middle of the country, and those on the coasts who take short flights, have higher average CPM's. The real non-MR, non-codeshare impact is on coastal flyers taking domestic advance-purchase transcons.
mgcsinc is offline  
Old Jun 19, 2013, 3:50 pm
  #1389  
Company Representative, United Airlines
Original Poster
 
Join Date: May 2006
Location: Chicago, Houston, or somewhere in between
Posts: 2,176
Hi everyone,

Here’s an update for you (figured it was better to post this now as opposed to morning, even if we’re close to 5pm CDT ). As I mentioned in my earlier note, while many of your questions fall into the category of ‘more details to come’, here are some questions that I’m able to answer for you right now.

Am I guaranteed 016 ticket stock and PQD if I purchase through United.com?
Yes, if it is an eligible United, United Express, Copa Airlines or MileagePlus partner-operated flight segment.

Will a mixed itinerary count if it is ticketed by OA since that's the first segment but later segments are on United?
...
Do non 016 tickets at least count UA/UA Express segments?
Eligible flight segments operated by United, United Express and Copa Airlines count toward PQD even if on non-016 tickets.

Originally Posted by geofflaredo
i've already purchased two itineraries for 2014. Please tell me that these purchases - both the miles and the dollars -- will count toward the new qualification requirements.
Yes, PQD counts towards the year in which you take the flight. If you booked a PQD eligible ticket in 2013 with a departure date in 2014, you will earn PQDs towards 2014 qualification upon completing each flight segment. This is how PQM and PQS are applied today.

Originally Posted by bdraco
UA Insider: Can we safely assume YQ is considered a carrier imposed surcharge (can't see how it would not be)?
Yes. In 2014, YQ is a ‘carrier-imposed surcharge’ that we currently intend to include in PQDs.

Originally Posted by UA-NYC
Aaron - can we assume that spend on a no-longer-offered, legacy Chase card will count towards the waiver? I.e., the old MP Platinum / Select cards?
Yes, so long as it is a MileagePlus Chase co-branded credit card issued in the United States. That includes cards that are no longer marketed to new customers.

Aaron Goldberg
Sr. Manager – Customer Experience Planning
United Airlines
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Old Jun 19, 2013, 3:53 pm
  #1390  
FlyerTalk Evangelist
 
Join Date: Sep 2008
Location: Jersey Shore/YYZ
Programs: UA 1K, Marriott Plat, Hilton Diamond, Hertz PC
Posts: 12,521
Originally Posted by LAXOGG
Just Premier Platinum from now on......looks like you'll take a major hit!

CPU's 16/25 this year......you'll be lucky to be 5/25 in 2015
RPU"s 5/5 this year.........the most you will get is 2 and they may not clear
GPU's 5/5 this year.........oh darn.....those are gone too!
I know. But no other options, really.
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Old Jun 19, 2013, 3:53 pm
  #1391  
FlyerTalk Evangelist
 
Join Date: Jan 2005
Location: BWI
Programs: AA Gold, HH Diamond, National Emerald Executive, TSA Disparager Gold
Posts: 15,180
Originally Posted by kokonutz
Excellent point.

And there is a larger one, too.

UNITED keeps dicking with its programs. MM qualification and benefits, elite qualification and benefits, fees, etc.

To me, there is way, way too much uncertainty with regard to what the program will be next year or next week to bank on it.

I have no faith that what I 'earn' today will be honored tomorrow.

With that kind of uncertainty one would be quite foolish to go out of their way to be loyal.
Agreed. I noticed they constantly mention "For the 2014 year ..." That tells me that they're going to mess with again next year. Probably late in the year when it's problematic to switch. Again.
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Old Jun 19, 2013, 3:55 pm
  #1392  
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Join Date: Jan 2012
Location: Northern Calif./Eastern Ida.
Programs: Amethyst Premier Plutonium Medallion
Posts: 20,642
Originally Posted by limey1K
I got tired of wondering about my situation so I pulled my 2013 records and tallied everything up so I'd have some idea of what these changes really mean to me. Most years I have no international travel (including 2013 YTD)

I was surprised with my YTD completed travel (excludes booked travel not yet completed):

PQS 63.5
PQM 50,961
FARE $10,621
Taxes $1,470
CPM $0.21
Avg Tax 14%

I obviously take a lot of shorter flights Based on the numbers, it looks like the MP changes will not affect me negatively.
Originally Posted by mgcsinc
Folks toward the middle of the country, and those on the coasts who take short flights, have higher average CPM's. The real non-MR, non-codeshare impact is on coastal flyers taking domestic advance-purchase transcons.
I did a very basic back of the envelope calculation with my recent fares.

Recently (last 2 months) I have paid anywhere from $161.80 to $541.30 for a transcon one way itinerary earning about 2500pqm between varying city pairs (SMF/SFO->NYC/RSW/RDU).

The breakpoint is a fare around $310 one way, depending on airport taxes and fees of where you connect, come, and go from.

SMF-LAX-EWR, for instance, priced at $161.80 one way, or $130.23 PQD. This would earn $.0521 PQD/PQM, or about half of what you'd need to average.

Basically we all need to get used to flying Ws and up to hit the minimums if your primary travel is transcon. Flying regionally it may not be quite as painful.

So, the take home message is that UA wants an elite like me to pay twice as much for my tickets to get the same benefits.

No thanks. If I am going to pay that much to fly transcon, I will status match to AS and not sweat the upgrades to boot.
PV_Premier is offline  
Old Jun 19, 2013, 3:56 pm
  #1393  
FlyerTalk Evangelist
 
Join Date: Sep 2008
Location: Jersey Shore/YYZ
Programs: UA 1K, Marriott Plat, Hilton Diamond, Hertz PC
Posts: 12,521
Originally Posted by Hadrian35
I'm certainly no lawyer, just a member of a marketing team but the corporate parent pounds it into us about how we can do these sorts of things even if we didn't collude because it appears like collusion and if we even were seen speaking a competitor at a trade show (which we do all the time) we're open to litigation.

they seem to take it pretty seriously.
Collusion is secretive. You talking shop at a trade show can be collusion.

Copying/mimicking is not.

Putting in hi-def TVs like your competitor at the next trade show is not collusion.

To wit:

1. Duracell/Energizer with dates on batteries and the little "power" item.
2. Beer companies (and now Coke) with cold-"detection" cans.

Imitation is the sincerest form of flattery.
aacharya is offline  
Old Jun 19, 2013, 3:57 pm
  #1394  
 
Join Date: Jan 2006
Location: DEN
Programs: UA 1K (MM), DL, AA, AS, HHonors, SPG, Kimpton, Hyatt, IC PC, Marriott Titanium (LT PLT), Hertz PC
Posts: 7,231
Originally Posted by UA Insider
Yes. In 2014, YQ is a ‘carrier-imposed surcharge’ that we currently intend to include in PQDs.
Aaron,

Thanks very much for the update and being the (sometimes very unpopular) messenger.

I have to say that language like this ("In 2014", "currently intend") really makes me nervous about the future of this process.
GBadger is offline  
Old Jun 19, 2013, 3:58 pm
  #1395  
 
Join Date: May 2011
Programs: UA GS, UA 2MM, HH LT Diamond, Bonvoy Titanium
Posts: 1,803
Originally Posted by ddrost1
I did a very basic back of the envelope calculation with my recent fares.

Recently (last 2 months) I have paid anywhere from $161.80 to $541.30 for a transcon one way itinerary earning about 2500pqm between varying city pairs (SMF/SFO->NYC/RSW/RDU).

The breakpoint is a fare around $310 one way, depending on airport taxes and fees of where you connect, come, and go from.

SMF-LAX-EWR, for instance, priced at $161.80 one way, or $130.23 PQD. This would earn $.0521 PQD/PQM, or about half of what you'd need to average.

Basically we all need to get used to flying Ws and up to hit the minimums if your primary travel is transcon. Flying regionally it may not be quite as painful.

So, the take home message is that UA wants an elite like me to pay twice as much for my tickets to get the same benefits.

No thanks. If I am going to pay that much to fly transcon, I will status match to AS and not sweat the upgrades to boot.
Here's a breakdown of my fares YTD:

Fares Flights
Y 2
B 0
M 3
E 4
U 7
H 6
Q 19
V 0
W 4
S 3
T 6
K 3
L 6
G 0
limey1K is offline  


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