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2015 MileagePlus Change - RDMs Will Be Calculated by Spend, Not Distance

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Old Jun 10, 2014, 5:09 am
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: WineCountryUA
Earning miles on United flights

Spend-based mileage (RDM) earning for all UA metal flights effective March 1, 2015.

Redeemable Miles (RDM) changes highlights:
  • Miles earned will now be based on the ticket price instead of the number of miles flown (see partner flights on non-016 tickets exception )
  • Ticket price is defined as base fare plus carrier-imposed surcharges (same as PQDs)
  • Class of service bonuses have been discontinued (e.g. X% more on A fares).
  • There is a limit of 75,000 miles earned per ticket (see below for spending limits by status)
  • UA flights regardless of ticket stock will use the ticket price to determine RDMs
  • Partner flight on 016 ticket stock will use the ticket price to determine RDMs
  • Partner flights on non-016 ticket stock will use a flight mileage-based system to determine RDMs with a fare class multiplier (see the partner page for detials
  • Speciality / Bulk tickets with PQDs will use a flight mileage-based system to determine RDMs with a fare class multiplier, see Specialty tickets

Fare multipliers based on Premier status:
  • x5 General Members
  • x7 Silver
  • x8 Gold
  • x9 Plat
  • x11 1K/GS

For example, a 1K would earn 1100 miles for a $120 (assuming $20 in taxes/fees) ticket while a Silver would earn 700 miles for the same ticket.

As there is a maximum number of miles per ticket earned - this disincentives purchasing any ticket (excluding government taxes and fees) over the following:
  • $6818.18 for 1K/GS
  • $8333.33 for Platinum
  • $9375.00 for Gold
  • $10714.28 for Silver
  • $15000.00 for General Members

A way to avoid this is booking one-ways if the fare rules permit.

Premier Qualifying Miles (PQM) are not affected by this change.

Announcement Site
www.mileageplusupdates.com
There is a tool on the site that allow you to enter how much you spent on a ticket along your premier status in order to calculate how many miles you will earn under the new system. The tool is aware of the miles per ticket limit.

There is a FAQ here: http://mileageplusupdates.com/faq.html
Relevant UA Insider posts:

Post 57: http://www.flyertalk.com/forum/23008349-post57.html
Originally Posted by UA Insider
Hi everyone,

Today we’re announcing changes to how MileagePlus members will earn award miles in 2015. We’ve posted complete details and a FAQ on united.com, but I wanted to share an excerpt of the key points with you directly:

As of March 1, 2015, the award miles you earn on most United and United Express tickets will be based on your ticket price (that is, base fare plus carrier-imposed surcharges) and your MileagePlus status, instead of the distance you travel. The new criteria for earning award miles will look like this:

<portion removed for brevity>

The changes to earning award miles will apply to all MileagePlus members worldwide, and will be based on status at the time of flight on or after March 1, 2015. These changes will not affect the qualification requirements for 2015 Premier status. PQM and PQS will still be based on the number of paid flight miles traveled and the fare purchased. And where applicable, PQD will still be determined by the base fare and carrier-imposed surcharges.
Answered Questions:

Originally Posted by SunLover
So a 1K purchasing a $5,000 EWR-NRT ticket would earn 55,000 miles plus the 1K additional RDM’s?
Class of service bonuses have been discontinued under the new system. There is already an adjustment for 1K over general members.
Originally Posted by ckidder331

LAX-Intl Location in Business Class as a Premier Gold

Would a $5,000 ticket in Business class to Asia earn:

5000 x 8 = 40,000 (Premier Gold earning)
5000 x .75 = 3750 (Class of Service bonus)
43,750 Total
For tickets that will earn award miles based on ticket price, the class-of-service bonus and Premier bonus will be included in the number of award miles you earn per dollar. Basically COS has been removed.
Originally Posted by mikelcf
...On the mileageplus announcement site and FAQ site it lists only 1K's. With respect to most mileage levels, etc. UA usually treats GS the same as 1K, so I assume that's the case here, but has anyone seen anything specific to GS?
E-mail received by GS lists 1K and GS together.
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2015 MileagePlus Change - RDMs Will Be Calculated by Spend, Not Distance

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Old Dec 16, 2014, 5:57 am
  #2536  
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Originally Posted by PushingTin
The benefits are going to be highly concentrated with the premium cabin passengers. Normal flyers will never be able to get enough miles to get any benefits..
I m fine with benefits going to premium cabin passengers.

There is a big distinction to be made between premium pax and Y pax whose ticket price is simply higher due to circumstance (mostly OPM).

I would also be more than fine with points earned while flying for work being taxed.
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Old Dec 16, 2014, 9:04 am
  #2537  
 
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With the price of oil falling, it is a matter of time before the fuel surcharges start dropping. US Airlines might not be interested in dropping the YQ surcharge but it takes one (US or Intl carrier) to break away from the pack to cause the rest of the fares to drop. In such a scenario wondering how the PQD targets are going to work out?

Disclaimer:
I flew 98k EQM (after getting 50% or 0% on certain Star Alliance carriers) at a PQD of $4k. As I am not interested in playing their game anymore. Why pay more for the same crappy experience?
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Old Dec 16, 2014, 9:12 am
  #2538  
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Originally Posted by TravellingMan
With the price of oil falling, it is a matter of time before the fuel surcharges start dropping. US Airlines might not be interested in dropping the YQ surcharge but it takes one (US or Intl carrier) to break away from the pack to cause the rest of the fares to drop.
JL is dropping YQ by approximately 40 percent effective Feb. 1.
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Old Dec 16, 2014, 11:03 am
  #2539  
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Originally Posted by Kacee
JL is dropping YQ by approximately 40 percent effective Feb. 1.
Pretty sure YQ in Japan is government regulated

YQ is a scam when it comes to award tickets, almost all FFPs (except US based ones) charge these as award co-pay

While YQ doesnt really play a part in revenue tickets (or PQDs for that matter), who cares if its $5 base + $495 YQ or $450 base + $50 YQ, I dont see it being eliminated as award co-pay.
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Old Dec 16, 2014, 11:16 am
  #2540  
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Originally Posted by rankourabu
Pretty sure YQ in Japan is government regulated

YQ is a scam when it comes to award tickets, almost all FFPs (except US based ones) charge these as award co-pay

While YQ doesnt really play a part in revenue tickets (or PQDs for that matter), who cares if its $5 base + $495 YQ or $450 base + $50 YQ, I dont see it being eliminated as award co-pay.
Government regulated does not mean set by the government. This change was initiated by JL, and is subject to government approval. JAL Press Release.

This will in fact reduce the cost of award redemptions on JL.
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Old Dec 16, 2014, 11:34 am
  #2541  
 
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Originally Posted by Kacee
JL is dropping YQ by approximately 40 percent effective Feb. 1.
Thanks for that info. Next waiting for someone to add capacity

Will definitely be interested in seeing how they sell the PQD targets once the ticket prices drop.
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Old Dec 16, 2014, 11:47 am
  #2542  
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Originally Posted by channa
Indeed.

And now that I'm valuing my DL miles on par with (if not better than) than my UA miles, UA has a problem on the redemption side as well.
No more Skypesos? What has changed?
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Old Dec 16, 2014, 6:01 pm
  #2543  
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I assume this note...

MileagePlus Members: Upon completion of this itinerary, you will earn up to 11,647 award miles.*
...on a booking of mine for travel in September, 2015 does not reflect reality—not that I expect a lot of reality from UA.

RNE, actually going to make 16,000+ RDMs on that booking. ^
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Old Dec 16, 2014, 6:53 pm
  #2544  
 
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Originally Posted by TravellingMan
With the price of oil falling, it is a matter of time before the fuel surcharges start dropping. US Airlines might not be interested in dropping the YQ surcharge but it takes one (US or Intl carrier) to break away from the pack to cause the rest of the fares to drop. In such a scenario wondering how the PQD targets are going to work out?

Disclaimer:
I flew 98k EQM (after getting 50% or 0% on certain Star Alliance carriers) at a PQD of $4k. As I am not interested in playing their game anymore. Why pay more for the same crappy experience?
I think you misunderstand the nature of "fuel surcharges ". The quotation marks are deliberate.
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Old Dec 16, 2014, 8:21 pm
  #2545  
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Originally Posted by rankourabu
I m fine with benefits going to premium cabin passengers.

There is a big distinction to be made between premium pax and Y pax whose ticket price is simply higher due to circumstance (mostly OPM).

I would also be more than fine with points earned while flying for work being taxed.
How would you police this?
By destination? Time? Cost?
What if I fly AAA-BBB, must stay in BBB for work for 5 days, and go on 2 weeks holiday afterwards? Provided employer pays ticket cost, would this be taxable? Would only outbound then be taxable (going to work) and inbound not taxable?
If by cost, what if employee pays part of the cost?
i.e. a PAX buys YVR-BOM on BA. He must fly to LON for work on a ticket that costs $1000 and a fare to BOM that allows inbound stopover in LON is $200 more expensive inclusive of tax than YVRLON. The employee reimburses the employer $200 to cover personal travel. Which portion of mileage is taxable? 5/6 of YVRBOM v.v? YVRLON v.v only? YVRLON oneway (as departure from LON is thereafter for personal travel.)
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Old Dec 17, 2014, 11:25 am
  #2546  
 
Join Date: Mar 2012
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Have I missed the announcement on mileage accumulation when flying ticketed on *A partners?

Has DL made such a pronouncement for their partners' flights, which I presume will trigger UA's response?
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Old Dec 17, 2014, 11:42 am
  #2547  
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Originally Posted by transportprof
Have I missed the announcement on mileage accumulation when flying ticketed on *A partners?

Has DL made such a pronouncement for their partners' flights, which I presume will trigger UA's response?
Nope! And yes, it's almost 2015.

Yes, DL already announced it. Not good. So UA's will also not be good, whenever they can be bothered to announce it.
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Old Dec 17, 2014, 11:45 am
  #2548  
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Originally Posted by AA_EXP09
How would you police this?
By destination? Time? Cost?
I dont work for the IRS, so I dont think its my problem
rankourabu is offline  
Old Dec 17, 2014, 12:16 pm
  #2549  
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Originally Posted by PushingTin
I think this is just one step closer to the end of frequent flyer programs. The benefits are going to be highly concentrated with the premium cabin passengers. Normal flyers will never be able to get enough miles to get any benefits. Inevitably the points needed for free tickets and upgrades is going to increase, as point inflation/devaluation hits because of the large accruals by the premium cabin passengers.

They are now directly linking miles to dollars, and is only a matter of time before the IRS starts to poke their nose into this.

Frequent flyer programs will go the way of free toasters for opening up a bank account.

Just more commoditization and dollarizing of air travel.
I think the root problem here is unrestricted mergers - by allowing DL/NW, UA/CO and AA/US, we've effectively slashed the number of carriers in half, and by doing so, the airlines don't see a lot of choice for customers, and the driver for a FFP has changed.

In a perfect world, the mergers would have been blocked, especially UA/CO and AA/US given the evidence available to the market after DL/NW....in a more perfect world, the government could sue to undo the UA/CO and AA/US mergers, but probably doesn't have the cojones to even try no matter the impact to consumers.

It might be that the new purpose of a FFP is to push truly high yield customers to position of loyalty while dumping everyone else to kayak or corp travel search engines - and offloading the concept of rewards to credit cards who have a higher margin on points.

I see a flaw in this plan, however - as none of the legacy carriers offer a product that can beat B6, VX or even WN - and for international travel, why would anyone with half a brain fly a US carrier that offered no incentive when they could fly a foreign carrier with a far superior product, and equally no incentive.

If I earn few or no miles for flying UA, and can't use a GPU to upgrade economy to business, why in the world should I fly UA? The product has absolutely no redeeming qualities when compared to SQ, CX, AF or BA...and at worst offers the same hard product with a better soft product.

When you offer a cheaper grade product, you better be prepared to give people a reason to buy it - telling me "look, mergers, no choice!" is as lame as telling me "network, wifi, 787!".

Also to add some dimension to the YQ debate - these are nothing but a scam whether a revenue or award ticket. It's no different from seeing an ad for a $99 refrigerator, then going to the store and finding out there is $750 fee for delivery or cash/carry. If it's not bad enough for consumers, YQ is used to screw over travel agents too - we're only paid commission on base fares, so an airline that offers a 20% incentive commission against a $1,000 fare with a $1,000 YQ is basically paying me a 10% commission while promising something else....and it happens all the time. The YQ really needs to be banned as a deceptive trade practice - if fuel costs are high, then raise the damn base fare and be done with it.
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Old Dec 17, 2014, 1:19 pm
  #2550  
 
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Originally Posted by UA-NYC
Nope! And yes, it's almost 2015.

Yes, DL already announced it. Not good. So UA's will also not be good, whenever they can be bothered to announce it.
Thanks for the update. I took a quick look at DL's changes and they seem to depend on many variables. Four tiers of alliance partners makes *A look simple by comparison.

If fare code mapping across the DL alliance carriers is as opaque as it is between United and *A partners, then it will be quite a challenge to figure out actual mileage earning options before booking.
transportprof is offline  


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