Originally Posted by
sanfran8080
I just completed a cheapo fare from DCA-TPA at $74. I got like 600 miles for it. As a 1K...Lol. You have to be kidding.
So UA's revenue was roughly $54 and UA discounted that further by providing $9 worth of RDMs (@1.5cpm -- adjust as you prefer) - 17% discount / rebate/ .... .
If you had gotten 1,628 miles (including 1K bonus) of the old system -- it would have been 45% discount / rebate/ ....
Perhaps this is why most loyalty, reward systems are revenue based.