mraju99 United is there to make money. The "loyalty" factor is the businesses not the individuals. The current strategy of pricing first as affordable on domestic flights is working well.for United. Flights are full and the first class cabin sold out or close to sold out. If United experiences a downturn in revenue expectations they have price levers and "upgrades" and special promo flights.
I choose loyalty to United,.specifically 1K, to ensure I can upgrade my TPAC and TATL flights. For the most part I score the upgrade. Prior to COVID the increased spend requirements meant I thought I would not make 1K and then suddenly the world changed and United gave incentives and lowered the requirements. Here I am again as a 1K for 2023. I suspect the recession means I will be 1K for 2024.
I just had two CPIUs in the last week DEN-.MSY on a Wednesday and IAH-SAN on a Monday. My SFO-SYD and returns and SYD-LAX flights (2 TPAC) PlusPoints happened. Same for IAD-MAD return TATL flight.
United does not care about my loyalty (although their employees routinely thank me), they care about the net profit they make from me.