How do airlines share revenue on RTWs?
#1
Original Poster
Join Date: Aug 2002
Location: SUV
Programs: UA *G MM
Posts: 7,017
How do airlines share revenue on RTWs?
Now with United imposing revenue minimums for status and excluding non-UA flights earnings on non-016 tickets, it made me wonder how airlines share revenue.
Is it (flight's mileage divided by total mileage of ticket)* ticket price?
Problem is that United will not issue a RTW unless the first flight is on United. And it is much easier to book it via Star Alliance/ Lufthansa. They also have good agents that ticket quickly and change flights quickly.
Is it (flight's mileage divided by total mileage of ticket)* ticket price?
Problem is that United will not issue a RTW unless the first flight is on United. And it is much easier to book it via Star Alliance/ Lufthansa. They also have good agents that ticket quickly and change flights quickly.
#2
Join Date: Sep 2005
Programs: AC MM E50 , Former SPG, now Marriott LT Plat
Posts: 6,251
I have wondered the same thing many times.
SQ has revenue based qualification for PPS, and they seem to assign arbitrary
fixed dollar amounts on RTW flights - for example, the same dollar amount
shows up for a SIn-CGK flight whether the total ticket is 25,000 miles or 27,000 miles.
Also, if you are on a FRTW ticket, and some flights are in J/C, a straight mileage
allocation does not seem fair.
I suspect that UA will follow the same model as SQ, and just assign an arbitrary
dollar amount to every city pair - any other method with be too complicated.
For examples, you start a RTW with 26,500 miles, fly a UA segment, then 6 months
later change the ticket to total 27,500 miles. How would they adjust the $ for the UA
segment flown 6 months before. And as up to a year can elapse between the UA
segment and you completing the RTW ticket, I don't think they can hold the credit
in suspense until your ticket is completed.
Further complication - I often leave the last leg on a RTW ticket unused - does the
money go to the carrier ticketed for that last leg, or do the other airlines that I have
already flown split it up? Who knows?
SQ has revenue based qualification for PPS, and they seem to assign arbitrary
fixed dollar amounts on RTW flights - for example, the same dollar amount
shows up for a SIn-CGK flight whether the total ticket is 25,000 miles or 27,000 miles.
Also, if you are on a FRTW ticket, and some flights are in J/C, a straight mileage
allocation does not seem fair.
I suspect that UA will follow the same model as SQ, and just assign an arbitrary
dollar amount to every city pair - any other method with be too complicated.
For examples, you start a RTW with 26,500 miles, fly a UA segment, then 6 months
later change the ticket to total 27,500 miles. How would they adjust the $ for the UA
segment flown 6 months before. And as up to a year can elapse between the UA
segment and you completing the RTW ticket, I don't think they can hold the credit
in suspense until your ticket is completed.
Further complication - I often leave the last leg on a RTW ticket unused - does the
money go to the carrier ticketed for that last leg, or do the other airlines that I have
already flown split it up? Who knows?
Last edited by IluvSQ; Jun 22, 2013 at 7:56 am
#3
Original Poster
Join Date: Aug 2002
Location: SUV
Programs: UA *G MM
Posts: 7,017
Interesting. PPS is a secondary method of attaining status, and the benefits are slightly different from a mileage earning *gold.
With UA you need to meet both criteria for one category: miles and dollars.
I am thinking that UA's exclusion of non-016 tickets is contrary to at least the spirit of Star Alliance. With SQ you can qualify using miles.
With UA you need to meet both criteria for one category: miles and dollars.
I am thinking that UA's exclusion of non-016 tickets is contrary to at least the spirit of Star Alliance. With SQ you can qualify using miles.