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

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Old Jun 19, 2013, 7:28 pm
  #1486  
 
Join Date: Oct 2009
Programs: Hyatt Diamond, No other status for now..
Posts: 249
This announcement is a particularly sad one for me. It specifically targets me. I fly a lot of inexpensive flights because I'm a leisure traveler and don't have much $ to spare. I qualified this year for silver with something like $600 spend. After my status expires, I honestly have no real reason to continue seeking out UA flights to try to earn status, because it won't happen. I'll be a "whichever is the cheapest possible carrier to somewhere I'm interested in going to" traveler. This will most likely push me to cancel my UA card, too, since I won't be flying them as much, I won't recoup the annual fee with the free checked bags.
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Old Jun 19, 2013, 7:31 pm
  #1487  
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Join Date: Dec 2004
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Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
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Originally Posted by exerda
They're going to go from being a carrier who the public at large loathed but whose loyal flyers were quite loyal ... to a carrier who is loathed by all.
Well, UA has been quite the UnderAchiever for almost two years now and aren't underachievers loathed by all anyway? I guess Smisek's dream has finally come true.
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Old Jun 19, 2013, 7:31 pm
  #1488  
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Originally Posted by demkr
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 6_1_4 like Mac OS X) AppleWebKit/536.26 (KHTML, like Gecko) Version/6.0 Mobile/10B350 Safari/8536.25)



It's probably because SHARES can't handle currency conversion
Not every United problem is caused by SHARES

SHARES does not manage your frequent flyer accounts. Fares are stored with the e-ticket in whatever currency and sometimes I think there is a "neutural" currency that is used for airline fares....

Originally Posted by fly747first
Well, UA has been quite the UnderAchiever for almost two years now and aren't underachievers loathed by all anyway? I guess Smisek's dream has finally come true.
I guess the Average Achiever would be somewhat better?

Last edited by iluv2fly; Jun 19, 2013 at 8:06 pm Reason: merge
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Old Jun 19, 2013, 7:42 pm
  #1489  
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Join Date: Sep 2012
Programs: DL FO/KM, AA PLT
Posts: 2,594
Originally Posted by username
I am curious about something - when government employees fly Y, is the fare on the ticket the full Y fare or the discounted price?

Thanks.
It's based on the bid by the contract carrier through the GSA, known as GSA City Pair fares. If you get further into the details, the tickets are actually "YCA" which is somewhat different than Full "Y". YCA fares earn the same miles and elite points as a Full Y but usually won't offer an instant upgrade. They're flexible and refundable. They also cost the same whether we book them 300 days out or the day of the flight.

YCA fares can be really expensive or dirt cheap. All depends on what the bids are for that route in a given fiscal year. I've seen domestic YCA fares for $79 one-way (before taxes). I've also seen domestic YCA fares for $600+ one-way (before taxes). Some routes have a couple different fares - CA and YCA. CA books into a lower fare class and is a reduced rate, but just like all cheaper fares, is also capacity restricted. Other city pair have no contract (or YCA) fare at all and we're at the mercy of what the travel booking system gives us. Sometimes it's good (you can sometimes get a better deal than flying a route with a GSA City Pair fare) and sometimes you have more flexibility in the airline you choose. Other times the tickets can be pretty pricey.

We're required to book with the GSA City Pair carrier if we're flying a route with one. Not doing so requires justification (such as "all flights on that carrier are full" or "the latest flight on the contract carrier leaves at 4 pm and I can't get to the airport until 5 pm"). Technically, finding a cheaper flight (even through our booking system) is not a valid reason for selecting an alternate carrier.
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Old Jun 19, 2013, 7:45 pm
  #1490  
 
Join Date: May 2012
Programs: UA IK, Hyatt Plat, Avis PP
Posts: 225
I think a great compromise is to provide EQM on award tickets. Not RDM, just EQM. Take a little, give something back.
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Old Jun 19, 2013, 7:45 pm
  #1491  
 
Join Date: Dec 2009
Location: New York, NY
Programs: Hyatt GLOB, Marriott Lifetime PLT, UA 1K 1MM.
Posts: 1,728
Originally Posted by jlivengo
I think a great compromise is to provide EQM on award tickets. Not RDM, just EQM. Take a little, give something back.
that's a nice dream to have.
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Old Jun 19, 2013, 7:51 pm
  #1492  
 
Join Date: May 2012
Programs: UA IK, Hyatt Plat, Avis PP
Posts: 225
Originally Posted by bob_the_d
that's a nice dream to have.
I know, a big pipe dream. If we have PQD's, why not though? Reward the big spenders when purchasing other fares. Throw me a bone once in a while.
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Old Jun 19, 2013, 7:54 pm
  #1493  
 
Join Date: Dec 2010
Location: DEN
Programs: AA EXP, AA Million Miles, Hilton Diamond
Posts: 2,586
Originally Posted by Boraxo
Awesome list, here's my take:

<snip>

Really the only major benefits I've seen as 1K are occasional rare ability to use RDU/GPU (never for family of 4 leisure trip when I really need it) and fee waivers for E+ and checked bags on leisure trips. That's it. Not a great ROI. However I still credit miles to UA because I don't see another *A program that provides better perks and will bank my miles indefinitely.
That's just it, though. Benefits are about what you and I as the individual flyer can make of them. Utility and value will vary. But to say point blank that elite status is of no benefit anymore, as some in this thread have is just false.

Originally Posted by ddrost1
when i saw my average PQD for personal trips in the last 2 months, i also stopped wasting brain cells thinking about qualifying, since i will not pay 600 for a transcon, and getting essentially 50% credit for a G or L fare isnt going to lead to UAs desired conclusion of getting me to fly twice as much. i guess one way of gaining HVFs is to manufacture them yourself but i am not buying.
Yeah - this change isn't going to change my United purchasing habits one iota either way, with the likely exception of eliminating the once a year MR. I'm certainly not going to be buying more tickets from them because of it.

Originally Posted by LEONIDES
Again, why should I pay $95 per year for a credit card, to get benefits that I already have paid for?
From UA's perspective the CCs aren't really about the individual holders. From the airline perspective the purpose of the loyalty program is to keep your best customers happy. For UA, Chase is one of it's best customers - maybe the best. If UA can keep Chase's customers happy, it keeps Chase happy, thus the increasing gearing of the program towards CC holders. My theory, anyway.
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Old Jun 19, 2013, 8:02 pm
  #1494  
 
Join Date: Mar 2011
Location: Colorado
Programs: Lifetime UA 1K, Lifetime Hilton Diamond, Lifetime Marriott Bonvoy Titanium
Posts: 1,261
Originally Posted by STS-134
How much does everyone wanna bet that:

1. UA moves to a revenue based FFP eventually (only PQD count for anything)
2. When UA does this, lifetime mileage will be grandfathered for a certain amount of time (1-3 years), and then converted to lifetime PQD at an absurdly low rate (perhaps 10 cpPQD)
3. Lifetime PQD requirements will be raised annually according to the inflation rate. But they won't account for the fact that 1 PQD spent 10 years ago is worth more to UA than 1 PQD spent now. Thus, you have a situation where your lifetime PQD become progressively more worthless as time goes on...unlike, say, miles, which are constant unless you count continental plate drift.
Do you really think they will do that to the lifetime multi-million mile fliers?

The benefits associated with Gold are pretty thin (not much better then a credit-card holder) so I'm not sure it would be worth the trouble. The number of people above 2M miles is pretty small and many are retired.
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Old Jun 19, 2013, 8:06 pm
  #1495  
 
Join Date: Apr 1999
Location: Homosassa, FL & Ringwood, NJ -UA-G(Lifetime); SPG-Plat (Lifetime)
Posts: 6,120
I predict the big problem for UA will come on 2/1/15 when MP members who think they are safely 1K (or PP, Gold, Silver), find out they are not.
I would not want to be answering the phones at UA on this day.
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Old Jun 19, 2013, 8:08 pm
  #1496  
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Join Date: May 2007
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Programs: UA Plat, Marriott Gold
Posts: 12,694
Originally Posted by mkrecek
I'm not sure. Maybe it's not as bad as I thought :

FARE INFORMATION
Fare Breakdown
Airfare: 774.00 USD
U.S. Federal Transportation Tax: 34.40
September 11th Security Fee: 5.00
International Surcharge: 516.00
U.S. Customs User Fee: 5.50
U.S. Immigration User Fee: 7.00
U.S. APHIS User Fee: 5.00
Germany Airport Security Charge: 17.40
Germany Passenger Service Charge: 51.80
Finland Security Charge: 5.60
Finland Passenger Fee: 11.00
U.S. Passenger Facility Charge: 7.50
Per Person Total: 1,440.20
USD
eTicket Total: 1,440.20
USD

The airfare you paid on this itinerary totals: 774.00 USD
The taxes, fees, and surcharges paid total: 666.20 USD
As Aaron made clear, carrier-imposed surcharges are included in PQD.

So you're earning 1290 PQD (774+516) on a $1440 ticket, or 90% PQD earning.
mduell is offline  
Old Jun 19, 2013, 8:20 pm
  #1497  
 
Join Date: Feb 2010
Programs: United 1K
Posts: 360
Originally Posted by mduell
As Aaron made clear, carrier-imposed surcharges are included in PQD.

So you're earning 1290 PQD (774+516) on a $1440 ticket, or 90% PQD earning.
Very good to hear...I just hope they show some clarity when it comes time to purchasing ticket. However, looking at the breakdown, is sure does not look like UA is imposing any of those charges.
Correction: Got it: International surcharge is UA I am guessing. (confused face).
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Old Jun 19, 2013, 8:21 pm
  #1498  
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Join Date: Apr 2013
Location: PHX
Programs: AS 75K; UA 1MM; Hyatt Globalist; Marriott LTP; Hilton Diamond (Aspire)
Posts: 56,485
Originally Posted by mduell
As Aaron made clear, carrier-imposed surcharges are included in PQD.

So you're earning 1290 PQD (774+516) on a $1440 ticket, or 90% PQD earning.
A quick review of my currently booked flights shows PQD averaging 88-95% of the total fare. So worst case scenario, I need total spend of approx. $11,300 to sustain 1K. I'm already at $14,800 for the year, so don't see this being a problem (assuming same basic flight patterns next year).
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Old Jun 19, 2013, 8:24 pm
  #1499  
 
Join Date: Oct 2009
Programs: UA 1K, Hilton ♦ , Hyatt Carbonado, Wyndham ♦, Marriott PE, "Stinking Bum" elsewhere.
Posts: 5,001
Originally Posted by Budley
Glad I got my 2MM status (UA all paid BIS) when I did. But when is Smisek going to renege on this?
Same boat as you, brother, and I am convinced that they will do away with the "lifetime" benefits.

My initial gut reaction would be to say, "screw UA", and just buy the best fare on any *A airline. I could still use my "lifetime" PP status to get international club access, free bags, etc. and likely save a lot of money too by always buying the cheapest, most-direct flight(s). But, my bet is that UA is already onto this and won't take kindly to excessive use of the PP privileges without a certain amount of revenue to UA. So I believe that the next of the "changes you will like" will be a minimum PQD spend to maintain your "lifetime" status.

They'll probably couch it in terms of an "activity" requirement with UA to maintain your status, just like with miles expiration.

Mark my words, it's coming!

Last edited by zombietooth; Jun 19, 2013 at 8:34 pm
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Old Jun 19, 2013, 8:26 pm
  #1500  
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Posts: 102,095
Originally Posted by jlivengo
I think a great compromise is to provide EQM on award tickets. Not RDM, just EQM. Take a little, give something back.
Hotel programs have done the above sort of thing, in choosing to allow award nights/stays as contributing for purposes of elite status acquisition/retention. Starwood, Radisson, Hilton, Choice are examples of that.
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