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

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Old Oct 30, 2013, 2:46 pm
  #3496  
 
Join Date: Oct 2006
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If vouchers don't count then they better up the miles they offer.
What about VDBs? If they don't count why would I offer my seat up now?
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Old Oct 30, 2013, 2:59 pm
  #3497  
RNE
 
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UA is going to soft-pedal this paradigm shift. Accordingly, I predict vouchers will count for PQD, at least for 2014.

RNE, and I'm never wrong.
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Old Oct 30, 2013, 3:07 pm
  #3498  
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Originally Posted by RNE
UA is going to soft-pedal this paradigm shift. Accordingly, I predict vouchers will count for PQD, at least for 2014.

RNE, and I'm never wrong.
Yeah, I love how they preamble every rule with "for 2014" as in, "be prepared for us to fine-tune this on an annual basis just to make sure that you have absolutely no idea whatsoever what's going on."

Cheers,

MM
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Old Oct 30, 2013, 4:23 pm
  #3499  
 
Join Date: Oct 2012
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Originally Posted by kevincrumbs
Opposite reaction here as this seems unfair to me. Am I not supposed to spend my vouchers now because I won't get PQD for an incident where UA messed up and decided to give me compensation? That's as if under the current ways of earning status that anything involving the use of a voucher meant you didn't get EQM.
It would also be fair and reasonable to give you PQD of only 1000USD, calculated as

Actual spend 1200 - 200 voucher = 1000 actual spend, but then you would get PQD credit when you used the voucher down the road.

I think the point that they are giving you money back, which reduces your PDQ, isn't hard to see.
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Old Oct 30, 2013, 4:51 pm
  #3500  
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Originally Posted by dcsnowwake
If vouchers don't count then they better up the miles they offer.
What about VDBs? If they don't count why would I offer my seat up now?
For the money?
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Old Oct 30, 2013, 5:06 pm
  #3501  
 
Join Date: Oct 2013
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Programs: UA GS, AA EXP, Marriott PP/LT Plat, Golden Circle Diamond
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Originally Posted by LarkSFO
How is this sinister?

It may not be friendly to some UA customers. But sinister?

(AS is Alaska, not in *A.)



This is a good thing, right?
Many 1Ks exist due to long haul and stick with UA for GPUs. I'm one person and have MANY coworkers this will impact. Fly too/from Asia and Europe but once over here there is no UA metal to fly on.

And I meant OZ (Asiana), not AS. Too many acronyms.. And yes, that spend not counting is sinister as that it will make the calculus to stay on UA much harder for many flyers.


Is it a good thing? Depends... If that same person who's been 1K for many years now but suddenly can't get GPU/RPU because of PQD and switches airlines, that's not good for UA's bottomline. The question we are unable to answer is how many people that will be. If there is a relatively linear shift in the number of people going down a rung on the elite tiers, the upgrade clearing may not be all that improved either.

I'd love to see the numbers UA based their 10K spend requirement on.
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Old Oct 30, 2013, 5:12 pm
  #3502  
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Originally Posted by wethereyet
I'd love to see the numbers UA based their 10K spend requirement on.
I think you're giving them too much credit to think that this threshold was arrived at by some great big data project. I'm going to guess it was a ballpark figure based on simple averages of some sort. Admittedly, I don't know how a 1K with a lower than $10K spend could be particularly profitable, but I'm also sure that someone in the position you describe, via pure accident, may have a $7K spend with UA one year and a $15K spend with them the next. I've tracked my spend ever since I left college and it has ranged from $7K (in my one year as a Prem. Exec.) and maxed out at $22K for one particularly busy international travel year. I can tell you that if I ever fail to re-qualify for 1K I won't be around UA for them to catch the return of that pendulum swing.
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Old Oct 30, 2013, 6:22 pm
  #3503  
 
Join Date: Oct 2013
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Originally Posted by MrMarket
Admittedly, I don't know how a 1K with a lower than $10K spend could be particularly profitable, but I'm also sure that someone in the position you describe, via pure accident, may have a $7K spend with UA one year and a $15K spend with them the next.
Very easy to be 1K less than 10K and not by someone trying using low CPM MRs.

The long haul flying as I described makes money for the airline as those miles are more efficient than the 120 segment domestic guy with numerous tickets/booking, etc.

For those of us who are normally making 1K due to long flights with fill from *A to get us over the hump most years, the *A really doesn't have the value it did before with a PQD requirement.

AA has a real opportunity going forward to poach UA's long haul econ FFers.
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Old Oct 30, 2013, 6:35 pm
  #3504  
 
Join Date: Jun 2012
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Originally Posted by wethereyet
Very easy to be 1K less than 10K and not by someone trying using low CPM MRs.

The long haul flying as I described makes money for the airline as those miles are more efficient than the 120 segment domestic guy with numerous tickets/booking, etc.

For those of us who are normally making 1K due to long flights with fill from *A to get us over the hump most years, the *A really doesn't have the value it did before with a PQD requirement.

AA has a real opportunity going forward to poach UA's long haul econ FFers.
I'm already very seriously considering switching to AA. Just joined their 3 month ExPlat challenge..
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Old Oct 30, 2013, 7:07 pm
  #3505  
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Originally Posted by wethereyet
Very easy to be 1K less than 10K and not by someone trying using low CPM MRs.


AA has a real opportunity going forward to poach UA's long haul econ FFers.
I just read this for the first time while looking up a M+ question on UA.com. The post above describes me (though I'm Gold, not 1K this year). Just looking at the last two business flights I purchased, both are inside $0.10 CPM and they're not mileage runs or anything like that. Nothing more than me typing in the dates of travel and booking the fares that popped up. As a self-employed person, there is no way I'm going to voluntarily increase my spend (changing fare categories) to simply gain PQDs, that would be insane.
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Old Oct 30, 2013, 7:10 pm
  #3506  
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Originally Posted by MrMarket
I think you're giving them too much credit to think that this threshold was arrived at by some great big data project. I'm going to guess it was a ballpark figure based on simple averages of some sort.
It's pretty simple - they played WWDD? (where the first D is Delta). UA no longer has any original ideas, be it good or bad - they just follow the airline company they hope to emulate that actually does well.
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Old Oct 30, 2013, 8:20 pm
  #3507  
 
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Originally Posted by wethereyet
Many 1Ks exist due to long haul and stick with UA for GPUs. I'm one person and have MANY coworkers this will impact. Fly too/from Asia and Europe but once over here there is no UA metal to fly on.

And I meant OZ (Asiana), not AS. Too many acronyms.. And yes, that spend not counting is sinister as that it will make the calculus to stay on UA much harder for many flyers.


Is it a good thing? Depends... If that same person who's been 1K for many years now but suddenly can't get GPU/RPU because of PQD and switches airlines, that's not good for UA's bottomline. The question we are unable to answer is how many people that will be. If there is a relatively linear shift in the number of people going down a rung on the elite tiers, the upgrade clearing may not be all that improved either.

I'd love to see the numbers UA based their 10K spend requirement on.
Thanks for the additional info...

When I say 'a good thing', I am referring to some people's opinion that the ranks of 1K's have swelled to the point where there are far too many elites. (I generally agree with this position, am not sure if PQD's is the way to resolve it though.)

This change will definitely reduce the number of 1K's, we'll see by how much.
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Old Oct 30, 2013, 9:39 pm
  #3508  
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Originally Posted by TravelManKen
Quote:





Originally Posted by wethereyet


Very easy to be 1K less than 10K and not by someone trying using low CPM MRs.


AA has a real opportunity going forward to poach UA's long haul econ FFers.




I just read this for the first time while looking up a M+ question on UA.com. The post above describes me (though I'm Gold, not 1K this year). Just looking at the last two business flights I purchased, both are inside $0.10 CPM and they're not mileage runs or anything like that. Nothing more than me typing in the dates of travel and booking the fares that popped up. As a self-employed person, there is no way I'm going to voluntarily increase my spend (changing fare categories) to simply gain PQDs, that would be insane.
Exactly. Not my fault The market offers lower fares on occasion and I buy them.

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Go Kings!
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Old Oct 31, 2013, 12:12 am
  #3509  
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Originally Posted by TravelManKen
I just read this for the first time while looking up a M+ question on UA.com. The post above describes me (though I'm Gold, not 1K this year). Just looking at the last two business flights I purchased, both are inside $0.10 CPM and they're not mileage runs or anything like that. Nothing more than me typing in the dates of travel and booking the fares that popped up. As a self-employed person, there is no way I'm going to voluntarily increase my spend (changing fare categories) to simply gain PQDs, that would be insane.
100% agree....being based in PDX where fares frequently drop to the 4cpm or less range (such as the PDX-DTW $79 one-way fares this summer), I'm not going to even come close to meeting the PQD requirement and yes, it's insane to think of voluntarily giving UA more money for the same flight...especially when you can fly the same amount of miles with someone like AS and get elite status w/o this insane PDQ requirement.

Seriously, if there was a vote for my least favorite thread on the UA forum, this one would definitely get my vote....I remember reading it the day UAInsider posted it and thinking, "well, I think I've just been shown the door...."
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Old Oct 31, 2013, 4:08 am
  #3510  
 
Join Date: Oct 2012
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Originally Posted by TravelManKen
I just read this for the first time while looking up a M+ question on UA.com. The post above describes me (though I'm Gold, not 1K this year). Just looking at the last two business flights I purchased, both are inside $0.10 CPM and they're not mileage runs or anything like that. Nothing more than me typing in the dates of travel and booking the fares that popped up. As a self-employed person, there is no way I'm going to voluntarily increase my spend (changing fare categories) to simply gain PQDs, that would be insane.
Your last sentence captures a sizeable fraction of FT mentality which separates from 99% of travelers.

The long haul flying as I described makes money for the airline as those miles are more efficient than the 120 segment domestic guy with numerous tickets/booking, etc.
Only UA knows the profit on these two customers for sure, but I'll double down that Ms. 120 PQS contributes much, much more profit to the bottom line than Mr 6x Long Haul. When I was in PQS mode, I typically spent 25-35 cpm.
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