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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 Dec 17, 2013, 8:07 pm
  #3946  
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Originally Posted by Mike Jacoubowsky
The international flyer, if not in C or F, is going to see a lot of their potential PQD disappear in taxes & fees. Interesting to think some might choose a destination based on fees & taxes, not just overall cost. Of course, the classic business traveler pays no attention to such things, so it will be the luck of the draw. Pity the person who flies into and out of LHR and other high-fee airports a lot.
The lowest PQD most pax will see, even out of LHR, is still above 80%. When I ran the calculations earlier this year, my PQDs were running around 90%, and that included a P fare to LHR (which penciled out at 92% PQD).
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Old Dec 17, 2013, 8:23 pm
  #3947  
 
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Here are some answers I received from Mileage Plus email. It seems buys ups from reservations will count towards PQD.

The Premier qualifying dollars for a ticket will include the base fare (before government-imposed taxes) plus any carrier-imposed surcharge and Economy Plus purchases on paid tickets.
No other types of purchases will count toward PQD. They include, but are not limited to the following:
• Government-imposed taxes, fees and charges
• Unpublished fares
• Consolidator fares
• Group/Tour fares
• Opaque fares (certain Hotwire, Priceline and other online tickets)
• Change fees
• Checked bag fees
• United Club memberships
• Extra seat for you or an inanimate object
• Upgrades to a premium cabin (Business or First Class) that require a fee. This includes upgrades via the airport kiosk (day of departure), Upsell at time of booking and any co-pays paid when using miles to upgrade. If a flight is upgraded through the Buy Up option through Manage Reservations, the new fare will count toward Premier qualifying dollars.
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Old Dec 18, 2013, 5:44 am
  #3948  
RNE
 
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By no means am I expert at minimizing CPM on air fares, but I am certainly no pushover either. I watch for deals, look for best routings and I'm usually flexible with day and date of travel. I have no interest in putting more money in Jeff Jong-un's pockets than I need to. Nevertheless, my best efforts yield a PQD of about 10˘/mile.

As I intimated, many of you do much better than that, I know. But I suspect I'm not so different from most elites—aside from my better looks, intelligence and all around great guyness. Something close to 10˘/mile is probably not so atypical. And with PQD here for 2014, most elites are going to have to kowtow to its 10˘ dictate, even if they previously, routinely came in at, say, 5˘/mile! Henceforth, the elite's challenge will no longer be to minimize CPM, but to come in as close to 10˘/mile as possible without falling under it. The bragging will be rampant this time next year.

That said, I don't think PQD will make otherwise rational, cost-conscious travelers suddenly become spendthrifts. Yes, many elites will pad their PQDs when close to the next threshold, just as they now pad their PQMs. But it won't be rampant or wild. UA will not get a windfall from this; it will simply make the ranks more bottom-heavy than they already are. You surviving 1Ks should be jumping for joy over this—just do it demurely.

Lastly, yes, some of us—yours truly—are not (yet) subject to PQDs at certain elite levels. But we realize that won't last forever.

RNE, not quite in your boat yet, but destined to be.
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Old Dec 18, 2013, 7:37 am
  #3949  
 
Join Date: Oct 2009
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Originally Posted by RNE
And with PQD here for 2014, most elites are going to have to kowtow to its 10˘ dictate, even if they previously, routinely came in at, say, 5˘/mile! Henceforth, the elite's challenge will no longer be to minimize CPM, but to come in as close to 10˘/mile as possible without falling under it.
Not sure that is true. Some could still fly at $.05CPM but they would have to do 200k PQMs...Also, you are assuming that many elites will simply try to pay close to $.10CPM...I would say many of the pure hobbyists can't afford doubling the financial outlay out of their own pocket.

Let's see how it goes...
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Old Dec 18, 2013, 7:37 am
  #3950  
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Join Date: Nov 2008
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Originally Posted by slocouple
Does he live outside the US?
Nope, AUS.

Originally Posted by unavaca
AA's EQP system also kept me from switching to AA. I fly deep discount economy domestically and paid C internationally. Under the EQP scheme, I'd fall well short of 100k EQP because of the half-credit deep discount economy, despite spending more than $10k.
Originally Posted by CKinMD
That's the exact same situation I find myself in.
How often do you fly in C? A simple SFO-LHR roundtrip will yield a little over 20K EQP in one swoop under the AA scheme. UA can tweak the system if they are going to make it their baseline qualification system. I think AA did not really pay attention to EQP as it is not the primary qualifying method.

Me-thinks this will work quite well:

3-class F gets 2 EQP
International long haul Biz gets 1.75 EQP
Short Haul Biz and domestic F gets 1.5 EQP
Y/B gets 1.5 EQP
M gets 1.25 EQP
S through E gets 1 EQP
T and lower gets .50 EQP

Last edited by iluv2fly; Dec 18, 2013 at 10:25 am Reason: merge
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Old Dec 18, 2013, 8:59 am
  #3951  
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Originally Posted by magemarq
Here are some answers I received from Mileage Plus email. It seems buys ups from reservations will count towards PQD.

The Premier qualifying dollars for a ticket will include the base fare (before government-imposed taxes) plus any carrier-imposed surcharge and Economy Plus purchases on paid tickets.
No other types of purchases will count toward PQD. They include, but are not limited to the following:
• Government-imposed taxes, fees and charges
• Unpublished fares
• Consolidator fares
• Group/Tour fares
• Opaque fares (certain Hotwire, Priceline and other online tickets)
• Change fees
• Checked bag fees
• United Club memberships
• Extra seat for you or an inanimate object
Upgrades to a premium cabin (Business or First Class) that require a fee. This includes upgrades via the airport kiosk (day of departure), Upsell at time of booking and any co-pays paid when using miles to upgrade. If a flight is upgraded through the Buy Up option through Manage Reservations, the new fare will count toward Premier qualifying dollars.
Interesting that UA is going to distinguish buy-ups through Manage Reservations from all other fees paid in connection with an upgrade. Apparently that changes the fare basis while the others do not? Get ready for the thread complaining that "I paid for an upgrade but UA refuses to give me PQD credit."
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Old Dec 18, 2013, 10:42 am
  #3952  
 
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Originally Posted by Kacee
The lowest PQD most pax will see, even out of LHR, is still above 80%. When I ran the calculations earlier this year, my PQDs were running around 90%, and that included a P fare to LHR (which penciled out at 92% PQD).
I just checked SFO-LHR; it looks like basic taxes & fees come to $236-$240. For example-
U.S. Federal Transportation Tax $17.20
September 11th Security Fee $2.50
September 11th Security Fee $2.50
U.S. Passenger Facility Charge $4.50
U.S. Passenger Facility Charge $4.50
U.S. APHIS User Fee $5.00
U.S. Immigration User Fee $7.00
U.S. Customs User Fee $5.50
U.S. Federal Transportation Tax $17.20
U.K. Air Passenger Duty $112.50
U.K. Passenger Service Charge $64.80
I'm correct that none of those count towards PQD? So on this alone you have a relatively-fixed $240 non-PQD component. High-season fare to London runs about $1500 in Y (I checked July). So here, a maximum of 84%, based on nothing but taxes & fees.

I know something of air fares to Europe in July; near-walk-up fares run to $2000, $1300 can be found if you really work it. These are not unrepresentative fares, and typically in classes you can upgrade.

BUT- mix in some trips in C and all of a sudden it's a whole new ball game. And I think that's what's going on here. That will easily kick a person's PQD up into what Jeff wants to see.

(And of course you can point out that the SFO-LHR trip in question isn't in any real danger of dropping your spend levels since, before subtracting for PQDs, it starts at $.14/mile. 82% of that is still over the threshold. But if you're flying off-peak with an $800 fare, different story.)
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Old Dec 18, 2013, 12:19 pm
  #3953  
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Originally Posted by Mike Jacoubowsky
I just checked SFO-LHR; it looks like basic taxes & fees come to $236-$240. For example-

I'm correct that none of those count towards PQD? So on this alone you have a relatively-fixed $240 non-PQD component. High-season fare to London runs about $1500 in Y (I checked July). So here, a maximum of 84%, based on nothing but taxes & fees.

I know something of air fares to Europe in July; near-walk-up fares run to $2000, $1300 can be found if you really work it. These are not unrepresentative fares, and typically in classes you can upgrade.

BUT- mix in some trips in C and all of a sudden it's a whole new ball game. And I think that's what's going on here. That will easily kick a person's PQD up into what Jeff wants to see.

(And of course you can point out that the SFO-LHR trip in question isn't in any real danger of dropping your spend levels since, before subtracting for PQDs, it starts at $.14/mile. 82% of that is still over the threshold. But if you're flying off-peak with an $800 fare, different story.)
Agreed that someone who is buying only the deepest discounted fares, whether an $800 RT to LHR or a $250 RT SFO-EWR, will have trouble with the PQD requirements. Which is as UA wants it.
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Old Dec 18, 2013, 12:48 pm
  #3954  
 
Join Date: Oct 2009
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Posts: 2,605
Originally Posted by Kacee
Agreed that someone who is buying only the deepest discounted fares, whether an $800 RT to LHR or a $250 RT SFO-EWR, will have trouble with the PQD requirements. Which is as UA wants it.
It all depends on how much they fly...if you fly 200k PQMs per year, it is almost impossible not to make $10k PQD threshold.
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Old Dec 18, 2013, 12:48 pm
  #3955  
 
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Edited for being a bonehead.

Last edited by elCheapoDeluxe; Dec 18, 2013 at 1:00 pm
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Old Dec 18, 2013, 12:51 pm
  #3956  
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Originally Posted by elCheapoDeluxe
I just looked at my trip to BHX in W and Q. Overall cost $1538.40. The amount of that which was airfare was $878. That's only 57%.
Bet you forgot the YQ -- which in the end is buried in the taxes but as a carrier imposed charged is counted in PQD.

International Surcharge: 458.00
I won the bet!

PQD 86.5%

Last edited by WineCountryUA; Dec 18, 2013 at 12:56 pm Reason: added %
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Old Dec 18, 2013, 12:51 pm
  #3957  
 
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Originally Posted by elCheapoDeluxe
I just looked at my trip to BHX in W and Q. Overall cost $1538.40. The amount of that which was airfare was $878. That's only 57%.
The international surcharge of about $400 also counts towards PQD.
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Old Dec 18, 2013, 12:53 pm
  #3958  
 
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Originally Posted by Sykes
The international surcharge of about $400 also counts towards PQD.
I can't believe how many circles we've had to do on this issue.
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Old Dec 18, 2013, 12:56 pm
  #3959  
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Originally Posted by AAExPlat
It all depends on how much they fly...if you fly 200k PQMs per year, it is almost impossible not to make $10k PQD threshold.
You are talking about extreme outliers.
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Old Dec 18, 2013, 12:58 pm
  #3960  
 
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Originally Posted by WineCountryUA
Bet you forgot the YQ -- which in the end is buried in the taxes but as a carrier imposed charged is counted in PQD.



I won the bet!

PQD 86.5%
You're right - I misread the wiki:

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?
.
Which of these 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
Reading quickly I took that to mean that since it was in the unanswered questions section, it was an unanswered question.
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