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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 Jun 18, 2013, 12:19 pm
  #451  
 
Join Date: Jan 2007
Location: Bellingham/Gainesville
Programs: UA-G MM, Priority Club Platinum, Avis First, Hertz 5*, Red Lion
Posts: 2,808
Do change fees/penalties count? <they seem to fall under the carrier imposed surcharge/fee language>

It feels a lot like the fare-code restriction on mileage earning with other carriers. I suppose this model allows for some of the ancillary charges to count considering this is the way the airline charges for things.

I have two problems with this. 1) If UA had their operational crap together I could evaluate whether this had enough value for me going forward and 2) There's no inflation/deflation adjustment present here. If fuel cost went up/down by X%, this will not end up serving the purposes (which I presume is to weed out the ranks a bit at all elite tiers and encourage more profitable spend by these elite ranks).

I'm over the CPM threshold, but I don't really care anymore due to MM. But this might mean that I'll need 2MM in order to keep Gold presuming the devaluation spiral continues.
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Old Jun 18, 2013, 12:20 pm
  #452  
 
Join Date: May 2008
Location: WAS
Programs: AA Ex Plt
Posts: 1,630
Because one can still fly 75K miles relatively inexpensively and can manufacture $25K CC spend for a ~$200 (Review HERE)

Originally Posted by zcat18
I think it's pretty easy. I'll make 1K for the first time this year (will probably end up with somewhere between 105-115k PQMs) and don't think I'm going to come that close to the $10,000 threshold.

In fact, Platinum is the level that seems to get screwed here, since it is the tier whose ranks will swell the most and for whom upgrade chances will be most diluted. I'd hate to have been 1K for the past 7 or 8 years spending $9,000 per year, only to wake up on 1/1/15 and be Platinum.



Yes, this is another major issue, considering that, in many cases, 50% or more of the cost of an international ticket is taxes and fees that United can probably claim are not PQD eligible.
Originally Posted by villox
How do you figure? Because all the 1Ks who weren't able to qualify will now be Platinums? Those, who would have beat them out previously?
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Old Jun 18, 2013, 12:21 pm
  #453  
Ambassador: Alaska Airlines
 
Join Date: Nov 2008
Location: BWI
Posts: 7,390
Originally Posted by colpuck
SBM12 said it best, "[o]ver the long term loyalty programs always decrease in value." Each year MP and the other programs become less valuable. It is just question on when you get out.
Until they realize that their loyalty program is worthless and people have stopped purchasing tickets based on brand and buys whatever fits their schedule or offers the fare they are willing to pay.

Right now, IMO, the main booking drivers for domestic high yield customers are [assuming everything else is equal including operational reliability which UA fails on many counts]:

1. Contracts
2. Schedule [non-stop vs. connecting]
3. Loyalty Programs

If the loyalty program becomes worthless [just like with the volatility ETFs] like you imply in the long run, it will impact #1 and #3, leaving only schedule as the main driver. Which means, who cares what airline I am flying on, I want to fly LAX-JFK nonstop at 9am, who has that?
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Old Jun 18, 2013, 12:21 pm
  #454  
 
Join Date: Mar 2003
Location: anywhere and everywhere
Programs: UA GS, AS MVP 100K, DL Diamond, Marriot Lifetime Titanium, AmEx Centurion
Posts: 5,525
Originally Posted by zcat18
I think it's fairly easy to reach that 100,000-mile PQM threshold without spending $10k (although nearly impossible to do so without spending the $7,500 required to reach Plat).
Not at all. As mentioned before, I'm at 140,000 PQM this year so far with under $6000 in PQD by my calculation.....so I'd be gold? Seriously?
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Old Jun 18, 2013, 12:22 pm
  #455  
 
Join Date: Jul 2004
Programs: DL; AA; UA; CO; LHLX; NZ; QR; EK; BA
Posts: 7,408
How to calculate PQDs (if they follow DL's model)

Delta has already been giving the MQD calculation a trial run thanks to the SPG Crossover Rewards program. As an SPG member, I am given points for my DL spend, so I've been able to check the $points awarded from DL against my DL ticket prices.

General rule of thumb:

Domestic US ticket: 89-90% of total ticket price paid (this aligns pretty much to the Base Fare line only and excludes almost all of the Taxes/Carrier-Imposed Surcharges line)

International ticket: 95-97% of total ticket price paid (Base Fare + the YQ or YR carrier-imposed surcharges). Most of the tax items like US or AY or CH (for Switzerland) or BE (Belgium) or FR (French tax) don't count obviously.
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Old Jun 18, 2013, 12:22 pm
  #456  
 
Join Date: Jan 2013
Location: SFO
Programs: UA 1K, Marriott Gold, Hyatt Diamond, Hilton Gold
Posts: 66
As a $5,000 UA 1K Mileage Runner, this is of course bad news for me. Next year I'll probably fly at least 75k to get Plat, and get EQD waived since I spend more than $25k on my Chase United Club card.

After that...I can either quit the MR game, or see if I'm crazy enough to DOUBLE my runs to fly 200k each year for $10k. I would get to 1MM faster but more cost and time up front.

-Tom9984
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Old Jun 18, 2013, 12:23 pm
  #457  
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Originally Posted by ironmanjt
Not at all. As mentioned before, I'm at 140,000 PQM this year so far with under $6000 in PQD by my calculation.....so I'd be gold? Seriously?
Yep. Unless you spend a lot on your personal CC.
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Old Jun 18, 2013, 12:24 pm
  #458  
 
Join Date: Aug 2008
Location: LAX
Programs: UA, Bonvoy, Amex Plat
Posts: 1,582
Originally Posted by thegrailer
Because one can still fly 75K miles relatively inexpensively and can manufacture $25K CC spend for a ~$200 (Review HERE)
Isn't the $25k CC spend loophole only for 2014 (2015 qualifying)?

Originally Posted by ironmanjt
Not at all. As mentioned before, I'm at 140,000 PQM this year so far with under $6000 in PQD by my calculation.....so I'd be gold? Seriously?
Looks that way, if your spending habits next year mirror this year's and you don't spend $25k on a United branded CC. Unfortunately, I think you are the exception rather than the rule.
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Old Jun 18, 2013, 12:25 pm
  #459  
 
Join Date: Aug 2006
Location: US
Programs: AA/UA/DL
Posts: 2,773
I really think United should pay bonus to Richard Anderson and not SMI/J.
United doesn't need a CEO and they just need to copay...no...copy and paste
what Delta is doing.
Delta is able to do this with their above average service while United.....
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Old Jun 18, 2013, 12:26 pm
  #460  
 
Join Date: Mar 2003
Location: anywhere and everywhere
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Posts: 5,525
Originally Posted by tom9984
After that...I can either quit the MR game, or see if I'm crazy enough to DOUBLE my runs to fly 200k each year for $10k. I would get to 1MM faster but more cost and time up front.
Or buy lots more Z/P mileage runs at just over 10c/PQM...which would likely be my strategy....
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Old Jun 18, 2013, 12:27 pm
  #461  
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Join Date: Jul 1999
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Originally Posted by luv2ctheworld
BTW, will UA be doing anything to enhance the product to justify the PQD's?
No.

Originally Posted by Xyzzy
How did you value the transportation portion of your expenditure?
At a lot less than I paid for it. Flying United is stressful and irritating, and I don't like doing business with a company that views me with automatic antagonism.

Originally Posted by colpuck
SBM12 said it best, "[o]ver the long term loyalty programs always decrease in value." Each year MP and the other programs become less valuable. It is just question on when you get out.
I'll try for another 18k PQMs in 2013, hopefully mostly on US before they pull the plug, then get out. This whole value proposition is rotting away to nothing before our eyes, and the only folks who don't see it are those who have high-priced travel subsidized for them.

Originally Posted by mitchmu
There is only one good thing to say about this: For once, UA is stepping up to the plate and honestly giving us the bad news in advance. For the last two years, they've lied to us about nearly everything... I stand on record saying the biggest issue with this program is the lies and cheating and will go on as they cheat us out of dollars saying they don't qualify.
That alone should be reason enough to step back from the blackjack table right now. People are going to end up in endless fights with MP about what constitutes a legit PQD and what suddenly doesn't under new, secretly rewritten rules. It's going to be tiresome, frustrating and ultimately stupid as the prize you're jumping through all these hoops for is a small ramekin of cashew fragments hurled at your head by a bitter dragon-matron who hates you on sight.

Game over.
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Old Jun 18, 2013, 12:27 pm
  #462  
 
Join Date: Mar 2003
Location: anywhere and everywhere
Programs: UA GS, AS MVP 100K, DL Diamond, Marriot Lifetime Titanium, AmEx Centurion
Posts: 5,525
Originally Posted by aacharya
Yep. Unless you spend a lot on your personal CC.
Guess it's time to switch spend from Sapphire card back to UA card...
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Old Jun 18, 2013, 12:27 pm
  #463  
 
Join Date: Jul 2004
Location: HNL
Programs: United Gold
Posts: 1,581
Originally Posted by tom9984
As a $5,000 UA 1K Mileage Runner, this is of course bad news for me. Next year I'll probably fly at least 75k to get Plat, and get EQD waived since I spend more than $25k on my Chase United Club card.

After that...I can either quit the MR game, or see if I'm crazy enough to DOUBLE my runs to fly 200k each year for $10k. I would get to 1MM faster but more cost and time up front.

-Tom9984
I'm in the same boat, although I think the $25k minimum credit card spend is waived for me since I'm a Presidential Plus cardholder (can someone please confirm this?). I wonder how well Platinums fare on CPUs out of HNL.

The 200k/year for $10k may actually be a good idea
love_to_travel is offline  
Old Jun 18, 2013, 12:28 pm
  #464  
Ambassador: Alaska Airlines
 
Join Date: Nov 2008
Location: BWI
Posts: 7,390
Originally Posted by ironmanjt
Guess it's time to switch spend from Sapphire card back to UA card...
Or add someone in the family who does not care about earning points as an authorized user for your UA card to help minimize draining too much away from the Sapphire spend.

Originally Posted by love_to_travel
The 200k/year for $10k may actually be a good idea
Actually, it will be more like 220K for $11K.

Last edited by iluv2fly; Jun 18, 2013 at 2:00 pm Reason: merge
golfingboy is offline  
Old Jun 18, 2013, 12:30 pm
  #465  
 
Join Date: Aug 2008
Location: LAX
Programs: UA, Bonvoy, Amex Plat
Posts: 1,582
Originally Posted by BearX220

That alone should be reason enough to step back from the blackjack table right now. People are going to end up in endless fights with MP about what constitutes a legit PQD and what suddenly doesn't under new, secretly rewritten rules. It's going to be tiresome, frustrating and ultimately stupid as the prize you're jumping through all these hoops for is a small ramekin of cashew fragments hurled at your head by a bitter dragon-matron who hates you on sight.

Game over.
Wish there was a "like" button on FT, because I think this pretty much sums it all up. Playing the game is no longer worth the prize for any but a small percentage of the players.
zcat18 is offline  


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