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

Old Jun 18, 2013, 7:18 am
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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]

Old Jun 20, 2013, 6:43 am
  #1561  
 
Join Date: Oct 2012
Posts: 638
A ha! That's it! UA decided long ago to switch to a revenue based program. But before doing that, they stripped out baggage and food, and sold them separately, so that they wouldn't have to award PQDs for them.

All kidding aside, do we know if $200 change fees and $75 SDC fees count toward PQD?
flyingnosh is offline  
Old Jun 20, 2013, 6:48 am
  #1562  
Moderator, Omni, Omni/PR, Omni/Games, FlyerTalk Posting Legend
 
Join Date: Oct 2004
Location: Between DCA and IAD
Programs: UA 1K MM; Hilton Diamond
Posts: 67,088
Originally Posted by enricong
Now, I'm not sure how use of travel vouchers counts with PQD. I used $350 worth of travel vouchers and if they are subtracted from PQD, I'd be down to $9943. It doesn't seem fair to subtract the entire value since some of it goes towards taxes/fees.
Agreed that it doesn't seem fair... but I'd be willing to put money on travel vouchers subtracting from PQD, as they seem to drop the fare (and if you later print a receipt, it doesn't say, "$500 fare paid $350 voucher + $150 Amex" but rather "$150 fare paid $150 Amex.")
exerda is offline  
Old Jun 20, 2013, 6:48 am
  #1563  
 
Join Date: Jun 2005
Location: NYC and SFO
Programs: UA 1MM (former 1K, Delta Platinum))
Posts: 1,244
Is this program already in effect?

Is this program already in effect?

For flights between SFO and, say, BOS (complimentary upgrades are rare for EWR or JFK) I'm very often #1 on the upgrade list, with many people having cleared, as a 1K spending under 10cpm PQD.

Could there already be a secret 1K+ in effect, determining who gets advance CPUs?

One way to make the 1K spending requirements would be to pay more for tickets where a higher fare class is most likely to produce an upgrade. The boring game would be to go all the way to M fares as needed. One might get better yields by randomizing one's fare class and paying close attention to the results, like playing poker.

Transparency isn't in United's interest, even though they're asking us now to explicitly buy status.
Syzygies is offline  
Old Jun 20, 2013, 6:49 am
  #1564  
 
Join Date: May 2009
Location: PHL
Posts: 2,842
Originally Posted by villox
People in this thread keep equating the entire program with elite status. The vast majority of my friends are loyal to a particular airline simply because they are "saving up" for earning free travel and never ever expect to earn elite status. Obviously that does not apply to most of the people posting here, but most people don't expect to earn elite status at all (that's why it's supposed to be "elite"!)

United is changing the definition of who they consider elite. That's it. By some of the comments on here I wonder why you even bother with elite status. So you fly 5 transcons a year and qualify for Silver after spending $1500? What are you looking to get out of these 10 flights? United charges around $80 for E+ on a typical EWR-SFO flight, so they can sell those seats for $800 otherwise. Beyond that this is 10 experiences where you may have to board a bit later. They let you board earlier and get slightly-faster security and free luggage by getting a credit card, and heck you can even get out of the requirement altogether if you spend enough.

I don't blame them one bit for saying it's no longer worth it to them to give you extra RDM, faster boarding, free luggage, potential upgrades to first class, free E+, etc after you've spent around 5-6 CPM or even less. Not to mention every year you do this they're ALSO giving you 25000+ RDM which is enough for a free ticket anywhere in the lower 48.

I understand why people are disappointed that United is taking away something they've come to expect, but they ARE a business, and one that historically hasn't done so well. Rewarding people who aren't helping them return to profitability hasn't helped so far so I understand why they want to try something else.
There are many more ways to earn miles these days, especially with so many airline branded cards. And there are people who stick with an airline to earn the miles for a free trip and will never be elite.

The issue is that airlines are increasing the mileage for redemptions, holding back award inventory, charging additional award fees, etc. So it may take that person/couple/family 3 years to earn enough miles for one domestic ticket reserved 6 months in advance. Yes it is a free ticket but at what point do the airlines simply make it a hassle.
nova08 is offline  
Old Jun 20, 2013, 6:52 am
  #1565  
 
Join Date: Jan 2009
Location: 30 minutes south of EWR
Programs: UA 1k MM;*A Lifetime Gold; Marriott Lifetime Platinum; HiltonHonors Gold. Hyatt Globalist
Posts: 7,816
Thumbs up

Originally Posted by A_Lee
Ok, I'm not a MP member, so maybe I'm way off on this idea, but seems to me there's an easy way to balance the desire to make the benefits more attractive to the best customers who spend a lot and still allow the current benefits to those who don't spend enough to make these newly imposed limits.

How about just keeping everything the way it is, but adding a '+' designator to each status level for those who spend above whatever the dollar amount threshold is? If you're a +, you get priority over someone who's not. That way the fact that there's an overabundance of elites doesn't matter to the big spenders, because they'll have first priority. If you spend double the threshold, you get a '++' designator, which trumps single +'s. If you get enough +'s, say 3 or 4, you get promoted to the next level. That way some of those who don't fly many miles, but spend a lot still can get status. And it doesn't require any big changes to the program to get the desired results by UA and by the FFP members.

Seems UA isn't giving enough credit to the guys who don't spend that much. The big spenders can be a finicky group. If their company is paying for their travel, and they get transferred or find a new job at a new location where a different airline has their hub, will they stick with UA? Maybe, but there's a good chance they won't. For the most financially endowed travelers, they probably don't even really care about a FFP. If they're flying always in F, and have people to take care of all their needs, what need do they really have for a FFP and the status it bestows? Maybe just collect the miles and have their assistant book some award travel for them, but I wouldn't think many of them care a whole lot. They just want the most convenient/comfortable flight and probably have no real loyalty to any airline, provided the airline is acceptable to them. Compare those groups to the guy who doesn't contribute that much financially to UA in actual ticket sales, but is a very loyal customer and helps to fill up the plane. An airline has to keep their planes full if they're going to make money. That means all booking classes, from the cheapest to the most expensive. They cannot concentrate on just one. In fact, the more they try to attract the big spenders, the more there will be of them (if they're successful), and the more of them there are, the more competition there is for some of the FFP perks (such as upgrades). So you really do need a balance of big spenders and those who are buying the cheapest tickets available. UA is trying to tell those who buy the cheapest tickets to go bugger off and find a different airline. That's being very short sighted. They need to make their FFP attractive to the guy who year after year stays loyal to UA and helps them fill their planes, even though they're not making a lot of profit off of him. They may even be making a loss on some tickets, but better that seat gets sold than empty and costs the airline even more.

So prioritize the passengers within each level, and the frequent but cheap passengers can still be given a reason to give their loyalty to you, and you don't piss off the big spenders. Do you think such an idea would work?

Sorry if someone's already proposed something like this. I've not read even a fraction of the posts in this thread. I'm just concerned that this sort of revenue based FFP will become more common and may spell the end to the alliances as we know them. I don't really care what happens to UA, but I do care what happens to *A.
^
Brituchenite is offline  
Old Jun 20, 2013, 7:13 am
  #1566  
 
Join Date: Mar 2008
Location: London
Programs: UA GS
Posts: 2,438
Originally Posted by A_Lee
Ok, I'm not a MP member, so maybe I'm way off on this idea, but seems to me there's an easy way to balance the desire to make the benefits more attractive to the best customers who spend a lot and still allow the current benefits to those who don't spend enough to make these newly imposed limits.

How about just keeping everything the way it is, but adding a '+' designator to each status level for those who spend above whatever the dollar amount threshold is? If you're a +, you get priority over someone who's not. That way the fact that there's an overabundance of elites doesn't matter to the big spenders, because they'll have first priority. If you spend double the threshold, you get a '++' designator, which trumps single +'s. If you get enough +'s, say 3 or 4, you get promoted to the next level. That way some of those who don't fly many miles, but spend a lot still can get status. And it doesn't require any big changes to the program to get the desired results by UA and by the FFP members.
Aside from the logistical nightmare, you are assuming that this is all about priority for upgrades. That is just one aspect of the program. The "lesser" elites would still get priority baggage, take up space at service counters and in security lines, get lower change fees, take up E+ seats, etc along with all the other benefits United thinks is costing them money. It is only speculation that they are doing this to please their HVFs, and I would guess a very minor one.
villox is offline  
Old Jun 20, 2013, 7:17 am
  #1567  
FlyerTalk Evangelist
 
Join Date: Dec 2007
Location: BOS/ORH
Programs: AS 75K
Posts: 18,323
Originally Posted by ECOTONE
I like the change. If it thins the ranks of 1K, then my upgrade chances improve. While a selfish point of view, that's how I see it.
How will your upgrade chances improve? If your already flying on higher fare buckets, you're already ahead of those who will no longer be 1K

Originally Posted by DaviddesJ
You mean you are deliberately flying longer routes to your destination, to get more miles? This is exactly the kind of thing that UA would want to discourage. So that's one possible reason for the change.
This will still be happening. If you spend the $$ and dont get enough miles in you are no better off than you were if you didn't spend the $$

Originally Posted by charliechill
This is unfortunate for me. This is the first year I have tried for status ever, and by the end of the year I'll be Gold with UA, all on my own dime and all with leisure travel. I had to choose one airline to be loyal to, and I was excited and pleased with the thought of a long relationship with UA (even with all its faults). Sadly, now with the PQD idea, I just can't justify any loyalty. I'll go back to doing what I did last year and the years before that--find the cheapest fare on any airline and forget about loyalty or status.
The more i think about this the more I realze its a blessing in disguise. Its been a pain maintaining top tier status (GS doesnt count) on both AS and UA. I could easily meet the spend for platinum if I dropped AS but I cant as i have too much invested in them. I have so many RDM i dont know what to do with because i'm too busy flying revenue. It will be a lot cheaper in the long run if i just limit myself to one paid J trip a year on whoever has the best cost to benefit ratio (Most likley not a US based carrier).

By year end, it will have been 2 full years with UA/CO. 250K EQM and 490K RDM which is enough miles to do 3.5 international F redemptions to Asia. Once I use my voucher and top off my account, I'm done spending on UA (Taxes on my final awards dont count). I dont have to fly but when I do it wont by UA, not that UA will care.

PS: UA needs leisure travelers, who else buys up the lower fare buckets so you can charge much higher prices to businesses with deep pockets
CDKing is offline  
Old Jun 20, 2013, 7:19 am
  #1568  
 
Join Date: Aug 2011
Programs: UA 1K
Posts: 8,634
Originally Posted by Syzygies
Is this program already in effect?

For flights between SFO and, say, BOS (complimentary upgrades are rare for EWR or JFK) I'm very often #1 on the upgrade list, with many people having cleared, as a 1K spending under 10cpm PQD.

Could there already be a secret 1K+ in effect, determining who gets advance CPUs?

One way to make the 1K spending requirements would be to pay more for tickets where a higher fare class is most likely to produce an upgrade. The boring game would be to go all the way to M fares as needed. One might get better yields by randomizing one's fare class and paying close attention to the results, like playing poker.

Transparency isn't in United's interest, even though they're asking us now to explicitly buy status.
No.
mgcsinc is offline  
Old Jun 20, 2013, 7:22 am
  #1569  
 
Join Date: Dec 2006
Location: PHL
Programs: UA 1K, Avis President; Marriott Platinum
Posts: 495
Unhappy Worst to First to Worst

We all have seen the up and downs the last decade among the airlines. It is a shame they worry so much about revenue first and expecting their ratings to normalize over time.

Less than 6 years ago I jumped from US as a Chairman to CO, I was surprised in the big difference in service and the product. In this short time I accumulated over 750K miles. Service and the product was top notch, truly a first class airline.

Today the combined airline has a lot to be desired with customer satisfaction at 62% (American Customer Satisfaction Index).

With the latest announcement concerning the MileagePlus program you would have to wonder what the hell are they thinking? Shouldn't you rather concentrate on providing a better experience to your customer as oppose to devaluating a perceived benefit.

I just hope this summer’s travels are much better than last years and that the AA/US merger encourages UA to improve their schedule.

Happy travels all.
EddieG is offline  
Old Jun 20, 2013, 7:27 am
  #1570  
aku
 
Join Date: Dec 2004
Location: DEN
Programs: UA 1MM, Marr/SPG LT Plat, HH Gold, IC Amb, Hyatt Gold, Hertz 5*, BW LT Diam
Posts: 442
PQD for Premier Accelerator

Like many here, I'm keenly interested in seeing what happens with purchases for Premier Accelerator. My 2cpm: UACO offers Premier Accelerator in order to generate revenue, so it would be counterproductive to discourage it. I figured out a couple of years ago that it's costing me about $10k/year to maintain 1K, with or without the Accelerator, but that option saves wear and tear compared to MRs. If I decide to carry on with 1K without getting PQD credit for Premier Accelerator, I'll be spending about the same with the company, but neither of us will be happy--I'll be sitting on more planes, and they'll have to carry me.
aku is offline  
Old Jun 20, 2013, 7:36 am
  #1571  
 
Join Date: Aug 2011
Location: Boston MA
Programs: UA 1K/1.5 million miler, SU Gold, JL Sapphire
Posts: 529
"You earn PQD for the base fare and carrier-imposed surcharges on qualifying tickets. "

OK, so as an exercise... Here is what I paid last time around:

Fare Breakdown
Airfare: 1,388.00 USD
U.S. Customs User Fee: 5.50
U.S. Immigration User Fee: 7.00
U.S. APHIS User Fee: 5.00
U.S. Federal Transportation Tax: 34.40
September 11th Security Fee: 7.50
China Airport Fee: 14.60
International Surcharge: 366.00
U.S. Passenger Facility Charge: 13.50
Per Person Total: 1,841.50
USD
eTicket Total: 1,841.50
USD

So, Airfare, OK, it's in PQD.

Should I assume the different US fees and China fees are out?

Is "International surcharge" (?!?!) a "carrier-imposed surcharge"?
skidooman is offline  
Old Jun 20, 2013, 7:36 am
  #1572  
 
Join Date: Jun 2005
Location: NYC and SFO
Programs: UA 1MM (former 1K, Delta Platinum))
Posts: 1,244
Originally Posted by mgcsinc
No.
I've been watching the stats for a million miles. Your pithy answer suggests you believe people should take things on authority, rather than by understanding answers or examining evidence.

Put differently, the fare class cutoff for advance CPUs on some routes may be set to fares that average above 10cpm, with lower fares left to take their chances at the gate.

Don't be so literal in considering conjectures, or at least explain your reasoning. I doubt anyone outside United knows the exact algorithm for when to actually clear CPUs. This is a separate question from upgrade priority.
Syzygies is offline  
Old Jun 20, 2013, 7:37 am
  #1573  
 
Join Date: Jul 2005
Location: NYC
Programs: UA-1K MM, AA-Gold, DL-Silver, AS-MVP
Posts: 2,508
Originally Posted by dsquared37
And the bonus 150 GPUs as well.

My guess is you would be given the certs once you cross over the $10K PQD threshold.

That would be one mass deposit though!

If someone had the time and inclination to fly 200K at $0.05 cpm they'd be getting 10 GPUs and 10 RPUs in one fell swoop.
I can see lots of PQD vs. PQM/PQS status delay scenarios: fly 100K at 5cpm but stay at gold all year and then end up flying the remaining $5,000 PQD at the end of the year, which negates any early status recognition....

And reverse, you could have $10,000 PQD of business trips early in the year, but don't qualify on miles until end of the year.

So it's like an added obstacle just to get status...
hirohito888 is offline  
Old Jun 20, 2013, 7:38 am
  #1574  
 
Join Date: Aug 2006
Location: near to SFO and LHR
Programs: BA Gold, B6 Mosiac, VS, AA, DL (and a legacy UA 2MM)
Posts: 2,274
Originally Posted by Syzygies
Is this program already in effect?
----
Could there already be a secret 1K+ in effect, determining who gets advance CPUs?

One way to make the 1K spending requirements would be to pay more for tickets where a higher fare class is most likely to produce an upgrade. The boring game would be to go all the way to M fares as needed.
I would say yes, something like this already happens, and it's not so secret, just logical: If I know that fare basis is considered after status in prioritizing upgrades, and I can buy a higher fare class for $200-$300 additional (to Europe), I will generally do it.

It seems to work - I rarely miss an international upgrade.
StingWest is offline  
Old Jun 20, 2013, 7:39 am
  #1575  
FlyerTalk Evangelist
 
Join Date: Dec 2007
Location: BOS/ORH
Programs: AS 75K
Posts: 18,323
Originally Posted by skidooman
Is "International surcharge" (?!?!) a "carrier-imposed surcharge"?
Yep. Its been mentioned a few times. Its not a tax as its not something UA is required to charge

Originally Posted by hirohito888
I can see lots of PQD vs. PQM/PQS status delay scenarios: fly 100K at 5cpm but stay at gold all year and then end up flying the remaining $5,000 PQD at the end of the year, which negates any early status recognition....

And reverse, you could have $10,000 PQD of business trips early in the year, but don't qualify on miles until end of the year.

So it's like an added obstacle just to get status...
Technically you are earning status for the next year not the current year. It was just a bonus that it started right away but yes another bonus that will be gone at least for initial qualification and those needing GPU
CDKing is offline  

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