Mileage redemption idea - using points to cover change fees
Sep 11, 2013, 2:48 am
#1
Original Poster
Join Date: Jul 2006
Programs: UA 1K
Posts: 1,154
Mileage redemption idea - using points to cover change fees
Just had a thought that perhaps UA could one day offer mileage redemption as an alternative to paying change fees on restricted tickets. Thought?
$150 change fee = 12,500miles
$250 change fee = 20,000 miles
..something like that. Could be an interesting option to offer all customers or elites only?
$150 change fee = 12,500miles
$250 change fee = 20,000 miles
..something like that. Could be an interesting option to offer all customers or elites only?
Last edited by FlyinHawaiian; Sep 11, 2013 at 3:59 am Reason: vague thread title
Sep 11, 2013, 4:39 am
#3
Join Date: Aug 2009
Location: Honolulu, HI
Programs: UA 1K 1MM, AA Exec Plat
Posts: 1,240
I guess more options wouldn't hurt, but I wouldn't bite at these exchange rates.
And remember that new change fees are now typically $200 domestic/$300 international.
I forgot. Thinking about more creative, UA should be implementing a more flexible choice plus option like American. I would bite for that.
And remember that new change fees are now typically $200 domestic/$300 international.
I forgot. Thinking about more creative, UA should be implementing a more flexible choice plus option like American. I would bite for that.
Last edited by FlyinHawaiian; Sep 11, 2013 at 5:00 am Reason: merge
Sep 11, 2013, 5:31 am
#4
Join Date: Jul 2012
Location: Midwest
Programs: Lifetime Platinum
Posts: 261
United usually charges MORE miles than dollars for the same thing, in my experience, not less. For example, my recent United Club membership options were $400 or 50,000 miles. I basically got the renewal for 40,000 miles by paying the $400 and using my Mileage Plus Choices program (MP credit card) to exchange 40,000 miles for the $400.
Sep 11, 2013, 12:46 pm
#5
Join Date: Feb 2009
Location: CLE
Programs: UA 1K MM, DL Plat
Posts: 982
Never gonna happen (at least not with the current management methodology).
Change fees are bookable ancillary revenue. Point redemptions are a reduction in a changeable (devaluable) off-book liability. I wouldn't expect to see any opportunity to use points in a way that directly offsets a revenue item at a fixed exchange rate.
Change fees are bookable ancillary revenue. Point redemptions are a reduction in a changeable (devaluable) off-book liability. I wouldn't expect to see any opportunity to use points in a way that directly offsets a revenue item at a fixed exchange rate.
Sep 11, 2013, 1:13 pm
#6
Join Date: Jan 2007
Location: NYC/Northern NJ
Programs: 1K - UAL, Platinum DL, Marriott, Hilton, SPG
Posts: 1,815
Agree with Darlox.
Airline gets this revenue without incurring taxes on it. They nor any airline has any incentive (unless they want to reduce banked miles) of reducing income for change fees or bags fee in exchange for something that has no value if allowed to depreciate over xx months.
Would you prefer to be paid in CASH for something or given a dusty coupon which may not have any value to the owner due to its value and expiration date?
Airline gets this revenue without incurring taxes on it. They nor any airline has any incentive (unless they want to reduce banked miles) of reducing income for change fees or bags fee in exchange for something that has no value if allowed to depreciate over xx months.
Would you prefer to be paid in CASH for something or given a dusty coupon which may not have any value to the owner due to its value and expiration date?