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2015 MileagePlus Change - RDMs Will Be Calculated by Spend, Not Distance

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Old Jun 10, 2014, 5:09 am
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: WineCountryUA
Earning miles on United flights

Spend-based mileage (RDM) earning for all UA metal flights effective March 1, 2015.

Redeemable Miles (RDM) changes highlights:
  • Miles earned will now be based on the ticket price instead of the number of miles flown (see partner flights on non-016 tickets exception )
  • Ticket price is defined as base fare plus carrier-imposed surcharges (same as PQDs)
  • Class of service bonuses have been discontinued (e.g. X% more on A fares).
  • There is a limit of 75,000 miles earned per ticket (see below for spending limits by status)
  • UA flights regardless of ticket stock will use the ticket price to determine RDMs
  • Partner flight on 016 ticket stock will use the ticket price to determine RDMs
  • Partner flights on non-016 ticket stock will use a flight mileage-based system to determine RDMs with a fare class multiplier (see the partner page for detials
  • Speciality / Bulk tickets with PQDs will use a flight mileage-based system to determine RDMs with a fare class multiplier, see Specialty tickets

Fare multipliers based on Premier status:
  • x5 General Members
  • x7 Silver
  • x8 Gold
  • x9 Plat
  • x11 1K/GS

For example, a 1K would earn 1100 miles for a $120 (assuming $20 in taxes/fees) ticket while a Silver would earn 700 miles for the same ticket.

As there is a maximum number of miles per ticket earned - this disincentives purchasing any ticket (excluding government taxes and fees) over the following:
  • $6818.18 for 1K/GS
  • $8333.33 for Platinum
  • $9375.00 for Gold
  • $10714.28 for Silver
  • $15000.00 for General Members

A way to avoid this is booking one-ways if the fare rules permit.

Premier Qualifying Miles (PQM) are not affected by this change.

Announcement Site
www.mileageplusupdates.com
There is a tool on the site that allow you to enter how much you spent on a ticket along your premier status in order to calculate how many miles you will earn under the new system. The tool is aware of the miles per ticket limit.

There is a FAQ here: http://mileageplusupdates.com/faq.html
Relevant UA Insider posts:

Post 57: http://www.flyertalk.com/forum/23008349-post57.html
Originally Posted by UA Insider
Hi everyone,

Today we’re announcing changes to how MileagePlus members will earn award miles in 2015. We’ve posted complete details and a FAQ on united.com, but I wanted to share an excerpt of the key points with you directly:

As of March 1, 2015, the award miles you earn on most United and United Express tickets will be based on your ticket price (that is, base fare plus carrier-imposed surcharges) and your MileagePlus status, instead of the distance you travel. The new criteria for earning award miles will look like this:

<portion removed for brevity>

The changes to earning award miles will apply to all MileagePlus members worldwide, and will be based on status at the time of flight on or after March 1, 2015. These changes will not affect the qualification requirements for 2015 Premier status. PQM and PQS will still be based on the number of paid flight miles traveled and the fare purchased. And where applicable, PQD will still be determined by the base fare and carrier-imposed surcharges.
Answered Questions:

Originally Posted by SunLover
So a 1K purchasing a $5,000 EWR-NRT ticket would earn 55,000 miles plus the 1K additional RDM’s?
Class of service bonuses have been discontinued under the new system. There is already an adjustment for 1K over general members.
Originally Posted by ckidder331

LAX-Intl Location in Business Class as a Premier Gold

Would a $5,000 ticket in Business class to Asia earn:

5000 x 8 = 40,000 (Premier Gold earning)
5000 x .75 = 3750 (Class of Service bonus)
43,750 Total
For tickets that will earn award miles based on ticket price, the class-of-service bonus and Premier bonus will be included in the number of award miles you earn per dollar. Basically COS has been removed.
Originally Posted by mikelcf
...On the mileageplus announcement site and FAQ site it lists only 1K's. With respect to most mileage levels, etc. UA usually treats GS the same as 1K, so I assume that's the case here, but has anyone seen anything specific to GS?
E-mail received by GS lists 1K and GS together.
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2015 MileagePlus Change - RDMs Will Be Calculated by Spend, Not Distance

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Old Jun 14, 2014, 4:32 am
  #1606  
 
Join Date: Jul 2005
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Originally Posted by LaserSailor
People who buy 7500 USd fares don't think about miles too much. The cap is about right..getting more than three saver domestic awards for sitting in a complicated intl itinerary doesn't make sense to UA financials
Thats a false statement. The only reason someone is flying on UA for 7500.00 is because of miles. Why would anyone pay 7500.00 over 7500.00 on Cathay or British? Miles miles miles.
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Old Jun 14, 2014, 4:44 am
  #1607  
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It's funny, but my company is also another one that wants to cut its way to profit. I guess that they all want to be like Ryanair and lead the race to the bottom.

And I shall keep banging this drum - this mantra of "rewarding HVF" is pure bunkum. For example, if they want to reward HVFs then there would be no cap. When you change the mileage program to this depth, and to this extent, it is nothing more than a devaluation of a program. Too many people are negatively affected.
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Old Jun 14, 2014, 5:33 am
  #1608  
 
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Originally Posted by UA_Flyer
Still puzzled by the 75K RDM cap on each ticket.:confused

Is UA trying to drive high revenue passengers? Some of the last min transpac and transatlantic fares paid by GS/1K could fetch pretty high $, but the excess won't earn any miles.....

Anyone that has figured out the rationale behind the capping?
I would like to know the rationale as well. It doesn't have to be last minute for fares to go beyond 7.5K - We book tickets months ahead and even then a RT D-Fare HKG-PDX would cost > 7.5K, a RTW D-Fare upwards of 95,000 HKD (>12K USD)

Although 75K RDM is still better than an average of 53K (inclusive of fare and status bonus) for a RTW


Originally Posted by LASUA1K
Thats a false statement. The only reason someone is flying on UA for 7500.00 is because of miles. Why would anyone pay 7500.00 over 7500.00 on Cathay or British? Miles miles miles.
In our case, IT IS because of miles AND the ability to upgrade into F using GPU. We use CX as well, but only for HKG-LHR direct. Although service and seat is superior to UA, we still choose UA FOR THE MILES (and it can be cheaper too).

Originally Posted by Silver Fox
And I shall keep banging this drum - this mantra of "rewarding HVF" is pure bunkum. For example, if they want to reward HVFs then there would be no cap. When you change the mileage program to this depth, and to this extent, it is nothing more than a devaluation of a program. Too many people are negatively affected.
I couldn't agree more.

Now back to the 75K cap thing.... maybe there's a way around it...for a RTW (eg. HKG-SFO-PDX-EWR-FRA-HKG) ticket that costs, say USD 11K, crediting the non UA flight, LH FRA-HKG to LH's program and the rest to UA - will that work?
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Old Jun 14, 2014, 5:49 am
  #1609  
 
Join Date: Mar 2013
Posts: 28
Originally Posted by pdx1M
Yes. I've actually been surprised that there has been more discussion/recognition of this. This change should significantly decrease the total number of miles UA has to give out. Sure at the top end folks will get more but many, many more folks will get a lot less. Given the cost crossover points (and remember that most of the crossover point discussion on cpm has been using the relatively tiny number of 1Ks for reference) overall UA will greatly reduce total miles awarded. I suspect this aspect cloaked in the rest of the desire (legitimate) to move to a value based program is what really is driving UA.
Fewer total miles awarded -- exactly! The bottom line for the airlines is not how they are slicing the pie - but that the pie is shrinking. Diverting attention to methods of calculation and "rewarding of higher paying customers" is a clever slight of hand.
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Old Jun 14, 2014, 5:51 am
  #1610  
 
Join Date: Jul 2012
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Originally Posted by LaserSailor
People who buy 7500 USd fares don't think about miles too much.
I'm not so sure. Everyone likes to play the game. Everyone likes freebies. A friend of mine works on televised awards shows like the Oscars and Emmys and says that gift bags work wonders to entice celebrities to show up for rehearsal. Fancy picture frames, cologne/perfume, gift certificates, and so forth. The rich and famous could buy that stuff a thousand times over but they delight in getting stuff for free, like anyone else.
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Old Jun 14, 2014, 6:55 am
  #1611  
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Originally Posted by LaserSailor
People who buy 7500 USd fares don't think about miles too much. The cap is about right..getting more than three saver domestic awards for sitting in a complicated intl itinerary doesn't make sense to UA financials
And yet I get calls from relatives and friends asking how they can use their miles from their 9,000+ USD international first class leisure travel tickets for additional travel.

Even the comfortably rich with lots of disposable income play this game and don't like getting ripped off.

That said, you have a fair point implicit in your comment: these kind of tickets are bought with miles as sort of an afterthought.

.... but then when the afterthought hits and the realization comes that the program isn't that good on the redemption side and a mixed bag on the earning side, the program invites migration away from the previous service provider. In other words, UA is not going to be able to fool all of its customers all of the time.

Last edited by GUWonder; Jun 14, 2014 at 7:01 am
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Old Jun 14, 2014, 7:01 am
  #1612  
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Everybody knows, even the mega-rich, that this is a mileage program heading for the bottom. I wonder how long until the 6 GPUs for being 1K/GS will last (and please don't say "don't give them ideas" because you would have to be as daft as a brush to think that they haven't). Post March 15th the only benefits for me will be lounge, E+, priority boarding, *G, and to a small extent the checked baggage allowance. If any of that changes then I am off.
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Old Jun 14, 2014, 7:21 am
  #1613  
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Originally Posted by UA_Flyer
Still puzzled by the 75K RDM cap on each ticket.:confused

Is UA trying to drive high revenue passengers? Some of the last min transpac and transatlantic fares paid by GS/1K could fetch pretty high $, but the excess won't earn any miles.....

Anyone that has figured out the rationale behind the capping?
No, they just want to have their cake and eat it too (same w/DL, but at least they have a better product that justifies it).

"We want all the HVFs and will reward them accordingly - but we have to put exceptions in our chart so we don't reward them TOO well".
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Old Jun 14, 2014, 7:24 am
  #1614  
 
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Sorry if this has been covered - I can't find it. If the cap is 75,000 RDM's per flight, does this include PURCHASED extra RDM's as well??

If I buy a $5,000 R class ticket to BAH, it will earn 55,000 RDM's. Will I still be able to buy 36,000 or 48,000 extra RDM's @ .021 or whatever the cost will be next year?

i don't usually buy RDM's and NEVER buy PQM's but on a recent trip to BAH in A class, I earned aprx 52,000 RDM's - I then bought 48,000 RDM's separately @ .021 so this R/T flight added aprx 100,000 RDM's to my account. Will the selling of RDM's continue? And if it does will it cap at a total of 75k or will there be no limit as there is today?
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Old Jun 14, 2014, 7:30 am
  #1615  
 
Join Date: Nov 2005
Location: Denver & Phoenix
Programs: UA 2MM, Life UC, Global Entry (UK citizen)
Posts: 129
1. What does HVF stand for?
2. Glossary (List Of Acronyms) link that includes HVF?

Thanks for quick responses SFO777 & cfischer.

Last edited by EMan; Jun 14, 2014 at 7:39 am Reason: Thank-you Note
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Old Jun 14, 2014, 7:32 am
  #1616  
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Originally Posted by EMan
1. What does HVF stand for?
2. Glossary link that includes HVF?
High Value Flyer.
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Old Jun 14, 2014, 7:34 am
  #1617  
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Originally Posted by EMan
1. What does HVF stand for?
2. Glossary link that includes HVF?
same as HVC. High Value Flyer/Customer

... SFO777 beat me
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Old Jun 14, 2014, 7:35 am
  #1618  
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Originally Posted by chinatraderjmr
Will the selling of RDM's continue?
I think thats a pretty safe bet that it will.
At what price is the question.

I dont think many people will bite at the standard price, but accelerator rates, are actually reasonable at 2.1-2.3cpm.

This is why the whole MRers have ruined things idea is so stupid. Noone MRs for RDMs. It makes no sense.
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Old Jun 14, 2014, 7:36 am
  #1619  
 
Join Date: Jan 2010
Location: LAS, ZQN
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Originally Posted by chinatraderjmr
Sorry if this has been covered - I can't find it. If the cap is 75,000 RDM's per flight, does this include PURCHASED extra RDM's as well??

If I buy a $5,000 R class ticket to BAH, it will earn 55,000 RDM's. Will I still be able to buy 36,000 or 48,000 extra RDM's @ .021 or whatever the cost will be next year?

i don't usually buy RDM's and NEVER buy PQM's but on a recent trip to BAH in A class, I earned aprx 52,000 RDM's - I then bought 48,000 RDM's separately @ .021 so this R/T flight added aprx 100,000 RDM's to my account. Will the selling of RDM's continue? And if it does will it cap at a total of 75k or will there be no limit as there is today?
The new policy doesn't eliminate the selling of miles. United wants to extract every dollar from everyone. But the value of miles is less. Hopefully you will use them wisely.
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Old Jun 14, 2014, 7:55 am
  #1620  
 
Join Date: Jan 2010
Location: LAS, ZQN
Programs: UA PP (2MM), BA gold
Posts: 2,202
Has anyone done a comparison of a Business/First Class RTW ticket using an 016 ticket compared to another *A carrier?

If on an 016 stock would be 75K miles max.
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