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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
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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 29, 2014, 10:19 am
  #1981  
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Originally Posted by JNelson113
For instance, I frequently have to fly from IAH (where I live) to southern Cal at very short notice. USAir is far more competitively priced on those routes. In the past I may just drive the extra hour to AUS instead to stay on UA (and get a reasonable price), but once 3/1 rolls around I'll probably just fly USAir out of IAH.
But, again, I ask don't you have to pay for ChoiceSeats on US?
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Old Jun 29, 2014, 1:22 pm
  #1982  
 
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Originally Posted by RNE
But, again, I ask don't you have to pay for ChoiceSeats on US?
Here's how my recent flight broke down:
IAH-SNA on United was nonstop and about $500+
IAH-SNA on USAir, connecting in PHX, was about $200

Choice seats were something like $35 for the IAH-PHX leg and $25 for the PHX-LAX. I didn't bother as I'm not particularly tall. I value E+, but not enough to pay for it outside of TPAC, TATL, or TCON. As of 3/1 I'm probably not going to drive to AUS anymore to fly from there and get E+ and United Miles.

I fly entirely on my own dime so cost matters a lot to me. Under the current plan, the miles I earn make various inconveniences tolerable; after 3/1, I'll just have to adjust to a new set of inconveniences. :-) I'll still fly United when it makes sense to do so, but I won't spend a lot more and I won't go way out of my way when another option is easier.
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Old Jun 29, 2014, 1:51 pm
  #1983  
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Originally Posted by RNE
But, again, I ask don't you have to pay for ChoiceSeats on US?
Choice Seats are worthless but yes, you do have to pay for them. However, at check-in exit row seats on US open up for free. I have no status but have been in exit rows on over half of my US flights this year @:-)
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Old Jun 29, 2014, 5:44 pm
  #1984  
 
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Originally Posted by honmani2
Reading through all these threads makes one realize that this new policy is only benefiting a sliver of UA's customers.

Using me as an example, I've been an MP member since it began and have flown 100K miles annually for the past 20 years or so.

So I was planning to go to Johannesburg next year (after March 1). From HNL, it's around 27K miles so I would've gotten 54K miles with the 1K bonus.

I decided to go in September because the math simply doesn't work. I will get 54K miles this year. After March 1, it would be $1300 x 11 = 14,300 or a reduction of almost 40K miles.

There may be an uptick in travel prior to March 1, 2015 but I suspect there will be a dip after that.

I have been slowly reading all the posts,
I just finished a call with the 1k line to ask about this and I dont think your math is correct with the new system

I will use your miles/trip example from your upcoming trip:
I dont know all the FT abbreviations, so I will just spell them out
Before March, you would receive
27000 Premier Miles for that flight
and a 100% bonus match of 27000 miles
Plus 1300 more miles using your Chase CC
55300 total

After March:
27000 Premier Miles
and 14300 Bonus miles
Plus 1300 more miles using your Chase CC
42600 total


Premier Miles will still be miles flown. Only change is the bonus miles

this is what the 1k line told me. Correct me if I am wrong
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Old Jun 29, 2014, 5:48 pm
  #1985  
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Originally Posted by donho00
....
Premier Miles will still be miles flown. Only change is the bonus miles

this is what the 1k line told me. Correct me if I am wrong
For post March 2015 that is bogus info you were given

from UA 2015 Program FAQs is the info for UA operated flights. For partner operatored flights it may be miles flown with a percentage factor based on fare. But there is time for that to change.

After March 1, 2015, will I earn class-of-service bonus award miles and Premier bonus award miles?

For tickets that will earn miles based on the ticket price:

The class-of-service bonus will be included in the number of award miles you earn based on the ticket price.
Premier members will still earn Premier bonus award miles according to their Premier status. However, the bonus structure will be different, since the mileage bonus will be included in the number of award miles per dollar at each Premier level.
Members who don’t have Premier status will earn five award miles per dollar spent.
Premier Silver members will earn two additional award miles per dollar (for a total of seven).
Premier Gold members will earn three additional award miles per dollar (for a total of eight).
Premier Platinum members will earn four additional award miles per dollar (for a total of nine).
Premier 1K and Global Services members will earn six additional award miles per dollar (for a total of 11).

...
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Old Jun 29, 2014, 6:54 pm
  #1986  
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Originally Posted by WineCountryUA
For post March 2015 that is bogus info you were given

from UA 2015 Program FAQs is the info for UA operated flights. For partner operatored flights it may be miles flown with a percentage factor based on fare. But there is time for that to change.
Actually, if it's partner operated, but UA ticketed, it will also be fare based earnings.

Originally Posted by donho00
After March:
27000 Premier Miles
and 14300 Bonus miles
Plus 1300 more miles using your Chase CC
42600 total

Premier Miles will still be miles flown. Only change is the bonus miles

this is what the 1k line told me. Correct me if I am wrong
You are incorrect. The 27000 Premier miles are status miles only. They do not also count towards redeemable award miles.
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Old Jun 29, 2014, 7:47 pm
  #1987  
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Originally Posted by donho00
I have been slowly reading all the posts,
I just finished a call with the 1k line to ask about this and I dont think your math is correct with the new system

I will use your miles/trip example from your upcoming trip:
I dont know all the FT abbreviations, so I will just spell them out
Before March, you would receive
27000 Premier Miles for that flight
and a 100% bonus match of 27000 miles
Plus 1300 more miles using your Chase CC
55300 total

After March:
27000 Premier Miles
and 14300 Bonus miles
Plus 1300 more miles using your Chase CC
42600 total


Premier Miles will still be miles flown. Only change is the bonus miles

this is what the 1k line told me. Correct me if I am wrong
Difference between PQM and RDM. Premier Qualifying Miles, the miles you get credit to move you to a high status, your calculations are correct. Redeemable Miles, the miles you use to get free upgrades, flights, etc., the poster you responded to has it right. He's 1k so he gets ticket cost X 11. If the ticket cost $1,300 he gets 14,300 RDM.

This calculator shows you the Redeemable Miles you get: http://mileageplusupdates.com/

Originally Posted by dnwaldmann
Considering that what used to be a Frequent Flyer Program has really turned into a Rewards program, I guess it shouldn't be too surprising.
And I think that one sentence sums up everything. It is no longer a reward for BIS, it's a reward for spending money. And while BIS is how UA gets money, since it's not 1 butt = 1 butt then it only makes sense that they differentiate. Profit come from spend, not BIS.

Last edited by Ocn Vw 1K; Jun 29, 2014 at 8:20 pm Reason: Combine consecutive posts of same member.
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Old Jun 30, 2014, 1:05 am
  #1988  
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Originally Posted by LBJ
Actually, if it's partner operated, but UA ticketed, it will also be fare based earnings.



You are incorrect. The 27000 Premier miles are status miles only. They do not also count towards redeemable award miles.
So, I may have missed something fundamental here, is that true? I did not see that documented but freely admit I may have missed it. For a flight where I get, for example, 5368 PQM with, for example, 5500 award miles, then the PQM of 5368 no longer count as redeemable miles after March 2015, and I will only get 5500 miles to redeem?
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Old Jun 30, 2014, 5:52 am
  #1989  
 
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Originally Posted by Silver Fox
So, I may have missed something fundamental here, is that true? I did not see that documented but freely admit I may have missed it. For a flight where I get, for example, 5368 PQM with, for example, 5500 award miles, then the PQM of 5368 no longer count as redeemable miles after March 2015, and I will only get 5500 miles to redeem?
Yes.
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Old Jun 30, 2014, 6:03 am
  #1990  
 
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Originally Posted by Tchiowa
And I think that one sentence sums up everything. It is no longer a reward for BIS, it's a reward for spending money. And while BIS is how UA gets money, since it's not 1 butt = 1 butt then it only makes sense that they differentiate. Profit come from spend, not BIS.
I think this does sum up the difference – a shift from reward to rebate.

But I am among those who think this is utter business folly. Global Services already rewards spend (by someone) and incentives for contracts or high spenders may generate business (though I think product quality is the best winning [non-taxable] incentive here).

However, flyers – business or personal – are not robots (yet). We are not Fedex packages which magically get from Point A to Point B in exchange for money. We are actually people who fly BIS. We influence what we do with our bodies and minds.

You can argue that Premier status is still being rewarded/determined this way – and that may make sense, if it stays that way in this very complicated system. But that only works if the status means a lot. If the upgrade rate falls near to zero and the IRROPS service isn't great, and the 1K call line isn't real, and so on, then 'status' ceases to be much of an incentive.

So that leaves us with RDM. A reward of free flights is less of an incentive to a price-insensitive (high-spending/OPM) customer and more of one for a person who spends week-in/week-out flying BIS for work and then wants something nice (a free flight or guaranteed upgrade on vacation) at the end of it.

Clearly what is being attempted is a wholesale shift in incentives.

A huge array of the 'incentives' UA management have put in place are perverse incentives. High-spenders are capped in RDM; high-frequency-flyers are pipped for upgrades by TOD flyers; mainline craft are replaced by RJs on routes flown by competitors' bigger planes; employees are given worse work tools and permitted/encouraged to maintain loyalty to former companies ... and on and on.

They. Just. Don't. Get. It.
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Old Jun 30, 2014, 6:04 am
  #1991  
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Originally Posted by GBman
Yes.
I don't know what to type here. I really didn't know it was as bad as this. I wasn't going to switch airlines but might consider it now. Typically I fly LHR-SFO-LHR and I don't like Virgin unless its PE which my company will not pay for, and I detest BA and T5 is a joke gone wrong - but with an AA status match I might think about it. Food for thought.
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Old Jun 30, 2014, 6:12 am
  #1992  
 
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Originally Posted by Silver Fox
I don't know what to type here. I really didn't know it was as bad as this. I wasn't going to switch airlines but might consider it now. Typically I fly LHR-SFO-LHR and I don't like Virgin unless its PE which my company will not pay for, and I detest BA and T5 is a joke gone wrong - but with an AA status match I might think about it. Food for thought.
I am in a very similar position, and it is miserable. Our views about BA and T5 are identical. (The new T2 unfortunately reminds me too much of T5 for my liking.) But given UA's new programme I'm making the switch and have already moved most second-half travel away from UA. In the choice of miseries, UA has tipped the balance and I am choosing the less-miserable options, including making non-stops one-stop flights which allow flying on AA itself where I want to avoid BA codeshares. I rationalise that the AA one-stop is not that different from having to use BA hardstands and buses in a brand-new terminal and I get to fly a preferred carrier.

Commiserations.
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Old Jun 30, 2014, 7:28 am
  #1993  
 
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Originally Posted by Tchiowa
And I think that one sentence sums up everything. It is no longer a reward for BIS, it's a reward for spending money. And while BIS is how UA gets money, since it's not 1 butt = 1 butt then it only makes sense that they differentiate. Profit come from spend, not BIS.
Yes. Profit is better than BIS, but profit does not equal volume, and volume is an important part of the airline industry. Lose volume, and you lose more pax to other airlines due to a shrinking network.

And if volume matters, the new program no longer incentivizes it, and that will have unintended consequences. And not for the better for the airlines IMO.

Originally Posted by GBman
I think this does sum up the difference – a shift from reward to rebate.

But I am among those who think this is utter business folly. Global Services already rewards spend (by someone) and incentives for contracts or high spenders may generate business (though I think product quality is the best winning [non-taxable] incentive here).

However, flyers – business or personal – are not robots (yet). We are not Fedex packages which magically get from Point A to Point B in exchange for money. We are actually people who fly BIS. We influence what we do with our bodies and minds.

You can argue that Premier status is still being rewarded/determined this way – and that may make sense, if it stays that way in this very complicated system. But that only works if the status means a lot. If the upgrade rate falls near to zero and the IRROPS service isn't great, and the 1K call line isn't real, and so on, then 'status' ceases to be much of an incentive.

So that leaves us with RDM. A reward of free flights is less of an incentive to a price-insensitive (high-spending/OPM) customer and more of one for a person who spends week-in/week-out flying BIS for work and then wants something nice (a free flight or guaranteed upgrade on vacation) at the end of it.

Clearly what is being attempted is a wholesale shift in incentives.

A huge array of the 'incentives' UA management have put in place are perverse incentives. High-spenders are capped in RDM; high-frequency-flyers are pipped for upgrades by TOD flyers; mainline craft are replaced by RJs on routes flown by competitors' bigger planes; employees are given worse work tools and permitted/encouraged to maintain loyalty to former companies ... and on and on.

They. Just. Don't. Get. It.
^
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Old Jun 30, 2014, 8:13 am
  #1994  
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Originally Posted by Silver Fox
I don't know what to type here. I really didn't know it was as bad as this. I wasn't going to switch airlines but might consider it now. Typically I fly LHR-SFO-LHR and I don't like Virgin unless its PE which my company will not pay for, and I detest BA and T5 is a joke gone wrong - but with an AA status match I might think about it. Food for thought.
I think you are completely misinterpreting this and the answer you got. RDM and PQM were always different buckets and separate from each other.

Start with this: PQM never counted as RDM (or vice versa). Absolutely never. However, PQM used to essentially represent the same amount of RDM you would also get (excluding bonuses). So that's where the change lies - those base numbers won't be equal.

Take your example from your previous post talking about a flight earning 5368 miles. For context, that would be a flight of 5368 miles, and let's say it was in a mid-tier economy fare class (so no fare bonus) that cost $564 in fare/international surcharge. To start off easy, let's also for the moment assume the calculation is for a general member.

Today, that GM on the 5368 mile flight would earn 5368 RDM and 5368 PQM. If they flew that same flight (ua-operated) in March 2015, they would earn 5368 PQM and 2820 RDM ($564 x 5).

Your profile shows a 1K, so the example could be branched out to that status. Today, that flight would earn you 5368 PQM and 10,736 RDM (5368 + 100% bonus). In March 2015, assuming you kept that status, the flight would earn 5368 PQM and additionally 6204 RDM ($564 x 11).

The relationship between PQM and RDM isn't really changing - they have always been separate. Though at the fare level I put in (just picked a number) you'd earn about 58% of RDM in the future compared to today and the same amount of PQM. On the other hand, the RDM bonus you get in the new system will actually be higher - today a 1K earns a 100% bonus over the base - now that is 120%.
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Old Jun 30, 2014, 8:24 am
  #1995  
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Originally Posted by Boraxo
UA isn't firing anyone. In fact it is incentivizing the most profitable customers to stay. I will get 2x more miles for my TATL and TPAC flights - a huge incentive to select UA over the competitors.
If miles are the only incentive. Problem is UA is giving a lot of disincentives to fly them. Aside from the continuous cuts (including the most recent ones), you have the *A redemption inflation. You'll need those higher redemptions just to be able to get what you used to take.

Low fare customers almost always take the lowest fare. So they don't need any incentive to fly UA. If UA has the lowest fare it gets the deal. If WN does then WN is selected. Miles are irrelevant though everybody will collect them.
I don't think that's entirely true.

While people may be price sensitive, many have also wised up to the whole value proposition. If airline X charges a base fare of $200, but ends up forcing another $150 in fees for baggage, etc, then airline Y can still win out if it includes those services at $300. Throw in some other perks like a good mileage program and it can sweeten the deal. Will it always? Of course not, but it's not to say that the FFP has no value - even if it's getting enough points to take a trip to see grandma.

Really the only customers lost here are the elites who selected UA even when it did not have the lowest fares because they valued the miles and perks more than a small fare diff. Those folks may decide to bail to AA based on the new math. In a couple of years AA will match and then they will have another decision. Ditto for the poor 2Ps who lost advance E+ - no incentive to favor UA over the superior VX, B6 products now that you'll earn far fewer miles for those cheap transcons.
The problem is, these are the folks in the middle of the curve that UA needs to the most. There are more of these folks than the HVFs. UA can lose some HVFs and still be ok. Fire these guys and UA has some serious problems.

I also don't get the mantra that AA is automatically going to match UA and DL in FFP changes. AA to date hasn't, in fact, it's been heavily recruiting from UA and DL due to their changes. I don't think it makes a lot of sense to recruit people for a couple years and then piss them off. AAdvantage is a competitive tool to use to recruit and keep people. While both AA and DL have been improving their products, DL's gutted an already weak SkyPesos program. Can you imagine the incentive an improved airline AND a great FFP can offer?

I think it's far from a foregone conclusion that AA will follow UA and DL. They may ultimately, but I don't see it as a given as others do.

The more critical problem for UA is the poor product and lack of execution, which is leading HVF (myself included) to fire UA. This has nothing to do with MP.
I disagree here as well. I left UA back in 2012 when the 2P cuts were announced. UA was already a mediocre airline, but I stuck around as the FFP made it worth it. I was a 2P at the time, but my travel was going to pick back up to 1K levels for the following year. UA made its announcement, however, and I decided I wasn't going to suffer thru 50k miles just to keep some semblance of the perks I already had. UA decided it didn't want me, and failed to consider that today's 2P can easily be tomorrow's 1K. So I left. I did a challenge on US, made platinum, and finished up as a CP. Requalified for CP again. UA got some revenue as I still used them for TPACs, but that was only grudgingly.

Had UA not mucked so much with MP, I might have stayed another year or two. But instead, they got me looking and I found greener pastures elsewhere. They've lost out on thousands because of it, but no worries. It worked out for me.
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