Jun 10, 2014, 5:09 am
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:
Fare multipliers based on Premier status:
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:
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
Post 57: http://www.flyertalk.com/forum/23008349-post57.html
Answered Questions:
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.
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: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
Post 57: http://www.flyertalk.com/forum/23008349-post57.html
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.
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.
Class of service bonuses have been discontinued under the new system. There is already an adjustment for 1K over general members.
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.
E-mail received by GS lists 1K and GS together.
2015 MileagePlus Change - RDMs Will Be Calculated by Spend, Not Distance
Jul 19, 2014, 1:26 pm
#2041
Join Date: Nov 2001
Location: Texas Hill Country
Programs: AS MVP Gold 75K, Hyatt Explorist, UA 1MM
Posts: 2,118
Jul 22, 2014, 4:43 pm
#2042
FlyerTalk Evangelist
Join Date: Oct 2011
Location: Anywhere I need to be.
Programs: OW Emerald, *A Gold, NEXUS, GE, ABTC/APEC, South Korea SES, eIACS, PP, Hyatt Diamond
Posts: 16,046
UA stopped offering upgrades for Intra-Asia flights even though B class cabin is half full;
UA devalued the miles and now costing more to redeem flights;
Now they reduce the miles for cheap tickets!
It is time to drop MP!!!!
I'm glad that I changed to Kris Flyer early this year. they give u 25% more miles even you are a silver member. better services, easier to get redemption flights......
UA devalued the miles and now costing more to redeem flights;
Now they reduce the miles for cheap tickets!
It is time to drop MP!!!!
I'm glad that I changed to Kris Flyer early this year. they give u 25% more miles even you are a silver member. better services, easier to get redemption flights......
Jul 22, 2014, 6:21 pm
#2043
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,068
Overall, you are right. But when you break it down, here's what they believe:
1) The mileage selling portion of MP is indeed incredibly profitable
2) Giving out elite benefits that can be sold = opportunity cost / lost revenue
3) Giving out awards that could be sold for cash = lost revenue
What that thinking lads to is a vision where the airline will try to:
1) Sell as many miles to partners as possible, and to sell as many miles as possible to MP members directly
2) Restrict elite benefits as much as possible and allow kttle to buy them and force lower elites to buy up to what they used to have.
3) Restrict award availability a much as possible to generate the greatest amount of breakage possible.
They want to have their cake and it it, too.
1) The mileage selling portion of MP is indeed incredibly profitable
2) Giving out elite benefits that can be sold = opportunity cost / lost revenue
3) Giving out awards that could be sold for cash = lost revenue
What that thinking lads to is a vision where the airline will try to:
1) Sell as many miles to partners as possible, and to sell as many miles as possible to MP members directly
2) Restrict elite benefits as much as possible and allow kttle to buy them and force lower elites to buy up to what they used to have.
3) Restrict award availability a much as possible to generate the greatest amount of breakage possible.
They want to have their cake and it it, too.
You're absolutely right if you only look at the cost side of the equation. If you attribute nothing to the business the loyalty program drives, then it makes sense.
Sadly this management team is very simplistic in how it looks at things -- cost only.
Jul 22, 2014, 6:43 pm
#2044
Join Date: Jan 2014
Location: NJ
Programs: United Silver, Hyatt, Marriott Gold, HHonors Gold, Amex Plat, Global Entry
Posts: 751
What I dont understand is why would UA maximize the # per flight to 75,000? You are paying $ to get the miles now, whats the point?
Jul 22, 2014, 6:48 pm
#2045
Join Date: Mar 2014
Location: EWR
Posts: 2,112
because that's what DL did...
Jul 23, 2014, 6:29 am
#2046
FlyerTalk Evangelist
Join Date: Apr 2009
Location: where lions are led by donkeys...
Programs: Lifetime Gold, Global Entry, Hertz PC, and my wallet
Posts: 20,346
...and because it is a race to the bottom.
Jul 23, 2014, 7:18 am
#2047
Join Date: Oct 2009
Location: Austin, TX
Programs: AA LT Plat, UA 1k/1mm+, National EE, IC Plat, Bonvoy Gold
Posts: 2,605
Jul 23, 2014, 7:28 am
#2048
Join Date: Oct 2009
Location: Austin, TX
Programs: AA LT Plat, UA 1k/1mm+, National EE, IC Plat, Bonvoy Gold
Posts: 2,605
SBM12 aka Seth wrote what I think is the must-read post of them all on this topic. Here is the link:
http://blog.wandr.me/2014/06/the-two...-award-points/
He explains how the industry looks at it and cites a recent presentation to that effect.
Jul 30, 2014, 2:13 pm
#2049
Join Date: Dec 2005
Location: Kirkland, WA
Programs: AS 75K,UA Gold 1.6MM, Hilton Dia, Marriott LT Plat, Hyatt Glb, Natl Exec, Hertz 5*
Posts: 3,657
Since the revenue-generation is being built into RDMs, I think we can see the coming of the elimination of PQMs in the status qualifying and the adjustment upward of the PQDs required for each status level. This will have the secondary effect of giving upgrades to the most valuable customers from a revenue perspective.
I think PQDs came in this year to ease that transition to the new RDM earning and away from PQMs for qualifying.
Stay tuned....
I think PQDs came in this year to ease that transition to the new RDM earning and away from PQMs for qualifying.
Stay tuned....
Jul 30, 2014, 2:22 pm
#2050
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,690
Since the revenue-generation is being built into RDMs, I think we can see the coming of the elimination of PQMs in the status qualifying and the adjustment upward of the PQDs required for each status level. This will have the secondary effect of giving upgrades to the most valuable customers from a revenue perspective.
I think PQDs came in this year to ease that transition to the new RDM earning and away from PQMs for qualifying.
Stay tuned....
I think PQDs came in this year to ease that transition to the new RDM earning and away from PQMs for qualifying.
Stay tuned....
Jul 30, 2014, 2:31 pm
#2051
Join Date: Apr 2014
Location: Houston / Philadelphia
Programs: UA 1K
Posts: 276
For an organization that is financially and operationally not nearly close to where it wants to be, this move (following DL I agree even though DL is in better shape) would make perfect sense businesswise IMHO.
Less folks make higher status so less perks for them such as upgrades and such. At the same time, this would only work if folks continued to fly UA. Since the other airlines FF programs are also following this same practice, it seems that UA may be thinking why would someone leave to have to another airline with the same program. Maybe that is why DL just came out with their differentiator perk of free IFE for 90+ minute flights.
I am not saying I like the move as it affects me also, but I understand UA point of view if what I stated above is how they are thinking.
Less folks make higher status so less perks for them such as upgrades and such. At the same time, this would only work if folks continued to fly UA. Since the other airlines FF programs are also following this same practice, it seems that UA may be thinking why would someone leave to have to another airline with the same program. Maybe that is why DL just came out with their differentiator perk of free IFE for 90+ minute flights.
I am not saying I like the move as it affects me also, but I understand UA point of view if what I stated above is how they are thinking.
Jul 30, 2014, 3:18 pm
#2052
FlyerTalk Evangelist
Join Date: Jan 2005
Location: BWI
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For an organization that is financially and operationally not nearly close to where it wants to be, this move (following DL I agree even though DL is in better shape) would make perfect sense businesswise IMHO.
Less folks make higher status so less perks for them such as upgrades and such. At the same time, this would only work if folks continued to fly UA. Since the other airlines FF programs are also following this same practice, it seems that UA may be thinking why would someone leave to have to another airline with the same program. Maybe that is why DL just came out with their differentiator perk of free IFE for 90+ minute flights.
I am not saying I like the move as it affects me also, but I understand UA point of view if what I stated above is how they are thinking.
Less folks make higher status so less perks for them such as upgrades and such. At the same time, this would only work if folks continued to fly UA. Since the other airlines FF programs are also following this same practice, it seems that UA may be thinking why would someone leave to have to another airline with the same program. Maybe that is why DL just came out with their differentiator perk of free IFE for 90+ minute flights.
I am not saying I like the move as it affects me also, but I understand UA point of view if what I stated above is how they are thinking.
Similarly, if I'm going to get crappy perks anywhere I go, why not just use whoever offers the best deal? If DL can get me where I want to go, with a better offering than UA, and some good, free IFE, why not choose them over UA?
This is where UA is at competitive disadvantage. DL keeps enhancing their product. US/AA appears to be enhancing some things, changing others. And if perks really don't factor in anymore, it opens more choices with VX, AS, B6 and WN. With all the cuts UA has done over the last few years, just what is their advantage anymore? An RJ infested network and the 787?
Loyalty will have gone the way of the dodo. Without loyalty, UA is going to turn into a bottom feeder airline as it'll have to rely on the Kettles since it doesn't have anything to offer a premium flyer.
Jul 30, 2014, 3:40 pm
#2053
A FlyerTalk Posting Legend
Join Date: Apr 2013
Location: PHX
Programs: AS 75K; UA 1MM; Hyatt Globalist; Marriott LTP; Hilton Diamond (Aspire)
Posts: 56,468
Interestingly, UA clearly believes that FFP is a significant differentiator in the marketplace, as evidenced by the pre-flight video and beverage napkins touting "best award availability."
Jul 30, 2014, 4:06 pm
#2054
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Award availability doesn't mean a whole lot if it takes forever to earn miles. With the way UA's program is set up, I get more miles churning CCs than I actually do flying them. If the CC is my best bet, why bother flying them?
Jul 30, 2014, 4:30 pm
#2055
A FlyerTalk Posting Legend
Join Date: Apr 2013
Location: PHX
Programs: AS 75K; UA 1MM; Hyatt Globalist; Marriott LTP; Hilton Diamond (Aspire)
Posts: 56,468
UA is on the one hand touting its award program as a primary differentiator, and on the other hand seriously devaluing the program by (a) raising award prices, (b) lowering earning levels for most of its passengers, and (c) cutting availability to the bone.
They must be aware of the disconnect, but apparently believe most customers won't notice.