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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 Jul 30, 2014, 4:36 pm
  #2056  
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Originally Posted by Kacee
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.
No, what UA is saying is even after devaluation, it has still got the best FFP.

RNE, not that I agree with UA, mind you.
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Old Jul 31, 2014, 4:59 am
  #2057  
 
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Originally Posted by Superguy
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?
Fine for economy travel but in FFP 4.0, you can kiss FC award travel goodbye without top status. There are going to be many, many upset churners in 24 months
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Old Jul 31, 2014, 6:17 am
  #2058  
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Originally Posted by LaserSailor
Fine for economy travel but in FFP 4.0, you can kiss FC award travel goodbye without top status. There are going to be many, many upset churners in 24 months
You keep saying this...not gonna happen :-:
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Old Jul 31, 2014, 7:31 am
  #2059  
 
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Originally Posted by Superguy
Conversely, if all FFPs become more or less equal, why would someone stay with a substandard airlines? It comes down to service and value (not necessarily price) at that point.

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.
I agree 100% with you. But at the same time, to become a differentiator such as the DL IFE perk, you need to restructure yourself and make sure you are on solid ground as DL has been for recent years. DL is a market differentiator and UA a market follower we know this. DL is at a point that they can foot the bill (if thats what they are doing) or somehow offer this free service but I am simply saying I dont think UA is at that point. The resturcturing of the FF program is consistent amongst the big airlines so something else needs to be the differentiator, in DL's case it is the IFE. Lets hope UA has something to offer as a differentiator sometime soon.
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Old Jul 31, 2014, 9:10 am
  #2060  
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Originally Posted by Kacee
You missed the point.

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.
Gotcha. I agree.
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Old Jul 31, 2014, 10:24 am
  #2061  
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Originally Posted by trini19
I agree 100% with you. But at the same time, to become a differentiator such as the DL IFE perk, you need to restructure yourself and make sure you are on solid ground as DL has been for recent years. DL is a market differentiator and UA a market follower we know this. DL is at a point that they can foot the bill (if thats what they are doing) or somehow offer this free service but I am simply saying I dont think UA is at that point. The resturcturing of the FF program is consistent amongst the big airlines so something else needs to be the differentiator, in DL's case it is the IFE. Lets hope UA has something to offer as a differentiator sometime soon.
I think DL's taking the right approach with the IFE - making it a "freemium" service. They're going to provide what seems to be a fairly wide assortment of entertainment, but if you want the better stuff like the newest movies or shows like Game of Thrones, you're going to have to pony up a bit. It's a nice little perk for those that want a more basic offering, but still allows a revenue stream to defray the costs or generate a profit. I think it's a winner for them.

UA is a follower alright, but the problem is they can't follow DL halfway. They can't follow DL's cuts without making the enhancements too. At least DL gives you something on the front end if they take away on the back end. UA MIGHT be able to pull off their cuts if they match to some degree what DL gives.
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Old Jul 31, 2014, 3:38 pm
  #2062  
 
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Originally Posted by UA-NYC
You keep saying this...not gonna happen :-:
I hope not, but apparently it already has on LX. So why not UA and/or anywhere else?
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Old Jul 31, 2014, 4:26 pm
  #2063  
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Originally Posted by dnwaldmann
I hope not, but apparently it already has on LX. So why not UA and/or anywhere else?
UA already took away special Intl F space for elites - going the opposite direction now. Theres no amazing product a la LX to protect.

Domestic F is mediocre, I'm sure they're more than happy to have mileage redemptions for it over giving away CPUs.
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Old Jul 31, 2014, 5:58 pm
  #2064  
 
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If you live outside US, this new RDM deal will be great since UA plans to award RDM miles based on distance traveler on partners, granted many of the lowest classes do not earn much. I still think UA has the best FF program, recently I was looking for a ticket IAH-MAN-IAH, it was around $1400 for travel early Aug. I was able to redeem two one ways, one of them from an non-elite account with ease on economy, even business was available. I looked at BA/AA, DL and none were even close, seats were available only at the highest redemption levels.
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Old Jul 31, 2014, 6:06 pm
  #2065  
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Originally Posted by hyho61
If you live outside US, this new RDM deal will be great since UA plans to award RDM miles based on distance traveler on partners, granted many of the lowest classes do not earn much.
So it won't be a great deal.
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Old Aug 1, 2014, 11:07 am
  #2066  
 
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Originally Posted by LaserSailor
I don't see how changing status qualification method influences upgrade availability directly, but I do agree that both will change...and we won't like it
Let me elaborate... I think they set the PQD thresholds fairly low initially to minimize the impact of PQDs to qualification. i.e. I think a very large percentage of 1Ks can hit $10K spend. I buy bargain basement tickets every time (am required to) and I find I am still going to make it, barely.

But, with the new RDM earning mechanism it is a huge hit on the cheap ticket purchasers. It seems they are now willing to prioritize more to higher spenders.

Thus, I think we will see PQD requirements be pushed up and dropping PQMs entirely as they will become pretty much irrelevant as they are for miles flown for RDMs. (They will really need to stop calling them "miles" and now "points").

With PQD requirements higher, now the higher spenders get the upgrades by status. Those that spend, say $10K a year will become the new Platinum or Gold even.
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Old Aug 1, 2014, 11:36 am
  #2067  
 
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Originally Posted by dmodemd
Let me elaborate... I think they set the PQD thresholds fairly low initially to minimize the impact of PQDs to qualification. i.e. I think a very large percentage of 1Ks can hit $10K spend. I buy bargain basement tickets every time (am required to) and I find I am still going to make it, barely.

But, with the new RDM earning mechanism it is a huge hit on the cheap ticket purchasers. It seems they are now willing to prioritize more to higher spenders.

Thus, I think we will see PQD requirements be pushed up and dropping PQMs entirely as they will become pretty much irrelevant as they are for miles flown for RDMs. (They will really need to stop calling them "miles" and now "points").

With PQD requirements higher, now the higher spenders get the upgrades by status. Those that spend, say $10K a year will become the new Platinum or Gold even.
I too, think the PQD will lift but perhaps not until 2016 year. [SPECULATION]

I hope not, but apparently it already has on LX. So why not UA and/or anywhere else?
Because FT has its own reality distortion field - hoping beyond rational thought that if you keep saying miles won't depreciate, they won't......

Reality is the airlines have aligned FC travel with paid load much better, and there will be fewer giveaways and awards up front.

The beauty of the FF program is that customers sitting on high balances see them, reassuringly day-to-day and, let alone not being able to acknowledge that they might depreciate, have in fact already been depreciated by decisions made to apply a year away.
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Old Aug 7, 2014, 7:45 am
  #2068  
 
Join Date: Feb 2014
Posts: 514
American CEO Doug Parker says AA will not be going to a revenue based FF program... at least not for right now. Sounds like they are taking a wait and see approach plus they have their hands full merging AA and US.

Will United follow? : )

http://www.flyertalk.com/forum/ameri...d-foolish.html

Interesting if they want to see how many FF's they could poach away. They could be worried about high spenders favoring the new program or they could just reward miles or dollars, whichever is greater? As a HVFer that might be better because on some tix that you do buy cheaper fares, you can still maximize your earnings.
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Old Aug 7, 2014, 11:06 am
  #2069  
 
Join Date: May 2009
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Originally Posted by FlyerTom111
American CEO Doug Parker says AA will not be going to a revenue based FF program... at least not for right now. Sounds like they are taking a wait and see approach plus they have their hands full merging AA and US.

Will United follow? : )

http://www.flyertalk.com/forum/ameri...d-foolish.html

Interesting if they want to see how many FF's they could poach away. They could be worried about high spenders favoring the new program or they could just reward miles or dollars, whichever is greater? As a HVFer that might be better because on some tix that you do buy cheaper fares, you can still maximize your earnings.
He actually made this comment a few months ago back when UA announced these changes.

It's hard to read whether it is a wait and see or if it is simply acknowledging that their IT systems still need to be merged before taking on this change.
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Old Aug 7, 2014, 12:00 pm
  #2070  
 
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Originally Posted by FlyerTom111
American CEO Doug Parker says AA will not be going to a revenue based FF program... at least not for right now. Sounds like they are taking a wait and see approach plus they have their hands full merging AA and US.

Will United follow? : )

http://www.flyertalk.com/forum/ameri...d-foolish.html

Interesting if they want to see how many FF's they could poach away. They could be worried about high spenders favoring the new program or they could just reward miles or dollars, whichever is greater? As a HVFer that might be better because on some tix that you do buy cheaper fares, you can still maximize your earnings.
They will definitely poach FFs that don't meet spend requirements. This seems to be the issue Jeffey is incapable of understanding....if you drive away FFs which are squarely between the kettle and HVFs, you give up PRASM growth to the competition because you are not filling planes as quickly on early bookings and then cannot charge super premiums close in buoyed by early high load factors...

That said, I am 100% convinced AA will go to a revenue based system soon enough.
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