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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 Aug 7, 2014, 12:13 pm
  #2071  
FlyerTalk Evangelist
 
Join Date: Oct 2006
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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.
Bolding mine. The US/AA FF program merger is going to happen sometime next year, right? My opinion, that is far from "right now." My guess is its either going to happen at the time the FF programs merge, or, once the systems settle down a bit from that merger. Perhaps at the beginning of the 2016 calendar year. Also, any elite revenue requirement implemented by then to be valid 2017 status.
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Old Aug 7, 2014, 1:17 pm
  #2072  
RNE
 
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Originally Posted by AAExPlat
That said, I am 100% convinced AA will go to a revenue based system soon enough.
Me too.
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Old Aug 8, 2014, 3:42 pm
  #2073  
 
Join Date: Dec 2005
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Originally Posted by AAExPlat
That said, I am 100% convinced AA will go to a revenue based system soon enough.
It would be a smart move NOT to do it for 2015, poach a ton of people, have them earn status, and then implement revenue based points in 2016 when all other airlines have moved to it. Then people won't have a big incentive to move back!
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Old Aug 8, 2014, 5:46 pm
  #2074  
 
Join Date: Sep 2006
Location: Hong Kong
Programs: Most of them
Posts: 367
Do I have this right for 2015 v 2014 (my example)



https://www.flickr.com/photos/62151356@N00/14676445710/

I am trying to asses the impact of the 2015 changes for my travel. I have compared miles received for what I have actually flown (per statement) to 11 times the PQD posted for each flight. Some of the data points are the sum of several segments. All but two of my flights result in an increase and YTD it is 2.1x as many miles. Am I doing this wrong or (as I think) am I just a beneficiary because I fly a lot of expensive routes. Thanks

Last edited by fracmeister; Aug 8, 2014 at 5:48 pm Reason: trying to get the dang picture!
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Old Aug 8, 2014, 5:52 pm
  #2075  
 
Join Date: Jan 2009
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Don't forget the 75k cap per ticket. You may want to book work travel as separate one-ways if you can manage it without increasing the fare too much (we'll see whether corporate travel departments catch on to this interesting UA incentive).
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Old Aug 8, 2014, 6:18 pm
  #2076  
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Your high earning trips would run into the 75k cap.

Given the range, it'd be better plotted on a log-log graph.
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Old Aug 8, 2014, 7:12 pm
  #2077  
 
Join Date: Sep 2006
Location: Hong Kong
Programs: Most of them
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OK, LogLog (good idea) and a maximum of 75K on each ticket. Still 75% more than 2014 awards.

copy74 by fracmeister, on Flickr

Still looks like an improvement for me.

Last edited by fracmeister; Aug 8, 2014 at 7:12 pm Reason: Move pic
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Old Aug 8, 2014, 7:13 pm
  #2078  
 
Join Date: Sep 2006
Location: Hong Kong
Programs: Most of them
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And that is YTD. the 75K cap is a bummer for the big trips!
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Old Aug 8, 2014, 10:19 pm
  #2079  
TPJ
 
Join Date: Jun 2008
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Just found it on LinkedIn

https://www.linkedin.com/today/post/...k=object-title

In a recent survey, a plurality of travelers (38 percent) said that finding the best deal topped their list, a tectonic shift from previous years, when collecting credits in a frequent-flier or frequent-stayer program was more important. Only 9 percent of travelers will book their trips based on loyalty to an airline or hotel chain, according to the poll conducted by Wakefield Research on behalf of Capital One.

Last edited by WineCountryUA; Aug 8, 2014 at 11:18 pm Reason: Fixed BBCode
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Old Aug 9, 2014, 9:13 am
  #2080  
 
Join Date: Jul 2014
Location: IAH
Programs: UA 1MM/GS, Emirates Platinum, IHG Plat Ambassador
Posts: 16
2015 v 2014 Award miles

I just did a line-by-line comparison of 2015 v 2014 for my own account (what else do you do on the road at 5am?) Looked at the miles for GS level (11x) as well as non-premier (5x). Based on the 89 segments flown YTD (mostly international), here is the comparison

2014 PQM 275,325
2014 PQD $103,197
2014 Award Miles 517,212

2015 Award miles (11x) 1,142,253
2015 Award miles (5x) 523,071

Of course, there were 3 tickets purchased over the cap - next year, these would have to by purchased as one-way segments to hit the mileage total. The 5x scenario is unrealistic since you would hit premier levels quickly.

So, for international A, C, D, Z passengers, this basically DOUBLES the miles earned in a year. that's enough for 7 RT global first saver award tickets to Europe....not bad.
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Old Aug 9, 2014, 2:18 pm
  #2081  
 
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Originally Posted by starman1992
I just did a line-by-line comparison of 2015 v 2014 for my own account (what else do you do on the road at 5am?) Looked at the miles for GS level (11x) as well as non-premier (5x). Based on the 89 segments flown YTD (mostly international), here is the comparison

2014 PQM 275,325
2014 PQD $103,197
2014 Award Miles 517,212

2015 Award miles (11x) 1,142,253
2015 Award miles (5x) 523,071

Of course, there were 3 tickets purchased over the cap - next year, these would have to by purchased as one-way segments to hit the mileage total. The 5x scenario is unrealistic since you would hit premier levels quickly.

So, for international A, C, D, Z passengers, this basically DOUBLES the miles earned in a year. that's enough for 7 RT global first saver award tickets to Europe....not bad.
Just curious, will this windfall have any effect on your propensity to choose UA for your travel? Will any UA paid flights be replaced by award flights in the future because of the extra miles you'll be earning?
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Old Aug 9, 2014, 3:29 pm
  #2082  
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Join Date: Aug 2005
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Originally Posted by starman1992
I just did a line-by-line comparison of 2015 v 2014 for my own account (what else do you do on the road at 5am?) Looked at the miles for GS level (11x) as well as non-premier (5x). Based on the 89 segments flown YTD (mostly international), here is the comparison

2014 PQM 275,325
2014 PQD $103,197
2014 Award Miles 517,212

2015 Award miles (11x) 1,142,253
2015 Award miles (5x) 523,071

Of course, there were 3 tickets purchased over the cap - next year, these would have to by purchased as one-way segments to hit the mileage total. The 5x scenario is unrealistic since you would hit premier levels quickly.

So, for international A, C, D, Z passengers, this basically DOUBLES the miles earned in a year. that's enough for 7 RT global first saver award tickets to Europe....not bad.
most international A, Z, C, D, P passengers will have a hard time booking this as one-ways. There are few markets where these are available as one-ways at half or close to half of the r/t. This may be the case for J and F but unlikely for the lower fare classes (sometimes I see D but that is rare). Hence you will have to suck up quite a few 75k max tickets which will make your comparison quite a bit less favorable.
Sure, if you spend $100k on UA and pretty much any GS will make more miles. The vast majority will get less some much less.
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Old Aug 9, 2014, 3:31 pm
  #2083  
 
Join Date: Jul 2014
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Programs: UA 1MM/GS, Emirates Platinum, IHG Plat Ambassador
Posts: 16
Originally Posted by NiceLanding
Just curious, will this windfall have any effect on your propensity to choose UA for your travel? Will any UA paid flights be replaced by award flights in the future because of the extra miles you'll be earning?
Actually - it means I can send my parents to Europe for their 50th Anniversary - and maybe a family trip after graduation. ...
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Old Aug 9, 2014, 8:31 pm
  #2084  
 
Join Date: Dec 2010
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Programs: AA EXP, UA former 1K (1.9MM and gone), Marriott LT Plat, Hilton Diamond, SPG Plat
Posts: 1,111
Originally Posted by starman1992
Actually - it means I can send my parents to Europe for their 50th Anniversary - and maybe a family trip after graduation. ...
Okay, so maybe the awards won't directly displace your revenue tickets, but is it doing anything to increase UA's revenue, or is it just a waste of their resources?
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Old Aug 9, 2014, 8:34 pm
  #2085  
 
Join Date: Dec 2010
Location: Chicago
Programs: AA EXP, UA former 1K (1.9MM and gone), Marriott LT Plat, Hilton Diamond, SPG Plat
Posts: 1,111
Originally Posted by cfischer
most international A, Z, C, D, P passengers will have a hard time booking this as one-ways. There are few markets where these are available as one-ways at half or close to half of the r/t. This may be the case for J and F but unlikely for the lower fare classes (sometimes I see D but that is rare). Hence you will have to suck up quite a few 75k max tickets which will make your comparison quite a bit less favorable.
Sure, if you spend $100k on UA and pretty much any GS will make more miles. The vast majority will get less some much less.
And I strongly suspect that people who already spend more than $100k per year aren't doing it for the mileage, so giving them even more miles will do little to help UA.
NiceLanding is offline  


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