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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 Aug 10, 2014, 3:41 am
  #2086  
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Originally Posted by NiceLanding
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.
agreed, but even if they wanted they probably couldn't ... at least in most major markets.
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Old Aug 10, 2014, 6:02 am
  #2087  
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Originally Posted by NiceLanding
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.
Exactly - if you're GS, you're most likely already giving most if not all your biz to UA...you're a slave to the program already. So UA will just reward you more at the expense of everyone else.
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Old Aug 10, 2014, 10:34 am
  #2088  
 
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Originally Posted by UA-NYC
Exactly - if you're GS, you're most likely already giving most if not all your biz to UA...you're a slave to the program already. So UA will just reward you more at the expense of everyone else.
Or theoretically attract non-UA GS level flyers? My gut says no on this, because most people at that level are probably super wedded to their existing carrier or chose that other carrier because of where they live, etc. Also, splitting between two airlines would mess up your status in both (for most, not all, I know). Maybe the idea is that they can peel off even a handful of super expensive flights per year by having points tip the balance?

But I'm with you, pushing most of us way to do it still seems odd to me.
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Old Aug 10, 2014, 11:15 am
  #2089  
 
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Originally Posted by UA-NYC
Exactly - if you're GS, you're most likely already giving most if not all your biz to UA...you're a slave to the program already. So UA will just reward you more at the expense of everyone else.
Worse yet (for UA), all those extra miles in conjunction with expanded availability for the GS members will fill up more Global First seats with award travelers, making GF look even less profitable to the bean counters. I just don't see this ending well for UA.
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Old Aug 10, 2014, 6:44 pm
  #2090  
 
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Originally Posted by NiceLanding
Worse yet (for UA), all those extra miles in conjunction with expanded availability for the GS members will fill up more Global First seats with award travelers, making GF look even less profitable to the bean counters. I just don't see this ending well for UA.
Yep. Especially with BOGO they might see GS purchasing going down and not up. Never thought of it that way but you're right!
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Old Aug 10, 2014, 7:30 pm
  #2091  
 
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Originally Posted by UA-NYC
Exactly - if you're GS, you're most likely already giving most if not all your biz to UA...you're a slave to the program already. So UA will just reward you more at the expense of everyone else.
Add to that the notion that the typical GS is likely not the most-efficient at spending award miles, because awards aren't a normal part of their flying. Spoke with a GS today who purchased tickets in GF for a trip to Paris on short notice. He said award tickets weren't available.

Umm... first, award tickets are always available for an upper-level elite, if a seat's available for sale. Second, if only standard awards and you'd rather not spend that many miles, you can convert to saver without penalties at any time, if a saver seat becomes available.

But this isn't stuff that concerns him, because he's basically a retail-paying high-value customer and doesn't live in the same value-conscious world (as far as air travel is concerned) that many of us do. I don't want to make a generalization this way for GS overall, but I'm sure it's appropriate to many.

So what does a GS who accumulates a zillion RDMs do with them? Since he's a customer of mine, it's really not appropriate to ask, partly because it might come across as me asking for a special favor. But got to admit I am a bit curious! Could be he redeems them for hotel stays? Or mall items?

My point is that utilization of award miles is probably more-costly to UA for the "normal" flyer, on a per-RDM basis, than a GS. Probably. Wouldn't surprise me if I was totally wrong on this.
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Old Aug 10, 2014, 10:56 pm
  #2092  
 
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Originally Posted by NiceLanding
Worse yet (for UA), all those extra miles in conjunction with expanded availability for the GS members will fill up more Global First seats with award travelers, making GF look even less profitable to the bean counters. I just don't see this ending well for UA.
I don't believe GS members get expanded availability for GF...

And even with flying in biz, you need a C fare or higher to just use a GPU. P, Z, D fares require a GPU PLUS miles and money.......
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Old Aug 11, 2014, 4:18 am
  #2093  
 
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Originally Posted by Mike Jacoubowsky
Add to that the notion that the typical GS is likely not the most-efficient at spending award miles, because awards aren't a normal part of their flying. Spoke with a GS today who purchased tickets in GF for a trip to Paris on short notice. He said award tickets weren't available.

Umm... first, award tickets are always available for an upper-level elite, if a seat's available for sale. Second, if only standard awards and you'd rather not spend that many miles, you can convert to saver without penalties at any time, if a saver seat becomes available.

But this isn't stuff that concerns him, because he's basically a retail-paying high-value customer and doesn't live in the same value-conscious world (as far as air travel is concerned) that many of us do. I don't want to make a generalization this way for GS overall, but I'm sure it's appropriate to many.



So what does a GS who accumulates a zillion RDMs do with them? Since he's a customer of mine, it's really not appropriate to ask, partly because it might come across as me asking for a special favor. But got to admit I am a bit curious! Could be he redeems them for hotel stays? Or mall items?

My point is that utilization of award miles is probably more-costly to UA for the "normal" flyer, on a per-RDM basis, than a GS. Probably. Wouldn't surprise me if I was totally wrong on this.
When I have grossly over accumulated miles I've bought merchandise that I need redeeming at a little over 1cpm. Since I cannot use the miles I conserve cash for stuff I do need.
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Old Aug 11, 2014, 6:23 am
  #2094  
 
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Originally Posted by NiceLanding
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.
Originally Posted by UA-NYC
Exactly - if you're GS, you're most likely already giving most if not all your biz to UA...you're a slave to the program already. So UA will just reward you more at the expense of everyone else.
Just to give you some perspective from this GS and I know several like me:

- in the air basically everyday so GS on UA and top status on one other airline (one of my colleagues is GS, CK on AA, and the highest tier on DAL)

- everyone in this group plans to avoid AA next year due to the higher available RDMs on UA and DAL

- I typically spend $150K+ on a airfare annually with two thirds going to UA and the other third to AA; next year, it all goes to UA

- most, if not all of us, plan to give more miles to our elderly parents for leisure travel, our kids for travel back and forth from college, and to take our immediate families on vacay in C or F
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Old Aug 11, 2014, 6:30 am
  #2095  
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Originally Posted by RealFan
Just to give you some perspective from this GS and I know several like me:

- in the air basically everyday so GS on UA and top status on one other airline (one of my colleagues is GS, CK on AA, and the highest tier on DAL)

- everyone in this group plans to avoid AA next year due to the higher available RDMs on UA and DAL

- I typically spend $150K+ on a airfare annually with two thirds going to UA and the other third to AA; next year, it all goes to UA

- most, if not all of us, plan to give more miles to our elderly parents for leisure travel, our kids for travel back and forth from college, and to take our immediate families on vacay in C or F
You are of course the dream acquisition customer for UA/DL (whether it's a new acquisition or getting an add'l amount of the pie).

But I have to wonder - how many GS also have status on another airline? And if they do, maybe it's because they have a destination or two where UA isn't optimal (like to OAL hubs, given UA's reluctance to send lift to those)...willing to make the tradeoff to fly a worse product, more inconvenient times, etc?
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Old Aug 11, 2014, 6:48 am
  #2096  
 
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Originally Posted by UA-NYC
You are of course the dream acquisition customer for UA/DL (whether it's a new acquisition or getting an add'l amount of the pie).

But I have to wonder - how many GS also have status on another airline? And if they do, maybe it's because they have a destination or two where UA isn't optimal (like to OAL hubs, given UA's reluctance to send lift to those)...willing to make the tradeoff to fly a worse product, more inconvenient times, etc?
It's a fair point that you make. Those GS I know do have double status because it just makes sense to have options. What AA has basically done is remove itself as an option for now. But, to your point, if you are exclusive to UA and are already GS, then you are receiving incremental benefit without having to provide anything extra to UA. I think UA went to this program to keep its GS/1K population from defecting to DAL.
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Old Aug 11, 2014, 7:08 am
  #2097  
 
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Originally Posted by wethereyet
I don't believe GS members get expanded availability for GF...

And even with flying in biz, you need a C fare or higher to just use a GPU. P, Z, D fares require a GPU PLUS miles and money.......
Minor correction: On international flights, D can use GPU. P and Z require miles+$ for upgrading (no GPU). This is true for all MP tiers, including GS. All such transactions require "ON" to be available to upgrade from business to first on three-cabin aircraft.
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Old Aug 11, 2014, 7:09 am
  #2098  
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Originally Posted by RealFan
It's a fair point that you make. Those GS I know do have double status because it just makes sense to have options. What AA has basically done is remove itself as an option for now. But, to your point, if you are exclusive to UA and are already GS, then you are receiving incremental benefit without having to provide anything extra to UA. I think UA went to this program to keep its GS/1K population from defecting to DAL.
Well, to be fair, you're already GS, and they're getting high margin revenue $ for the add'l stuff you get (the same for any increasing their UA spend).

So, honest question - do you return back to AA at least part-time once they do go revenue-based?

Are you going to have to make "sacrifices" of some kind in shifting that AA-level/destination business over to UA?

Agreed that it's more of a reactionary move to DL's changes than anything else...and of course DL has made the product investments to better justify the move, relative to UA.
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Old Aug 11, 2014, 10:03 am
  #2099  
 
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Originally Posted by UA-NYC
Well, to be fair, you're already GS, and they're getting high margin revenue $ for the add'l stuff you get (the same for any increasing their UA spend).

So, honest question - do you return back to AA at least part-time once they do go revenue-based?

Are you going to have to make "sacrifices" of some kind in shifting that AA-level/destination business over to UA?

Agreed that it's more of a reactionary move to DL's changes than anything else...and of course DL has made the product investments to better justify the move, relative to UA.
Since all airlines are trying to compete at the higher end, if there is one that can ALSO offer something at the mid to low end then they have the advantage. DL is doing that by trying to improve the actual product. UA is trying to do it via newer planes vs. DL's older planes that have lots of freebies and better service. AA has the better mileage earning program for midlevels but will have to do something at the high level to match UA/DL on earning levels. If AA can do that without sacrificing the middle class flyers then they might come out ahead.
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Old Aug 11, 2014, 10:31 am
  #2100  
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Originally Posted by wethereyet
And even with flying in biz, you need a C fare or higher to just use a GPU. P, Z, D fares require a GPU PLUS miles and money.......
You can use a GPU on a D fare. It's just the P and Z that are excluded.

The reference to a GPU PLUS miles and money makes no sense. You would never use both.
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