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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 20, 2014, 9:36 am
  #2116  
 
Join Date: Nov 2013
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lets see if they change their 1k eqm to 125k like Delta also.
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Old Aug 20, 2014, 9:40 am
  #2117  
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Originally Posted by JC1976
lets see if they change their 1k eqm to 125k like Delta also.
That's not going to happen. If they raise anything it will be PQD. That's a more direct measure of customer worth.
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Old Aug 20, 2014, 10:57 am
  #2118  
 
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Originally Posted by schnitzer
The FAQ doesn't answer my question.
What happens when you have a flight: Feb 26 - Mar 2nd ?

Ticket Price: $1000, 1K Status
Feb 26: SFO HKG
Mar 2: HKG SFO

How many miles would you earn?
Yes they did. Before 3/1 you earn the miles flown, after 3/1 it's based on revenue. So the amount you earn 3/2 depends on how much of your fare is attributable to the second flight. That depends on the fare class, might be 50/50 but not always.
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Old Aug 20, 2014, 3:54 pm
  #2119  
 
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Location: Canada! eh?
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Originally Posted by Boghopper
Yes they did. Before 3/1 you earn the miles flown, after 3/1 it's based on revenue. So the amount you earn 3/2 depends on how much of your fare is attributable to the second flight. That depends on the fare class, might be 50/50 but not always.
On a R/T itinerary..
Will I get $1000 x11 for the flight on 3/2?
Or will they (half it) $500 x11, because the first flight has already flown.
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Old Aug 20, 2014, 4:05 pm
  #2120  
 
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Boghopper explained...your segment on 2/26 you earn based on SFO-HKG miles flown + 1K bonus. For your 3/2 flight you earn approx $500 x 11.
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Old Aug 21, 2014, 12:55 pm
  #2121  
 
Join Date: May 2008
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Posts: 286
Question??

Originally Posted by edcho
It's not blank....

Spend based mileage earning for all UA metal flights.

x5 Members
x7 Silver
x8 Gold
x9 Plat
x11 1K/GS
SO will 1k/GS get the 100% bonus on top of the 11 miles per dollar? or is the 11 miles a total thing is RDM going away completely??? Will this apply to overseas residents?? Also how come Award amounts keeps going up but the distance travelled stays the same. So a person in 1990 only has to travel 50% less and get the same award rates back then anyway.. just my two cents..

Last edited by UA1KPHL; Aug 21, 2014 at 12:59 pm Reason: change
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Old Aug 21, 2014, 1:06 pm
  #2122  
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Originally Posted by UA1KPHL
SO will 1k/GS get the 100% bonus on top of the 11 miles per dollar? or is the 11 miles a total thing is RDM going away completely??? Will this apply to overseas residents?? Also how come Award amounts keeps going up but the distance travelled stays the same. So a person in 1990 only has to travel 50% less and get the same award rates back then anyway.. just my two cents..
11 miles per dollar is the total RDMs earned. Doesn't matter how far you fly. No more 100% bonus. The 11 miles per dollar IS the bonus you get over the Kettles who only get $5 miles per dollar.
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Old Aug 21, 2014, 1:10 pm
  #2123  
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Originally Posted by Superguy
11 miles per dollar is the total RDMs earned. Doesn't matter how far you fly. No more 100% bonus. The 11 miles per dollar IS the bonus you get over the Kettles who only get $5 miles per dollar.
And no more bonus for buying premium fares, either; the "bonus" is reflected in the typically-higher cost of those fares. So no more cheap V-UP that books into P or A to snag class-of-service bonus miles.
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Old Aug 21, 2014, 1:55 pm
  #2124  
 
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Originally Posted by exerda
And no more bonus for buying premium fares, either; the "bonus" is reflected in the typically-higher cost of those fares. So no more cheap V-UP that books into P or A to snag class-of-service bonus miles.
This sucks so bad because if you buy a 500$ ticket, all you would earn is 5500 miles and not 11000 miles pre 3/1/15.
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Old Aug 21, 2014, 3:42 pm
  #2125  
RNE
 
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Originally Posted by IADFlyer123
This sucks so bad because if you buy a 500$ ticket, all you would earn is 5500 miles and not 11000 miles pre 3/1/15.
Imagine how Jeff is when you buy a $500 fare instead of a $1000 one.
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Old Aug 21, 2014, 3:44 pm
  #2126  
 
Join Date: Sep 1999
Location: SF Bay Area
Programs: UA 1K MM, Accor Plat, Htz PC, Natl ExEm, other random status
Posts: 2,876
Originally Posted by RNE
Imagine how Jeff is when you buy a $500 fare instead of a $1000 one.
Probably not as sad as he will be when people start buying $500 fares on VX, B6, et al...
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Old Aug 22, 2014, 5:35 am
  #2127  
 
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Originally Posted by greg99
Probably not as sad as he will be when people start buying $500 fares on VX, B6, et al...
Probably not as as Jeff will be when people like me - who have flown with United since 2002 - decide that as it is just down to money now, so rather than just look at the cost of United flights, consider the cost with Delta and AA and other International carriers and just walk away from FF programmes.

It is better to get 80 % of revenue less MP cost, rather than 100% of nothing (when we go to other airlines).
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Old Aug 22, 2014, 3:08 pm
  #2128  
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Originally Posted by flyhighajw
Probably not as as Jeff will be when people like me - who have flown with United since 2002 - decide that as it is just down to money now, so rather than just look at the cost of United flights, consider the cost with Delta and AA and other International carriers and just walk away from FF programmes.

It is better to get 80 % of revenue less MP cost, rather than 100% of nothing (when we go to other airlines).
The majority of articles and blog pieces over the past couple of months are saying just this - it's time to 'break up' with your favorite airline brand and just focus solely on cost/schedule. No more chasing miles and benefits that carriers are continually pushing out of reach. No more credit card miles (take the cash instead).

I believe these changes will, in the long run, cook the goose the laid the golden egg as more and more business travelers and consumers decide loyalty is not worth it, smaller carriers (VX, B6, etc) offer a better, more reliable product and the whole concept of chasing miles is no longer a worthy or fun pursuit.

The result for legacy carriers won't be a good one - especially for product-weak companies like United where the overall value proposition is so poor. Stronger brands like Delta will also suffer as even their product is weak compared to VX and B6's new Mint service. The upper hand will go to niche carriers with lower costs, simplified operations and customers loyal to the product rather than the program, while international service will go to foreign carriers with superior products and comparable (often cheaper) pricing.

The airlines have forgotten the real reason behind frequent flyer programs - they were a magnet to hold customers loyal and captive to their weak brands and products while camouflaging those weaknesses in the form of benefits and give-aways, so customers would overlook the product weaknesses. Foreign carriers and US LCCs don't need to offer strong or generous FFPs because people are loyal to their products regardless.

If Mileage Plus were gone tomorrow, how many of you would remain loyal to United if you could choose VX, B6, WN, SQ, KE, BA, AF or BR for the same price? Can anyone here honestly articulate the value proposition offered by United when compared with the value proposition offered by SQ on a cabin-to-cabin comparison? Be honest - there isn't a valid comparison. We're all here because either Mileage Plus keeps us loyal, or because United is the only viable option for our flying patterns.

A recent article was published that bemoaned the low reinvestment rate of US carriers relative to their foreign counterparts. US carriers are focused far too much on Wall Street and the whims of gasbag analysts and pushy institutional investors - problems that don't plague companies like CX, SQ, KE, EI, etc - these carriers reinvest profit into products, services and their customers, while US carriers with far more margin to reinvest, only collect cash or endeavor to pay a dividend to stockholders - and this in a nutshell is one of the key reasons US carriers fail - every time - to measure up to their international competitors. Not because of foreign government subsidies (US carriers receive their share of subsidies as well), but because of weak, poor, ineffective management that urinates on itself every time gasbags like Hunter Keays open their useless mouths and spew out their nonsensical gibberish.
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Old Aug 22, 2014, 4:21 pm
  #2129  
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Then give it a few years and the Einsteins will come up with something like a frequent fliers program that is different to what has gone before.
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Old Aug 22, 2014, 4:33 pm
  #2130  
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Originally Posted by bocastephen
...US carriers are focused far too much on Wall Street and the whims of gasbag analysts and pushy institutional investors - problems that don't plague companies like CX, SQ, KE, EI, etc - these carriers reinvest profit into products, services and their customers, while US carriers with far more margin to reinvest, only collect cash or endeavor to pay a dividend to stockholders....
Are foreign flag carriers such as the ones you list subsidized by their governments at all?
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