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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 25, 2014, 2:33 pm
  #2146  
 
Join Date: Apr 2007
Posts: 774
Originally Posted by hyho61
I don't know if anyone brought this up. I wished that UA had introduced a hybrid system. 5 miles per dollar for all economy fares except refundable fares and 6 miles per dollar for all other fares, plus bonus (25 to 100%) based on your status.

This does not penalize those who buy higher dollar fares and at the same time the elites get their bonuses. This would a good hybrid and does not follow DL blindly.
Except they basically did just that.

Your version: 5-6x/6.25-7.25x/7.5-9x/8.75-10.5x/10-12x
UA: 5x/7/8/9/11, irrespective of fare bought.
Similar, no?
okrogius is offline  
Old Aug 25, 2014, 4:05 pm
  #2147  
 
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Hybrid?

Originally Posted by okrogius
Except they basically did just that.

Your version: 5-6x/6.25-7.25x/7.5-9x/8.75-10.5x/10-12x
UA: 5x/7/8/9/11, irrespective of fare bought.
Similar, no?
I guess that the "bybrid" means a combination of two ($ based + distance * premier factor). If my guess is correct, the $ based factor remains the same for all paxs, but the premier members receive the bonus based upon the premier factor times the distance flown.
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Old Aug 25, 2014, 7:17 pm
  #2148  
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Originally Posted by mduell
Compared to the foreign carriers listed, UA has the key advantage of affordable knee-room.
Some carriers like OZ just have more room throughout Y for everyone. OZ provides34" in Y on many seats - the same as UA's E+ on many of its wide bodies - without charge.

There are options out there. Why fly UA?
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Old Aug 25, 2014, 7:31 pm
  #2149  
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A side effect (an intentional "feature?") is that pax RDM postings will vary much more than in the past, making it harder for the casual (e.g. not one who has a spreadsheet) flyer to know if their miles posted correctly.

For a transcon with a connection, I expect to see my mileage post around 11k RDM r/t. Now, it could be anywhere from 3k to 10k RDM for a typical economy purchase on the routes I fly.
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Old Aug 26, 2014, 5:13 am
  #2150  
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Originally Posted by hyho61
I don't know if anyone brought this up. I wished that UA had introduced a hybrid system. 5 miles per dollar for all economy fares except refundable fares and 6 miles per dollar for all other fares, plus bonus (25 to 100%) based on your status.

This does not penalize those who buy higher dollar fares and at the same time the elites get their bonuses. This would a good hybrid and does not follow DL blindly.
They already are doing something similar.

Elite bonuses are based on the higher multiplier. You can call it a percentage of X times, but its still a bonus. For a 1K, they currently get a bonus of 100% based on mileage. The new revenue system gives them a 120% bonus over a GM (11x revenue vs. 5x). For a plat, its 80%, gold 60% and silver 20%. So all the tiers are actually a slightly higher RDM bonus compared to a GM on the same fare, with the exception of silver, where its slightly lower. Call it multipliers, call it a bonus - its the same thing. Just based on the base revenue vs. base miles.

Those who buy higher dollar fares are still getting well more miles then they are today, and over those buying lower fares, so I don't see how they are penalized. You could call the the ultra high-fare purchasers who get capped at 75,000 miles per a round trip as getting penalized, I suppose. But I don't see how someone buying a higher fare who is getting three free domestic economy tickets within the lower 48 for a purchase that wouldn't net them a single one today (yes, I'm assuming someone on a normal routing without trying to MR for more miles) should be complaining about that. Plus, on many of those high fares, buying two one-ways is probably the same price, which would allow you to get around that.

As for status, that is going to be earned with bonuses the same as today.

If you want a system where higher fares get a higher multiplier regardless of status, try WN. They're Wanna Get Away fares at least (and don't know about another lower level fare) not only earn less mileage because they tend to cost less, but also because the multipliers are lower.

Originally Posted by Superguy
Some carriers like OZ just have more room throughout Y for everyone. OZ provides34" in Y on many seats - the same as UA's E+ on many of its wide bodies - without charge.

There are options out there. Why fly UA?
And IME, some of those carriers 34" seats aren't as comfortable. Can't comment on OZ, but flew on an NH 77W with the 34" pitch (TPAC, so not talking about a regional version Y seat). However, they are the shell seats that slide forward instead of reclining, and IMO, were not comfortable. If you try to "recline", it got worse - I felt as cramped or even more so than a UA E- domestic seat. On the UA 777 TPAC on the return in E+, I had a much more comfortable flight.

Last edited by emcampbe; Aug 26, 2014 at 5:24 am
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Old Aug 26, 2014, 1:10 pm
  #2151  
 
Join Date: Aug 2014
Posts: 3
Thumbs down New and re-vamped "MileageLESS" program

So lets do the Math....

$2000.00 ticket 23,000 actual miles Premier 1K, 4 trips a year..

Current MileagePlus 72k miles towards status 144k miles for award travel

Future MileageLess 72k miles toward status 88k miles for award travel...

So were did I go wrong?

I don't understand the punch line
"Changing the way you earn award miles, and giving you more ways to use them."

I have not seen anywhere that award tickets will be 1/3 of the current cost, so how does the new mileage accrual accounts for more ways to use them?

Any comments?
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Old Aug 26, 2014, 1:16 pm
  #2152  
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Originally Posted by Javi09
So were did I go wrong?
Believing that the fare for the trip you've described is one the airlines wish to reward with lots of points. Customers who generate low yields will be worse off with the new program. That shouldn't be too surprising.

Welcome to FlyerTalk!
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Old Aug 26, 2014, 1:17 pm
  #2153  
 
Join Date: May 2009
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Sorry, but it is worse than you think. 23,000 X 4 = 92,000 actual miles and 184,000 miles for award travel.
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Old Aug 26, 2014, 1:47 pm
  #2154  
 
Join Date: Aug 2014
Posts: 3
Originally Posted by eghansen
Sorry, but it is worse than you think. 23,000 X 4 = 92,000 actual miles and 184,000 miles for award travel.
Stand corrected it is true, almost 100k less miles.

I'll guess I'm just going to wait for 2015 and see what other Star Alliance carrier I can use to rack up award miles.
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Old Aug 26, 2014, 2:05 pm
  #2155  
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Originally Posted by Javi09
Stand corrected it is true, almost 100k less miles.

I'll guess I'm just going to wait for 2015 and see what other Star Alliance carrier I can use to rack up award miles.
Let us know how that works out...between fuel surcharges and low earning fare classes....
aacharya is offline  
Old Aug 26, 2014, 2:10 pm
  #2156  
 
Join Date: Jun 2011
Location: NorCal
Programs: MP Ag, former 1K
Posts: 479
I think this is a simple math problem.

Let M = PQM
Let O = Old RDM
Let N = New RDM
Let D = PQD

O = 2 * M
N = 11 * D

For earning rates to equal:

O = N;
2 * M = 11 * D
2/11 = Dollars/Mile
100 * 2/11 = cent/mile
18.18 = CPM

So if you're 1K and your average PQD/PQM rate is greater than 18.18 CPM, then the new scheme works better for you, but if your average PQD/PQM is less than 18.18 CPM, then the new scheme is worse.

I think that for most people, the earning is worse, but let's look on the bright side - as airline consolidations continue, we'll earn more RDM's as the tickets get more expensive year after year. Soon, average ticket prices will cross the 18 CPM mark, and we'll actually like the new scheme.
davewang202 is offline  
Old Aug 26, 2014, 4:27 pm
  #2157  
 
Join Date: May 2012
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Posts: 6,958
Originally Posted by davewang202
I think this is a simple math problem.

Let M = PQM
Let O = Old RDM
Let N = New RDM
Let D = PQD

O = 2 * M
N = 11 * D

For earning rates to equal:

O = N;
2 * M = 11 * D
2/11 = Dollars/Mile
100 * 2/11 = cent/mile
18.18 = CPM

So if you're 1K and your average PQD/PQM rate is greater than 18.18 CPM, then the new scheme works better for you, but if your average PQD/PQM is less than 18.18 CPM, then the new scheme is worse.

I think that for most people, the earning is worse, but let's look on the bright side - as airline consolidations continue, we'll earn more RDM's as the tickets get more expensive year after year. Soon, average ticket prices will cross the 18 CPM mark, and we'll actually like the new scheme.
The W fare for IAD-SIN is about $1700, which is equivalent to less than half of 18 CPM. It will take perhaps 20 years to reach the 18 cpm mark.
Kmxu is offline  
Old Aug 26, 2014, 5:58 pm
  #2158  
 
Join Date: Jul 2000
Location: San Francisco
Programs: UA Mileage Plus Premier Gold 1MM, Marriott Gold
Posts: 1,467
Okay, so RDMs are taking YetAnother steep dive in valuation(I put in the fare I just paid for a recent SFO<->IAD roundtrip into the calculator and will take a 30% devaluation on that fare next year), but PQMs aren't. How does this affect Lifetime Miles ? This is kind of my main concern right now as I'm closing on 1MM.
Jet'Dillo is offline  
Old Aug 26, 2014, 6:32 pm
  #2159  
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Originally Posted by Jet'Dillo
Okay, so RDMs are taking YetAnother steep dive in valuation(I put in the fare I just paid for a recent SFO<->IAD roundtrip into the calculator and will take a 30% devaluation on that fare next year), but PQMs aren't. How does this affect Lifetime Miles ? This is kind of my main concern right now as I'm closing on 1MM.
It does not affect lifetime miles. Yet.
exerda is offline  
Old Aug 26, 2014, 6:46 pm
  #2160  
 
Join Date: Jun 2011
Location: NorCal
Programs: MP Ag, former 1K
Posts: 479
Originally Posted by Kmxu
The W fare for IAD-SIN is about $1700, which is equivalent to less than half of 18 CPM. It will take perhaps 20 years to reach the 18 cpm mark.
I'm sure that United is working hard to accelerate that schedule so that you can earn more RDM's for the same flight in the near future beyond 2015.
davewang202 is offline  


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