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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 Oct 1, 2014, 9:43 am
  #2221  
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Originally Posted by AAExPlat
In the absence of any information to the contrary, one can assume that tix booked on partners will earn as they currently do. UA could have easily announced partner earnings changes back when they announced the revenue based RDM earning.
For now, sure, but these are always subject to change with little (or no) advance notice. UA has not been afraid to tweak mileage earning on partners throughout the year. Likely, any changes are subject to agreements with the operating carriers, so take at least some time to negotiate on the back end, but could be without much advance notice to flyers.

I suspect there will be some changes to partner earnings at some point, however, how much is anyone's guess.
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Old Oct 1, 2014, 11:18 am
  #2222  
 
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One positive thing to say about UA: They did give us almost 9 months notice of these changes. (Viz. Much more than was legally necessary.)

So, hopefully, they will give us plenty of notice if they change the way partner airlines earn mileage.
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Old Oct 1, 2014, 12:13 pm
  #2223  
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Originally Posted by EMan
One positive thing to say about UA: They did give us almost 9 months notice of these changes. (Viz. Much more than was legally necessary.)

So, hopefully, they will give us plenty of notice if they change the way partner airlines earn mileage.
For example, this year, UA changed AC earnings twice in a span of a month, without any notice.

I thought legally necessary notice was zero.
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Old Oct 1, 2014, 9:49 pm
  #2224  
 
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I am assuming that partner airline award mileage accrual will be optimal if booked from 016 ticket stock and with a UA flight #.

Question... will award mileage on UA flights be calculated strictly from base fare? ... or from total cost?
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Old Oct 1, 2014, 9:53 pm
  #2225  
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Originally Posted by jjmoore
...
Question... will award mileage on UA flights be calculated strictly from base fare? ... or from total cost?
from the wiki
Miles earned will now be based on the ticket price instead of the number of miles flown
Ticket price is defined as base fare plus carrier-imposed surcharges (PQD)
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Old Oct 1, 2014, 10:08 pm
  #2226  
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Originally Posted by jjmoore
I am assuming that partner airline award mileage accrual will be optimal if booked from 016 ticket stock and with a UA flight #.
Partner flights booked on 016 stock (codeshare or not) will accrue mileage based on the dollar amount after March 1, just like UA flights. To get them to credit by mileage (assuming UA continues to award miles for partners the same way they always have), they need to be booked on non-UA ticket stock. Of course, if PQD is a concern, then 016 ticket stock will be important for that.
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Old Oct 1, 2014, 10:47 pm
  #2227  
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Originally Posted by AAExPlat
In the absence of any information to the contrary, one can assume that tix booked on partners will earn as they currently do. UA could have easily announced partner earnings changes back when they announced the revenue based RDM earning.
That's some nice wishful thinking.

I'd suggest one "can assume" nothing of the sort

Originally Posted by rankourabu
I thought legally necessary notice was zero.
Indeed.
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Old Oct 2, 2014, 6:56 am
  #2228  
 
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You can save yourself hours of reading, parsing rules, speculating, and waiting in a Group 1 lines for boarding, by looking at your spend, multiplying by your status factor to estimate your RDMs, and if you find a path or loophole to earn more RDMs than this, assume it will be closed.
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Old Oct 2, 2014, 10:20 am
  #2229  
 
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Originally Posted by LaserSailor
You can save yourself hours of reading, parsing rules, speculating, and waiting in a Group 1 lines for boarding, by looking at your spend, multiplying by your status factor to estimate your RDMs, and if you find a path or loophole to earn more RDMs than this, assume it will be closed.
Yeah, sans loophole, I'm sadly confused why United thinks I would ever spend a dime with them again. Even as a lifetime gold. I don't care about upgrades or the bs perks. I care about miles. The 100% RDM 1K bonus was a wildly better deal than flying a competitor where I had no status. 11x the base price - in most cases -- who cares. Wow a few extra thousand miles by flying United (fapp gesture). Maybe if I fly them loyally for 10,000 years I'll have enough to redeem for first class on LH. Starting in March I'm annoyingly going to have to spread my business (258,000 BIS this year so far) around to cheaper competitors or maybe just settle in and get better acquainted with Dallas, Miami and LAX.
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Old Oct 2, 2014, 11:58 am
  #2230  
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Originally Posted by dkmatter
Yeah, sans loophole, I'm sadly confused why United thinks I would ever spend a dime with them again. Even as a lifetime gold. I don't care about upgrades or the bs perks. I care about miles. The 100% RDM 1K bonus was a wildly better deal than flying a competitor where I had no status. 11x the base price - in most cases -- who cares. Wow a few extra thousand miles by flying United (fapp gesture). Maybe if I fly them loyally for 10,000 years I'll have enough to redeem for first class on LH. Starting in March I'm annoyingly going to have to spread my business (258,000 BIS this year so far) around to cheaper competitors or maybe just settle in and get better acquainted with Dallas, Miami and LAX.
yup, as an out of pocket flyer with no fixed schedules/destinations - the RDM bonus made United MP competitive - and offset having to put up with actually flying United.

11x the base price just doesnt cut it for a leisure traveller.
Assuming $10k spend - that is 90,000 less miles annually.
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Old Oct 2, 2014, 1:17 pm
  #2231  
 
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Originally Posted by rankourabu
yup, as an out of pocket flyer with no fixed schedules/destinations - the RDM bonus made United MP competitive - and offset having to put up with actually flying United.

11x the base price just doesnt cut it for a leisure traveller.
Assuming $10k spend - that is 90,000 less miles annually.
Unless you are an employee, everyone is an OOP flyer.

If you aren't winning in the new RDM scheme, they obviously are targeting your flying pattern. Most in my office are way up on both the UA and DL new schemes.

Their spends are way over 18cpm
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Old Oct 2, 2014, 1:27 pm
  #2232  
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Originally Posted by LaserSailor
Unless you are an employee, everyone is an OOP flyer.

If you aren't winning in the new RDM scheme, they obviously are targeting your flying pattern. Most in my office are way up on both the UA and DL new schemes.

Their spends are way over 18cpm
Show me someone who doesnt fly for work at all (be it employee, client paid, re-imbursable - all are OPM) and has a spend of over 18cpm, flies 100,000+ a year - and chooses to fly United.
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Old Oct 2, 2014, 2:09 pm
  #2233  
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Originally Posted by rankourabu
Show me someone who doesnt fly for work at all (be it employee, client paid, re-imbursable - all are OPM) and has a spend of over 18cpm, flies 100,000+ a year - and chooses to fly United.
Indeed. This will be a distinct small group, if any.
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Old Oct 2, 2014, 2:17 pm
  #2234  
 
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Originally Posted by rankourabu
Show me someone who doesnt fly for work at all (be it employee, client paid, re-imbursable - all are OPM) and has a spend of over 18cpm, flies 100,000+ a year - and chooses to fly United.
I am definitely an out of the pocket, United IK for the last 5 years who flies United because of the mileage perks, and strictly for non business. I have already changed my credit cards, and future bookings to accommodate the fact that most of my future flights will be with other airlines. I would believe that there are more of us than United is counting upon.
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Old Oct 2, 2014, 5:50 pm
  #2235  
 
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Maybe. The airlines, on the other hand, Know exactly how many there are.

FT discussions of revenue management are a source of constant amusement at best.
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