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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 Jun 10, 2014, 8:44 am
  #211  
 
Join Date: Jan 2010
Location: NYC
Programs: UA GS (1.9MM), Hilton Diamond
Posts: 39
Question re 75k limit:

It says the limit is per ticket. However, PQD's are calculated per segment. Do people think that if you buy a round trip for say $10k that you can earn 110k miles, or do they really intend to limit the full trip to 75k? Seems to incentivize to book 2 one ways.....

Am I missing something?
dsilvers is offline  
Old Jun 10, 2014, 8:44 am
  #212  
 
Join Date: Aug 2005
Location: HPN
Programs: not anymore! I'm FREE!
Posts: 3,459
Originally Posted by UAgeek71
Also, the average flyer, is going to be pretty peeved, when they spend 600 dollars, on a ticket for a vacation, and expect 3k miles, but only get 2100 because of hidden charges that don't qualify. They likely won't spend the time to re-search why, they will feel cheated, then call, get angry, tie up the CS lines, get the answer they don't like, then never book UA again after the bad experience, especially if they experience the UA of today with dark cramped Rj's, delays, and sub par product to begin with!
I suspect that people who swear never to fly an airline again almost always end up eventually flying the airline again... the fare just has to be a few dollars cheaper.

Why do you think Spirit is so successful despite their atrocious product and aggravating fees?

I really don't think UA is going to have the slightest trouble filling its planes after this "change-I-think-you'll-like".
snic is offline  
Old Jun 10, 2014, 8:44 am
  #213  
 
Join Date: Dec 2007
Location: Las Vegas
Programs: DL Platinum, AA Lifetime Gold, Hilton Diamond, Marriott Platinum, Radisson Premium
Posts: 6,638
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 7_1_1 like Mac OS X) AppleWebKit/537.51.2 (KHTML, like Gecko) Version/7.0 Mobile/11D201 Safari/9537.53)

Why can't they copy the good aspects of DL? Instead they cherry-pick the bad.
demkr is offline  
Old Jun 10, 2014, 8:44 am
  #214  
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Join Date: Aug 2005
Location: BOS
Posts: 15,027
Originally Posted by SFO777
Unless you credit a difference *A program in which case you can still get 50K or more per RT.
Then you don't get PQDs.
Dieuwer is offline  
Old Jun 10, 2014, 8:45 am
  #215  
 
Join Date: Apr 2007
Location: DCA
Programs: AS MVP Gold 75K
Posts: 947
My earnings, by the numbers

So far this year, I've earned 35994 PQM (all UA discount/deep discount economy fares) and 1958 PQD as a Gold.

Am I understanding correctly that while I've earned 53991 RDM under the current rules, I would only have earned 9790 RDM under the new rules.

I do have some higher-yield travel later in the year. Based on current bookings (totaling 4677 PQD flown and booked for 2014, and 71341 PQM flown and booked), I would earn 107011 RDM this year but only 23385 RDM next year - a 78% drop - and I'll probably also SDC my way to a few more miles. And I'll book another 323 PQD worth to requalify for Gold to use as a bargaining chip.

So the question becomes: AA, AS, or Kayak in 2015?

And it's worth repeating that under last year's pre-PQD rules, I'd have been looking to finish the year as a Platinum with upwards of 120000 RDM and some RPU's and so forth. Sad, sad, times.
discoverCSG is offline  
Old Jun 10, 2014, 8:45 am
  #216  
 
Join Date: Apr 2008
Programs: UA1k 3mm, HH-LifeDiamond, Mar-LifePlatElite
Posts: 351
Originally Posted by davidash
It appears to only benefit 1K and GS.
Trust me, this is completely Un-true. The devaluation is less of a hit is all.
UAgeek71 is offline  
Old Jun 10, 2014, 8:45 am
  #217  
 
Join Date: Aug 2013
Location: CLE
Programs: UA Premier Platinum, HH Diamond
Posts: 32
Originally Posted by TheBOSman
But you were already flying UA anyway? The change is nice for you, but does it really increase your incentive to do something you were already doing anyway? The FFP should be used to increase business. UA has your business due to the schedule and timings I'm guessing, not their FFP. DL flies LGA-CLE, and already had this style earning announced for next year.
You're right, UA does have more flights on a per day basis from CLE-LGA so if I need to switch it offers more options then DL. However, with UA dehubbing CLE I don't have really any incentive to stay with them other then the flight options.
billnye97 is offline  
Old Jun 10, 2014, 8:47 am
  #218  
 
Join Date: Mar 2008
Location: London
Programs: UA GS
Posts: 2,438
Originally Posted by Axey
To put this change into perspective:

A one way, first class award on LH from IAD to FRA will now require $10,000 in ticket purchases for a 1K.
Yes but... don't you think that seems about right, to be honest? Lufthansa charges the public a minimum of $6500 roundtrip on that flight, or $3250 each way. So you're saying that if you spend $10000 on United, you not only get all the travel that the $10000 got you, but you also get enough miles for a one-way ticket to Europe in first class?

As a 1K who flies a decent amount of international business class to europe at $5k a RT, earning enough for a 1-way first class ticket to europe off my normal spend after 2 of these actually seems pretty good to me. Today, those 2 trips get me 44000 miles. Next year, they'll get me 110,000. That's a pretty significant jump and you can see why United would value these 2 trips vs 30 roundtrip domestic trips at $350 a pop.
villox is offline  
Old Jun 10, 2014, 8:47 am
  #219  
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Programs: BA/AA/AS/B6/WN/ UA/HH/MR and more like 'em but most felicitously & importantly MUCCI
Posts: 19,719
Originally Posted by sf26
All the profitable flyers who spend the most money will be happy with Delta and United.
Sure, and we know how many HVFs are "happy with United" already.

Originally Posted by GUWonder
If someone is coastal-based, considers most of the country flyover country and does mostly international long-haul or transcontinental flights in economy class, the person is likely hosed by this move even when an OPM customer on UA.
Correct. I'm in SEA and Flight Memory says my average sector length is 1,300+ miles. As I book a mix of fares and have to be cost-conscious even when in OPM mode -- unlike some I can't blithely waste my clients' money -- this change seems explicitly designed to eject customers like me from the system.

Originally Posted by TheBOSman
I would never book a ticket with UA now if UA and DL were the same price. DL is better in all classes.
There's UA's problem -- they have such a weak product right now, and such a clear revenue / PRASM problem, this is a hell of a time to further dilute loyalty factors.
BearX220 is offline  
Old Jun 10, 2014, 8:48 am
  #220  
 
Join Date: Jun 2007
Location: gggrrrovvveee (ORD)
Programs: UA Pt, Marriott Ti, Hertz PC
Posts: 6,091
Originally Posted by Madone59
Almost all of my flying has gone from personal spend to OPM...I guess that's a plus.

On another note If you have a CC, spend $25K (like I do) and fly 75K (like I do), but only spend around $4,000 (like I will this year) in 2015 you will get a whopping 36,000RDM - Wha Wha Whaaaa (sad trombone sound)
What United will say:
"But taking into account your miles earned through credit card spend, you're actually earning over 60,000 miles!"

Which is still a loss from the status quo.

Others said it above, but business travelers on mid-con and short haul travel are the winners, or at least around the current state.

Trans-con in most coach fare classes are losers, as are long hauls in coach. Based on my travel this year, this appears to be the case for ALL status levels.

Long haul in Y/B (maybe M) and premium cabins probably come out ahead. I can't say for sure, though, as all my international travel has been in discounted coach this year.

Looking at my travel for this past year, my economy class TATL trips would have earned about 8,000 miles less in the new scheme, and my mid-con travel (mostly ORD-LGA-ORD) would have earned me 14,000 more. I net out at about 6k miles more with the new program, YTD.
gobluetwo is offline  
Old Jun 10, 2014, 8:49 am
  #221  
 
Join Date: Jul 2011
Location: DFW
Programs: AA EXP, mid-tier with pretty much everyone else
Posts: 873
The breakeven point is 20 cpm, according to some math I've done as well as some that Gary Leff did. If you average above 10cpm, you'll benefit. If you average below it, you won't.
bthotugigem05 is offline  
Old Jun 10, 2014, 8:49 am
  #222  
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Join Date: Nov 2007
Location: Denver • DEN-APA
Programs: AF Platinum, EK Gold, AA EXP, UA 1K, Hyatt Globalist
Posts: 21,602
Originally Posted by dieuwer2
Then you don't get PQDs.
That assumes one cares about UA and MP any more.
SFO777 is offline  
Old Jun 10, 2014, 8:50 am
  #223  
 
Join Date: Jan 2010
Location: LAS, ZQN
Programs: UA PP (2MM), BA gold
Posts: 2,202
Originally Posted by davidash
It appears to only benefit 1K and GS.
Not me. I make 4-6 trips a year (SFO/LAX-SYD). 7400 each way which is 29K miles. I buy a V or W which is $1700-$2200 total inc. Will give me 16-18K instead. Say I lose 10K a trip x 5= 50K.
Thank you Mr. 1K for your loyalty.
zebranz is offline  
Old Jun 10, 2014, 8:51 am
  #224  
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Join Date: Aug 2011
Location: Austin, Texas
Programs: Airline nobody. Sad!
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Originally Posted by zebranz
Mine did not have a hut but the Space Needle with an arrow pointing to the top saying "Sit here"
TheBOSman is offline  
Old Jun 10, 2014, 8:52 am
  #225  
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Posts: 19,719
Originally Posted by snic
I really don't think UA is going to have the slightest trouble filling its planes after this "change-I-think-you'll-like".
I agree, but the seats will be 10% GS/1Ks (most in economy), 60% Kayakers / Priceliners / totally disloyal price-sensitive buyers, 10% other MP members who don't understand what's going on, and 20% empty. When the dust settles this won't solve their PRASM problem.
BearX220 is offline  


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