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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 3, 2014, 2:14 am
  #2236  
 
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Come Summer next year, United Management can look at all those MP accounts that had lots of transactions going through them up to February 28 and then March onwards a big, fat nothing!

Maybe they will be dismayed by the fact that a number of people retain the MP account, give up on getting status, and use other *A members to run up award miles? Then they will have to give out free flights or upgrades whilst for the majority of the time look at empty seats on their flights, as bums will not be on United's seats running up the credits.

Or they re-brand as UniTED - a cheap budget airline, who treat the world with contempt?
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Old Oct 3, 2014, 2:43 am
  #2237  
 
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Just flew an itinerary spanning almost 20k miles and to think if I did the same next year I probably would earn about 10K RDM based on the price i paid. That's almost a 75% reduction in RDM
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Old Oct 3, 2014, 4:35 am
  #2238  
 
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Originally Posted by flyhighajw
Come Summer next year, United Management can look at all those MP accounts that had lots of transactions going through them up to February 28 and then March onwards a big, fat nothing!

Maybe they will be dismayed by the fact that a number of people retain the MP account, give up on getting status, and use other *A members to run up award miles? Then they will have to give out free flights or upgrades whilst for the majority of the time look at empty seats on their flights, as bums will not be on United's seats running up the credits.

Or they re-brand as UniTED - a cheap budget airline, who treat the world with contempt?
Status dependent award availability will kill that path. In the long run, only people bringing profitable revenue to UA will get award benefits.

Aka, there is no free ride.
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Old Oct 3, 2014, 5:25 am
  #2239  
 
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Originally Posted by LaserSailor
Aka, there is no free ride.
And there's the rub.

We want one. Think we deserve one. That we used to get one.

But when you put it that way, I want to say "No I don't, I understand TANSTAAFL".
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Old Oct 3, 2014, 6:50 am
  #2240  
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Originally Posted by LaserSailor
Status dependent award availability will kill that path. In the long run, only people bringing profitable revenue to UA will get award benefits.

Aka, there is no free ride.
Totally disagree. Status dependent award availability would KILL profitable business with Chase credit cards and will not happen.

United is stupid...but not that stupid.
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Old Oct 3, 2014, 8:13 am
  #2241  
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Originally Posted by LaserSailor
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.
As are "insights" provided by people who fly on OPM that would likely be singing a different tune if they had to pay out of pocket themselves. @:-)
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Old Oct 3, 2014, 8:20 am
  #2242  
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Originally Posted by Superguy
As are "insights" provided by people who fly on OPM that would likely be singing a different tune if they had to pay out of pocket themselves. @:-)
^ or if the system was set up to reward those who actually spend, not those who fly.
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Old Oct 3, 2014, 12:23 pm
  #2243  
 
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Originally Posted by Superguy
As are "insights" provided by people who fly on OPM that would likely be singing a different tune if they had to pay out of pocket themselves. @:-)
I spend OPM every time I fly, OPM that doesn't go into employee salaries, 401k matches, etc. Im acutely aware of this every time I travel - I would even wager more aware than the crowd who spends 600 USD after tax money to MR to IST....hey, its America (usually) - you can spend your money however you want, but that is truly financial idiocy.

From the viewpoint of the airline, OPM manifests itself as business vs leisure travel. I don't know why the leisure travelers here claim moral superiority to their claim to airline loyalty - its probably a good textbook chapter in a psych book.
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Old Oct 3, 2014, 1:08 pm
  #2244  
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Originally Posted by LaserSailor
I spend OPM every time I fly, OPM that doesn't go into employee salaries, 401k matches, etc. Im acutely aware of this every time I travel - I would even wager more aware than the crowd who spends 600 USD after tax money to MR to IST....hey, its America (usually) - you can spend your money however you want, but that is truly financial idiocy.
Not sure how that's relevant?

From the viewpoint of the airline, OPM manifests itself as business vs leisure travel. I don't know why the leisure travelers here claim moral superiority to their claim to airline loyalty - its probably a good textbook chapter in a psych book.
It's not about business vs leisure travel. It's about the attitude of those flying on OPM on expensive fares and reaping the benefits of said travel looking down on those who don't spend as much (OPM or personal) and telling them they deserve what they get - like they themselves are "earning" what they get. It's easy to sneer from the ivory tower when something doesn't affect you - especially if the perks don't cost one personally. This attitude conveys an air of moral superiority and rubs people the wrong way.

It's a valuable skill to be able to see things from another perspective. One can empathize and understand the feelings of those feeling the effects without being a jerk - even if it doesn't affect them.

I'm one who would benefit from the change, and yes, I fly on OPM as well. That doesn't mean I think it's a great change, nor does it mean I think I'm above those that will take the hit. OPM can easily dry up and I can find myself in the same boat.

If you don't get that, then I can't help you. A little empathy goes a long way. @:-)
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Old Oct 3, 2014, 1:18 pm
  #2245  
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I think I'm having a senior moment, so apologize if this was already covered upthread or in the announcement, but are RDMs earned by distance or by spend in the following scenarios:

1. I buy a ticket plated on UA that includes US>NRT on UA and NRT>intraAsia on a partner

2. I buy a ticket force-plated on a partner that includes US>NRT on UA and NRT>intraAsia on a partner

3. I buy a ticket with travel (assume domestic) wholly on UA, but force plated through my GDS on a partner (assuming the fare works out)

While I know I will earn RDM based on spend with a UA plated, UA operated ticket, it's the mixed scenarios above that seem to escape my memory.
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Old Oct 3, 2014, 1:40 pm
  #2246  
 
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Originally Posted by Superguy
Not sure how that's relevant?



It's not about business vs leisure travel. It's about the attitude of those flying on OPM on expensive fares and reaping the benefits of said travel looking down on those who don't spend as much (OPM or personal) and telling them they deserve what they get - like they themselves are "earning" what they get. It's easy to sneer from the ivory tower when something doesn't affect you - especially if the perks don't cost one personally. This attitude conveys an air of moral superiority and rubs people the wrong way.

It's a valuable skill to be able to see things from another perspective.
The attitude of the "non OPM" crowd on this board is just as smug and annoying as that of the "OPM" crowd. As you say yourself, it is a valuable skill to see things from another perspective. I really wish this wouldn't keep coming up over and over but the same posters like to bring it up again and again.

From my perspective, it is one and the same. If I can save my company (of which I am a part owner) money on travel, I am way better off. So I try and book far out, consciously avoid booking in first, take advantage of fare sales, etc. Most of the folks I know treat their company's money as their own because they are senior level stakeholders in their businesses. This is something I don't think the "non OPM" crowd truly understands. There are a rare few folks out there who just book whatever fare they want when they want. The rest of us are in the same boat.
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Old Oct 3, 2014, 1:58 pm
  #2247  
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Originally Posted by bocastephen
I think I'm having a senior moment, so apologize if this was already covered upthread or in the announcement, but are RDMs earned by distance or by spend in the following scenarios:
I'll try and help - as far as I understand, anything on 016 stock, as well as any UA-operated flights (aside from bulk/blind fares) earns based on rev. Anything else earns on distance/fare class/status - presumably similar to today - but exact details have not been announced - suspect there may be some changes in percentages, etc. Based on this, for your scenarios:

1. I buy a ticket plated on UA that includes US>NRT on UA and NRT>intraAsia on a partner
As this is all on 016 stock, all segments are based on the new system on revenue. Partner metal doesn't matter if the ticket is 016 stock. I'm going to assume you have a foreign address as your primary address with UA, so not relevant to you personally, but if not, or for those who don't, you'll get full PQD for the base fare + carrier imposed surcharges.

2. I buy a ticket force-plated on a partner that includes US>NRT on UA and NRT>intraAsia on a partner
You'll get rev-based for the UA segment, distance-based for the partner. PQD (if applicable), for UA-operated segments only

3. I buy a ticket with travel (assume domestic) wholly on UA, but force plated through my GDS on a partner (assuming the fare works out)
All on revenue - any UA segment - no matter what airline the ticket comes from, goes by revenue. Also, full PQD, again, if applicable.

Last edited by emcampbe; Oct 3, 2014 at 6:37 pm
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Old Oct 3, 2014, 2:48 pm
  #2248  
 
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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
These posts from you are almost comical LaserSailor. By now, I understand the travel scheme your firm employs. It is very generous. As in extremely generous. Most global huge firms and most small and midsize firms do NOT have as generous a policy as your employer.

If you doubt me, talk to some senior folks at IBM. One of my best friends runs a large sales organization for IBM for North and Central America and guess where he flies? Back of the bus. Another friend of mine ran a large business unit for Citi in Asia (GM level) and guess where he flies? Back of the bus unless it is back to the US. Another guy I just met on a plane who sold his last company for $100mm+ told me that he ALWAYS books in coach and expects his employees to do the same.

And those are only a few examples. There are plenty more where that came from.

You may be right that great travel policy will bring great employees, but it just isn't what is happening out there for most people in the real world even on OPM.

So count yourself lucky but don't underestimate just how large the number of folks is that will get shafted by this change and in some cases very severely.
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Old Oct 3, 2014, 2:53 pm
  #2249  
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Amen to all that ^
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Old Oct 3, 2014, 3:01 pm
  #2250  
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Originally Posted by UA-NYC
Amen to all that ^
+1.

Cheers.
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