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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, 8:52 am
  #226  
FlyerTalk Evangelist
 
Join Date: Jan 2009
Location: London & Sonoma CA
Programs: UA 1K, MM *G for life, BAEC Gold
Posts: 10,227
I feel a sense of relief coming on. Ever since I passed 1MM, I've been toying with switching, but still have been tied in to 1K. This year no GPUs have cleared so far. I would have earned fewer miles on BA or VS, so have avoided them. Now that's not the case. I think I shall go travelling and, if that doesn't work out, I'll still be Gold on UA and get my lounge access.
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Old Jun 10, 2014, 8:53 am
  #227  
 
Join Date: Aug 2006
Location: Portland, OR
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I think this probably benefits the flyers living in a hub more than anything else. Although they say fares are cheaper due to competition from Frontier and SWA in Denver, I definitely don't see it. I've paid consistantly over $300 for flights to San Diego, SFO, PDX, LAS, and LAX. Going to Houston, Atlanta, and New York has easily cost over $500. Southwest, Delta, and now United have the same type of reward platform. They'll reward credit card spend more because Chase has to actually purchase the miles from Mileage Plus.
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Old Jun 10, 2014, 8:53 am
  #228  
 
Join Date: Dec 2010
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Originally Posted by kluau88
How so?

Say I fly from SFO-HKG RT.

As a 1K now I earn 27656 RDM.

Under the new program I would have to spend $2515 on that same ticket which is practically double what I pay now for a W fare as a leisure traveler and not an OPM traveler.
Again, can we stop with the idea that OPM equates to expensive fares? My last revenue UA ticket was OPM, WAS-->Asia, W fare, purchased 1 week before travel, ~$1,500 base fare. The OPM thing is a red herring in this discussion.

But your underlying point is a good one. That is: That $2515 likely could get me a ticket on an airline with much better service than UA. If I have to pay UA almost twice as much to get the same RDMs I am today on that transpac, and if I'm gonna spend that amount (OPM or not), I'm going to go spend it someplace I get quality service. So with this scheme UA doesn't encourage me to spend more on UA...it encourages me to spend elsewhere.
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Old Jun 10, 2014, 8:54 am
  #229  
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Originally Posted by mozilla
..
Also, this program update will apply to all MileagePlus members worldwide and it will also apply to tickets for flights operated by a Star Alliance™ or MileagePlus partner airline when the ticket number starts with "016." Tickets for flights operated by a Star Alliance™ or MileagePlus partner airline that aren’t issued by United (ticket numbers that don’t start with “016”) will still earn award miles based on distance flown and the purchased fare class.
So this should encourage people not to buy their *A tickets on ual.com as they will always be coded 016.
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Old Jun 10, 2014, 8:55 am
  #230  
 
Join Date: Apr 2003
Programs: UA *G 1MM LT United Club & Global Entry
Posts: 2,756
Originally Posted by flymexico2010
Wondering if with this change buying miles with a 40% discount (as of today´s mail from UA) will be a good deal?
The price is around 2,25 CPM...
Originally Posted by billnye97
The only thing I worry about is more devaluation in the redemption area.
That is why I would not purchase and bank miles: future redemption devaluation. IMO purchasing miles only makes sense for immediate reward redemptions.


SunLover
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Old Jun 10, 2014, 8:58 am
  #231  
 
Join Date: Oct 2006
Location: ANP
Programs: UA 1k, Marriott Plat, HH gold, Avis/Hertz Pres
Posts: 1,408
anyone have any idea if taxes and fees included in the ticket will count as RDM?
This worries me now also, so you spend 4k on a ticket, but you only get $3500 worth of miles out of that ticket
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Old Jun 10, 2014, 8:58 am
  #232  
 
Join Date: Aug 2008
Location: DCA, IAD (not BWI if I can help it)
Programs: UA 1MM 1K, Marriott Gold, Hyatt Explorist, status-free on AA, AS, B6, DL, WN, Amtrak, etc.
Posts: 1,481
Effects of being able to buy E+ with RDM?

One thing I haven't seen discussed yet in this thread: What it will mean to be able to spend RDM to purchase E+ seating. My initial, quasi-selfish reaction as a D.C.-S.F. city-pair captive is that I can stop worrying about maintaining Plat status for next year if I can burn miles to put Mini DCA writer in E+ next to me and Mrs. DCA writer on our trips to see the family in the Bay Area.

(I haven't seen a material difference in my upgrade percentage this year, so that part of Plat status means little to me--while international lounge access with Gold is not subject to some undocumented rate-limiting algorithm in Chicago. And Gold is looking a whole lot more likely next year than Plat.)

But... if anybody can pay for E+ with miles, will that cause those seats to disappear a lot faster? Will UA find that it's no longer making as much extra money from them?

Agreed that UA's general practice of copying DL's mileage-program downgrades while ignoring its service improvements is annoying and insulting.
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Old Jun 10, 2014, 9:00 am
  #233  
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Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,722
works for me, I will accumulate more miles on my expensive business travel. however completely removes any incentive to fly UA for leisure travel as my non-elite family won't accrue jack on low fares. This actually fits nicely with my current strategy which is to fly WN or AS for vacation travel depending on destination. Management at the competition must be popping corks today.

Funny how UA does not apply the new rules to *A partners. I see two reasons for the differential: (1) *A systems are currently incapable of forwarding fare data to MP; (2) UA knows partner premium fares (i.e. SQ) are often far higher and thus awards fewer miles under the old method.
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Old Jun 10, 2014, 9:00 am
  #234  
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Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,068
Originally Posted by dsilvers
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?
You got it, book 2 x one-ways.


Originally Posted by snic
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".
And if they do, a little more "capacity discipline" and they'll be OK.
channa is offline  
Old Jun 10, 2014, 9:01 am
  #235  
 
Join Date: Jan 2009
Location: USA - all of it!
Programs: United Premier 1k, Avis First, HHonor Diamond, Marriot Gold
Posts: 195
So it is my understanding that....

1. Earning status does not change. That is still based on how its calculated today. Distance + dollar.

2. Earning miles for redemption is whats changing as stated from the chart above.

Also, I am very disappointed in this change. I would think jumping to American would be a good option if I want old school reward programs, but it's only a matter of time before they jump on this change too.

All airlines operate together. Every single one. If one raises fares, so do the others. If one charges for bags, so do the others. ETC!!! There will come a day where, due to mergers/codeshares/etc there will be no need for a loyalty program. People will just fly the cheapest fare. With how the network is alligned, you don't need loyalty to retain business.
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Old Jun 10, 2014, 9:01 am
  #236  
 
Join Date: May 2005
Location: ORD
Programs: UA 1K/1.5MM, HHonors Diamond, Bonvoy Titanium, Hertz PC, National Emerald Executive
Posts: 424
I can imagine that people who regularly buy TATL/TPAC C/D/J/F fares will rejoice - each trip guarantees them 75k RDM! That's the change they like!
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Old Jun 10, 2014, 9:01 am
  #237  
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Originally Posted by Boraxo
Funny how UA does not apply the new rules to *A partners. I see two reasons for the differential: (1) *A systems are currently incapable of forwarding fare data to MP; (2) UA knows partner premium fares (i.e. SQ) are often far higher and thus awards fewer miles under the old method.
I think it's #1. It's just like PQD - they can't see it for OAL-issued tickets.
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Old Jun 10, 2014, 9:01 am
  #238  
 
Join Date: Jul 2005
Location: SAN
Programs: UA 1MM/1K, HH Diamond
Posts: 6,832
Originally Posted by BearX220
Sure, and we know how many HVFs are "happy with United" already.
Exactly. The non-FTer/now-former UA HVFs in my family bolted not because they weren't earning enough RDMs or clearing enough upgrades but because of poor on-time performance and severely degraded customer service. Sure, some of this had to do with the sUA-sCO culture clash vis-à-vis treatment of elites, but they tell me is that UA simply stopped being an airline willing and able to go above and beyond for them...whereas AA took them in with open arms and vastly superior CS. People with no choice may stick with UA, but I wonder whether there are enough such people...
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Old Jun 10, 2014, 9:02 am
  #239  
 
Join Date: May 2011
Posts: 5,814
Originally Posted by Guy Betsy
So this should encourage people not to buy their *A tickets on ual.com as they will always be coded 016.
EDIT: misunderstood.

Yes -- if you are buying a *A flight, don't book via UA!

Last edited by edcho; Jun 10, 2014 at 9:07 am
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Old Jun 10, 2014, 9:03 am
  #240  
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Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
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This to me also reeks of a hailmary from Jeff that buys him more time with the BoT. He can point to this as a reason to keep him until it's fully implemented
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