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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, 9:03 am
  #241  
 
Join Date: Aug 2008
Location: Always on the move
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MM program change?

I haven't gone through the whole thread here as of yet this eve, but I am curious. How does this affect the MM program?

Are they going to go back and calculate the $$$'s spent over the miles you earn to "re-calibrate" it or just going forward?
goingbananas is offline  
Old Jun 10, 2014, 9:04 am
  #242  
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Originally Posted by CashN
Smisek single handedly destroyed United Airlines.
Some of us knew this in 2010. Others here continued to deny even up to today. Rubbing it in is small solace, but I will take it over nothing.
uastarflyer is offline  
Old Jun 10, 2014, 9:05 am
  #243  
 
Join Date: Sep 2010
Location: San Francisco Bay Area
Posts: 5,825
Originally Posted by docbert
Mileage runs are normally about status more than mileage earning, and status is NOT affected by this change.
Correct. It was the introduction of PQD's that actually killed the Mileage Run.


I do appreciate learning about a March 1, 2015 change on June 10, 2014.

This provides me the time to evaluate whether these changes will affect my flying strategy for the rest of 2014 and in to 2015.

It probably won't have a huge effect, as RDM earning is not the reason I choose an airline ex-SFO.

For many of my shorter flights though - where today I earn the 500 RDM minimum in Y - I will actually earn more RDM's under this new scheme. Recent examples:

SFO-LAX, $180 P (F) Fare, O/W ticket. Old: 1,250 New: 1,980
SFO-SNA, R/T V Fare for $350. Old: 1,000 New: 3,850

The inexpensive transcons, however, will be a degradation of RDM earning.


Originally Posted by bmvaughn
Amusing in a way.. what United and other airlines need to cut down on are manufactured credit card spenders, not FLYERS.
I don't disagree, but how do they accomplish this?

Last edited by LarkSFO; Jun 10, 2014 at 9:16 am
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Old Jun 10, 2014, 9:05 am
  #244  
 
Join Date: Aug 2005
Location: HPN
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Posts: 3,459
Originally Posted by BearX220
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.
It will if "totally disloyal price-sensitive buyers" all end up paying more for their tickets (on all airlines, including UA) tomorrow than today and yesterday. What they pay is governed by supply and demand. Reduce supply, and they pay more. Loyalty is therefore becoming irrelevant (or, less relevant) to the bottom line.
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Old Jun 10, 2014, 9:05 am
  #245  
 
Join Date: Apr 2005
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Posts: 4,210
Not sure whose quote this is, but I think the same way:

Management underestimates the extent to which MP binds good customers to a bad airline. This just puts more customers in play to shop the competition.

All I can say, is:

Thank you United, I am finally free, free at last!

Yippee!!
GrizShel is offline  
Old Jun 10, 2014, 9:06 am
  #246  
 
Join Date: Jul 2005
Location: SAN
Programs: UA 1MM/1K, HH Diamond
Posts: 6,832
Originally Posted by goingbananas
I haven't gone through the whole thread here as of yet this eve, but I am curious. How does this affect the MM program?

Are they going to go back and calculate the $$$'s spent over the miles you earn to "re-calibrate" it or just going forward?
With the exception of the one-time, post-merger adjustment, MM was always BIS-based. I assume it would remain the same.
as219 is offline  
Old Jun 10, 2014, 9:06 am
  #247  
 
Join Date: Dec 2009
Location: New York, NY
Programs: Hyatt GLOB, Marriott Lifetime PLT, UA 1K 1MM.
Posts: 1,728
so my stupid CVG-EWR one way segment i booked yesterday for $450 dollars (B fare or something like that) next week is now netting me 4950 RDM instead of 1500.

i find myself stuck on short midcons on last minute fares a lot (my back is probably thrown out by now from RJ hell) and it's not because i want to, that's just where my customers are and it's the nature of my job, so it's just the situation i'm in. i do find it annoying when i'm stuck on $1000+ RT's to places like CVG, DSM, CLE, etc., and just get like 1500 RDM for it. everyone's situation is different, but that's the one i'm always in.

the system overall seems annoying for all my personal trips, it seems better for me (personally at least) for all my work trips. which is the brunt of my flying.

shrug. so many changes in the last couple years i'm just kind of numb and shellshocked now.
bob_the_d is offline  
Old Jun 10, 2014, 9:07 am
  #248  
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UA also seems to miss the part where DL got away with this because their flying experience is vastly superior to UA's. This move simply pushes those who have been sticking around with UA despite everything out the door to DL / AA where the flying experience is still pretty good
Duke787 is offline  
Old Jun 10, 2014, 9:08 am
  #249  
 
Join Date: Aug 2007
Location: Chicago: ORD, MDW
Programs: United Million Mile Flyer, Hilton Silver, Marriott Gold, DL, AA WN
Posts: 514
Originally Posted by JBord
Bottom line, this is bad for just about everyone. I have a feeling that anyone thinking otherwise either a) has very short segments and a lot of the, such as 50x ORD-CVG, or b) hasn't really looked at their past flights and worked through the calculation. "11x" sounds big, but its 2x for 1K currently.
OK. I get it: the original mileage programs rewarded those who flew a lot; some of the revised programs reward people who pay a lot - either with their own money or with others.

I don't like it. I gained MM status with my butt in seats for over 1.7 million miles since 1981. Fortunately, my career is nearing its end. I do not envision flying very much in the future.

But this Delta copycat change (unfortunately AA will probably eventually follow suit) seems to work against more people that it helps. kayakers and people new to business flying may never hope to reach a certain status. Mileage Plus members who fly a lot at discount fares are being downgraded.
Why would any of these people be inclined to book future flights on United?

United hopes these changes will improve their bottom line by attracting high fare customers, but will they attract enough to balance the number of people they are forcing to kayak?

This change to Mileage Plus will continue to force flyers away from UA and to WN, AS (and maybe even AA/US).
Karl-MDW is offline  
Old Jun 10, 2014, 9:10 am
  #250  
 
Join Date: May 2004
Programs: UA 1K 2MM, BA Gold, SQ TPP
Posts: 1,487
OK, I don't get this. For those of us who have been giving international premium class revenue to *A partners this actually nets us a lot more miles (and doesn't bring any more revenue to UA, no?)

For example, a round trip ticket on SQ from US to Asia in J is about $7k.
If this is booked on 016 ticket stock, I max out at 75k RDM (currently this only gets around 20k RDM).

So UA gives me over 50k RDM more miles.
UA gets nothing (revenue goes to SQ).
How much more can they make just because it's ticketed on 016?
c1mth0g is offline  
Old Jun 10, 2014, 9:13 am
  #251  
 
Join Date: May 2011
Posts: 5,814
Originally Posted by c1mth0g
OK, I don't get this. For those of us who have been giving international premium class revenue to *A partners this actually nets us a lot more miles (and doesn't bring any more revenue to UA, no?)

For example, a round trip ticket on SQ from US to Asia in J is about $7k.
If this is booked on 016 ticket stock, I max out at 75k RDM (currently this only gets around 20k RDM).

So UA gives me over 50k RDM more miles.
UA gets nothing (revenue goes to SQ).
How much more can they make just because it's ticketed on 016?
UA gets some cut of the revenue because its 016. Or in other cases, they get the revenue no matter what ticket stock (JVs).
edcho is offline  
Old Jun 10, 2014, 9:14 am
  #252  
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Originally Posted by Karl-MDW
United hopes these changes will improve their bottom line by attracting high fare customers, but will they attract enough to balance the number of people they are forcing to kayak?
The only way they are going to get people to pay higher fares is to offer a product that would justify those higher fares. For years, people stuck with UA because for all their faults, MP was a better deal. Now that MP is no longer going to serve as an incentive to fly United, what will? Their industry lagging soft product? Their industry lagging OT performance? Their industry lagging IFE?
halls120 is online now  
Old Jun 10, 2014, 9:14 am
  #253  
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Join Date: Aug 2003
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Posts: 60,174
Originally Posted by c1mth0g
OK, I don't get this. For those of us who have been giving international premium class revenue to *A partners this actually nets us a lot more miles (and doesn't bring any more revenue to UA, no?)

For example, a round trip ticket on SQ from US to Asia in J is about $7k.
If this is booked on 016 ticket stock, I max out at 75k RDM (currently this only gets around 20k RDM).

So UA gives me over 50k RDM more miles.
I can't believe they get that much more from 016 ticketing?
You don't get it. This example is a fringe outlier. The remaining 99.99% are getting hosed big time.
uastarflyer is offline  
Old Jun 10, 2014, 9:14 am
  #254  
 
Join Date: May 2004
Programs: UA 1K 2MM, BA Gold, SQ TPP
Posts: 1,487
Originally Posted by edcho
UA gets some cut of the revenue because its 016.
Can't be that much? 50k RDM?
c1mth0g is offline  
Old Jun 10, 2014, 9:16 am
  #255  
RNE
 
Join Date: Sep 2005
Location: JZRO
Posts: 9,169
Originally Posted by CMK10
FWIW I feel like I picked a hell of a year to start Kayaking. It's a relief just picking who's cheapest and most convenient.
Originally Posted by VT_hawkeye
Kayak is where I go now...
I'm all for rational spending, but I want to have economy plus seating. That perk keeps me from Kayaking.
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