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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, 9:26 am
  #271  
 
Join Date: Jul 2005
Location: ORD-LAS
Programs: UA MM 1K, Hyatt Globalist, Marriott Titanium Elite
Posts: 4,419
This will hurt and help, in the end it will equal out for "me". But I do see how this will hurt the majority of the people on this board. And in the end, I would rather see things just stay the same, because when I was a 1K, I spent 5K a year.
Today I get 5538 on ORD-SFO. My average fare to SFO is 500.00. The new calculations will only get me 4000. I do ORD-SFO or LAX about 6-10 times. $500.00 is an average, sometimes i pay 800.00 others 400.00..

This will help in those stupid 900.00 fares I pay on ORD-EWR and ORD-IAH. I will now get an average of 7200 miles on those fares instead of 2700.00.

But again, this helps me mostly this year, but next year I may have different travel patterns. My other frequent airline is WN, and they have a similar formula, which also counts for status. I do very well with them on points traveling MDW-Midwest locations, but I don't fly them West, because I can net more UA miles.

In the end the elite rates are silly. A 1K should get x15 points or more.
LASUA1K is offline  
Old Jun 10, 2014, 9:27 am
  #272  
 
Join Date: Jan 2006
Location: Arlington, VA
Programs: UA 1K, AA PLT, SPG PLT
Posts: 1,612
Originally Posted by dcsnowwake
do we get 100% of the fare paid or not? this hasn't been answered. We were fooled with PQD, now what about RDM
I believe the answer is NO...from the WIKI (I didn't read this on any UA.bomb webpage at all):

150% - J, C, D, Z, P, F, A
100% - Y, B, M
75% - E, U, H, Q, V, W
50% - S, T, L, K, G, N

So, if you are booking S/T/L even, it's 50% of the calculation...which is awful.

-jeremy
kmfdm91 is offline  
Old Jun 10, 2014, 9:27 am
  #273  
 
Join Date: Jun 2012
Location: BOS/LON/SEA
Programs: AA Reg
Posts: 161
So, I'm reading from this that taxes wouldn't be included. Hence "base fare + carrier imposed charges" above (does that include YQ if charged?).

However, if you go to the calculator UA has put up, it asks for your ticket price. As an average joe, I would put in the entire cost of the ticket 1000 or so, which would mean 8k miles for me (as gold). If it's just the base fare, then isn't this incredibly misleading?

If my fare was 400 and the rest was tax, I wouldn't be getting anywhere close to 8k in miles.
SmokeyTheBear is offline  
Old Jun 10, 2014, 9:29 am
  #274  
 
Join Date: Aug 2011
Programs: UA 1K
Posts: 8,634
Originally Posted by kmfdm91
I believe the answer is NO...from the WIKI (I didn't read this on any UA.bomb webpage at all):

150% - J, C, D, Z, P, F, A
100% - Y, B, M
75% - E, U, H, Q, V, W
50% - S, T, L, K, G, N

So, if you are booking S/T/L even, it's 50% of the calculation...which is awful.

-jeremy
You're misunderstanding.
mgcsinc is offline  
Old Jun 10, 2014, 9:30 am
  #275  
 
Join Date: Dec 2007
Location: Providence, RI
Programs: AAEXP, BASlv, UAGold, Hyatt Diam, IHG Plt, SPG Plt, HH Diam, MR Plat, CC Gold, Nat ExecElite
Posts: 440
Originally Posted by Kmxu
Here is break-even point for cents per mile for flyer flying exactly at the PQM thresholds:
Silver: 17.75 cpm
Gold: 18.75 cpm
Platinum: 19.44 cpm
1K: 18.18 cpm
If you purchases premium fares (with various fare bonuses), your break-even point cpm is even higher. If you fly more than the threshold PQM (25K for Silver, 100K for 1K), your break-even point cpm is also higher.
That's exactly what I just figured for 1K. If you are at the minimum threshold for 1K ($10,000 or 10cpm), assuming all domestic economy flights on UA, you're earning 200,000 redeemable miles. Under the new system, you'd earn 110,000 redeemable miles for the same $10,000 in spend, a 45% reduction. Coupled with the recent devaluation, you'd be going from (last year) earning enough miles for 2 business class RTs to Europe on any Star Alliance carrier to (next year) not even enough miles for 1 business class RT to Europe, even on United metal.
KevinInRI is offline  
Old Jun 10, 2014, 9:30 am
  #276  
 
Join Date: Oct 2013
Location: LAX,SNA,SAN
Programs: UA GS, Marriott LP, Hertz Gold
Posts: 861
Originally Posted by CashN
Smisek single handedly destroyed United Airlines.
What are you talking about? SMI/J has done what he needs to do to earn revenue. PERIOD. Stop your Jeff whining.

While I do not agree this is a good investment for HVF for UA long term bottom line, I really don't care. I do care about maximizing long haul flights with short flights to ensure status and redeeming miles are still worth while and my choices may vary. Of course AA will do the same, so we on FT now need to come up with creative ways on earning miles and status with the constraints of the system.

HVR(High Value Routes) /Fares are the next big thing on FT. Mileage runs will still exist but very slim choices and patience is required. At what sweet spot do we find value, ORD-LGA, LAX-DEN, LAX-LHR, EWR-HNL?

Don't know yet, but I know a 'Status Run' and a 'Mileage Run' are two very different choices some folks will have to make. What's more valuable miles or status?
ZZYZXROAD is offline  
Old Jun 10, 2014, 9:32 am
  #277  
 
Join Date: Aug 2001
Location: SFO
Programs: United 1K 2MM / Marriott LTP
Posts: 5,071
Originally Posted by Randy UA Flyer
The only real winners in this are the international flyers (especially to Asia and Australia) who purchase C or higher fares. They will get the fare bonus and with the 11 miles per dollar (often on a $6-12K fare) will hit the max at 75,000 miles for the trip.

I just take exception with UA saying that this "will make the Mileage Plus program even better". Don't pee down my neck and tell me that it's raining.
Those purchasing C and higher fares on UA are already making a mistake. Not sure how UA can stack up to these carriers (SQ,NH,CX,OZ,JL) going transpac.

Originally Posted by kmfdm91
What does this mean from the FAQ:

"The new options for using miles will be available in early 2015 – be sure to watch your email for more details."

Are they already planning a even NEWER set of redemption values, but haven't communicated them and WON'T until this new earning levels basically start???

-jeremy
That announcement probably will be coming on July 3, 2014. Really stunned the current announcement didn't come Friday afternoon at 5pm.
kluau88 is offline  
Old Jun 10, 2014, 9:32 am
  #278  
 
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,686
Originally Posted by chongcao
So if cabin crew did not like changes, they strike; pilots' benefits were cut, they strike; ground handlers funds were cut, they strike...
Not in an airline in the US. One can't strike for things like that. You must be thinking this is Aer Lingus or another European airline.

And while I am no Smisek fan, do you really think this wasn't being planned, just short of a final product by his predecessors as well as the execs at other airlines for many many years? I've read a zillion articles over the past decade, as most of us here have, that have shown that this was the goal long before the Houstonization of UA.
fastair is offline  
Old Jun 10, 2014, 9:33 am
  #279  
 
Join Date: Sep 2008
Location: SF Bay Area
Programs: None - previously UA
Posts: 4,866
Originally Posted by ZZYZXROAD

HVR(High Value Routes) /Fares are the next big thing on FT.
NO they are not, it doesn't take any smarts to find a good route, just take out your wallet and spend.
escapefromphl is offline  
Old Jun 10, 2014, 9:33 am
  #280  
A FlyerTalk Posting Legend
 
Join Date: Aug 2003
Programs: UA 1K 1MM (finally!), IHG AMB-Spire, HH Diamond
Posts: 60,174
Originally Posted by Randy UA Flyer
The only real winners in this are the international flyers (especially to Asia and Australia) who purchase C or higher fares. They will get the fare bonus and with the 11 miles per dollar (often on a $6-12K fare) will hit the max at 75,000 miles for the trip.
An innovative CEO would have added this new calc and offered the higher of the 2. Incentivize more spend.

Million mile is even more valuable to use gold perks while buying *A tickets on non 016 ticket stock.
uastarflyer is offline  
Old Jun 10, 2014, 9:33 am
  #281  
 
Join Date: Jan 2006
Location: Arlington, VA
Programs: UA 1K, AA PLT, SPG PLT
Posts: 1,612
Originally Posted by hirohito888
Pretty much, isn't that what DL is also doing? With their 5-level award chart which has yet to be revealed?

UA is incredibly good and consistent about following DL (all the bad stuff, none of the good stuff).
I believe i'm agreeing with you on what UA will end up doing.

Announce a big change in June. Hope people get on board or don't know anything about it. Wait for the big change to almost start and then make a different big change early next year...

I was pretty much done with UA when they announced PQD (i'm doing the CC waiver), but now officially done with UA And, i'm happy about it. Now to find the best CC for ANY airline and be a 'premium fare kayaker'...

Originally Posted by bse118
My guess is that language primarily refers to additional use of miles for things that are ancillary fees right now: E+, baggage fees, etc.

Further evidence that this airline isn't really interested in protecting/maintaining benefits for elites. (e.g. gut the RDM program, while making it easier for nonelites to get access to elite benefits).
I'm guessing 'hirohito888s' response is what UA was intending, but i'm hoping for your answer...but I guess we'll find out in Early 2015 - we ALL better stay tuned for our e-mails

-jeremy
kmfdm91 is offline  
Old Jun 10, 2014, 9:34 am
  #282  
 
Join Date: Oct 2007
Location: Dubai / NYC
Programs: EK-IO, UA-1K2MM, ETIHAD-GOLD, SPG-PLAT LIFETIME, JUMEIRAH SERIUS GOLD
Posts: 5,220
Up till now I've put about 35% of my flying on UA/*A & 65% on EK. WITH THESE "changes I like" I see no point at all in sticking with UA. I MIGHT AS WELL DO MY DOMESTIC FLYING ON AS & put all my eggs with EK

I use my regionals all for JFK-HNL. with the way it is now on a $1000 ticket, I earn 10K PQM & 20K RDM's. Now they are cutting my RDM's in half? No thanks. EK may charge more for a free F ticket but the big difference is while I earn those miles, I earn them on flights I enjoy as opposed to UA who I must suffer thru most flights just to earn a free F ticket. No more suffering for me

The only light is they say partner airlines won't really change. If I can earn the same RDM's, PQM's & PQD's on an 016 ticket from DXB-JFK but on LX OR LH metal in J or F, then that's the only way UA will see another dollar
chinatraderjmr is offline  
Old Jun 10, 2014, 9:35 am
  #283  
 
Join Date: Oct 2009
Location: MCO
Programs: DL DM/MM, Marriott Plat Premier, HH Diamond, Hyatt Plat, Hertz PC
Posts: 4,081
Originally Posted by jmanirish
In the same boat. However, it's still annoying that we end up with this mismatched program where RDM are based on money spent, but PQM are based on distance traveled. I'm going to forever be stuck in this no-man-land where I get "stuck" at gold, despite spending ~$15k a year
If you are spending $15K for gold status, your RDM's under this change will actually skyrocket, earning far more than you were under the present system.
Sez_Who is offline  
Old Jun 10, 2014, 9:36 am
  #284  
 
Join Date: Jan 2006
Location: Arlington, VA
Programs: UA 1K, AA PLT, SPG PLT
Posts: 1,612
Originally Posted by mgcsinc
You're misunderstanding.
Good...so you'll get the dollar fare times your multiplier, regardless of any fare class?

I'm glad if that's the case...but regardless, it's still not good for MRs and mistake fare fliers [understandably]

-jeremy
kmfdm91 is offline  
Old Jun 10, 2014, 9:36 am
  #285  
 
Join Date: Oct 2013
Location: ORD
Programs: UA Silver, Marriott Platinum/LT Platinum, Hilton Gold
Posts: 5,594
Sorry if this is a dumb question, I'm still trying to figure some of this out, using an upcoming real example.

I have a rt ORD-FRA-PRG all booked as a W fare on 016 stock. The FRA-PRG segment both ways is on LH. The rest is UA metal. I get 11x the spend on this whole fare in RDM. If I booked the LH segments separately I'd only get the ~120 RDMs for each segment. So the advantage is to book together.

But if the whole trip is on LH (9000 RDM + 9000 bonus = 18k RDM), and say the $ that counted were $1000 I'd only earn 11k RDM. But if I booked on LH stock I'd still get the 18k?

PQDs don't matter to me, as I currently have 8500 on 30k PQM, so that's not a necessary consideration here.

I get it doesn't matter to UA with the JV. But it matters to me it seems. And it must matter if it's a non-JV partner.

Do I have this right?
JBord is offline  


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