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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 Apr 29, 2015, 7:31 am
  #2941  
 
Join Date: Oct 2013
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Any feedback from MP or UA in general about the 1k or other elite(lol) folks who are getting screwed out of BIS miles. Yes, I know it's the new norm but to see RDM being cut in half if not more doesn't seem like it was the the real intent of the reduction. With that said, until Delta makes a move we can't count on this to be in place for the immediate or long term? Do you think UA really wanted to crush the BIS guy for transcons who select cheap to mid dollar fares?
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Old Apr 29, 2015, 8:55 am
  #2942  
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Originally Posted by ZZYZXROAD
Any feedback from MP or UA in general about the 1k or other elite(lol) folks who are getting screwed out of BIS miles.
What are you talking about? The new scheme has no effect on BIS calculation.

Yes, I know it's the new norm but to see RDM being cut in half if not more doesn't seem like it was the the real intent of the reduction.
That is exactly the intent of the new scheme.
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Old Apr 29, 2015, 9:09 am
  #2943  
 
Join Date: Oct 2013
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Originally Posted by Kacee
What are you talking about?
The new scheme has no effect on BIS calculation. Yes it does, I actually I have to be in the seat to still earn the miles based upon fare. I cannot go to the website and buy a tix for good value and not BIS. example, if I wanted to do a traditional mileage run, don't worry I won't, why do i still need to BIS?

Originally Posted by Kacee
... That is exactly the intent of the new scheme.
Thanks for the newsflash. I know the intent but do you think UA, after copying DL knew that transcons BIS guy would get screwed flight after flight on the BIS miles like the old days? .11 seems awfully low still based upon what I am reading and still BIS. Of course this was to chase MR guy away and deter MR in general but to have such a serious impact on earning BIS miles?

Last edited by WineCountryUA; Apr 29, 2015 at 10:48 am Reason: repaired quote
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Old Apr 29, 2015, 9:13 am
  #2944  
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Originally Posted by ZZYZXROAD
The new scheme has no effect on BIS calculation. Yes it does, I actually I have to be in the seat to still earn the miles based upon fare. I cannot go to the website and buy a tix for good value and not BIS. example, if I wanted to do a traditional mileage run, don't worry I won't, why do i still need to BIS?

Thanks for the newsflash. I know the intent but do you think UA, after copying DL knew that transcons BIS guy would get screwed flight after flight on the BIS miles like the old days? .11 seems awfully low still based upon what I am reading and still BIS. Of course this was to chase MR guy away and deter MR in general but to have such a serious impact on earning BIS miles?
The new scheme does not affect BIS calculation. Period. If you choose to fly fewer miles, that is your choice.
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Old Apr 29, 2015, 10:46 am
  #2945  
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Originally Posted by ZZYZXROAD
The new scheme has no effect on BIS calculation. Yes it does, I actually I have to be in the seat to still earn the miles based upon fare. I cannot go to the website and buy a tix for good value and not BIS. example, if I wanted to do a traditional mileage run, don't worry I won't, why do i still need to BIS?

Thanks for the newsflash. I know the intent but do you think UA, after copying DL knew that transcons BIS guy would get screwed flight after flight on the BIS miles like the old days? .11 seems awfully low still based upon what I am reading and still BIS. Of course this was to chase MR guy away and deter MR in general but to have such a serious impact on earning BIS miles?
The only thing the new scheme has changed is the amount of award miles earned on a flight that can be used to redeem for upgrades or award flights or whatever you want to pay for with miles. BIS, as in what you earn towards status and lifetime has not changed one bit under the new scheme, that is still based on distance flown, i.e. BIS.

Last edited by WineCountryUA; Apr 29, 2015 at 10:49 am Reason: repaired quote
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Old Apr 29, 2015, 11:46 am
  #2946  
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Originally Posted by LaserSailor
My all domestic 1K staff are up about 75% from last years plan, so its not just GS who win. Its anyone at 18 cpm or more.
Exactly. Its only someone who is "staff" of something, ie. OPM, wins, and only if their employer is as generous/frivolous as LaserSailorCo.
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Old Apr 29, 2015, 11:49 am
  #2947  
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Originally Posted by rankourabu
Exactly. Its eveyrone who is "staff" ie. OPM, wins, if their employer is as generous as LaserSailorCo.
Since the new break-even cpm is above the average yield per mile, the real winner is the house. Just as in Vegas.
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Old Apr 29, 2015, 11:55 am
  #2948  
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Originally Posted by rankourabu
Exactly. Its only someone who is "staff" of something, ie. OPM, wins, and only if their employer is as generous/frivolous as LaserSailorCo.
Most companies I know, if you are not upper management, then you are required to buy cheap economy. And before people jump on me, yes, I know there are companies that pay for business class, which is why I put the caveat "I know" in my statement.

Last edited by Baze; Apr 29, 2015 at 12:34 pm Reason: fixed punctuation
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Old Apr 29, 2015, 11:55 am
  #2949  
 
Join Date: May 2010
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LH's K class on 016 ticket stock gets 0 RDMs. I knew no EQMs would come my way, but was surprised to learn (fare+intl surcharge) x 11 does not apply.
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Old Apr 29, 2015, 12:00 pm
  #2950  
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Originally Posted by nycvisitor
LH's K class on 016 ticket stock gets 0 RDMs. I knew no EQMs would come my way, but was surprised to learn (fare+intl surcharge) x 11 does not apply.
The website is really misleading on this point. They need to expressly state that certain fare classes are not eligible when they reference the RDM scheme for 016 tickets. There is no way your average consumer would know that reading the current description.
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Old Apr 29, 2015, 12:05 pm
  #2951  
 
Join Date: May 2010
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Actually, it's right there in the last sentence under the 016 accrual paragraph. Just didn't pay enough attention, it seems.
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Old Apr 29, 2015, 12:10 pm
  #2952  
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Originally Posted by nycvisitor
Actually, it's right there in the last sentence under the 016 accrual paragraph. Just didn't pay enough attention, it seems.
No, it doesn't say anything in the relevant section. At the top of the page, it says "Earn MileagePlus miles on all qualifying Lufthansa flights, as noted in the charts below." The "chart below" that applies to 016 tickets says nothing about certain fares not qualifying.

You have to scroll all the way down to the Premier Qualification section to figure out, by its exclusion, that K is not a qualifying fare class.
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Old Apr 29, 2015, 12:29 pm
  #2953  
 
Join Date: Jun 2014
Location: SF Bay Area
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Took my first UA flight of the year last week. Got just under half the RDM I would have received under the old system w/out any status. Woo. Hoo.
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Old Apr 29, 2015, 12:35 pm
  #2954  
 
Join Date: Oct 2012
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Originally Posted by rankourabu
Exactly. Its only someone who is "staff" of something, ie. OPM, wins, and only if their employer is as generous/frivolous as LaserSailorCo.
Its neither generous nor frivolous. It makes me tons of money. Its the sort of forward thinking that Jeff gets accused of not doing here a lot.

I know life on the road sucks. It isn't glamorous. Getting people in front of customers in the best shape possible pays off short-mid-long term.
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Old Apr 29, 2015, 1:02 pm
  #2955  
 
Join Date: Mar 2009
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Posts: 838
Originally Posted by LaserSailor
Its neither generous nor frivolous. It makes me tons of money. Its the sort of forward thinking that Jeff gets accused of not doing here a lot.

I know life on the road sucks. It isn't glamorous. Getting people in front of customers in the best shape possible pays off short-mid-long term.
This is my company's philosophy as well. We are supposed to be in front of our most important clients on a regular basis. We are supposed to cultivate new clients on a regular basis. At my firm, if you are in your office for two consecutive days, that is looked upon negatively.

Edited to add: I subscribe to this approach although it is very painful. We are a highly successful company and have a healthy share of the market for the products which we offer.
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