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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 were announcing changes to how MileagePlus members will earn award miles in 2015. Weve 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 RDMs?
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, 11:35 am
  #466  
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Originally Posted by Col Ronson
Run through this thread. the people are are the most vocal complainers are MOSTLY Premier Gold are below.
So? Who do you think makes up the bulk of United? Premier Golds fly 50,000-75,000 or fly 60+ segments. These are thousands of them. Very few of them are mileage runners. Each of them spends $5,000+. Lose the bulk of those middle of the road flyers, you don't have an airline anymore.
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Old Jun 10, 2014, 11:35 am
  #467  
 
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Originally Posted by cricketer
I'll fly about 110K BIS miles this year. I'll earn 220K RDM for them. My PQD will end up at around $11-12K. This is actually a fairly typical year for me.

Under the new scheme, I'll earn around 125K RDM. That's a huge cut for me.

I think the mechanism makes sense for the airline, even though it won't for me until my company starts buying premium cabin international fares. Not holding my breath for that one. Sucks for me - and I think the challenge will be that they think they're leaving something for everyone, and may end up finding that they've got nothing for anyone. I feel for people paying F fares as much as I do for myself - though I also question their sanity buying F on UA.

Pretty sure the DL thread hashed through all of this anyway - no need for all of us to post, we can just copy-paste that thread over into this forum.

For my own part, the truth is that given that I fly the 120,000 miles a year on coach fares, the status is important for upgrades etc. Also for all the fee waivers that I benefit from on awards. I still have 500K miles left to burn in my account - but once those are gone, the value of my 1K status diminishes, and since I won't be earning that many miles anyway, begs the question of whether I should, for example, just credit to LH/SQ so that I can redeem in those programs. Lots to think about -- next year.
you will still get 1K status every year based on PQM and PQDs so your upgrades aren't going anywhere. You'll just get less miles to redeem for free flights.

and yet again, SQ/LH does not give 100% miles on all UA fares. its likely half your discount fares will earn 50% or less, and in some cases 0%.
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Old Jun 10, 2014, 11:36 am
  #468  
 
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Originally Posted by Kacee
Well that's wrong. My best redemptions ever have been Avios.
Mine too...and QF F/BA F are real first class products.
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Old Jun 10, 2014, 11:37 am
  #469  
 
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Thanks to everyone involved for putting together the wiki, it is great.

The wiki lists 1K/GS together, but I don't see any mention of GS anywhere other than from UA Insider's post. 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?

BTW, I haven't done the calculations yet, but I assume I will come out ahead because I do a lot of high fare international flights.
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Old Jun 10, 2014, 11:37 am
  #470  
 
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Originally Posted by CMK10
So? Who do you think makes up the bulk of United? Premier Golds fly 50,000-75,000 or fly 60+ segments. These are thousands of them. Very few of them are mileage runners. Each of them spends $5,000+. Lose the bulk of those middle of the road flyers, you don't have an airline anymore.
UA isn't going to lose those folk. Where are those folk going to go? WN? no first class. B6? no star alliance. AA? they're switching to revenue eventually. DL? they're already doing this.

People forget DL did this last year, and this year DL is making profit lol. Everyone talks and talks, and nobody does anything.
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Old Jun 10, 2014, 11:37 am
  #471  
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Originally Posted by globetrotter415
now that this happened, i feel the urge to sign up for another star alliance's frequent flier program.

after a brief look, i am tempted to switch over to turkish airlines- to make star gold, you just need 25-30k miles. any thoughts? pro/cons of leaving ua?
+ Lounge access
- E+
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Old Jun 10, 2014, 11:38 am
  #472  
 
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Originally Posted by Kacee
That is hardly a scientific method.

Sorry, zero credibility.

Any 1K whose spend is 18 cpm or less will come out worse under the new system. I would guess that's more than half of us.
then go to a different airline. lol. An airline giving more to people who spend more; what a horrible concept.
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Old Jun 10, 2014, 11:38 am
  #473  
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Originally Posted by Kacee
Actually, because credit card spend will now be far and away the easiest way for most people to earn miles, you will see even more seats being taken by fliers who earned them through spend rather than BIS.

On the whole, this change should reduce award seat demand in the long term. Count on UA to reduce availability accordingly.
Disagree, the bloggers are already panning this change, so the churners/mfr spenders will turn elsewhere. UA product is already disfavored compared to many *A options, and continuously losing its edge as LH, SK and others upgrade their C product. 50k from a CC app is not enough to get you into UA C/F for TATL or TPAC much less UA's *A partners.

Compare to HVF C/F flyers, where 2 trips across the pond will now net 150k EQN. To me that's much easier than churning cards and I expect Chase will soon turn off the churner spigot just as Amex has recently done.

Originally Posted by CMK10
What do you call us then? Look at the Trip Reports on Flyertalk written by some of our best members. They're in those seats through miles and they've earned them.
No question those flyer frequently on cheaper tix (and lower level elites) will get shafted, just as was the case with DL. Then you will have the same choice as HVF: Do you fly UA because you have better redemption options or do you fly DL for the superior product? And make no mistake - any advantage that USdbaAA currently enjoys will soon disappear - US has already made unfavorable program tweaks and AA's award seat inventory (which IMO used to be the best) is now worse than UAs.

WN is probably the biggest beneficiary here - 6/10/12 points per $1 suddenly looks good compared with UA, even better if you are an elite. And no gimmicks with award inventory. Cheaper flights require fewer points.

Originally Posted by cricketer
I'll fly about 110K BIS miles this year. I'll earn 220K RDM for them. My PQD will end up at around $11-12K. This is actually a fairly typical year for me.

Under the new scheme, I'll earn around 125K RDM. That's a huge cut for me.

I think the mechanism makes sense for the airline, even though it won't for me until my company starts buying premium cabin international fares. Not holding my breath for that one. Sucks for me - and I think the challenge will be that they think they're leaving something for everyone, and may end up finding that they've got nothing for anyone.

Pretty sure the DL thread hashed through all of this anyway - no need for all of us to post, we can just copy-paste that thread over into this forum.

For my own part, the truth is that given that I fly the 120,000 miles a year on coach fares, the status is important for upgrades etc. Also for all the fee waivers that I benefit from on awards. I still have 500K miles left to burn in my account - but once those are gone, the value of my 1K status diminishes, and since I won't be earning that many miles anyway, begs the question of whether I should, for example, just credit to LH/SQ so that I can redeem in those programs. Lots to think about -- next year.
+1 This year has been pretty slow, but my 2013 EQN was approximately the same as yours though my RDM was higher thanks to fare bonuses. However, under the new model, I would likley earn 300k+ EQM (based just on 4 international trips @75k max) - probably a bit more when you throw in domestic travel. My PQD will easily exceed $10k so long as I have 3 TATL or TPAC segments on UA.

As for 1K, the value for domestic travelers has been greatly degraded over the past decade as CPUs for GS crowd out 1Ks and other elites at hubs. The real value remains with free E+, checked baggage, fee waivers and slightly better IRROPS treatment. It's enough to keep me tilted to UA, but the VX economy product is tempting.

Last edited by Boraxo; Jun 10, 2014 at 12:32 pm
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Old Jun 10, 2014, 11:39 am
  #474  
 
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One Other Thing

For corporate travel, this disincentivizes planning ahead and searching for the lowest fare. I'm sure corporate travel managers will appreciate the additional monitoring necessary to keep budgets from exploding. Will probably also reduce the amount of corporate travel at many companies (both frequency and number of people sent).
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Old Jun 10, 2014, 11:40 am
  #475  
 
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Originally Posted by HonestABE
For corporate travel, this disincentivizes planning ahead and searching for the lowest fare. I'm sure corporate travel managers will appreciate the additional monitoring necessary to keep budgets from exploding. Will probably also reduce the amount of corporate travel at many companies (both frequency and number of people sent).
from my experience corporate travel bookers do not book airlines based on their frequent flier program.
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Old Jun 10, 2014, 11:41 am
  #476  
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Originally Posted by Col Ronson
UA isn't going to lose those folk. Where are those folk going to go? WN? no first class. B6? no star alliance. AA? they're switching to revenue eventually. DL? they're already doing this.

People forget DL did this last year, and this year DL is making profit lol. Everyone talks and talks, and nobody does anything.
1. Not everyone cares about First Class especially as it's not like Premier Golds sit there much
2. Not everyone cares about Star Alliance, a lot of Premier Golds only fly domestically
3. AA may switch but they have a better network in a lot of parts of the country (the southeast for one) than UA
4. DL has invested so much in their product if you're going to spend more they're the airline to do it on.
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Old Jun 10, 2014, 11:41 am
  #477  
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Originally Posted by Col Ronson
interesting sentiment since B6 has a revenue based FF program and you can only redeem their points on mostly B6.
True - but the domestic flight experience on B6 will be better, especially since UA started "improving" their 320/319.
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Old Jun 10, 2014, 11:43 am
  #478  
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Originally Posted by seanp7
Mine too...and QF F/BA F are real first class products.
actually the best value of Avios is really short-haul, nonstop. If you want QF F and BA F, AA miles are much better value than either BA Avios or QF FF.
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Old Jun 10, 2014, 11:44 am
  #479  
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Originally Posted by FlyerTom111
This is why Smisek and team needs to get fired. Hiring Mckinsey and Company?
Don't forget another over-priced consulting company they hired too: Boston Consulting Group. Probably spent millions in consulting fees to hear cost-cutting methods and other ideas they could have got for free.
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Old Jun 10, 2014, 11:44 am
  #480  
 
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Originally Posted by Col Ronson
you will still get 1K status every year based on PQM and PQDs so your upgrades aren't going anywhere. You'll just get less miles to redeem for free flights.

and yet again, SQ/LH does not give 100% miles on all UA fares. its likely half your discount fares will earn 50% or less, and in some cases 0%.
On the first part - yes, but one of my key reasons to directing spend to UA was also the redemption flexibility. If I have fewer miles to spend, then that's correspondingly less important.

Fair point on the SQ/LH - that was just for example, and as I said, for me this is a decision to be made next year as I see where I stand with my mileage balance and my travel plans.

Again, the change is definitely negative for me, but I understand the rationale behind the airlines doing it. Just wish UA had at least attempted to do something other than directly copy DL. Maybe change the multipliers a bit to have a serious reward for 1K loyalty. Or perhaps an exemption if your name is cricketer...
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