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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, 12:50 pm
  #541  
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Originally Posted by CMK10
Knock the MD-80s all you want, but they're quiet in First, they have 2 seat pairs in coach and all have wifi. That's good enough for me.
I'd rather take an E175 or E190. Single in F, all 2 seat pairs in coach, plenty of width.
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Old Jun 10, 2014, 12:53 pm
  #542  
 
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Originally Posted by TravisSC
Im not going to be too please next year when I line up in the #2 chute with the hoards of CC churners and realize that my 50k BIS miles isnt worth as much to UA as 100 giftcards bought on a Chase co-brand card.
If you cannot beat them, join them. UA's message is clear.
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Old Jun 10, 2014, 12:54 pm
  #543  
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Originally Posted by BearX220
There seem to be very few here who get that United needs a spectrum of customers and cannot prosper catering to the 2%, but you and I are two of them.
Yeah I don't really get the bashing of non-1Ks here. Those Golds and Silvers are just as important as the 1Ks and PPs. If you can't attract mid-tier flyers you can't fill a plane.

Originally Posted by CMK10
You keep repeating that about Delta but you fail to realize that the reason they are making money has little, if anything, to do with their FFP. Skymiles is considered among the worst frequent flyer programs and Delta makes money despite it not because of it.

If Untied was doing this along with investing in their product things would be different but they aren't. They taking on planes like the E75 with no Wifi, cutting capacity in places like LAX and CLE and retrofitting existing aircraft to be more uncomfortable in coach. There are fewer and fewer reasons to fly UA and more and more reasons to fly other airlines.
Bingo. All things being equal in the FFP between DL and UA, I'd choose DL everyday. Newer planes, WiFi on almost every plane (that I can buy a GoGo all-airline pass and use when I fly on AS or AA as opposed to UA's which requires yet another different subscription)

UA's FFP was the thing that kept people in spite of the other deficiencies. These changes just push people who have a choice of airlines to other airlines that offer a better product such as AA, DL, and B6.
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Old Jun 10, 2014, 12:54 pm
  #544  
 
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Originally Posted by xox
Yeah agree with both of you. We rarely redeem RDM (so we have a lot in the bank). GPUs are the greatest benefit of the program for us since for the foreseeable future we will be flying three TPACs a year, and $2k each on V or W fares is a lot better than $7k each.
Yes, we use miles mostly for family/friends. We like the RPUs and GPUs too, but the flip side is that they are getting much harder to use as R inventory seems to be scarce as hens teeth, at least to Australia and Europe.
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Old Jun 10, 2014, 12:55 pm
  #545  
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Originally Posted by villox

When DL, AA, or UA start going strictly revenue based for redemptions, THEN the sky will be falling.
That's step 2.
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Old Jun 10, 2014, 12:56 pm
  #546  
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Originally Posted by CMK10
Here's a copy of the email UA sent me:
lol ^
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Old Jun 10, 2014, 1:02 pm
  #547  
 
Join Date: Oct 2004
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Posts: 4,556
Originally Posted by FlytheTail
Well, today the United [expletive] hit the fan. I was really hoping UA would distinguish themselves and offer a different program than Delta. Nope; exactly the same mileage changes as Delta. This will cut my mileage earned to Asia roughly in half, which when combined with the huge mileage trip redemption increases implemented at the start of the year, completely disincentivises me to fly on United. Now I need to seriously think about returning to Delta.
Originally Posted by grahampros
Delta has the same thing so that won't do you any good. They actually are the ones who kicked it off among the big 3. DL's millage redemption is also generally the most costly in the business in what's available for booking
Yes, I know; that's why I was hoping UA would do something different than what DL is doing. Of course that was too much to ask since, as everyone points out correctly, UA is only following DL with devaluations, not any actual improvements.

Last edited by FlyinHawaiian; Jun 10, 2014 at 6:13 pm
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Old Jun 10, 2014, 1:05 pm
  #548  
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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.
Most all of my TATL and TPAC business class fares -- and especially most of them that are part of corporate contracts -- are far cheaper than $6k-12k. I loose too even on regular non-MR fares in business and even first class.

Last edited by GUWonder; Jun 10, 2014 at 1:11 pm
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Old Jun 10, 2014, 1:06 pm
  #549  
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Originally Posted by JBord
I just think it's a bad decision for an airline that is losing badly to the competition, and I'm afraid it's going to result in more cost cutting to benefits you and I use.
Yes. UA is acting like it has the luxury of further alienating some percentage of its paying customers. That would seem to be a false assumption.

Originally Posted by qisu
The devaluation is pretty simple. I think I saw another poster mention it. As a 1K, if you spend less than 20CPM, you will be earning less RDM.
The tipping point is actually 18 cpm for a 1K.
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Old Jun 10, 2014, 1:06 pm
  #550  
 
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On a Related Note to This Announcement

Marketwatch.com article referring to United's announcement (aka devaluation) today and extending it into the airline affinity CC realm as well. Second link adds the UA annoucement and provides a quote from AA's president.


http://www.marketwatch.com/story/air...eet-2013-11-14

http://www.marketwatch.com/story/uni...dist=countdown

Last edited by hhmorgan; Jun 10, 2014 at 1:36 pm Reason: add link to UA announcement and AA President's comment
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Old Jun 10, 2014, 1:07 pm
  #551  
 
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Originally Posted by Col Ronson
Understandable. What i hate is what a bad rep the FT community gets among the airline industry. They call us a bunch of whiners. Sure we have plenty of legit concerns, but is this really one? For the 50,000th time, Most airlines in the world are going revenue based. UA doing the same thing is not the end of the world or airline flying. People are only upset because they are getting less free stuff, which tbh is kind of selifsh.
Of course it's selfish. That's the way customers make purchasing decisions.

And the complaint isn't that United has moved to a revenue-based program. The complaint is that the amount of miles earned per dollar in the new program means the vast majority of passengers will earn far fewer miles under the new program than the current program.

What United is really saying is, "We're cutting mileage accrual by 40% across the board, not as bad on expensive tickets but worse on cheap ones. But despite this 40% reduction in mileage accrual, we're not reducing the price of the awards."

This puts United's program in-line with Delta's program, except DL at least claimed greater award availability would accompany the change.

The problem for United is United is *NOT* in line with Delta on anything else. So now that the FF programs are identical, why would I continue to fly UA when everything else at DL is better?
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Old Jun 10, 2014, 1:08 pm
  #552  
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Originally Posted by mmack
Yes, we use miles mostly for family/friends. We like the RPUs and GPUs too, but the flip side is that they are getting much harder to use as R inventory seems to be scarce as hens teeth, at least to Australia and Europe.
We haven't had any problems using the GPUs since we usually have good flexibility as to when we fly and because of the routes where I use them. This year I have continued to find R>2 at booking although I have had to do some work on the routes ...

But we haven't flown to Australia this year, and although we're looking at 1 or 2 TATL flights in the second half, I'm seeing some decent P fares to Europe: when I looked a few weeks ago flights to EDI were $4500 in C, but last week I saw flights for a little over $2k.

Certainly available R inventory is a significant benefit for us and just hope that we continue to be able to use the GPUs on the routes where we feel the need ...
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Old Jun 10, 2014, 1:09 pm
  #553  
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Originally Posted by CMK10
For the people in this thread who are writing off all the Premier Silvers and Golds and "kettles", I don't think you understand that United needs customers like that. You can't survive just going after people who spend lots of money, you have to also earn the loyalty of the mid-range spenders. Otherwise Mercedes wouldn't make a C-Class and an E-350, they'd just make the S-600s and similar.
Not to mention that a Gold who buys say two or three full J TATLs per year is likely a far more profitable passenger to UA than a 1K who buys exclusively deep discount economy fares.
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Old Jun 10, 2014, 1:09 pm
  #554  
 
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Originally Posted by TheBOSman
I'd rather take an E175 or E190. Single in F, all 2 seat pairs in coach, plenty of width.
The only thing I don't like about CR7's / E70's is no true meal service (snack boxes).... anyone out there know if the new E75's with 12 F seats will also come with better meal service? That would be nice, especially since I fly routes that these aircraft are intended to be used for.

Regarding the change to UA's award mileage accrual next year... all good by me. Currently at $0.31/BIS mile .... headed up to closer to $0.40 by year's end. I will have ~120,000PQM's this year yielding approximately 240,000 award miles. Assuming a similar year next year, that would be approximately $50,000 in spend, yielding 550,000 award miles. I know it makes sense for me, but I know a lot of people are negatively affected by this.
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Old Jun 10, 2014, 1:10 pm
  #555  
 
Join Date: Aug 2007
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Originally Posted by climmy
I have to agree with you. Noting 1mm'ers are likely getting the soft landing of status after a career of flying, any change to the present benefits would likely eliminate any incentive to fly UA at all.

I'm a perfect case in point. I'm not likely to ever re-qualify as a 1K (or GS as I have been), but the Gold has kept my flying UA and I'm now making travel decisions for 3.

UA has benefitted from about $15k in my spend so far this year, but on few trips. Only because I can get my wife and child into E+...And on one trip a mileage upgrade.

I'm already going to take a hit under these new rules, and already teetering. Any more changes to MP, or more specifically the 1mm rules, and I'm likely gone. I'm a peon now and know it, but it's still SOME $ going to UA.
I agree. I am still hanging in there, but United has already got me kayaking. The high fares coupled with poor service, late flights, etc. has already made me look around for better fares on an airline with all around better service - even WN! How much longer I am willing to put up with "changes I am going to like" before I like some other airline I fear is growing shorter by the minute.
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