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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, 2:54 pm
  #631  
 
Join Date: Dec 2010
Location: DEN
Programs: AA EXP, AA Million Miles, Hilton Diamond
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Originally Posted by DENflyer3
I just got this same message. I became equally pissed off. As a 1K, it sounds like they are going to start asking me to spend miles on E+ or an annual subscription. If this is the case, I will stop all travel today on UAL and move somewhere else. I sure hope someone from UAL clarifies this now. I think that statement above may deserve it own thread about changes they may have accidentally let out of the bag that are to come.
?
Oh, I don't actually think they're letting E+ benefit changes out of the bag. [famous last words...] Just plain old fashioned incompetence. Clearly they couldn't be bothered to think through the messaging in their own email. Typical.
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Old Jun 10, 2014, 2:55 pm
  #632  
 
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Location: Portland, OR
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Living in Denver it's pretty much United or Southwest for non-stop flights to where I usually need to go for work and pleasure. As a gold member I'm not sure what I want to do, I feel like I'm in between a rock and a hard place. I might move all my domestic flying to SWA and get a companion pass for my wife and I. Then I'll move all of my CC spend to my AMEX SPG or AMEX premier rewards card. The hard part is being from Hawaii and getting home non-stop is only on United vs. Portland has both Alaska and Hawaiian.
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Old Jun 10, 2014, 2:58 pm
  #633  
 
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I think we are headed in the direction of elimination of the FF programs.

1. Corporate travel offices will get smart and negotiate ticket rates/discounts that do not allow earning FF miles. They already do it with rental cars - use your corporate code to rent a car and the code prevents the earning of points.

2. Previously a FF number was used to track people, including security tracking. Now with many getting a Registered Traveler number - it essentially becomes a universal FF number - so not need for airline FF numbers. Make all travelers get a RT number.

3. As upgrade rates continue to decline - then upgrade seats become a bid/paid item - hence no reason for FF benefits.

4. Credit card companies switch to a credit based systems and then you use those credits to buy an airlilne ticket - already have such cards.

5. IRS reconsiders taxing FF miles, now that a dollar amount can be associated with them. FF miles then become less desirable.

Let's see what happens - but I suspect the FF program could go away in the future.
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Old Jun 10, 2014, 2:58 pm
  #634  
 
Join Date: Oct 2013
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Originally Posted by javabytes
Not all business travelers spend that much. Last minute? Sure, especially depending on the market... it's twice as expensive for me to fly from ORD to Cincinnati on a day's notice than it is for me to fly to Phoenix. But plenty of business travelers are able to plan travel ahead, even a week or two.
I think 0.20 cpm passes a reasonability test, at least what I know of fares from ORD.

If you average a 2000 mile rt, and your average ticket price is $400 rt, that's $0.20. That's low for me, but I do tend to book only 7-10 days out and have more short flights than long flights.
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Old Jun 10, 2014, 3:01 pm
  #635  
 
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I really just don't get the venom for UA. The old way was stupid. I understand many used the rules to their advantage. When SWA came out with their rational points per spend system, the writing was on the wall that all would change, eventually.

Hey, I understand being disappointed. But you can also recognize this is a smart move for UA. They want $$$$. Reward those that spend the $$$$$.

What I am most worried about is my company deciding that now that points are $$$$ based, that they are a rebate and belong to the company and not me.

Or that my spend on flights will be more closely monitored. I would never do anything unethical like pay more for a flight just for points. But right now I can pretty much take the lowest fare and add $1k to it and still book, as long as its a better time/routing/etc. But I don't want to be hasseled every time I pass up a Delta flight at $4,500 for a UA at $5,000.
blakeIV is offline  
Old Jun 10, 2014, 3:01 pm
  #636  
 
Join Date: Jan 2009
Programs: UA 1K, EL Al ???, HHonors Diamond, Marriott Gold
Posts: 182
Originally Posted by dieuwer2
Why bother earning status or miles on UA. The way forward is to fly the airline that gives you the best bang for the buck. Today that can be UA, tomorrow it can be DL. And next week AA perhaps. Or any combination thereof.

Loyalty My A$$.
Precisely!
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Old Jun 10, 2014, 3:03 pm
  #637  
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Originally Posted by javabytes
Not all business travelers spend that much. Last minute? Sure, especially depending on the market... it's twice as expensive for me to fly from ORD to Cincinnati on a day's notice than it is for me to fly to Phoenix. But plenty of business travelers are able to plan travel ahead, even a week or two. I fly to Frankfurt on $1,800 fares... probably about as high of a $ amount and a CPM as I incur - and even that will still earn less under the new system.
And given government and big corporate discounts/negotiated fares account for a good chunk of business travelers who don't necessarily book way in advance, business traveler tickets aren't all that high cost as it may seem when looking at the published fares available to the general members of the flying public ... whether flying for leisure or business. And it's not like business travelers aren't generally business+leisure trip travelers.
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Old Jun 10, 2014, 3:05 pm
  #638  
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Originally Posted by JBord
I think 0.20 cpm passes a reasonability test, at least what I know of fares from ORD.

If you average a 2000 mile rt, and your average ticket price is $400 rt, that's $0.20. That's low for me, but I do tend to book only 7-10 days out and have more short flights than long flights.
The big winners here are last minute, short haul travelers... no doubt about that. If I was flying ORD-CVG on last minute notice at $1,000 a pop all the time, I'd love the new system. As someone who flies to FRA for $1,800 and SFO for $600, I'm earning a good chunk less.
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Old Jun 10, 2014, 3:05 pm
  #639  
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Originally Posted by haddon90
i will give UA credit with one thing. their facebook team is responding to everyone. but that is about as far as i would take it.
I just went and had a look at the UA Facebook page. It's in total meltdown. Hilarious unless you're one of the poor kids typing corporate-approved answers to the livid.
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Old Jun 10, 2014, 3:07 pm
  #640  
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Originally Posted by blakeIV
I really just don't get the venom for UA. The old way was stupid. I understand many used the rules to their advantage. When SWA came out with their rational points per spend system, the writing was on the wall that all would change, eventually.

Hey, I understand being disappointed. But you can also recognize this is a smart move for UA. They want $$$$. Reward those that spend the $$$$$.

What I am most worried about is my company deciding that now that points are $$$$ based, that they are a rebate and belong to the company and not me.

Or that my spend on flights will be more closely monitored. I would never do anything unethical like pay more for a flight just for points. But right now I can pretty much take the lowest fare and add $1k to it and still book, as long as its a better time/routing/etc. But I don't want to be hasseled every time I pass up a Delta flight at $4,500 for a UA at $5,000.
so, its ok they do this, as long as you can benefit from it by upcharging your employer and not actually spending your money for your flights? Right.

Benefiting the actual spender, not the flyer, would be the most fair way to deal with this. It will never happen, but it would be the fairest.
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Old Jun 10, 2014, 3:07 pm
  #641  
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Originally Posted by blakeIV
What I am most worried about is my company deciding that now that points are $$$$ based, that they are a rebate and belong to the company and not me.
If it ain't the company clawing back the rebate paid for by them but credited to you, it may as well be the tax man that cometh next for your "un(der)reported compensation".
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Old Jun 10, 2014, 3:07 pm
  #642  
 
Join Date: Mar 2007
Posts: 4,974
Originally Posted by portland67
Living in Denver it's pretty much United or Southwest for non-stop flights to where I usually need to go for work and pleasure. As a gold member I'm not sure what I want to do, I feel like I'm in between a rock and a hard place. I might move all my domestic flying to SWA and get a companion pass for my wife and I. Then I'll move all of my CC spend to my AMEX SPG or AMEX premier rewards card. The hard part is being from Hawaii and getting home non-stop is only on United vs. Portland has both Alaska and Hawaiian.
I fly mainly WN domestically and love it for the most part. The seats are what they are, but everything else is great. The no change fees is HUGE for me. I book multiple trips each month and then just cancel or push if I need to. Saves me a ton of money over the course of a year. Also I like the simplicity of the earning and burning on WN (its fixed value both ways).

CP is the single best perk in the airline industry. Anything I fly my wife can come with me for free (er... plus the small taxes and fees). Now that WN has international you can go to Mexico and Caribbean using CP too.

If you hit A-List preferred status its also 100% more points. So basically I book business select flights and get a huge point rebate which I then use to book WGA fares with CP. It may not be the most glamorous but it works.
olouie is offline  
Old Jun 10, 2014, 3:10 pm
  #643  
 
Join Date: Jul 2008
Location: DEN
Programs: UA-GS; WN A-list;Hyatt - CC; Hertz - PC
Posts: 644
Originally Posted by bse118
Oh, I don't actually think they're letting E+ benefit changes out of the bag. [famous last words...] Just plain old fashioned incompetence. Clearly they couldn't be bothered to think through the messaging in their own email. Typical.
i tend to side on basic incompetence, but this is the last thing keeping me full time from Southwest as it is. I would absolutely jump ship if they started making me pay for E+. Its bad enough I only clear 50%.
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Old Jun 10, 2014, 3:11 pm
  #644  
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Originally Posted by blakeIV
But you can also recognize this is a smart move for UA.
Uh, not really. If UA actually provided a quality product and an enjoyable experience, perhaps. But they don't.
As a result, no sane person would pay the same amount of money to fly a crappy airline like UA with a now diluted FF program when there are far better alternatives. Ergo, not so smart.
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Old Jun 10, 2014, 3:11 pm
  #645  
 
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,693
Originally Posted by timg
Hardly. Most of us at the top are traveling on someone else's dime. Most of us are booking flights closer to travel, and therefore more expensive. I don't think of this as a rich v. poor thing - I spend a crap load of time sitting at 40,000 feet being away from my family.

I don't have a problem with this at all - if someone is spending $2500 on a flight, and someone else is spending $500 on a flight.

United doesn't recognize loyalty one bit. Given the option, I'd drop them in a second. But I am a Houston based, heavy traveller, and my options are limited. I am, however, pleased that there is something in it for pax like me. This is the first positive change since the merger.
Quickly looking at the 6 united road warriors in my office (heavy domestic travel) shows they win by 2.9x on miles. The winners are the 20cpm+ biz travellers

For all the analysis that mileage running was not significant, UA has ended it, either deliberately or not.
LaserSailor is offline  


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