bocastephen

Apparently not so good thus far - but the real question is how will Delta Platinums and Diamonds deal with their changes - will they spend up, spend the same (and get fewer miles) or leave for the most convenient carrier/flight per trip? They are the canaries in the coal mine up first.

If AA matches the change, will this new reality actually drive more spend, or just act as a massive devaluation of the entire FFP system across the board, and become the new reality? Everyone earns a fraction of what they did before, we're essentially treated like credit card spenders, yet aspirational award requirements inflate to the point where no one can ever redeem an award unless they spend the year flying full Y/J/F on a few flights and loading up their account, or spending tens of thousands each month with their mileage credit cards.

That's really what the two recent UA changes come down to - if you want to redeem int'l J or F, you're either buying lots of very expensive tickets, or you can forget about it, and thus many people might come to the conclusion it's better to dump their affiliate cards and go with 2% cash back cards and buy travel from the lowest cost seller without regard to loyalty.

If AA decides not to match (and thus wait in the wings to scoop up unhappy DL/UA elite customers), the result would be interesting - although with Parker at the helm, something tells me AA will not only match, but go a step further with additional devaluations.

For those who are sweating the change, remember this:

1 - you'll continue earning elite status the same as before
2 - at the end of the year, tally your earned miles under the new program vs your earned miles under the old scheme. Figure out the difference and use manufactured spend methods to screw Chase (or Amex or whoever) for the difference.
3- when you see a UA mistake fare, pounce on it without mercy or hesitation and grab as many tickets as you can, since we should be able to screw UA with the same lack of delusional morality they use to treat us - after all, it's just business, right? No worries, two can play this game.

5khours

This is pretty simple.

1. Business passengers who fly on paid premium tickets are profitable.

2. Incenting these flyers to spend OPM (their employer's or client's money) by giving them personal kickbacks (i.e. miles) has always been a big part of the raison d'etre for FF programs.

3. This market has become increasingly competitive so DL upped the ante by doubling or tripling the kickback paid to HVFs.

4. UA followed suit to stay competitive.

5. Both companies didn't want it to be a money loser so they cut the miles to other VFFs (flyers not on paid premium tickets) in order to offset the cost.

How corporate customers and the IRS will feel about this is a big question. (In some cases we're talking about kickbacks worth $10,000 or $20,000 a year to an HVF.)

Also what is the competition going to do. Foreign carriers may respond by cutting premium fares. AA might take a different tack and effectively offer the kickback directly to the traveler's employer. Both DL and UA will lose FFs who don't fly premium fares to the competition.

I don't think this story has a happy ending. I agree with others. Jeff is literally just pushing any button to try to buy time and save his hide.

aacharya

Even the UA fare is $2000 less - so comparing pricing from the past to now is irrelevant.

LaserSailor

You are indeed the winning profile in this. Well done. My regional managers similarly win. Having done this dance for 20 years in previous lives, I know how draining it is compared to the transpacific queens like me, and I'm glad you domestic warriors get your due finally.

Doing six transpacific for top status is easy street. 1K on SYR-EWR-DAY x100 is tough sledding

LordTentacle

Ugg...
I'm about to go from earning ~50K per round trip on M fare's to getting max of 25k
Not impressed

LaserSailor

The top 10 percent of business travellers and companies give their heavy travellers latitude on budget. The other 90% don't, and their spend will be unchanged. Jeff has called this one correctly, following DL.

oswaldjacoby

I am confused by the 2 miles per dollar credit card bonus that United is talking about. We already get 2 miles per United $ on our mileage plus card. But these miles are not awarded with our flights--they are just part of the monthly miles we get based on our credit card statement---they are essentially miles paid for by the chase as a rebate for spending. In fact, the miles are awarded at the time of purchase--not when we fly.

Is United essentially counting the miles we already get from Chase in its new scheme? Or will United actually award 2 additional miles per $ if we purchase with a United Card--In addition to the monthly miles we get for spending from Chase.

If it is the former, United's description is deceptive, because these are actually miles awarded by Chase--not by United.

DCEsquire

I will tell you what Corporations will do - exactly what mine has done. No more booking your own flights! Travel will book it on the least expensive flight and you must use your corporate credit card (not your UA VISA) to book it. Sorry Jeff. Very short sighted.

LaserSailor

It's not personal, it's business. Congrats on the kids!

5khours

These are precisely the pax that UA and DL are targeting. I.e. give them a ton of miles for wasting OPM.

miniliq

I’m sorry to see what for me amounts to the end of the UA FF program. As someone who has flown CO/UA for over 50 years, I feel hurt that my loyalty has been so drastically disregarded by the new changes. I was already disappointed by the devaluation of the rewards charts, and then the switch to PDQ, which means I will not requalify for 1k this year. My last few years as a 1k have resulted from a combination of a minor number of business trips (post-retirement consulting) with a careful selection of low-cost MRs (2-4 cpm) so that my actual spend has been less than $5k/yr. I’ve read the posts that suggest I shouldn’t complain that I will get less for paying less, and will not clog up the front cabin, but I’ve considered MRs both an adventure and a way to earn RDMs as a repayment for my years of loyalty. So my wife and I will burn the last of our miles (booked before the devaluation took place) and say goodbye. At least I won't spend long hours searching for new MR deals!

AA_EXP09

DL has also occupied many of them from what I hear.

olouie

Might have needed a last minute, refundable fare?

5khours

Wait until the NYT finds the fat cat banker who's doing two RT TPACs a month in F and reports that he's getting a $75k a year tax free benefit. Or worse....values the miles at what a Saver F award would cost if you paid for it in cash and reports that the guy will get $250k a year in free travel for his wife and kids.

AA_EXP09

I was responding to the post from SFO777 which was made <24 hours ago...