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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, 8:17 pm
  #856  
 
Join Date: Oct 2013
Location: ORD
Programs: UA Silver, Marriott Platinum/LT Platinum, Hilton Gold
Posts: 5,594
Originally Posted by rduer
Not sure why being a GS is any different from being a 1k in this system..am I missing something
Technically, by definition, you spend more than a 1K, most likely by purchasing more premium cabin fares, which means you'll earn more RDM's than a 1K. That should be the only difference. But I'm sure there are also 1K's who spend more than GS, especially those who were granted GS through a corporate contract or some other way.
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Old Jun 10, 2014, 8:17 pm
  #857  
 
Join Date: Jul 2003
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Oh, boy. Haven't read every thread but the gist of it is that the vast majority of us will see a significant reduction in RDMs.

Correct my math if necessary. I'm going from HNL-ANC. I paid $1546.97 (excl. taxes and fees). Right now, I will get 11,542 miles x 2 (1K bonus) = 23,084 RDMs.

Under the new system, it will be $1546.97 x 11 = 17,016 RDMs or a reduction of over 6000 RDMs.

Is this accurate?
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Old Jun 10, 2014, 8:20 pm
  #858  
 
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I think GS get a few extra perks like getting CPUs on Award tickets?
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Old Jun 10, 2014, 8:20 pm
  #859  
 
Join Date: Oct 2013
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Originally Posted by honmani2
Oh, boy. Haven't read every thread but the gist of it is that the vast majority of us will see a significant reduction in RDMs.

Correct my math if necessary. I'm going from HNL-ANC. I paid $1546.97 (excl. taxes and fees). Right now, I will get 11,542 miles x 2 (1K bonus) = 23,084 RDMs.

Under the new system, it will be $1546.97 x 11 = 17,016 RDMs or a reduction of over 6000 RDMs.

Is this accurate?
Correct.
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Old Jun 10, 2014, 8:29 pm
  #860  
 
Join Date: Jul 2013
Location: MRY - CNX - TXL
Programs: UA 1K / *G / Marriott PE / Expedia Gold+ / Hertz PC
Posts: 7,058
Originally Posted by honmani2
Oh, boy. Haven't read every thread but the gist of it is that the vast majority of us will see a significant reduction in RDMs.

Correct my math if necessary. I'm going from HNL-ANC. I paid $1546.97 (excl. taxes and fees). Right now, I will get 11,542 miles x 2 (1K bonus) = 23,084 RDMs.

Under the new system, it will be $1546.97 x 11 = 17,016 RDMs or a reduction of over 6000 RDMs.

Is this accurate?
Buy with with a Chase MP and I believe you get x13 so you only get a reduction of 3,000.
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Old Jun 10, 2014, 8:30 pm
  #861  
 
Join Date: Feb 2001
Location: NYC
Programs: UA MileagePlus 2MM
Posts: 1,567
[QUOTE=aacharya;23013553]You are confusing this thread (RDMs) with how PQMs are earned.



But all I need to do to keep earning 1K is earn 100,000 PQM's, right? Regardless of whatever RDM's I earn?
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Old Jun 10, 2014, 8:32 pm
  #862  
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Join Date: Oct 2004
Location: Between DCA and IAD
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Posts: 67,148
Originally Posted by adambrau
But all I need to do to keep earning 1K is earn 100,000 PQM's, right? Regardless of whatever RDM's I earn?
And spend $10k PQD.
exerda is offline  
Old Jun 10, 2014, 8:34 pm
  #863  
 
Join Date: Apr 2005
Location: LAX
Programs: UA Silver, AA, WN, DL
Posts: 4,091
Originally Posted by adambrau
As a 1K, in theory, all I would have to do to retain 1k is buy 2 RT's JFK to SIN in Biz at around $5-6K each and i would make 1K for the year? At $12k spent. I am currently at at $33k spend YTD and I have about 115k EQM's. MileagePlus seems to have so many changes it is tough for me, as a longtime 1K, to keep up. But if I have it right, I can do 2 trips to Asia on UA, hit the 4 UA segments threshold, and then spend the rest of why I would spend on other *A carriers. Or other alliances?It sounds too good to be true, I must be missing something....
You still need to fly 100K PQM/BIS miles... regardless of the RDM's you earn. So in your example, you'd get RDM miles of 11x miles of the cost of your JFK-SIN-JFK ticket (approx $12K x 11RDM) but your PQM is still 38K + whatever COS bonus. Far short of the 1K mark.
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Old Jun 10, 2014, 8:35 pm
  #864  
 
Join Date: Jul 2005
Location: NYC
Programs: UA-1K MM, AA-Gold, DL-Silver, AS-MVP
Posts: 2,509
Originally Posted by adambrau

But all I need to do to keep earning 1K is earn 100,000 PQM's, right? Regardless of whatever RDM's I earn?
You still need 100,000PQM or 100PQS AND $10,000 PQD to be 1K. That has not changed. Only thing new is the RDM earned will be based on how much you spend and not how far you fly.
hirohito888 is offline  
Old Jun 10, 2014, 8:35 pm
  #865  
 
Join Date: Feb 2014
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Programs: DL GM, SPG GOLD, UA DIRT, AA PLAT, US (RIP), Hilton HHonors
Posts: 705
Others have probably already been saying this, but classic United to copy others
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Old Jun 10, 2014, 8:37 pm
  #866  
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Originally Posted by adambrau
But all I need to do to keep earning 1K is earn 100,000 PQM's, right? Regardless of whatever RDM's I earn?
Correct. The easy way to summarize this change is that UA is going to screw you over unless you are buying >18cpm tickets.
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Old Jun 10, 2014, 8:39 pm
  #867  
 
Join Date: Mar 2011
Location: Colorado
Programs: Lifetime UA 1K, Lifetime Hilton Diamond, Lifetime Marriott Bonvoy Titanium
Posts: 1,261
Originally Posted by restlessinRNO
This is not my analysis, based on my flight plans. I fly primarily W fares to Asia, and as a 1K, I'll be earning 40% fewer miles.
For 1K, it seems to be 22 cents a mile. People that spend less then that are worse off. People spend more then that (like GS people) will have a windfall.

I'm 25-30 cents per mile and will do a little better.
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Old Jun 10, 2014, 8:40 pm
  #868  
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Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,722
Originally Posted by SFO777
I'm genuinely curious as to why you (or your employer) would pay $8,577 when you could have flown for much less on an array of much better airlines?

June 17 departure, return June 22...

That's a great chart that really makes it easy to demonstrate the decision-making process:
  • Those who are most price sensitive will go with DL (or one of the Chinese carriers if they feel so inclined)
  • Those who want the best product and/or fastest (and least chance for a missed connection) will take the Cathay nonstop
  • Those who need EQMs will fly UA (if they can do so without violating corp travel policy)

In the past I would normally take UA for the EQMs - the new RDM policy provides some additional incentive. But I'd still be tempted by the Cathay flight and no shortage of OW partners to bank the miles.

My prediction is that most premium customers won't be switching to UA for a few thousand RDMs unless the product improves.
Boraxo is offline  
Old Jun 10, 2014, 8:42 pm
  #869  
 
Join Date: Jan 2010
Location: LAX
Posts: 177
The simplest math seems to be that the segment runner is now the premier king:

10 segments per month, as short as possible to net the 500 mile minimum, at $83.33 PQD per segment = 1K
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Old Jun 10, 2014, 8:43 pm
  #870  
 
Join Date: Jul 2005
Location: ORD-LAS
Programs: UA MM 1K, Hyatt Globalist, Marriott Titanium Elite
Posts: 4,419
Originally Posted by FlyerTom111
I agree with you. This is going to possibly kill them on Transcon, TPAC/TATL. They are getting killed by Asian carriers. This will not help not when the competition has a much better experience.

I have a trip to India coming up that I do every year. I am a 1K. It's about a $1500 fare. It's a whole day of travel. Now I get that the airline can make it purely revenue based but as a passenger I have a choice, and next year I will fly on Emirates or Lufthansa just for a much better experience. I expect miles to put up with the crappy product UA puts out. My GPU/RPU would normally clear but now that doesn't happen anymore due to all the tinkering the spreadsheet monkeys are doing. I guess the only way DL/UA would change is if they actually saw people leaving. What do you think others will be doing? We won't know next year until these programs go into effect. It could very well backfire on them. Human behavior can be hard to predict but I know how this is changing my behavior. Maybe if UA was a monopoly would I not have a choice but I do, we all do.

For domestic short haul tix I will probably stick with UA as I will make more. I will make 1K by the end of June. I will then call AA and due a status match. When AA asks me why, I will tell them they have a more attractive FFP. When UA sends me the email asking me why I stopped flying, I will tell them I am looking at AA as DL and UA are very unfriendly to do business with and if AA follows then I will look at other options outside of the big three.
You must be dreaming to think UA will ask you why you stopped flying them. The real answer, they don't want you unless you spend the $$$$$$$$$. No $$$$$, they are jumping with joy. Don't expect a letter email nothing from UA. It's all about the $$$$$$$
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