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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, 9:45 pm
  #901  
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Originally Posted by BearX220

This airline is in such a doom spiral, it's in no position to spit in the eye of all but its most spendy 1%-2% of customers.

Even if it were a successful, moneymaking service enterprise it couldn't tell most of its customers to get lost. In its current state it's corporate self-immolation.

Is Smisek really so divorced from reality?
Agree a dumb decision. ^

Someone should buy Mr $mi$ek a book on Caligula, to read up on how history often repeats itself.

He is delusional if he thinks what he has done in his tenure is wise, or good for Rome, aka Houston.

This will be the final straw - loyal rank and file MP members will desert in droves.

Ma and Pa Kettle on their $200 transcon getting 1000 miles will entice no-one. They get 30,000 or whatever for each churn of a credit card.

UA PRASM is already down the toilet, and this will make things worse.

What a DUMB time to spring this move.
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Old Jun 10, 2014, 9:45 pm
  #902  
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The winners are those of us who fly international in premium cabins....but even then its just a few more RDM's (PQM's stay the same)
not entirely. The winners are those who travel expensive, short-haul city pairs, such as the people who pay $1800 CLE-YYZ (well, not them anymore since UA ditched the route). Or the people paying $1000 RT for IAH-EWR.

That CLE-YYZ passenger would've, as a 1K, booked 2000 RDM for that trip. Under the new policy, they'd get 19,800 RDM, almost 10x the mileage yield. That's a bigger contrast to the SFO-TLV, paying $6000 for a J ticket, would earn 66k (new), and 44k (old). that's only a 1.5x yield improvement.
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Old Jun 10, 2014, 9:46 pm
  #903  
 
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If they are changing the mileage accrual to be based on revenue, why cap the mileage on a single ticket to 75k miles?

Transpac C routinely sells fro $13k - $20k and those customers are not fully earning what they should. I.e. customer that pays $20k for a ticket will earn the same as someone who pays $6.8k.

There should NOT be a 75k cap per ticket. Yes, I understand we are not earning 75k miles for a ticket... but this would be akin to UA limiting mileage accrual based on distance to 15k miles. Makes no sense...

I believe the overall frustration by customers, is that UA has been consistently altering terms & conditions to the detriment of their loyal customers. This may be the trend for the future, but this will certainly affect flier loyalty. Time will ultimately tell if these actions are penny-wise, pound foolish.

Personally, I fly a lot less on UA these days... particularly on int'l routes. once you make a tough decision to "let go" after all these years, it is liberating to have total flexibility on airline selection.
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Old Jun 10, 2014, 9:48 pm
  #904  
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Originally Posted by ozstamps
Ma and Pa Kettle on their $200 transcon getting 1000 miles will entice no-one. They get 30,000 or whatever for each churn of a credit card.

UA PRASM is already down the toilet, and this will make things worse.

What a DUMB time to spring this move.
Agreed on all points.

I do wonder, though, what UA will do to eventually attack the CC churners. After all, the UA back-patters have said for many months that changes like PQD and spend-based RDM earning were coming due to abuses by MRers etc.... what about the CC churners? Surely they are next!
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Old Jun 10, 2014, 9:50 pm
  #905  
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Originally Posted by pspark
Are they still going to record actual miles flown and apply them to MM status with the award being lifetime Gold?
PQM are still distance based, and MM is still based on (UA) PQM.
mduell is offline  
Old Jun 10, 2014, 9:53 pm
  #906  
 
Join Date: Mar 2012
Programs: UA/MM/1K
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Here is how absurd the new program changes are. I just want to point this out and call out how much United Management is now deflating the value of the program for the most elite & loyal members.

Today Tomorrow
Silver earn 25% bonus Silvers earn an equivalent of 40% bonus
Gold earn 50% bonus Gold earn an equivalent of 60% bonus
Platinum earn 75% bonus Platinum earn an equivalent of 80% bonus
1K/GS earn 100% bonus 1K/GS earn an equivalent of 110% bonus

This is based on the chart below:
Multipliers based on Premier status:
x5 General Members
x7 Silver
x8 Gold
x9 Plat
x11 1K/GS

Now who ever thought of this certainly discounted the loyalty of your most frequent fliers, by rewarding the Premier Silver members with the greatest overall increase, while the 1K & GS who primarily travel in premium fare cabins get the least value - again a devaluation of the program for the most loyal & elite fliers.
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Old Jun 10, 2014, 9:57 pm
  #907  
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Originally Posted by ozstamps
Someone should buy Mr $mi$ek a book on Caligula, to read up on how history often repeats itself.
Well, I saw the movie.

Originally Posted by exerda
I do wonder, though, what UA will do to eventually attack the CC churners. After all, the UA back-patters have said for many months that changes like PQD and spend-based RDM earning were coming due to abuses by MRers etc.... what about the CC churners? Surely they are next!
I predict UA will do nothing -- they're too dependent on revenue from Chase. Amex helped wreck the post-merger Delta SkyMiles program in similar fashion, with inflationary enrollment bonuses, etc.
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Old Jun 10, 2014, 10:03 pm
  #908  
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Originally Posted by acesflyerSFO
Now who ever thought of this certainly discounted the loyalty of your most frequent fliers, by rewarding the Premier Silver members with the greatest overall increase, while the 1K & GS who primarily travel in premium fare cabins get the least value - again a devaluation of the program for the most loyal & elite fliers.
That's a unique reading of the situation, but in my view totally off base. When your Silvers earn 3,500 RDMs plus bonus on a $500 EWR-SFO ticket that used to earn 5,000 miles, while your 1Ks earn 5,500 plus bonus on the same ticket, it's hard to see Silvers as making out here.
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Old Jun 10, 2014, 10:03 pm
  #909  
 
Join Date: Feb 2014
Posts: 514
Originally Posted by NYFlyerMan
If they are changing the mileage accrual to be based on revenue, why cap the mileage on a single ticket to 75k miles?

Transpac C routinely sells fro $13k - $20k and those customers are not fully earning what they should. I.e. customer that pays $20k for a ticket will earn the same as someone who pays $6.8k.

There should NOT be a 75k cap per ticket. Yes, I understand we are not earning 75k miles for a ticket... but this would be akin to UA limiting mileage accrual based on distance to 15k miles. Makes no sense...
Simple, because UA has to copy everything DL does.
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Old Jun 10, 2014, 10:07 pm
  #910  
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Originally Posted by mduell
MM is still based on (UA) PQM.
MM is based on BiS, not PQM.
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Old Jun 10, 2014, 10:08 pm
  #911  
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At least it's nice to see that even United's mouthpieces who post the ads here and then disappear also aren't trying to sell this idiotic move as any kind of "enhancement". Even the otherwise rabidly pro-United posters apparently see this for the crap assault on customers that it is.
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Old Jun 10, 2014, 10:09 pm
  #912  
 
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I agree 100%... when Delta did it, I stayed put (at least for now... waiting to see what AA does), because Delta gives me a great flying experience. Also, DL flyers can't really jump, as most (ATL, DTW, MSP) are hub locked... If I was a UA flyer in NY or, say, ORD, I'd be jumping to AA for sure! (Sorry, Houston flyers, you poor, poor souls)

Originally Posted by ozstamps
Agree a dumb decision. ^

Someone should buy Mr $mi$ek a book on Caligula, to read up on how history often repeats itself.

He is delusional if he thinks what he has done in his tenure is wise, or good for Rome, aka Houston.

This will be the final straw - loyal rank and file MP members will desert in droves.

Ma and Pa Kettle on their $200 transcon getting 1000 miles will entice no-one. They get 30,000 or whatever for each churn of a credit card.

UA PRASM is already down the toilet, and this will make things worse.

What a DUMB time to spring this move.
HatAndJacket is offline  
Old Jun 10, 2014, 10:11 pm
  #913  
 
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Originally Posted by Kacee
The thing is, UA could have kept both GS and lower spend elites happy by being more generous with the mileage multipliers. Instead, they elected to favor the high cpm spenders while penalizing the lower cpm spenders.

UA's basic message is, we don't need 1Ks who spend less than 18 cpm. We'll see how that works out for them.
As lowly Gold, remember we also pay to fly and flesh out the seats behind those of you GS and others sitting in front of us. (And I earn my Gold BIS with my own money). So if we leave. What's left? Seems like an all around downward spiral.

First they came for the Kettles. Then...etc.
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Old Jun 10, 2014, 10:12 pm
  #914  
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I think there's a great opportunity for AA to stick with mile-based earnings (with perhaps a bigger premium for higher-yield fares? People sure seem to forget in all the "it's rewarding the HVFs!" mania to realize they were already rewarded with more miles).

AA can run ads left and right showing a head-to-head comparison. "Fly us on NYC-LAX, and earn 2500 miles each way! Fly UA or DL, and earn 500 miles on the same fare!"
exerda is offline  
Old Jun 10, 2014, 10:20 pm
  #915  
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Originally Posted by acesflyerSFO

Now who ever thought of this certainly discounted the loyalty of your most frequent fliers, by rewarding the Premier Silver members with the greatest overall increase, while the 1K & GS who primarily travel in premium fare cabins get the least value - again a devaluation of the program for the most loyal & elite fliers.
Originally Posted by BearX220
That's a unique reading of the situation, but in my view totally off base. When your Silvers earn 3,500 RDMs plus bonus on a $500 EWR-SFO ticket that used to earn 5,000 miles, while your 1Ks earn 5,500 plus bonus on the same ticket, it's hard to see Silvers as making out here.
The effect appears to be relatively neutral. Examples:

5000 mile RT At 10 cpm:

Silver, old system: 6250 RDM
Silver, new system: 3500 RDM
Reduction: 44%

1K, old system: 10,000 RDM
1K, new system: 5500 RDM
Reduction: 45%

1000 mile RT at 30 cpm

Silver, old system: 1250 RDM
Silver, new system: 2100 RDM
Increase: 68%

1K, old system: 2000 RDM
1K, new system: 3300 RDM
Increase: 65%
Kacee is offline  


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