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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 11, 2014, 1:28 am
  #976  
A FlyerTalk Posting Legend
 
Join Date: Apr 2013
Location: PHX
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Posts: 56,588
Originally Posted by invisible
Based overseas. Do I understand correctly that if I do not fly on UA metal at all and do not use 016 tickets (i.e. book directly with partners) I will keep earning at the current rate?
We don't know how exactly those flights will accrue. Specifically, we don't know (1) what the earnings charts will look like, or (2) whether there will be any premier bonus for JV flights. The smart bet is that there will be reductions from the current structure.
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Old Jun 11, 2014, 1:38 am
  #977  
 
Join Date: Feb 2010
Location: LAX
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Posts: 11
1st Class Customers - BUY 1 - GET 1 FREE!!!

I am a relative newbie on FT, but a seasoned traveler on UA, and this change is really a stunning wipe-out on mileage potential for most, but not all, flyers. And, it seems it is also a necessary business move for UA.

I wanted to elaborate on a couple of observations, as others have noted earlier in this thread;

I can see how this is a necessary move to hold or bring back the very high value/yield customer who would have had a strong incentive to go to Delta.

The corporate/business executive who buys (with other peoples money) a full fare trans-Atlantic, or trans-Pacific 1st class ticket could potentially earn 150,000 miles on a round-trip flight (if purchased as two separate 1-way tickets)!! This is enough to turn-around and use on a free (potentially personal/leisure) international round-trip Business class (and almost 1st class) saver award ticket. Thus, for the full-fare front cabin folks, it is BUY-1 GET-1 FREE !!!!

Meanwhile, back in economy, on the same flight, same airplane, I might be paying $1,200 round-trip (typical SFO-HKG, or LAX-LHR economy fare), and I will earn a measly 13,200 miles.

Thus, UA has accomplished two mighty objectives in one move;
1) attract high-yield customers to fly UA, and
2) reduce the valuation (and UA costs) of the mileage potential for the large majority of the customers (economy, leisure).

And, as many have quipped about moving to AA... AA will need to quickly respond and match this mileage system. Otherwise theyll surely see a migration of high-yield customers to the UA/DL BUY-1 GET-1 FREE programs!!
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Old Jun 11, 2014, 1:51 am
  #978  
 
Join Date: Jan 2001
Location: Singapore
Programs: UA MP Plat MM, *G;Global Entry; Hertz, Budget; Accor Gold, Marriott Gold
Posts: 208
Originally Posted by dmurphynj
Are you logged in to Twitter? It doesn't expand the list unless you're logged in.

What does the 'see how many miles...' calculator on that page have to with twitter?

Anyway, the same after i logged into twitter..
Simply nothing happens after I plug in a USD amount and click any of the
status levels (other than a small indicator below showing 'javascript.void(0)'
matjes is offline  
Old Jun 11, 2014, 1:53 am
  #979  
 
Join Date: Mar 2007
Posts: 4,995
Originally Posted by nall
I don't see a tweet from AmericanAir here?
Amazing!
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Old Jun 11, 2014, 1:54 am
  #980  
 
Join Date: Jun 2010
Location: ROC/NYC/MSP/LAX/HKG/SIN
Posts: 3,216
Originally Posted by WingWise
I am a relative newbie on FT, but a seasoned traveler on UA, and this change is really a stunning wipe-out on mileage potential for most, but not all, flyers. And, it seems it is also a necessary business move for UA.

I wanted to elaborate on a couple of observations, as others have noted earlier in this thread;

I can see how this is a necessary move to hold or bring back the very high value/yield customer who would have had a strong incentive to go to Delta.

The corporate/business executive who buys (with other people’s money) a full fare trans-Atlantic, or trans-Pacific 1st class ticket could potentially earn 150,000 miles on a round-trip flight (if purchased as two separate 1-way tickets)!! This is enough to turn-around and use on a free (potentially personal/leisure) international round-trip Business class (and almost 1st class) saver award ticket. Thus, for the full-fare front cabin folks, it is BUY-1 GET-1 FREE !!!!

Meanwhile, back in economy, on the same flight, same airplane, I might be paying $1,200 round-trip (typical SFO-HKG, or LAX-LHR economy fare), and I will earn a measly 13,200 miles.

Thus, UA has accomplished two mighty objectives in one move;
1) attract high-yield customers to fly UA, and
2) reduce the valuation (and UA costs) of the mileage potential for the large majority of the customers (economy, leisure).

And, as many have quipped about moving to AA…... AA will need to quickly respond and match this mileage system. Otherwise they’ll surely see a migration of high-yield customers to the UA/DL BUY-1 GET-1 FREE programs!!
Actually, if you look at the following:

http://www.flyertalk.com/forum/unite...elsewhere.html

And considering how wonderful UA.bomb and DL.bomb are executed, you already can't get PQDs or MQDs in these two FFPs, I highly doubt you will get anything in travel agency bulk fares. Bear in mind that AMex travel agency's fares are bulk fares, even if they cost the same as in their respective websites.

Oops, sorry, I figured you talked about OPMs, not AMex Travel. I was trying to elaborate what people meant to do with BOGO policies from AMex, and whether it will have any positive impact on that perspective.

Last edited by PaulInTheSky; Jun 11, 2014 at 2:00 am
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Old Jun 11, 2014, 1:55 am
  #981  
 
Join Date: Aug 2010
Location: Morris County, NJ
Programs: UA 1K/*G, Avis Pres, Marriott Plat
Posts: 2,307
Originally Posted by matjes
What does the 'see how many miles...' calculator on that page have to with twitter?

Anyway, the same after i logged into twitter..
Simply nothing happens after I plug in a USD amount and click any of the
status levels (other than a small indicator below showing 'javascript.void(0)'
Sorry, I replied to the wrong post - meant to reply to nail's post. Oops!
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Old Jun 11, 2014, 1:57 am
  #982  
 
Join Date: Dec 2006
Location: NRT / HND
Programs: AA EXP, NH Plat, Former UA 1K
Posts: 5,695
While this certainly sucks, it looks like I'll emerge relatively unscathed. I earn probably 80-90% of my miles per year from either *A partners or Japan issued Mileage Plus affiliated credit cards. The fares I fly on *A partners are typically mid to high tier so hopefully that won't be affected much, in all it looks like I'll probably end up with about 10k fewer RDMs per year from my annual trip to the US after this and EQMs probably staying about the same. I can probably even switch my US trip to NH metal for the overwater segments (where I have a pretty good op-up percentage) if I don't need the full 3x 70 baggage allowance coming home.

I really feel for the people with cheapest fare travel policies who fly heavily on UA metal. This didn't take long for UA to do after DL announced it and I fully expect AA to do the same.
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Old Jun 11, 2014, 2:13 am
  #983  
 
Join Date: Dec 2009
Location: ORD
Posts: 876
I make 4-5 Us to Asia (mostly India) trips per year. I was putting up with the crappy UA product partly because of the good quality of the MP program. Now I will start flying Emirates/ Qatar or Asian carriers and have a much better experience for a 20-24 hour trip.
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Old Jun 11, 2014, 2:36 am
  #984  
 
Join Date: Sep 2003
Location: Austin TX USA
Programs: UA life 1K, 2MM; AA Life Pt 3mm; DL nada now!; AS nada now; BA, FD, CX, LH, DD, Amex Pt, Diners
Posts: 950
Originally Posted by cepheid
Egads. This is going to hit my parents hard; both are 1K. By my calculations, their RDM earning will drop by 50% or more. Their miles are typically about half transcon, half overseas. For a transcon ticket averaging a PQD of (say) $500, they'll now earn only 5500 RDM, instead of the usual ~10,000 RDM. For an overseas ticket averaging a PQD of (say) $1000, they'll now earn only 11,000 RDM instead of the usual ~24,000 RDM (for their usual routes). All together, that amounts to half the usual RDM earnings.

I don't think my math is off, but please correct me if it is. (The PQD values above are just rough averages, obviously the actual values can vary over a fairly wide range. These are assuming typical inexpensive economy tickets, which are what they tend to buy out-of-pocket.)

This will be a huge loss for them... and many fewer award tickets they can give to family members.
You are telling me about devaluation. I made a huge mistake in not getting to one million miles on DL as I have no status on DL now and yet I have 500k earned miles on DL. I could easily have done it at one point. I flew to MEX Air Tran the other day. Cheap and fine. Looks like I am going to start using Southwest for the first time in two decades. I mean why not. I never seem to get upgrades anymore.
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Old Jun 11, 2014, 2:43 am
  #985  
 
Join Date: Jan 2009
Programs: UA 1K, EL Al ???, HHonors Diamond, Marriott Gold
Posts: 182
Originally Posted by dmurphynj

Very good responses, and I may actually try flying AA if this crap keeps up.

I've always loved Continental, and I'm an EWR captive, but enough's enough ....
dmurphynj I'm also more or less EWR captive. I fly mostly OPM domestic, but quite a bit trans Atlantic on my own dime (EWR-TLV). So most of my rewards go to trans Atlantic flights. It usually worked out to every 4th flight free. (Though with this years deval it's now technically every 5th flight, but CC miles fill that gap). Now, it will will become every 9th flight! And, no, I am not going to spend money on higher priced tix to get more miles. I can just use that savings to by additional tix.

What I fail to understand is this. On the tratl flights, I can be more flex about other NYC aiports and even PHL. In the past, I would fly UA even if it was a couple hundred $ more because I knew I was earning free flights. However, now that DL, EL AL, UA are pretty much all the same reward scheme (which is difficult to earn free flights), I am no longer tied to UA. Why would a company want to disincentivize loyalty?

Regarding my domestic flights, since it's OPM, I will simply chose cheapest flight, and my company will pick up the tab for E+, checked luggage...
ElieW is offline  
Old Jun 11, 2014, 2:51 am
  #986  
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Join Date: Nov 2006
Location: Bangkok or San Francisco
Programs: United 1k, Marriott Lifetime PE, Former DL Gold, Former SQ Solitaire, HH Gold
Posts: 11,886
Unless I misread the announcement, I'm going to make out like a bandit with the changes. My typical flight is SFO/BKK. $6,400 R/T in Business. I'm 1k right now (not going to make it this year). I get 39,000 miles for the trip with my 1k uplift. If I simply make Gold instead of 1k (2 R/T a year will cover that) I'll get 51,000 miles per trip. Seems like a good thing for me.

Originally Posted by WingWise
Meanwhile, back in economy, on the same flight, same airplane, I might be paying $1,200 round-trip (typical SFO-HKG, or LAX-LHR economy fare), and I will earn a measly 13,200 miles.
The way I read the announcement, you only get the 11X multiplier if you are 1k. You could get as low as 6,000 miles if you don't have status.

http://mileageplusupdates.com/ to calculate the new miles.

Last edited by FlyinHawaiian; Jun 11, 2014 at 4:11 am
Tchiowa is offline  
Old Jun 11, 2014, 3:14 am
  #987  
 
Join Date: Jan 2009
Location: Australia
Programs: QFF Gold, UA 1K
Posts: 148
Originally Posted by WingWise
I am a relative newbie on FT, but a seasoned traveler on UA, and this change is really a stunning wipe-out on mileage potential for most, but not all, flyers. And, it seems it is also a necessary business move for UA.

I wanted to elaborate on a couple of observations, as others have noted earlier in this thread;

I can see how this is a necessary move to hold or bring back the very high value/yield customer who would have had a strong incentive to go to Delta.

The corporate/business executive who buys (with other peoples money) a full fare trans-Atlantic, or trans-Pacific 1st class ticket could potentially earn 150,000 miles on a round-trip flight (if purchased as two separate 1-way tickets)!! This is enough to turn-around and use on a free (potentially personal/leisure) international round-trip Business class (and almost 1st class) saver award ticket. Thus, for the full-fare front cabin folks, it is BUY-1 GET-1 FREE !!!!

Meanwhile, back in economy, on the same flight, same airplane, I might be paying $1,200 round-trip (typical SFO-HKG, or LAX-LHR economy fare), and I will earn a measly 13,200 miles.

Thus, UA has accomplished two mighty objectives in one move;
1) attract high-yield customers to fly UA, and
2) reduce the valuation (and UA costs) of the mileage potential for the large majority of the customers (economy, leisure).

And, as many have quipped about moving to AA... AA will need to quickly respond and match this mileage system. Otherwise theyll surely see a migration of high-yield customers to the UA/DL BUY-1 GET-1 FREE programs!!
Anyone from AA who might be remotely incentivized by this kind of program has already moved to Delta. This FFP arrangement rewards the top 1% of fliers at the huge expense of its casual fliers. DL can get away with it because of their service, but this is going to be a huge loser for UA, whose FFP was the only thing possibly keeping non-elites flying with them.
coinboy66 is offline  
Old Jun 11, 2014, 3:15 am
  #988  
 
Join Date: Jan 2001
Location: Singapore
Programs: UA MP Plat MM, *G;Global Entry; Hertz, Budget; Accor Gold, Marriott Gold
Posts: 208
Got the calculator working. This is atrocious.

With the old system, for about USD 1600 I could fly SIN-SFO-SIN and get
ca 32k miles (8500 miles each way, plus the status bonus)

Now for the same amount I can get 17600 miles *if* I am 1k.

That's about half. I think I will go join SIA's Krisflyer , sigh
matjes is offline  
Old Jun 11, 2014, 3:17 am
  #989  
 
Join Date: Apr 2009
Location: Melbourne, Australia
Programs: United 1MM
Posts: 318
sorry if this is a dumb question

Sorry if this is dumb or already answered. I'm assuming UA has a way to break down individual segments in a ticket by price?

Basically, I'm asking this: let's say I fly a roundtrip that starts on Feb 28th, and then return on March 2nd. Then I'm guessing the flight on Feb 28th is subject to the old mile earning rules, and the one on March 2nd is on the new rules? And somehow, they break the total fare down and split it for each flight?

First year I'm going to make 1K without any DEQM, and it really won't give me much on lower cost transpac return flights. Oh joy. Smiseked!!
briank1973 is offline  
Old Jun 11, 2014, 3:22 am
  #990  
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Posts: 102,095
This kind of system is going to make it easier for employers to figure out how many miles have ended up in their employees' accounts as a result of the business travel paid for by the employer? This makes it easier for interested employers to clawback the "rebate" (in mileage terms rather than $ terms) and use it for the employer's purposes?
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