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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, 7:05 am
  #91  
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Originally Posted by Axey
To put this change into perspective:

A one way, first class award on LH from IAD to FRA will now require $10,000 in ticket purchases for a 1K.
For the average UA customer, it would be more than $20,000 on tickets to have a chance of getting a one-way award ticket for one passenger in first class on that sector -- and even then that is a gamble given availability issues.

Welcome to the demise of mileage running on UA and crediting such MR UA flights to UA accounts.
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Old Jun 10, 2014, 7:07 am
  #92  
 
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Oh well, here's hoping AA brings back their route to JNB. This is the only reason I've stuck with UA and now that my $1000 EWR-JNB tickets earn 8k instead of 19k there's really no point in sticking around.
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Old Jun 10, 2014, 7:10 am
  #93  
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Originally Posted by TravisSC
Oh well, here's hoping AA brings back their route to JNB. This is the only reason I've stuck with UA and now that my $1000 EWR-JNB tickets earn 8k instead of 19k there's really no point in sticking around.
Just credit them another *A airline. Or better still... fly another airline, make a connection in the EU or Gulf for more miles and better service.
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Old Jun 10, 2014, 7:10 am
  #94  
 
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This is really disappointing. By my read, flight earning has been devalued by about 50%. I could understand this _or_ the devaluation of international redemption options that happened in February, but together they've reduced the value of United points to me by 75%!

A simple example: BOS-SFO. This is 5,416 PQM round trip. After the 1/1/2014 program changes, to get the corresponding now necessary PQD, I need a ticket that costs at least $542.

That $542 ticket that keeps me at 1K status (assuming I fly enough, which I do) used to earn me 5,416+100% = 10,832 RDM. With your new chart, it earns me 5,962.

Why are they doing this? This drives more point earning to credit card partners, which largely don't have United loyalty -- I can transfer my Chase points to a dozen different programs. I have to assume at this point that the majority of earned points come through partner earning rather than BIS miles, so this doesn't reduce their pool of currency at all. This just seems spiteful to their flyers!

And that's not even mentioning the 75k earning cap per flight. Hope you don't buy full-fare business or first tickets....
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Old Jun 10, 2014, 7:10 am
  #95  
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Originally Posted by GUWonder
For the average UA customer, it would be more than $20,000 on tickets to have a chance of getting a one-way award ticket for one passenger in first class on that sector -- and even then that is a gamble given availability issues.
On the other hand, probably wouldn't be much of a challenge for those into credit card churning and manufactured spend. The mileage runners may just be replaced by them in the same quest to build up redeemable miles. Wait for one of the blogs to come out with UA mileage-building alternatives for leisure travelers before the end of the day.

I'm surprised none of this leaked to any of the blogs. Maybe UA learned its lesson when one blogger leaked reported program changes a few years ago.
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Old Jun 10, 2014, 7:14 am
  #96  
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The customers that got screwed the most here are undoubtedly any elite who buys paid Global First fares.

DL does not have an F cabin which is why the 75K cap works a little better for them as only full fare J platinum/Diamond passengers will get screwed.

Of course, you can't think of that when you copy and paste other people's ideas. (DL should have copyrighted their ideas).

Maybe UA will be a good prospective client for LaserSailor after the Notre Dame MBAs and consulting companies run the airline to the ground.
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Old Jun 10, 2014, 7:16 am
  #97  
 
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The lack of ingenuity and originality. Even the UA mileage calculator is identical to DALs on their website. Has UA lost its identity...or maybe mngt just their way around ?

(hope the screen shots posted below...)



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Old Jun 10, 2014, 7:20 am
  #98  
 
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Well...I'm making this post from aboard an AA flight DFW-DEN, where I was just served a meal and obviously have working wi-fi...hmmm....wonder where my loyalty will fall...I've flown exactly 2 revenue flights on UA this year...and it looks like that'll be about it. I sincerely hope to see UA in Chapter 7, and quickly, so this nightmare of COdbaUA can be but a distant memory.
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Old Jun 10, 2014, 7:21 am
  #99  
 
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Game over. MP is dead. What's next?
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Old Jun 10, 2014, 7:22 am
  #100  
 
Join Date: Apr 2006
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Don't forget the positive side of this announcement:

More and better ways to use your miles.
For the fifth year in a row, MileagePlus is ranked #1 in award seat availability among U.S. global carriers*. You already have so many innovative ways to use award miles, from flights with United’s global network to hotel stays to once-in-a-lifetime experiences. And in 2015, you'll have new choices:
  • Economy Plus® purchases on upcoming flights
  • Economy Plus annual subscriptions
  • Checked baggage subscriptions
  • And more on the way
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Old Jun 10, 2014, 7:22 am
  #101  
 
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Originally Posted by wrkngonit
The lack of ingenuity and originality. Even the UA mileage calculator is identical to DALs on their website. Has UA lost its identity...or maybe mngt just their way around ?
Maybe they are planning to merge with DL .
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Old Jun 10, 2014, 7:23 am
  #102  
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Surprise surprise another DL deval copied by UA
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Old Jun 10, 2014, 7:23 am
  #103  
 
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.....

Too bad that 24-hr window to cancel a bunch of MRs later this Fall/Winter has passed...

I'll fly them and get as many miles as I can and use them all... and move on I guess.

Where to? Alaska Air? Asia-based airlines?
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Old Jun 10, 2014, 7:23 am
  #104  
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Originally Posted by tom911
On the other hand, probably wouldn't be much of a challenge for those into credit card churning and manufactured spend. The mileage runners may just be replaced by them in the same quest to build up redeemable miles. Wait for one of the blogs to come out with UA mileage-building alternatives for leisure travelers before the end of the day.
Indeed. But UA gets paid by the banks for issuing miles against churned and manufactured spending credit cards. Miles issued for flying on UA metal are a rebate from the airline to the passenger on a regular paid ticket (be the ticket reimbursed/expensed/otherwise paid) and UA thinks of itself as having paid for such miles in the past. Remember the "over-entitled" thinking that UA has about its customers? This is part of that when it comes to retail customers regardless of elite status level in the program.

My bet is that manufactured spend jumps up big time but that it doesn't jump up as much and as fast as the drop in miles credited from flying on UA flights. UA wants the latter to drop big time, much like DL management has wanted for years and set up too.
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Old Jun 10, 2014, 7:23 am
  #105  
 
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Originally Posted by Duke777
For business travel, this is great. I'm spending $1k on transborder flights where I earn around 3,300 redeemable miles as a gold per trip. Now, I would earn 8,000.

For leisure travel, this is a huge devaluation.

From a strictly business sense, this makes sense. However, with UA's recent poor performance relative to peers, this move is going to anger a lot of people they can't afford to lose.

As others have said, once again UA copies DL. If only they could copy the good things about DL (e.g., wifi, service, meals, etc.).

In addition, this doesn't apply to *A carriers. Once you get your spend on UA, there's basically zero incentive to continue to fly UA when you have a choice of other *A carriers. I suffered through UA to get $10K PQDs and immediately switched my flying to AC since I was on UAX anyway.
+1 to all these points. I'm a segment warrior (typically $600-900/RT earning 1000 miles plus bonuses today. My business travel mileage earnings should increase by 2x-3x, so I'm not as hurt by this as many.

BUT - I don't see how UA thinks they can succeed with the strategy "all the worst parts of DL with none of the advantages" - DL can get away with this because of a genuinely nice flying experience, UA not so much...
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