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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 12, 2014, 10:10 am
  #1441  
A FlyerTalk Posting Legend
 
Join Date: Apr 2013
Location: PHX
Programs: AS 75K; UA 1MM; Hyatt Globalist; Marriott LTP; Hilton Diamond (Aspire)
Posts: 56,467
Originally Posted by Silver Fox
Perhaps because I am an idiot and did not read my own working out correctly ? !!!!

Let's start again, it is 107,360 that I would have got, 72,104 I get under the new scheme. Definitely not gloating !

Now, when you say taxes, is the U.K. Air Passenger Duty treated as a tax or a duty ? I suspect as a tax as there is no distinction. The US Federal tax is paltry in comparison. The UK APD for a trip I selected was Ł67, approx $110, Federal tax $21, so $131 x 11 = 1,441 miles lost from the get-go (might be best to check my maths given my admission of idiocy!).

Agree? Either way it is a devaluation.
You are paying around $250 US in taxes on each RT LHR-SFO. I will be very surprised if your reduction in RDM under new system is less than 40% and it's more likely 45-50%.

Originally Posted by festdave
I realize that a big complaint is the number of miles one potentially gets for specific routes under the old and new system. I also realize that the Premier Bonus for RDMs gets subsumed in the 5-7-8-9-11/$ earning rates. But am I miscalculating that the effective Premier Bonus is going UP ?!?
Yes you are miscalculating. You can't look at percentages in the abstract, they don't tell you anything. You have to look at effect on mileage earnings at various fare levels. This has been posted ad nauseum here already, but to repeat, a premier (any level) who averages less than approx. 18 cpm will lose under the new system.

Last edited by Kacee; Jun 12, 2014 at 10:17 am
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Old Jun 12, 2014, 10:20 am
  #1442  
 
Join Date: Aug 2006
Location: US
Programs: AA/UA/DL
Posts: 2,773
Originally Posted by Col Ronson
holy crap.



Z/P fares are 150%. And lets just say for arguments sake i use your 175% #.

LAX-SYD

$12k Today: 15k miles x1.75COS x 2 1k bonus = 52,500
$12k next year: 75k miles for 1ks

STILL more miles under the new system next year.

But go ahead, keep pointing a little details while ignoring the real point im making, which is still valid.
Why would I care about the mileage earning if I have 12K to spend on that ticket? I will care more about the service and hard product which United can't give. The point is that if I have that money to spend on one ticket, I will give the money to other airlines to receive better service.
pigx5 is offline  
Old Jun 12, 2014, 10:28 am
  #1443  
 
Join Date: Feb 2014
Posts: 514
Originally Posted by halls120
Before UA gave up on IAD-MIA, I would always fly that route on UA so that I could benefit from my status and build up my UAMP account. Now? Even if they still flew the route, I'm going DCA-MIA on AA. I fly to VIE annually, and I almost always fly through FRA on UA, connecting to LH. Now? I'll just fly OS, and book directly with them on their ticket stock. Cheaper than UA, and a nonstop. Last year I had to fly IAD-NSI, and went IAD-BRU-NSI on UA and SN. For the same fare, I could have saved 4 hours of total flight time by flying SN on the IAD-BRU leg.

I'm sure UA's budget crunchers believe this change will add $$ to their bottom line, but I wonder if their assumptions take into account the loss of MP as a viable incentive?
This change will backfire especially if AA comes out with awarding points or miles, whichever is greater.
FlyerTom111 is offline  
Old Jun 12, 2014, 11:20 am
  #1444  
 
Join Date: Jul 2008
Location: Maryland
Programs: United, Turkish
Posts: 640
Originally Posted by jjmoore
I disagree with this... as a last minute traveler, sometimes M is the lowest available fare.... and I don't get any say in the matter. I deserve more for a fare that literally costs 2-3X as much as a K fare.


You got what you paid for
you got the flexibility of a last minute fare
morelegroom is offline  
Old Jun 12, 2014, 11:40 am
  #1445  
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Join Date: Sep 2003
Location: Honolulu Harbor
Programs: UA 1K
Posts: 15,025
Originally Posted by FlyerTom111
This change will backfire especially if AA comes out with awarding points or miles, whichever is greater.
I think you mean "This change will backfire only if AA comes out with awarding points or miles, whichever is greater." Wishing doesn't make it real.
IAH-OIL-TRASH is offline  
Old Jun 12, 2014, 11:51 am
  #1446  
 
Join Date: Aug 2007
Location: Chicago: ORD, MDW
Programs: United Million Mile Flyer, Hilton Silver, Marriott Gold, DL, AA WN
Posts: 514
Originally Posted by Robert N
I am probably one of the people they were after. That is I am one of people they want rid of. I have gotten sucked into the life of being 1k (paid for from my own purse, off relatively cheap tickets) and have increased the amount I otherwise would travel to keep this going. If they manage to work out how to kill the advantages of the frequent flyer game for me, I will reduce my flying. Oh and apart from the advantages one gets being lifetime Gold (sorry I know, now I am being silly) United will just be a player in the mix. This will not be a good outcome for United, because they are way behind the game of what is needed for a modern airline, and without the frequent flyer program, I cannot really imagine flying them. Thus if they freeze me out I will fly (a) less and (b) not on United.

As it happens, the latest changes will reduce my benefits, but I think looking at it it will be manageable. It is a pain but not fatal. So, they have not lost me yet.

What all this of course does is cause a lot of irritation. With the senior management doing all they can to burn both airline's (United and Continental-they are really still separate airlines0 goodwill, this is a strange thing to do. I would say the Delta has a quite different business (monopoly hubs, a lock on the South etc), and I have got to say that slavishly copying what they do will achieve little. Except make people angry.

I am beginning to suspect that there is going to be a lot of unpleasantness at United quite soon; one or more of: purging of the CEO and his mates, serious reductions in size, the sale of a hub, Chapter 11, conversion to a budget airline. It is getting to the point where something has got to give.
They don't seem to want me either.

Yet (at least until they decide to further reduce Million Miler benefits), I will retain some status - if UA offers the best fare/deal.

In the past, I would only look for fares on United. Now, United has encouraged me to look for the best fare I can find at any airline. Plus, since every other airline offers perks for sale, now I can find the best priced fare at any airline and pick and choose if I want to pay for a better seat, etc. - not to mention that with my Delta AMX card I also get perks like one free bag.

Does anyone at United see that they are driving paying customers away?
Karl-MDW is offline  
Old Jun 12, 2014, 11:59 am
  #1447  
 
Join Date: Mar 2007
Location: USA
Programs: UA Platinum
Posts: 108
Pretty huge bummer, no doubt about it. I'm not one of the business flyers on here, but nor am I really doing MRs for leisure. I'm in a long distance relationship and I spend hours each week to try and find the cheapest ways of getting from the east coast to the west coast, getting there as much as possible, maximizing my time with him, and not dying of discomfort in the process.

The best value proposition thus far has been United - for the last year I've been able to almost always find ~$300 RT from JFK or EWR to LAX or SNA - I go out after work Wed or Fri and I come back on a redeye Sun or Tues.

As a UA Gold, I currently earn a RT domestic saver award every 3-4 paid RTs - and by redeeming to see him, each trip essentially ended up averaging to ~$230 instead of $300. And the complimentary E+ meant the redeyes back weren't too too bad for a 6'2" guy.

PQD already was going to hurt a lot, because I'd probably hit Platinum by miles before I even hit Silver for dollars, but I was banking on the Chase waiver, which I'd hoped would get renewed for 2015.

This is just another slap. It will essentially increase my costs to see him by ~30%, and I'm already seriously straining my budget. And if the Chase waiver goes away in 2015, or they kill E+ for elites as has been speculated here, it will make what is already very hard, that much harder. Thanks United...

Not sure if I'll switch yet, but definitely looking at JetBlue which just gave me Mosaic with its fee-free changes, or Southwest which already had it.
adcer is offline  
Old Jun 12, 2014, 12:00 pm
  #1448  
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Posts: 56,467
Originally Posted by Karl-MDW
Does anyone at United see that they are driving paying customers away?
The people who are making the decisions are at this point focused pretty much exclusively on what Wall Street thinks, not the self-loading cargo.
Kacee is offline  
Old Jun 12, 2014, 12:37 pm
  #1449  
 
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,690
Originally Posted by adcer
PQD already was going to hurt a lot, because I'd probably hit Platinum by miles before I even hit Silver for dollars, but I was banking on the Chase waiver, which I'd hoped would get renewed for 2015.
.
If status rules are unchanged for 2015 the Chase waiver up to Plat will still be in place, unless I've missed another change.

I'm flummoxed by the fact that people spend hard earned money to "be a 1k"
Or any other status on any airline for that matter. I just don't get that, given all the good or cool one can do with a 1000 bucks US.
LaserSailor is offline  
Old Jun 12, 2014, 12:41 pm
  #1450  
 
Join Date: Jan 2008
Location: SF Bay Area
Programs: UA 1K MM, Marriott Life Plat, various others of little note
Posts: 2,763
What about double miles on *A carriers?

As most know at the moment we 1Ks earn double miles on certain *A carriers. Is that going to stay? If so it give us a quandry about how to buy tickets. On UA stock we get the pqd, on *A stock we get a lot more miles in discounted fare classes.

I am "this" close to pulling the plug and going with AA. I'm SFO/OAK so the move of US Airways makes AA a lot more competitive in terms of routes. I'm just thinking they're going to do the same thing eventually, so maybe there's no point in making the switch.

I do think, though, that eventually all the carriers are going to have to go to a earnings based system. This is forced by the existence of the credit card/miles economy. Every year inflation makes everything cost more in dollars but the distance between places stays the same (except for some attempts by UA a couple of years ago to shorten distances), so to keep any sort of parity between flight earnings and CC earnings they either have to give less than a dollar/mile on cc spending (break the buck), more than a "mile"/mile on flying, or just give "miles" for spending on tickets. The last is the biggest change in some ways, but gives them lots more opportunities for manipulation in the future.
Boghopper is offline  
Old Jun 12, 2014, 12:44 pm
  #1451  
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Originally Posted by LaserSailor

I'm flummoxed by the fact that people spend hard earned money to "be a 1k"
Or any other status on any airline for that matter. I just don't get that, given all the good or cool one can do with a 1000 bucks US.
Yes, we know, you're smarter and more practical than all the rest of us.

Personally, I value 6 GPU's alone quite a bit north of $1000.
Kacee is offline  
Old Jun 12, 2014, 12:46 pm
  #1452  
 
Join Date: Jan 2008
Location: SF Bay Area
Programs: UA 1K MM, Marriott Life Plat, various others of little note
Posts: 2,763
Originally Posted by LaserSailor
If status rules are unchanged for 2015 the Chase waiver up to Plat will still be in place, unless I've missed another change.

I'm flummoxed by the fact that people spend hard earned money to "be a 1k"
Or any other status on any airline for that matter. I just don't get that, given all the good or cool one can do with a 1000 bucks US.
I think the spending to get to 1K is for folks who are close anyway. For them (and that includes me) you're already on the plane a lot and the 1K status adds a lot to what you're already doing. You get double bonus on all that flying, you get much more upgrades (less than before, but still lots more than plats), you get SWUs.

It's a new world now with all the changes, so that calculus is going to change. I'm crunching numbers as we speak, waiting for the time when the AA match covers through next year.
Boghopper is offline  
Old Jun 12, 2014, 1:13 pm
  #1453  
 
Join Date: Jan 2011
Posts: 120
Adios United! Virgin (when possible) it is for this SFO flyer from here out.
bigmarley4 is offline  
Old Jun 12, 2014, 1:14 pm
  #1454  
 
Join Date: Dec 2004
Location: SEA
Programs: Million Miles achieved | 2017 Delta Platinum, United NADA, Global Entry, PreCheck, NEXUS
Posts: 1,295
^
Originally Posted by pigx5
Why would I care about the mileage earning if I have 12K to spend on that ticket? I will care more about the service and hard product which United can't give. The point is that if I have that money to spend on one ticket, I will give the money to other airlines to receive better service.
^^^^
Bear4Asian is offline  
Old Jun 12, 2014, 1:20 pm
  #1455  
 
Join Date: Nov 2010
Programs: UA3MMbis 1K, AA3˝MMbis Plat, AF1MMbis, BonvoyLTT
Posts: 49
I feel like a lab rat who's been handed the results.

Semi-consciously, I've been trying to out-last Smi/J.

It turned out that making the product much worse didn't cause me to leave. Shifting to a lot of regional jets didn't cause me to leave. Tremendous decline in reliability of service (cancelled flights, missing crew, etc.) didn't cause me to leave. A hugely demoralized workforce didn't cause me to leave. Improving competitors didn't cause me to leave. I was surprised, but for someone who has been 1K from the beginning of that status it turned out in the lab experiment that inertia is very powerful.

But now, the lab test results are in. Gutting Mileage Plus, the very basis of loyalty, has caused me to leave. Today we've planned out travel for second-half 2014, and instead of "always book UA", my instructions were explicitly, "book attractive carriers at good prices with convenient routes, and while we're at it let's eliminate a couple of trips". So, I won't be 1K in 2015 let alone 2016, I won't hit 3MM. Lifetime 1K as an award now sounds more like a life sentence. Lifetime United Club (which I was lucky enough to be granted in the past) turns out not to be enough of an incentive to fly the current UA.

So, Smi/J out-lasted me. The singular of data, an anecdote, is my lab-rat experiment. I'm beaten. I cannot understand this commoditization, giving up the loyalty-building Mileage Plus which allowed for value-plus pricing on top of a mediocre (at best) product with continual degradations. As far as I can tell, companies and industries which totally commoditize always ultimately turn out badly for management and for shareholders. That may be my misunderstanding; the other lab study underway, the future of Smi/J and UA, will test that proposition. I'll watch with interest from other carriers' seats.

If capitulation usually occurs just before a market crash bottoms, then maybe in the foreseeable future we'll be receiving 'we want you back' emails. But the nature of capitulation is this lab rat just doesn't care anymore.
GBman is offline  


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