How can 3rd parties offer such high mileage rewards?
Nov 11, 2014, 7:13 pm
#1
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How can 3rd parties offer such high mileage rewards?
I used to spend $10K to get 1K status and earn about 200,000 miles. Under the new RDM earning system, I'll get about half that. So I'm earning about 10 miles per dollar (after factoring in fees not counting).
However, I'm getting all these offers which offer far better value.
I just got an offer that if I buy flowers from FTD for $100 I'll get 3200 miles. That's 32 miles per dollar and I get some flowers. WTH? So I have two questions:
1) How can a 3rd party value miles at 3 times the value UA does?
2) I'm getting tons of these offers, so not only people earn less RDMs, the market is getting flooded with UA miles.
However, I'm getting all these offers which offer far better value.
I just got an offer that if I buy flowers from FTD for $100 I'll get 3200 miles. That's 32 miles per dollar and I get some flowers. WTH? So I have two questions:
1) How can a 3rd party value miles at 3 times the value UA does?
2) I'm getting tons of these offers, so not only people earn less RDMs, the market is getting flooded with UA miles.
Last edited by WineCountryUA; Nov 11, 2014 at 8:23 pm Reason: Please create thread titles that are specific and descriptive - http://www.flyertalk.com/help/rules.php#threadtitles
Nov 11, 2014, 7:19 pm
#2
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Nov 11, 2014, 7:22 pm
#3
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I just got an offer that if I buy flowers from FTD for $100 I'll get 3200 miles. That's 32 miles per dollar and I get some flowers. WTH? So I have two questions:
Nov 11, 2014, 8:47 pm
#4
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But I've also got all sorts of ads for cruises, dining etc. which are all at 20-30 miles per dollar.
Nov 11, 2014, 9:42 pm
#5
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Suspect a key motivator for the 3rd parties is to get access to UA email lists which seems a benifit for making these deals with UA. You buy enough miles from UA and get access to the mailing lists. A win-win for the 3rd party and UA.
Nov 12, 2014, 7:06 pm
#6
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+1 That makes sense. Companies will pay good money for good mailing list. Also once you buy something form them, you have a business arrangement with them and hence your do not call registrar listing is not an issue. So I buy the $30 roses from FTD for the 1000 miles, but FTD now have my details and are allowed to cold call me.
Nov 12, 2014, 7:43 pm
#7
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And wholesale on those dozen roses about 3-4 usd. It's all in the margins.
Nov 12, 2014, 8:42 pm
#8
Moderator: United Airlines
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However, when most organizations sell access to their e-mail lists, they don't actual provide the emails address for future use. It is usually a one time use agreement.
Nov 12, 2014, 9:33 pm
#9
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I too wonder about this. If UA makes miles so much harder to earn for its own customers, it will probably ask 3rd parties for more money for the miles.
At the end, it is win-win for UA - fewer miles to the customers and making more money from 3rd party. For most of us who earn fewer miles, it is lose-lose.
At the end, it is win-win for UA - fewer miles to the customers and making more money from 3rd party. For most of us who earn fewer miles, it is lose-lose.