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2015 MileagePlus Change-PQD increased to $3k / $6k / $9k / $12k

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Old Nov 13, 2014, 12:47 pm
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Last edit by: WineCountryUA
Originally Posted by UA Insider
Hi everyone,

Today MileagePlus updated the Premier qualification requirements for 2016.

Effective January 1, 2015, we are adjusting the PQD requirement for Premier status qualification for all Premier levels:
  • Silver: $3,000
  • Gold: $6,000
  • Platinum: $9,000
  • 1K: $12,000
This change affects 2016 Premier status qualification which is based on 2015 flight activity. You can find more information about the updated requirements and PQD waivers by visiting this link.

We will communicate this information to members shortly.

-UA Insider
From UA:

Subject: Updated MileagePlus Premier requirements for 2016 status

"Our best customers come first"

"Customers who do more business with us should enjoy our best benefits.

Last year, we introduced Premier® qualifying dollars (PQD) so customers who spend more with us can enjoy more access to benefits like Premier upgrades, Economy Plus® seating and Premier Access®. On January 1, 2015, we will adjust our PQD requirement for 2016 Premier status."

Then the new chart with $3K, $6K, $9K, $12K

"The PQD requirement only applies to members who live in the U.S. and can be waived for members who hold a United® MileagePlus® Presidential PlusSM Card, or members who spend $25,000 or more in Net Purchases in 2015 on MileagePlus co-branded credit cards issued by Chase Bank, N.A.. The PQD waiver does not apply for Premier 1K® status."

From inquiry on why
.... over the years members have told us that they want to be recognized for how much they pay to fly those miles. This change also reflects a trend that has been emerging in loyalty programs across many industries and among our competitors. ...
MileagePlus® Service Center
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2015 MileagePlus Change-PQD increased to $3k / $6k / $9k / $12k

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Old Nov 27, 2014, 11:42 am
  #586  
 
Join Date: Mar 2012
Location: SEA
Programs: UA AU (ex 10+ year 1k) 1.5MM, AS Newbie, HH ex Dia
Posts: 337
Originally Posted by PushingTin
Why haven't they raised the flight count needed beyond 4? That would seem to drive people to flying on UA metal. The disparity between needing to fly 4 segments on UA and 120 for 1K seems too big. Even a 5x increase to 20 seems low???
Perhaps for someone qualifying on segments that's low, but I just counted my UA segments for the year (102k PQM, 45k UA BIS) and I only have 18. I'm actually surprised my flight count is that high.

An increase in required segments counts (something like 4/8/12/16... although 4/6/8/10 would be more likely) would have more of an effect on my travel planning than the PQD requirement has had. Although all that would likely amount to is a segment run at some point.
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Old Nov 28, 2014, 8:22 pm
  #587  
 
Join Date: Dec 2010
Location: Sacramento, CA
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Originally Posted by STS-134
You think fares will rise by 20% YoY? That's a rate that would far outpace even the increase in health care costs in the US, which are already rising at a rate ridiculously faster than inflation. And given what happened with the price of crude this morning after Saudi Arabia refused to go along with an output cut from OPEC, I'm not so sure fares will rise that much at all next year.
Sometimes airlines get screwed the other way when crude drops: because they had hedged the price so hard on the high end, they cannot take advantage of the low prices. But regardless, I do not think fares are going to increase or decrease with the price of crude next year. It's looking like a seller's market for the remaining US-based carriers and they all seem to be able to charge higher fares and still sell the sear. I think WN getting more expensive was a key component of this domestically. But I do not think even WN is going to lower fare at this point.
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Old Feb 10, 2015, 2:30 pm
  #588  
 
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What should we take away from this trend of increasing requirements after only one year of PQD implementation? Next year it will be 5K/10K/15K/20K ?
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Old Feb 10, 2015, 2:43 pm
  #589  
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Originally Posted by tashi
What should we take away from this trend of increasing requirements after only one year of PQD implementation? Next year it will be 5K/10K/15K/20K ?
That would nearly perfectly line up with their 20cpm break-even requirement for RDMs

At a certain point UA would realize their FF ranks are too thin and would have to stop.
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Old Feb 10, 2015, 2:47 pm
  #590  
 
Join Date: May 2003
Location: Redwood City, CA USA (SFO/SJC)
Programs: 1K 2010, 1P in 2011, Plat for 2012,13,14,15 & 2016. Gold in 17 & 18, Plat since
Posts: 8,826
Originally Posted by tashi
What should we take away from this trend of increasing requirements after only one year of PQD implementation? Next year it will be 5K/10K/15K/20K ?
We can take away from this that the airlines believe that PQD should follow the fares, and that the airlines would like to see fares increase by a similar percentage. Falling oil prices may play havoc with that thinking, if profits get so high that somebody breaks from the ranks and decides to compete to get more share.

But for now, I think it's incorrect to believe that PQD increases will be about thinning the ranks, but rather keeping up with hoped-for fare increases that will make it easier for us to hit the target. Yep, it's for our own good for that they increase fares so we can meet PQD!

I wish the airlines would stop trying to be so good to me.

Last edited by Mike Jacoubowsky; Feb 10, 2015 at 3:12 pm Reason: Clarity. Because the world needs more clarity.
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Old Feb 10, 2015, 3:32 pm
  #591  
 
Join Date: May 2012
Location: ORF, RIC
Programs: UA LT 1K, 3 MM; Marriott Titanium; IHG Platinum
Posts: 6,959
Group 1 is at least one third of the plane for flights out of some hubs

Originally Posted by Mike Jacoubowsky

But for now, I think it's incorrect to believe that PQD increases will be about thinning the ranks,
We will have to wait for another year to see whether or not the increased PQDs will thin the ranks. For some of my flights out of IAH and IAD, group 1 was nearly one third of the entire planes on Mondays.
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Old Feb 10, 2015, 4:28 pm
  #592  
 
Join Date: Jul 2002
Location: Virginia, USA
Posts: 4,511
Originally Posted by Kmxu
We will have to wait for another year to see whether or not the increased PQDs will thin the ranks. For some of my flights out of IAH and IAD, group 1 was nearly one third of the entire planes on Mondays.
A lot of former iKs are now Plats, especially those with a credit card PQD exemption, which could account for the large Group 1. Still wish UA would bring back the GS/1K red carpet.
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Old Feb 10, 2015, 5:32 pm
  #593  
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Originally Posted by tashi
What should we take away from this trend of increasing requirements after only one year of PQD implementation? Next year it will be 5K/10K/15K/20K ?
Don't forget about the cuts in benefits. It seems hardly a week goes by we don't learn of yet another reduction of elite benefits.

I suspect many of us are going to drop off this merry-go-round.
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Old Feb 10, 2015, 7:40 pm
  #594  
 
Join Date: Apr 2005
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Posts: 661
Originally Posted by Kacee
Don't forget about the cuts in benefits. It seems hardly a week goes by we don't learn of yet another reduction of elite benefits.

I suspect many of us are going to drop off this merry-go-round.
At this point I can guarantee that UA will increase requirements for next year's qualification. So far the 737s flying coast to coast are full and so UA is not loosing sleep. It will be a killer if they change the Million Miler program to require some min mileage or revenue accrual at which time I will have to jump.
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Old Feb 10, 2015, 7:44 pm
  #595  
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Join Date: Jun 2000
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Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
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Originally Posted by Kacee
I suspect many of us are going to drop off this merry-go-round.
In terms of dropping an elite level or two or jumping to a competitor?

Tom at DFW on the way to Ireland
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Old Feb 10, 2015, 7:56 pm
  #596  
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When AA does the same as UA and DL next year will you jump on the southwest bandwagon?
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Old Feb 10, 2015, 8:01 pm
  #597  
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I've not seen any indication AA will be matching UA. Many on this forum told me AA would match the UA systemwide upgrade policy a dozen years ago, and I'm still waiting for that to happen as I buy rock bottom fares for international travel and upgrade them.

I have lots of options from SFO should I want to leave AA, but I just don't see that in the cards right now. I have never flown Virgin America or Jet Blue, and would jump at the chance to do so if elite benefits were not in play. As I'll bring in my regular 25,000 miles for the trip I'm on now, hard to look at those carriers.
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Old Feb 10, 2015, 9:01 pm
  #598  
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I dont believe 1k is worth 12,000 in its present form with the watered down benefits and soon to be lack of 100% bonus. I agree with companies wanting to reward higher fares but one could do that with a tier point system and miles are easy come buy with credit cards. Perhaps as the higher spend requirement next year will cull the herd and increase benefits.
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Old Feb 10, 2015, 9:02 pm
  #599  
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Originally Posted by jfk747
Perhaps as the higher spend requirement next year will cull the herd and increase benefits.
That's what some people said last year when PQDs were first announced.

So how has that turned out?
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Old Feb 10, 2015, 11:09 pm
  #600  
 
Join Date: Apr 2011
Location: SIN
Programs: UA 1K MM, SQ PPS, CX Silver, Accor Platinum, Marriott Gold, SPG Silver
Posts: 679
Originally Posted by jfk747
I dont believe 1k is worth 12,000 in its present form with the watered down benefits and soon to be lack of 100% bonus.
To be fair, you're not paying $12,000 for 1k, but instead for 100,000 miles of flying, with the bonus of recognition. If you're only flying for status and no other reason, I feel for you. If you're coming in under $12k in natural flying, you're paying for the delta between your PQDS and $12k (and earn miles on those extra $).

As for the bonus, you're still earning at roughly 2x the rate of GMs, but off of a different basis (price vs miles).

I'm certainly not trying to justify it or say that it's a good thing for the average flyer (it's clearly not) but it's both to be expected, and not the end of the world. The reality of it is United doesn't care as much for people who take up a lot of ASMs without a lot of $.

It's no different than going to Denny's. They likely appreciate people more who eat their 'Moons over My Hammy' and leave (or then proceed to order desert), then those who just sit around and tie up a booth for 2 hours chatting after eating, preventing others from ordering while offering minimal revenue themselves. Unlike Denny's, United has just managed to find a way to either push aside those they don't want, or potentially squeeze money from them to make them more valuable.
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