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RDM earning change - based on spend (PQD) - Post 1 March 2015 experiences, thoughts

RDM earning change - based on spend (PQD) - Post 1 March 2015 experiences, thoughts

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Old Dec 15, 15, 7:30 am   -   Wikipost
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Last edit by: WineCountryUA
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Initial announcement thread - 2015 MileagePlus Change - RDMs Will Be Calculated by Spend, Not Distance

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
  • Ticket price is defined as base fare plus carrier-imposed surcharges (PQD)
  • 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)

Multipliers based on Premier status: & (breakeven CPM)
  • x5 General Members -- (20 cpm)
  • x7 Silver -- (17.86 cpm)
  • x8 Gold -- (18.75 cpm)
  • x9 Plat -- (19.44 cpm)
  • x11 1K/GS -- (18.18 cpm)

For example, a 1K would earn 1100 miles for a $100 ticket while a Silver would earn 700 miles for the same ticket.

Note that for itineraries which span the March 1 changeover date, the existing scheme will apply to any segment departing prior to March 1 , the new scheme will apply to the segments departing March 1 or after.

Appears no extra mileage for using a Chase MP card than the standard card mileage earning


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 View Post
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.

As mentioned above, there are more details and a FAQ posted online, and over the next few days we’ll be communicating this information to our members.
Answered Questions:

Originally Posted by SunLover View Post
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 View Post

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 View Post
...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.

Unanswered Questions:

Originally Posted by a9504477 View Post
...Would this apply also to UA flights not on 016 stock? And if not, what would be the best way of purchasing such?
Unknown, but the FAQ indicates that all UA and UAx flights issued by ANY airline would be subjected to the new earning rates. There are exceptions (group tickets, bulk tickets, etc) like "Specialty Tickets" as mentioned below.
Originally Posted by raehl311 View Post
Do elite bonuses still apply to those [specialty] tickets?
It is mentioned in the FAQ: If applicable, Premier bonus award miles will be based on a member’s Premier status and the lower of the distance flown or miles awarded, per the chart above. Basically the bonus miles will be awarded but based on the lower number (i.e. distance flown for higher fares or the % based on fare). A 1K passenger purchasing F-fare from EWR-SFO would get only a 2565 mile bonus while a N-fare would get (50% of 2565) 1283 mile bonus. Still unclear what are the percentage bonus of each premier level but assume that it is the same (100% GS/1K, 75% Plat, 50% Gold, 25% Silver).
Specialty Tickets:
Originally Posted by iloveipods View Post
Specialty tickets that earn award miles in the current program (including, but not limited to consolidator/bulk, group, tour and other tickets where the fare paid is not disclosed on the ticket) will earn award miles based on a percentage of the distance flown and the purchased fare class as of March 1, 2015. Please refer to the chart below for details.

Eligible fare classes
Flight operated by United and United Express
150% - J, C, D, Z, P, F, A
100% - Y, B, M
75% - E, U, H, Q, V, W
50% - S, T, L, K, G, N
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Old Mar 23, 15, 2:16 pm
  #481  
 
Join Date: Sep 1999
Location: SF Bay Area
Programs: UA 1K MM, Accor Plat, Htz PC, Natl ExEm, other random status
Posts: 2,812
Originally Posted by jjmoore View Post
When AA converts over to this system, where will people turn to? This system is the way of the future for rewards programs.
Transactional free agency, other than the relative handful of people who have GS/CK/etc.

Go with whichever carrier gets you most comfortably where you want to go, when you want to go, at the price closest to what you are willing to pay, and ignore the miles.

Or, to quote Janet Jackson:

Used to be a time when you would pamper me
Used to brag about it all the time
Your friends seem to think that you're so peachy keen
But my friends say neglect is on your mind
Who's right?
What have you done for me lately?
Ooh ooh ooh yeah
What have you done for me lately?
Ooh ooh ooh yeah
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Old Mar 23, 15, 3:17 pm
  #482  
 
Join Date: Sep 2003
Posts: 9,355
I'm on UA 1178 OGG-SFO Wednesday. Got my CPU and CPU SFO-IAH looks certain. 1st half of r.t. costing $800. The people behind me in 2EF probably paid full fare - maybe $2-2.5k each. They're getting a lot more RDMs. I feel so cheated.
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Old Mar 23, 15, 3:48 pm
  #483  
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Old Mar 23, 15, 3:54 pm
  #484  
 
Join Date: Jul 2011
Location: On the Road
Programs: WN A-list Preferred, Companion pass, United 1k, Marriott Platinu,HHonors Diamond
Posts: 22
Angry

Originally Posted by mduell View Post
Indeed, it's a huge devaluation for people paying $300 to the airline for a 7000+mi flight.

Maybe you could take your ORD-HKG business over to someone who values your business like WN? Oh dear, they already have a $ based award program -- and the redemptions are $ based too!

Where did you come up with $300 for a round trip from Ohare to Honolulu? My ticket value for the round trip was $900? I am an actual EVERY week flyer and have to try and get the best fares possible for business travel.
I predicted the legacies ( to my co workers who fly the legacies ) would go to revenue based long before any one of them did and low and behold 2 out of 3 now have. It still doesn't mean i like getting almost 80% less miles then i got only 3 weeks before for the same trip. That's the whole point of my post. I am WELL aware that WN started the revenue based mileage program as i have over 2 million points with them, but unlike UA ,buying a last minute fare on WN does not feel like you have just been violated. BS fares stay the same from day one when released until day of flight. i am only flying UA because WN does not yet or might never go over the Pacific. UA being almost dead last in customer service and now their crappy version of the revenue based mileage will never earn any of the 40k i spend every year on air travel once i wrap up this current project in HI.

Last edited by WineCountryUA; Mar 23, 15 at 4:35 pm Reason: Discuss the issues, not each other
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Old Mar 23, 15, 3:55 pm
  #485  
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Join Date: Jan 2005
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Originally Posted by AppleApe View Post
why does the $370 fare deserve to receive the same number of PQMs as the $1600 fare?
Better question - why does UA deserve $1600 for $370 worth of service?
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Old Mar 23, 15, 4:00 pm
  #486  
 
Join Date: Jul 2011
Location: On the Road
Programs: WN A-list Preferred, Companion pass, United 1k, Marriott Platinu,HHonors Diamond
Posts: 22
Originally Posted by AppleApe View Post
8000K miles on one roundtrip!!!??? That's almost two roundtrips to the moon!

Didn't know United started flight to the moon already....

8,486PQM is Round Trip miles from Ohare to Honolulu

Last edited by WineCountryUA; Mar 23, 15 at 4:38 pm Reason: Discuss the issues, not each other
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Old Mar 23, 15, 4:02 pm
  #487  
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Originally Posted by jjmoore View Post
When AA converts over to this system, where will people turn to? This system is the way of the future for rewards programs.
I disagree. There's no evidence to suggest that AA will blindly follow like a sheep. AA has resisted changes to its FFP despite UA and DL making changes for the last few years.

AA, for now at least, views loyalty as an investment and not a cost. DL and UA view it as the latter.

If AA chooses to follow DL and UA, then it will no longer garner my loyalty. They will have proven that loyalty is no longer worth, so the only loyalty worth having is that to my wallet. I'll go with the schedule, service, and price that best meets my needs at a given time. Therefore, revenue that would have automatically gone to one carrier will not be so, and they'll have to work to earn that dollar.

I guarantee, internationally, the legacies will be the big losers there. If I can get much better service on CX, OZ, SQ, etc, than I can from the US airlines at a comparable price, I'd be foolish to choose the US carriers.

This is a dangerous game they're playing when they don't have the products to back it up.
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Old Mar 23, 15, 4:03 pm
  #488  
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Originally Posted by Pdyer View Post
mduell where did you come up with $300 for a round trip from Ohare to Honolulu? My ticket value for the round trip was $900?
Sorry I interpreted your use of "HON" as Hong Kong HKG rather than Honolulu HNL. 4200 mi not 7000 mi.

"$900" round trip minus taxes and fees would be about the $370 one way to the airline I quoted.
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Old Mar 23, 15, 6:35 pm
  #489  
 
Join Date: Jun 2009
Location: YVR
Programs: UA 1K, IHG AMB, Marriott Gold
Posts: 124
Should I Book a P or W Fare?

i still want to keep (for the time being) my 1K status with UA. I am totally debating between booking a P fare or a W fare from YVR to MNL. A P fare costs US $2743 while a W fare is US $1275. Which one will help me better to get more PQM as well as RDM? I am still so confused right now with the new Mileageplus program.
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Old Mar 23, 15, 7:18 pm
  #490  
 
Join Date: May 2001
Location: RNO, NV, USA.
Programs: UA 1K 2MM
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Originally Posted by 1kdreamer View Post
i still want to keep (for the time being) my 1K status with UA. I am totally debating between booking a P fare or a W fare from YVR to MNL. A P fare costs US $2743 while a W fare is US $1275. Which one will help me better to get more PQM as well as RDM? I am still so confused right now with the new Mileageplus program.
PQM should be the same; RDM will of course be more with a P fare.

Edited to add: I stand corrected. See below. P earns 50% more PQM than W, on UA.

Last edited by restlessinRNO; Mar 23, 15 at 10:37 pm
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Old Mar 23, 15, 9:40 pm
  #491  
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Join Date: Jun 2007
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Programs: UA Gold 1.85MM, Hyatt Discoverist, Marriott Plat/LT Gold, Hilton Silver, IHG Gold
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Originally Posted by 1kdreamer View Post
i still want to keep (for the time being) my 1K status with UA. I am totally debating between booking a P fare or a W fare from YVR to MNL. A P fare costs US $2743 while a W fare is US $1275. Which one will help me better to get more PQM as well as RDM? I am still so confused right now with the new Mileageplus program.
This will depend on the operating carrier.

Assuming the carrier is AC, P is 150% PQM vs W which is 100% PQM.

RDM gets to be a bit more complicated and depends on which airline issues the ticket, see MP AC earning for details. In particular look at the post Match 1, 2015 links.
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Old Mar 23, 15, 9:58 pm
  #492  
 
Join Date: Sep 2003
Posts: 9,355
Originally Posted by restlessinRNO View Post
PQM should be the same; RDM will of course be more with a P fare.
No. P will get 50% more PQMs than W.
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Old Mar 23, 15, 11:21 pm
  #493  
LBJ
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Originally Posted by Pdyer View Post
My ticket value for the round trip was $900?
A $900 ticket to Hawaii should have netted you about 5000 miles as a Sliver, your 2000 mile number does not make sense.
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Old Mar 23, 15, 11:51 pm
  #494  
 
Join Date: Sep 2003
Posts: 9,355
Originally Posted by Pdyer View Post
Where did you come up with $300 for a round trip from Ohare to Honolulu? My ticket value for the round trip was $900? I am an actual EVERY week flyer and have to try and get the best fares possible for business travel.
I predicted the legacies ( to my co workers who fly the legacies ) would go to revenue based long before any one of them did and low and behold 2 out of 3 now have. It still doesn't mean i like getting almost 80% less miles then i got only 3 weeks before for the same trip. That's the whole point of my post. I am WELL aware that WN started the revenue based mileage program as i have over 2 million points with them, but unlike UA ,buying a last minute fare on WN does not feel like you have just been violated. BS fares stay the same from day one when released until day of flight. i am only flying UA because WN does not yet or might never go over the Pacific. UA being almost dead last in customer service and now their crappy version of the revenue based mileage will never earn any of the 40k i spend every year on air travel once i wrap up this current project in HI.
Why aren't you on American out of O'Hare instead of complaining about UA????? You'd get your miles and possibly better service than UA. Hard to sympathize with someone who complains about UA and doesn't fly the ORD-hubbed airline that gives you what you want. American does fly to Hawaii. 2000 RDMs is wrong. Doesn't make sense. Either your mistaken or UA has credited wrong # of miles. A rant should be based on facts. It is not a 80% "devaluation". I used quotes because it's a reduction, not a devaluation. For someone who allegedly flies to the Islands a lot, I'm surprised you used HON.

Your problem/anguish seems like it could be alleviated by flying American. It's the airline with a lot of silver planes at O'Hare.

Last edited by IAH-OIL-TRASH; Mar 24, 15 at 12:02 am
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Old Mar 24, 15, 1:24 am
  #495  
 
Join Date: Aug 2009
Location: YEG
Programs: UA 1K, Marriott Plat
Posts: 526
Just looked at my reservation for a MR next week to HKG.

UA says my RDM total will be 4863 Miles. PQM is 17,554.

I will be going from earning 35108 RDM to 4863.

An awesome 86% reduction in award miles...

Again, I guess one doesn't really realize the insane degradation until you get hit first hand...
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