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RDM earnings for UA tickets / UA operated flights - based on spend (PQD, now PQPs)

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Old Mar 12, 2015, 5:52 pm
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: WineCountryUA
Initial announcement thread - 2015 MileagePlus Change - RDMs Will Be Calculated by Spend, Not Distance
Update 2019 -- includes all partner flights on 016 ticket
for non-016 ticket , see Earning Status (PQP) on non-016 Tickets and Partner Metal

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 Sitewww.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.

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
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.



Unanswered Questions:
Originally Posted by a9504477
...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
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
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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RDM earnings for UA tickets / UA operated flights - based on spend (PQD, now PQPs)

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Old Mar 6, 2015, 1:37 pm
  #91  
 
Join Date: Jan 2000
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Originally Posted by RNE
Not necessarily. New customers are flying United all the time. And many vowing to leave are not. Besides, Delta is doing the same thing and AA will be following along for sure.
"In your opinion."

What AA plans to do has not been made public and there have been no indications of any kind that they will follow DL or UA. Until there is, such assertions are pure speculative opinions and should be presented as such.

Last edited by WineCountryUA; Mar 6, 2015 at 2:28 pm Reason: Issues of rules violation are best reported to Mods
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Old Mar 6, 2015, 2:21 pm
  #92  
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TOPIC CHECK

While many have opinions about AA's future earning changes, AA itself has stated "not now, will look at it later." Short of any new, real info this is gut feel, opinion ... this is all speculation (which I have participated in myself in other threads).

As this is UA forum, other than a side reference to AA's future plans, this is issue is best debated in the AA forum. Some posts on this have been removed and further debate in this thread will be deleted.

Now back to our regular scheduled topic -- the 1 march 2015 change by UA in crediting RDMs.

WineCountryUA
UA coModerator
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Old Mar 6, 2015, 2:49 pm
  #93  
 
Join Date: Oct 2012
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I think this is back on topic

The issue is will low cpm fliers who chose UA based on old RDM schedule can be replaced by low cpm fliers who do not.

I think the answer is yes, since there are many more of the latter, and they can be attracted by revenue management alone.

Last edited by LaserSailor; Mar 6, 2015 at 4:50 pm
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Old Mar 6, 2015, 3:18 pm
  #94  
 
Join Date: Nov 2007
Programs: United 1K; 1.66MM
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Keep in mind that the new changes only affect RDM (or miles awarded) based on the $ spend. They do not affect how PQD, PQM, PQS and life-time-miles are calculated for status or tiers. We still get 500 miles toward PQM and life-time-miles for flights that are shorter than 500 miles. I don't see how the changes would significantly change someone's flying habits to achieve status, except more willingly paying for higher fares to get bigger RDM.
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Old Mar 6, 2015, 3:35 pm
  #95  
 
Join Date: Aug 2009
Location: SF East Bay
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Posts: 60
Originally Posted by Jason Clark
So I took a trip from UK to USA start of this year as a 1K member, then just completed a second UK to US trip in March under the new system.

I paid $3K with co-payments and 40,000 for upgrade both ways in pre-march flights and earned 24,000 miles with my 1K status (12K plus 12K bonus).

Same route in March under new system I paid $3K with co-payments and 40,000 miles, and earned the amazing total of 7,500 miles instead of 24,000 miles!!!

I had completely missed that co-payments, me giving united more money i.e $1k a time earns me no miles at all!

So quick calculation in order to get those missing miles I'd have to buy miles now at $410 assuming they are on sale at 2.5c.

I get united wanting to reduce miles earned on cheap long distance flight, or short cheap flights. But not giving miles on co-payments is appalling, that's real cash to them.

This year I am spending $25-30k on flights and starting to wonder if United want people like me at all. After 15 years of flying United and making 1K status, it all seem very un-worthwhile.

I understand based on the cash you pay out but based on this it was ~$700 fare, correct? Even with taxes should not have come to more than $1000.

United want the flyers with $7000 TATL fares filling their business cabin - not people who fly low fares, despite the spending the extra $2000 on upgrades.

This is not me FWIW, but my SO does fly these kinds of fares (1K)
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Old Mar 6, 2015, 3:47 pm
  #96  
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Originally Posted by duck_77
I understand based on the cash you pay out but based on this it was ~$700 fare, correct? Even with taxes should not have come to more than $1000.

United want the flyers with $7000 TATL fares filling their business cabin - not people who fly low fares, despite the spending the extra $2000 on upgrades.

This is not me FWIW, but my SO does fly these kinds of fares (1K)
I think paying $3000 plus miles for upgraded TATL isn't better deal than P fare (if you can get it).
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Old Mar 6, 2015, 4:14 pm
  #97  
 
Join Date: Oct 2009
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Originally Posted by kb1992
I think paying $3000 plus miles for upgraded TATL isn't better deal than P fare (if you can get it).
Exactly. $3k in cash plus miles is nothing to sneeze at. Does everyone here fly flexible J and F fares TATL? I highly doubt it.
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Old Mar 6, 2015, 4:33 pm
  #98  
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After 9-11 in 2001, United tag line was "Time to Fly". In 2015 their new tag line should be "Time to Fly Another Airline" based on their lack of appreciation to the loyal passengers who kept them afloat in the tough years. In the past week, I have booked three tickets (OGG, ANC and SEA) from DC totaling just over $2,100 to which UA didn't get any part of my business. We can go round and round here but until we start affecting their revenue nothing will change. I know $2,100 in revenue isn't much by $2,100 x 1,000,000 people will start making a dent.
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Old Mar 6, 2015, 4:53 pm
  #99  
 
Join Date: Jan 2009
Location: LHR (sometimes CLE, SFO, BOS, LAX, SEA)
Programs: UA 1K
Posts: 5,892
Originally Posted by AAExPlat
If the forum member you quoted barely flies above 100k PQMs annually to qualify for 1k, he would have a CPM of $.25-.30 which is substantially higher than the average, and even more so the median. Why UA want to get rid of him is something you'll have to explain to me for me to understand it. Even if he was flying up to 200k annually he'd be in the average CPM category.
I assume that the person I'm quoting has done the math for the year and is complaining because they earn (in aggregate) fewer miles for their spend after the change. Stuff like taxes (APD), change fees, upgrade co-pay fees, or spending on behalf of other people (partners/friends/kids) could account for a lot of their spending and doesn't show up in your own PQD or RDM.

If they've done the math and they'll earn more miles in 2015 than in 2014 on the same spending, and they're upset about this change, then I definitely retract my assessment re: UA not wanting that kind of customer.
mherdeg is offline  
Old Mar 6, 2015, 5:58 pm
  #100  
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TATL P fares are more like $4k and higher than $3k, out of SFO.
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Old Mar 6, 2015, 9:01 pm
  #101  
 
Join Date: Oct 2005
Posts: 102
I personally love the change. I can't think of a situation where (on average) I will earn fewer miles. Hotels have had this policy for many years and from a business perspective it does make sense. As an example, a passenger who ordinarily purchases an economy ticket for $700, may now consider purchasing a first class ticket for $1,000 if it means they get an extra 3,000 miles. I recently flew SFO to Vegas on a $400 fare over the weekend of the change. On the way there, I got 1,000 miles. On the way back, I got over 2,000 miles. For all the complaints about the change, the only situations likely to be negatively impacted are international or transcon flights but I would challenge most people to find a fare of less than $450 on those to make the miles awarded significantly less.

And before I get skewered, I do travel on personal and corporate travel. When I fly personally, I purchase first class tickets because I want to be assured of the seat. This is a personal decision, but as someone who pays more for the same seat, same meal and aircraft as everyone else, I should be incented in some way. The change does this.
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Old Mar 6, 2015, 9:20 pm
  #102  
 
Join Date: Jun 2009
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A $500 roundtrip transcon flight used to earn about 5k miles before any elite bonuses etc. Now as a silver it will earn about 3,500 miles
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Old Mar 7, 2015, 3:21 am
  #103  
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Originally Posted by ptc8329
a passenger who ordinarily purchases an economy ticket for $700, may now consider purchasing a first class ticket for $1,000 if it means they get an extra 3,000 miles.

It is a poor value to spend $300 more for a mere 3,000 miles.

$300 can buy you 15,000 miles.
kb1992 is offline  
Old Mar 7, 2015, 3:43 am
  #104  
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Originally Posted by kb1992
It is a poor value to spend $300 more for a mere 3,000 miles.

$300 can buy you 15,000 miles.
Depending on the flight length ... If it's a transcon that's a $150 one way upgrade fee, which I'll totally pay ... of course for 1 hour NYC-BOS hops it's definitely not worth it
787fan is offline  
Old Mar 7, 2015, 4:53 am
  #105  
 
Join Date: Oct 2012
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Originally Posted by kb1992
It is a poor value to spend $300 more for a mere 3,000 miles.

$300 can buy you 15,000 miles.
Still a horrible deal.
LaserSailor is offline  


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