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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 15, 2015, 12:11 pm
  #301  
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Originally Posted by RealFan
So I think you may be inadvertently agreeing with me here. What I said was that the overall purpose of the new revenue programs wasn't to diminish returns to most flyers but to reduce the total RDMs issued by the airline. RDMs that are earned by passengers through FFPs are liabilities on the airlines' balance sheets.

The miles you discuss above that are being handed out like candy (and with which I agree with you) are revenue for the airlines because they're selling those miles up front and good luck to passengers trying to redeem them. There's no associated liability.

So PROGRAM MILES go way up while RDMs go down. DAL and UA are reducing their liabilities and increasing their revenues with the changes to a revenue model. My out of shape gut tells me that AA will come to the same conclusion that more revenue and fewer liabilities is a good combination.
I see where you're going with it. I'm not completely sold on it though as they both end up being RDMs in the end. The airlines may get "more" for the CC ones than the ones given as a "rebate" for flying X distance or spending $Y. When it comes down to the RDM balance, there isn't anything in place to distinguish whether an RDM came from CC spend or flying/spending. They both end up as currency that can be redeemed for tickets or upgrades in the FFP.

So let me address this one because I think you bring up several good points. I fly a lot domestically and internationally. I work for a firm where hundreds have similar flying patterns. In a non FFP world, we'd do exactly as you suggest. Fly CX instead of AA. Fly Singapore instead of UA. Fly KAL instead of DAL.

However, the GS and CK programs at UA and AA were powerful inducements to consolidate that international travel back to the domestic airlines. Now with the high increased RDMs available for GS/1K, the decision is very easy. Most of the folks in my company are flying UA exclusively and leaving AA. No one is flying the ex-U.S. airlines. This is a huge pickup for UA from just one little east coast firm. I suspect others are making similarly rational economic decisions.
I can't speak to the CK/GS programs as I've never spent enough in a year to get invited. I can see how they'd be an incentive though. From everything I've read, it ain't like it used to be. At least on UA, it's the only way to get some modicum of good treatment that folks got as elites in yesteryear.

At the end of the day, we're talking about seven to 12 hours in an aluminum tube every few weeks. I don't get my head wrapped around an axle about the quality of wine or the perfection of the seat. UA and AA have perfectly acceptable service for me both domestically and internationally. Of course I'd prefer to fly Emirates or Cathay but there's more value to me in preserving ultra high domestic status and earning outsized mileage rewards.[/QUOTE]

I fly enough domestically that I'm not terribly concerned about needing the international segments so much on my carrier's own metal. That said, at least in my case, I'm restricted somewhat by Fly America in that I can only book codeshares and not foreign coded flights. It can make it a little more difficult to fly on foreign metal for those flights, but I do it when I can simply because the experience is better. I usually buy up my TPACs out of my own pocket up to a flexible C ticket, so I'm less concerned about the upgrades and perks as I'm already getting them.

Bottom line for me, though, is that the general hostility to pax has driven me to be less loyal to the carrier's metal overall. This is despite my flying on refundable tickets for work, and with these changes only impacting my leisure travel. The more hostile the carriers get, the less loyal I am to them and the more loyal I am to my wallet. And internationally, it's going to end up being a losing proposition for them.

It just really bugs me to see the US airlines crying about unfair competition from the ME 3 when they have it in their power to improve their products and services. They just choose not to. They can choose their actions, but not their consequences.
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Old Mar 15, 2015, 12:15 pm
  #302  
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Originally Posted by LaserSailor
OPM are irrelevant. Great program for people not flying transpac for 500 usd. No airline will give you perks for that ticket, moving forward, with exception perhaps of OW for rest of this year.
OPM is relevant. The ones benefiting from the changes and sneering at the rest are mostly the ones flying on OPM.

Folks aren't going to give their leisure dollars to carriers that only treat them well when flying on OPM. It ends up being a revenue loss.

If it's going to be a "what have you done for me lately" question, it's a two way street. They lose when they have to answer that question. I don't "need" to fly a particular airline. They "need" me a lot more than I "need" them.
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Old Mar 15, 2015, 12:33 pm
  #303  
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Originally Posted by Superguy
I see where you're going with it. I'm not completely sold on it though as they both end up being RDMs in the end. The airlines may get "more" for the CC ones than the ones given as a "rebate" for flying X distance or spending $Y. When it comes down to the RDM balance, there isn't anything in place to distinguish whether an RDM came from CC spend or flying/spending. They both end up as currency that can be redeemed for tickets or upgrades in the FFP.

The way I interpret the change is they are bringing the flying RDM's in line with the CC RDM's, both are now based on spend. Spend more get more miles. The difference is flying RDM's status kicks in with the multiplier. But it is still based on spend as the base miles.
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Old Mar 15, 2015, 1:29 pm
  #304  
 
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Originally Posted by Superguy
OPM is relevant. The ones benefiting from the changes and sneering at the rest are mostly the ones flying on OPM.

Folks aren't going to give their leisure dollars to carriers that only treat them well when flying on OPM. It ends up being a revenue loss.

If it's going to be a "what have you done for me lately" question, it's a two way street. They lose when they have to answer that question. I don't "need" to fly a particular airline. They "need" me a lot more than I "need" them.
I don't think I've ever seen a good analysis of OPM vs MOM here on FZt but I think revenue on all airlines is composed of substantial portions of both types.

UA captures both OPM and MOM with strength of network and fare management, like everyone else.

Sneering at the losers and gloating at MR and trick-its are morally equivalent and a long FZt tradition.... There are whole fora on it, after all.
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Old Mar 15, 2015, 2:48 pm
  #305  
 
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OK I'm way way too lazy to figure this out but I'm a 1K flying JFK-SFO-SYD-SFO-JFK in a few weeks.

JFK-SFO (W)
SFO-SYD BF (W->R!)

SYD-SFO BF (Z)
SFO-JFK BF (Z)

Saved the company some serious money on the outbound by snagging R on SFO-SYD. Total ticket was $6700

I had no idea this mileage thing changed but I don't care as I accrue way more miles than I use, sadly.

Kinda cool that I'll be earning the equivalent of silver on one biz trip as far as PQM go
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Old Mar 15, 2015, 4:03 pm
  #306  
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Originally Posted by BigPoppaCO
OK I'm way way too lazy to figure this out but I'm a 1K flying JFK-SFO-SYD-SFO-JFK in a few weeks.

JFK-SFO (W)
SFO-SYD BF (W->R!)

SYD-SFO BF (Z)
SFO-JFK BF (Z)

Saved the company some serious money on the outbound by snagging R on SFO-SYD. Total ticket was $6700

I had no idea this mileage thing changed but I don't care as I accrue way more miles than I use, sadly.

Kinda cool that I'll be earning the equivalent of silver on one biz trip as far as PQM go
PQM earning has not changed. You will get the same PQM now as you would have pre March 1st. Is is only RDM that has changed.
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Old Mar 15, 2015, 5:06 pm
  #307  
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Originally Posted by LaserSailor
OPM are irrelevant. Great program for people not flying transpac for 500 usd. No airline will give you perks for that ticket, moving forward, with exception perhaps of OW for rest of this year.
One World encompasses a lot of airlines, and some of those airlines don't award miles on deep discount economy tickets, so it might help if you're specific about which One World carrier you're thinking of, unless you're referring to every single carrier in One World. If you're referring to AA, I'm enjoying the 25,000 miles my current Dublin trip will bring in, and I have not received any information about program changes there at year end. Which One World carrier is making changes at the end of the year?
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Old Mar 15, 2015, 5:52 pm
  #308  
 
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Originally Posted by Baze
PQM earning has not changed. You will get the same PQM now as you would have pre March 1st. Is is only RDM that has changed.
My bad, I meant RDM. For the most part, are the new RDM rules beneficial to a 1K who books C int'l and relatively high fare (U or greater) Y seats?
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Old Mar 15, 2015, 6:14 pm
  #309  
 
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Originally Posted by Superguy
I see where you're going with it. I'm not completely sold on it though as they both end up being RDMs in the end. The airlines may get "more" for the CC ones than the ones given as a "rebate" for flying X distance or spending $Y. When it comes down to the RDM balance, there isn't anything in place to distinguish whether an RDM came from CC spend or flying/spending. They both end up as currency that can be redeemed for tickets or upgrades in the FFP.

I can't speak to the CK/GS programs as I've never spent enough in a year to get invited. I can see how they'd be an incentive though. From everything I've read, it ain't like it used to be. At least on UA, it's the only way to get some modicum of good treatment that folks got as elites in yesteryear.

I fly enough domestically that I'm not terribly concerned about needing the international segments so much on my carrier's own metal. That said, at least in my case, I'm restricted somewhat by Fly America in that I can only book codeshares and not foreign coded flights. It can make it a little more difficult to fly on foreign metal for those flights, but I do it when I can simply because the experience is better. I usually buy up my TPACs out of my own pocket up to a flexible C ticket, so I'm less concerned about the upgrades and perks as I'm already getting them.

Bottom line for me, though, is that the general hostility to pax has driven me to be less loyal to the carrier's metal overall. This is despite my flying on refundable tickets for work, and with these changes only impacting my leisure travel. The more hostile the carriers get, the less loyal I am to them and the more loyal I am to my wallet. And internationally, it's going to end up being a losing proposition for them.

It just really bugs me to see the US airlines crying about unfair competition from the ME 3 when they have it in their power to improve their products and services. They just choose not to. They can choose their actions, but not their consequences.
So in the end we agree more than we disagree. RDMs (earned from UA) + PMs (earned from CC) = redeemable miles and they're all the same. It's the mix that is shifting and the evidence is out whether this will work or not.

We agree that GS/CK is a reasonable incentive to spend on UA internationally and agree that it ain't what it used to be.

I also agree that the domestic big three will need to begin spending on the experience to keep up with their international peers. My fear is that now we're down to a only a few that they collude to limit the upside and don't spend what they should. All we need is one to lead the way so that the others have to follow.

By the way, yesterday I was not a heavy FF and didn't have the benefit of status. Today, I am a heavy FF and have GS/CK. Tomorrow, I won't. So I take a long term view of these things because unless you are a millionaire, this is going to affect you for better AND worse at some point in your life.

The RDM model is interesting from a business perspective. It is impacting my habits. I wonder if it will be successful long term. The next economic dip may not bring about the reaction many think it will from the big three legacies. 13 million seats annually were removed from the skies post consolidation and there appears to be capacity constraint which suggests that the airlines will simply control inventory rather than fight for market share. Time will tell.
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Old Mar 15, 2015, 6:17 pm
  #310  
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Originally Posted by BigPoppaCO
My bad, I meant RDM. For the most part, are the new RDM rules beneficial to a 1K who books C int'l and relatively high fare (U or greater) Y seats?
Buying high fare economy tickets and premium cabin tickets as a 1K the odds are you will get more RDM's than the old method of mileage based RDM's.
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Old Mar 15, 2015, 6:19 pm
  #311  
 
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58,916 RDM for EWR-GVA March 2015

I got 26,780 base miles and 32,136 bonus miles to achieve this.

A fare - PQM 5817 and 5356b $$ spend.

I am returning tomorrow - A class as well. I know I am limited to 75,000 RDM's per round trip but wow that is a huge change. knew it was coming, I was curious, but I think it is a bit crazy. I am gonna be earning a .... ton of miles.

Did anyone answer if ticket change fees count? Not buying a higher priced ticket, but all those $450 change fees I encountered on this ticket were substantial.


Adam

Last edited by adambrau; Mar 15, 2015 at 11:01 pm Reason: typo
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Old Mar 15, 2015, 6:46 pm
  #312  
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Originally Posted by adambrau
... Did anyone answer if ticket change fees count? ....
No - change fees are not included in PQDs and therefore not for RDMs.
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Old Mar 15, 2015, 9:52 pm
  #313  
 
Join Date: Mar 2013
Posts: 6
Very unhappy about this change. I am a platinum member this year (usually 1K) and not a big spender on tickets. I fly economy class and just pick the best fare I can get, even though it is for work.
Just got back from a PHX -> SFO -> TPE R/T. I couldn't believe what I saw, as I completely forgot the change was coming.

For the outbound, instead of earning 7106 RDM + 5329 Bonus = 12435 miles
I earned 1510 RDM + 1208 Bonus = 2718 miles

That is a difference of 9717 RDM. Unbelievable!
My ticket would need to have cost 4.5x what I paid just to break even on the original mileage accrual plan.

I'm not flying 16.5 hrs on a plane for 2718 miles. That is simply outrageous. Time to switch I guess. Been a nice run United.
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Old Mar 15, 2015, 10:01 pm
  #314  
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Originally Posted by dink43k
Very unhappy about this change. I am a platinum member this year (usually 1K) and not a big spender on tickets. I fly economy class and just pick the best fare I can get, even though it is for work.
Just got back from a PHX -> SFO -> TPE R/T. I couldn't believe what I saw, as I completely forgot the change was coming.

For the outbound, instead of earning 7106 RDM + 5329 Bonus = 12435 miles
I earned 1510 RDM + 1208 Bonus = 2718 miles

That is a difference of 9717 RDM. Unbelievable!
My ticket would need to have cost 4.5x what I paid just to break even on the original mileage accrual plan.

I'm not flying 16.5 hrs on a plane for 2718 miles. That is simply outrageous. Time to switch I guess. Been a nice run United.
Who you going to switch to? DL has a revenue based program now and most are betting AA will go revenue based within a year. It is the new reality. Get rewarded for how much you send instead of how many miles your butt is in a seat. Hotels have been revenue based for years.
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Old Mar 15, 2015, 10:08 pm
  #315  
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Originally Posted by dink43k
Very unhappy about this change. I am a platinum member this year (usually 1K) and not a big spender on tickets. I fly economy class and just pick the best fare I can get, even though it is for work.
Just got back from a PHX -> SFO -> TPE R/T. I couldn't believe what I saw, as I completely forgot the change was coming.

For the outbound, instead of earning 7106 RDM + 5329 Bonus = 12435 miles
I earned 1510 RDM + 1208 Bonus = 2718 miles

That is a difference of 9717 RDM. Unbelievable!
My ticket would need to have cost 4.5x what I paid just to break even on the original mileage accrual plan.

I'm not flying 16.5 hrs on a plane for 2718 miles. That is simply outrageous. Time to switch I guess. Been a nice run United.
I hope you did the trip for more than just the miles!

United transported you for 16.5 hours for a measly $300+taxes.
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