Mar 12, 2015, 5:52 pm
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:
Multipliers based on Premier status: & (breakeven 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:
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
Answered Questions:
Class of service bonuses have been discontinued under the new system. There is already an adjustment for 1K over general members.
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.
E-mail received by GS lists 1K and GS together.
Unanswered Questions:
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.
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:
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
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.
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.
Unanswered Questions:
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:
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
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
RDM earnings for UA tickets / UA operated flights - based on spend (PQD, now PQPs)
Mar 5, 2015, 3:43 pm
#61
FlyerTalk Evangelist
Join Date: Jan 2002
Location: Canada
Programs: UA*1K MM SK EBG LATAM BL
Posts: 23,314
Mar 5, 2015, 3:45 pm
#62
FlyerTalk Evangelist
Join Date: Aug 2005
Location: BOS/EAP
Programs: UA 1K, MR LTT, HH Dia, Amex Plat
Posts: 32,092
Mar 5, 2015, 3:54 pm
#63
FlyerTalk Evangelist
Join Date: Nov 2002
Location: northeast coast of Florida
Programs: UA 1K - 2MM, Lifetime Hilton Diamond, Lifetime Marriott Platinum Elite, Hertz President's Circle
Posts: 10,422
RDMs are heavily influenced by spending yield. I know many people will not like the system. PQM/PQS requirements remain the same. Where this new criteria hurts is the lowish spending yield international flying segment. The higher spending yield domestic road warrior should do rather well in RDMs under this program. Some people will be upset due to a loss of accrual compared to the past, others will be elated. Welcome to the new world of less competition. I doubt we've seen the last of devaluation.
Mar 5, 2015, 4:08 pm
#64
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
As pointed out by others, low-fare MR'ing is hardly dead. Anyone with a PQD waiver remains all-in for cheap, long-distance mileage runs. For the 1K folk, sure, you gotta hit the dollar target, you gotta pay to play. And in fairness, the 1K gets a lot more than the Plat. An awful lot more. Not saying the 1K gets enough, but there's a huge gap between the two elite levels (as there should be, given the requirements of each).
Mar 5, 2015, 4:26 pm
#65
Join Date: Sep 2008
Programs: A3 *G, AA exePlat, AS MVP 75k Gold, JL sapphire, UA silver
Posts: 4,035
As pointed out by others, low-fare MR'ing is hardly dead. Anyone with a PQD waiver remains all-in for cheap, long-distance mileage runs. For the 1K folk, sure, you gotta hit the dollar target, you gotta pay to play. And in fairness, the 1K gets a lot more than the Plat. An awful lot more. Not saying the 1K gets enough, but there's a huge gap between the two elite levels (as there should be, given the requirements of each).
to me, MR is dead.
Mar 5, 2015, 4:39 pm
#66
FlyerTalk Evangelist
Join Date: Jun 2003
Location: DEN
Programs: UA MM Plat; AA MM Gold; HHonors Diamond
Posts: 15,866
Mar 5, 2015, 4:51 pm
#67
Join Date: Mar 2013
Location: LBB
Programs: UA 1K 1MM ★G | Marriott LTT | Hilton ♦ | Hertz PC | Global Entry TSA Pre ✓
Posts: 2,820
1K int'l leisure travelers, on the other hand, are taking a big hit. A round trip from SFO-ICN would require $2039 to break even.... given I have seen these fares as low as $800.... I would say that 80% - 90%... or maybe more of the load on that flight is taking a steep hit on RDM accrual.... especially since a Silver would need to pay in like $0.34cpm to break even ($3800 or so). My quick math may be slightly off but not by much here.
It will be interesting to see if there will be a surge in credit card offers that will give more miles than current offers give once this program stands the test of time. People will feel the pinch of fewer RDM's through the year more and more.... will be interesting to see if the CC companies swoop in later this year and cash in on this..... may this be part of the UA master plan?
To add to your note.... this week, the windfall has begun:
Week of 03/02: DEN-FAT-DEN @ $1,315 PQD / 14,465 RDM's vs. typically 4,009 RDM's
Week of 03/09: DEN-FAT-DEN @ $1,397 PQD / 15,367 RDM's vs. typically 4,252 RDM's
Week of 03/16: DEN-EWR-DEN @ $1,620 PQD / 17.820 RDM's vs. typically 8,045 RDM's
Week of 03/23: DEN-FAT-DEN @ $1,397 PQD / 15,367 RDM's vs. typically 4,252 RDM's
I am netting almost 3X the RDM's at this point. I do wish the new system went into effect on Jan 1, which would have netted me approximately an additional 60,000 RDM's compared to what I actually received.
Last edited by jjmoore; Mar 5, 2015 at 4:59 pm
Mar 5, 2015, 5:31 pm
#68
FlyerTalk Evangelist
Join Date: Jan 2002
Location: Canada
Programs: UA*1K MM SK EBG LATAM BL
Posts: 23,314
I have no idea what a domestic leisure 1k is - maybe they exist, but somehow I doubt anyone flies 50 transcons a year for 'leisure'
And, thank you for illustrating my point with actual numbers
And, thank you for illustrating my point with actual numbers
I think that for 1K domestic leisure travelers
Week of 03/02: DEN-FAT-DEN @ $1,315 PQD / 14,465 RDM's vs. typically 4,009 RDM's
Week of 03/09: DEN-FAT-DEN @ $1,397 PQD / 15,367 RDM's vs. typically 4,252 RDM's
Week of 03/16: DEN-EWR-DEN @ $1,620 PQD / 17.820 RDM's vs. typically 8,045 RDM's
Week of 03/23: DEN-FAT-DEN @ $1,397 PQD / 15,367 RDM's vs. typically 4,252 RDM's
Week of 03/02: DEN-FAT-DEN @ $1,315 PQD / 14,465 RDM's vs. typically 4,009 RDM's
Week of 03/09: DEN-FAT-DEN @ $1,397 PQD / 15,367 RDM's vs. typically 4,252 RDM's
Week of 03/16: DEN-EWR-DEN @ $1,620 PQD / 17.820 RDM's vs. typically 8,045 RDM's
Week of 03/23: DEN-FAT-DEN @ $1,397 PQD / 15,367 RDM's vs. typically 4,252 RDM's
Mar 5, 2015, 6:18 pm
#70
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,693
Mar 5, 2015, 6:51 pm
#71
Join Date: Feb 2009
Location: Los Angeles, CA
Programs: UA Premier Gold, Starwood Gold, Plat AE, CO PP MC, Marriott Rewards Plat, Virgin Elevate Gold
Posts: 1,416
My one-way F ticket MCO-LAX flown on 3/3 just posted
I am Silver Premier , so my earnings factor is 7 and the ticket was $395.
I did correctly earn the 2217 PQM
I also earned the RDM correctly (2,765), so its a + in earnings for me.
Oddly, though, when the credit the trip, my statement says:
BASE MILES 1975 BONUS MILES 790
Why are the splitting it up like this? That makes no sense. There should be no "bonus miles" right?
I am Silver Premier , so my earnings factor is 7 and the ticket was $395.
I did correctly earn the 2217 PQM
I also earned the RDM correctly (2,765), so its a + in earnings for me.
Oddly, though, when the credit the trip, my statement says:
BASE MILES 1975 BONUS MILES 790
Why are the splitting it up like this? That makes no sense. There should be no "bonus miles" right?
Mar 5, 2015, 7:15 pm
#72
FlyerTalk Evangelist
Join Date: Oct 2006
Location: SFO/SJC
Programs: UA Silver, Marriott Gold, Hilton Gold
Posts: 14,891
My one-way F ticket MCO-LAX flown on 3/3 just posted
I am Silver Premier , so my earnings factor is 7 and the ticket was $395.
I did correctly earn the 2217 PQM
I also earned the RDM correctly (2,765), so its a + in earnings for me.
Oddly, though, when the credit the trip, my statement says:
BASE MILES 1975 BONUS MILES 790
Why are the splitting it up like this? That makes no sense. There should be no "bonus miles" right?
I am Silver Premier , so my earnings factor is 7 and the ticket was $395.
I did correctly earn the 2217 PQM
I also earned the RDM correctly (2,765), so its a + in earnings for me.
Oddly, though, when the credit the trip, my statement says:
BASE MILES 1975 BONUS MILES 790
Why are the splitting it up like this? That makes no sense. There should be no "bonus miles" right?
Mar 5, 2015, 7:36 pm
#73
FlyerTalk Evangelist
Join Date: Jun 2003
Location: DEN
Programs: UA MM Plat; AA MM Gold; HHonors Diamond
Posts: 15,866
Mar 5, 2015, 10:21 pm
#74
Join Date: Dec 2004
Programs: UA-1K, MM, Hilton-Diamond, Marriott-Titanium
Posts: 4,433
EWR -MCO. 2/21. 938 base miles and 469 bonus. PQD 74.00
FLL - EWR -ZFV. 3/3. 245 base miles 147 bonus. PQD 49.00
The ticket was $170.00 so the price UA pays Amtrak for the EWR-ZFV is backed out.
At least my UGs clear both ways and I am down to Gold now.
FLL - EWR -ZFV. 3/3. 245 base miles 147 bonus. PQD 49.00
The ticket was $170.00 so the price UA pays Amtrak for the EWR-ZFV is backed out.
At least my UGs clear both ways and I am down to Gold now.
Mar 5, 2015, 10:40 pm
#75
Join Date: Jan 2009
Location: LHR (sometimes CLE, SFO, BOS, LAX, SEA)
Programs: UA 1K
Posts: 5,895
Is there a testable hypothesis here?
Consensus opinion is that UA's adoption of spend-based RDM will, all things equal, encourage high-CPM customers who have a choice of carriers to retain UA or move to UA; and it's thought that it will incentivize low-CPM customers who have a choice of carriers to prefer (say) AS/AA over spend-based carriers UA/DL/VX/B6/WN.
Can we test this, making the tenuous assumption that all other things (route network, amenities) stay equal among the carriers?
Can we say, after the changes have stabilized, that we'll expect to see in mid-July Q2 earnings announcements some change happen in Q2?
What would we expect to measure? Change in passenger revenue per available seat mile per carrier? And what would we expect to see happen – a significantly higher increase in UA PRASM compared with B6/AA PRASM?
Consensus opinion is that UA's adoption of spend-based RDM will, all things equal, encourage high-CPM customers who have a choice of carriers to retain UA or move to UA; and it's thought that it will incentivize low-CPM customers who have a choice of carriers to prefer (say) AS/AA over spend-based carriers UA/DL/VX/B6/WN.
Can we test this, making the tenuous assumption that all other things (route network, amenities) stay equal among the carriers?
Can we say, after the changes have stabilized, that we'll expect to see in mid-July Q2 earnings announcements some change happen in Q2?
What would we expect to measure? Change in passenger revenue per available seat mile per carrier? And what would we expect to see happen – a significantly higher increase in UA PRASM compared with B6/AA PRASM?