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, 10:46 pm
#76
Join Date: Jan 2009
Location: DUS
Programs: United-1K+2MM, Bonvoy-LifetimeGold,IHG-Diamond-Ambassador
Posts: 355
Not flown segment
What will happen if I don't fly the last segment of a trip.
In the past just these miles were not given. Will they now calculate all segments of a trip seperately?
In the past just these miles were not given. Will they now calculate all segments of a trip seperately?
Mar 6, 2015, 12:40 am
#78
FlyerTalk Evangelist
Join Date: Apr 2009
Location: where lions are led by donkeys...
Programs: Lifetime Gold, Global Entry, Hertz PC, and my wallet
Posts: 20,350
With all these shorter trips yielding rather a lot of miles more than they used to, how long do we think that will last? Not long I bet. That little avenue of pleasure will be denied soon enough.
Mar 6, 2015, 6:25 am
#79
Join Date: Oct 2009
Location: Austin, TX
Programs: AA LT Plat, UA 1k/1mm+, National EE, IC Plat, Bonvoy Gold
Posts: 2,605
And if someone pays $700 for this itinerary next week when they could drive it and expense it at under $200, UA will gladly give you 4000 extra RDMs worth $80.
Mar 6, 2015, 7:28 am
#80
Join Date: May 2003
Location: Philadelphia, LAX, Paris
Programs: UA 1K/2MM, SPG/Marriott Lifetime Titanium, Lifetime HHonors Diamond, Hyatt Globalist, AA Exec Plat
Posts: 3,331
This hits everyone, 1K included!
Me, I'm sticking with UA in 2015 to get to 2MM lifetime to get lifetime Platinum status, then we'll see what I will be doing in 2016.
In 2014, practically all my award ticket needs were met by UA, and I was treated well as a 1K, so I suppose that while I don't like this change, I'll wait and see how things go in 2015. It stated out well so far, as on my last trip to SFO, the UA station manager at PHL recognized me with a nice thank you card for my 30th anniversary with MP to go along with my CPU.
Being based out of PHL (for now) it would make sense for me to move over to AA with a status match in 2016, but of course by then, they will move to the spend based earning scheme like UA $ DL, right?
Should we relo to SAN as we have been planning for our early retirement, we'll have to reevaluate things in 2016 or 2017.
Me, I'm sticking with UA in 2015 to get to 2MM lifetime to get lifetime Platinum status, then we'll see what I will be doing in 2016.
In 2014, practically all my award ticket needs were met by UA, and I was treated well as a 1K, so I suppose that while I don't like this change, I'll wait and see how things go in 2015. It stated out well so far, as on my last trip to SFO, the UA station manager at PHL recognized me with a nice thank you card for my 30th anniversary with MP to go along with my CPU.
Being based out of PHL (for now) it would make sense for me to move over to AA with a status match in 2016, but of course by then, they will move to the spend based earning scheme like UA $ DL, right?
Should we relo to SAN as we have been planning for our early retirement, we'll have to reevaluate things in 2016 or 2017.
Mar 6, 2015, 7:28 am
#81
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,694
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?
High cpm travelers chose their travel for other reasons, i speculate time of travel is number one.
Mar 6, 2015, 8:25 am
#82
Join Date: Jan 2014
Location: ORD
Programs: UA 1k, SPG Plat 100
Posts: 619
As in the past, each segment is calculated separately and posts as a separate line item your account. This remains unchanged. The only difference is that RDM = PQD x Multiplier instead of RDM = Miles Flow x Multiplier, and the multipliers themselves change of course as well.
Mar 6, 2015, 8:53 am
#83
Join Date: Jan 2015
Posts: 96
As in the past, each segment is calculated separately and posts as a separate line item your account. This remains unchanged. The only difference is that RDM = PQD x Multiplier instead of RDM = Miles Flow x Multiplier, and the multipliers themselves change of course as well.
Mar 6, 2015, 10:25 am
#84
Join Date: Oct 2012
Location: NYC
Programs: AADULtArer
Posts: 5,694
The instrument to avoid forfeit is Y fare
Mar 6, 2015, 11:27 am
#85
Join Date: Nov 2014
Posts: 12
Reality Check: New United Mileage Plus really is awful
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 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.
Mar 6, 2015, 11:33 am
#86
Join Date: Jan 2009
Location: LHR (sometimes CLE, SFO, BOS, LAX, SEA)
Programs: UA 1K
Posts: 5,895
If your overall mileage earning for post-March 2015 with $25k spending will be lower than it was in 2014, they are trying to disincentivize your behavior — they would prefer to fire you as a customer and let some other low-cost carrier pick up your low-CPM spending.
Let's see how it works when the Q2 earning reports come out; my prediction is still a little rough, but I think the hypothesis is that change in UA PRASM will be significantly higher than change in AA/AS PRASM.
Mar 6, 2015, 11:38 am
#87
Join Date: Jan 2008
Location: EAU
Programs: UA 1K, CO Plat, NW Plat, Marriott Premiere Plat, SPG Plat, Priority Gold, Hilton Gold
Posts: 4,712
Firing customers means you need less capacity.
Less capacity means less flights.
Less flights is less attractive to those customers who pay the higher fares... both for frequency and upgrade availability.
Mar 6, 2015, 11:55 am
#88
Suspended
Join Date: Jan 2012
Programs: vx diamond
Posts: 377
Also nonstop and frequency.
Mar 6, 2015, 12:31 pm
#89
Join Date: Oct 2009
Location: Austin, TX
Programs: AA LT Plat, UA 1k/1mm+, National EE, IC Plat, Bonvoy Gold
Posts: 2,605
No, United does not want people like you at all.
If your overall mileage earning for post-March 2015 with $25k spending will be lower than it was in 2014, they are trying to disincentivize your behavior — they would prefer to fire you as a customer and let some other low-cost carrier pick up your low-CPM spending.
If your overall mileage earning for post-March 2015 with $25k spending will be lower than it was in 2014, they are trying to disincentivize your behavior — they would prefer to fire you as a customer and let some other low-cost carrier pick up your low-CPM spending.
? 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.
Mar 6, 2015, 12:32 pm
#90
Join Date: Sep 2005
Location: JZRO
Posts: 9,169
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.