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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 7, 2015, 5:46 am
  #106  
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Join Date: Jun 2007
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I'm anxious to hear if 100% 1K tier bonus will still exist when flying other airlines on their ticket stock, eg AC on 014 ticket stock. That hasn't been made clear yet and will certainly affect where I choose to post my miles on an upcoming AC ticket.
margarita girl is offline  
Old Mar 7, 2015, 10:43 am
  #107  
 
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My wife (Gold) flew TPA-IAH-PHX on 2/27 and received 2693 RMS. On the return, 3/3, she received 1056. This shows you what the future is.
Vulcan is offline  
Old Mar 7, 2015, 10:50 am
  #108  
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Originally Posted by margarita girl
I'm anxious to hear if 100% 1K tier bonus will still exist when flying other airlines on their ticket stock, eg AC on 014 ticket stock. That hasn't been made clear yet and will certainly affect where I choose to post my miles on an upcoming AC ticket.
there is a separate thread on http://www.flyertalk.com/forum/unite...-1-2015-a.html

Where this is posted
Originally Posted by sfosyd
As far as I can tell, if you are flying on a reasonable fare you will only get the premier bonus miles on: ANA, Brussels, Lufthansa, Austrian, Swiss and Air Canada. All other Star Alliance carriers will not have premier bonus miles.
WineCountryUA is offline  
Old Mar 7, 2015, 11:26 am
  #109  
 
Join Date: Sep 1999
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Posts: 2,876
Originally Posted by ptc8329
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.
It's pretty easy, actually. I just did it 2 weeks ago SFO-NYC.

I'm a mixed bag - I do business trips on the West Coast (big win), transcon (big lose, because I usually book a couple of weeks in advance) and internationally (big win because it's in C). The issue is that I do quite a bit of leisure travel, especially international, and I will lose *big time*.

The determinant for me will be how much international business travel I do. If it's low, I'll come out behind under the old system. If it's 2 trips or more, I probably come out ahead.

The problem is that the package of changes that UA has made (especially the near elimination of domestic upgrades) recently has made my 1K membership much less valuable to me than my default MM Gold membership, so I'm more likely to spread that international C travel around to other carriers.

Perversely, the only thing keeping me from moving all of my international C travel is the possibility of upgrading C to F with GPU's on LH.

Greg
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Old Mar 7, 2015, 11:36 am
  #110  
 
Join Date: Feb 2009
Location: Los Angeles, CA
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Posts: 1,416
Originally Posted by emcampbe
It actually does. Bonus is going to be the difference between 5x for general members and 7x for silver. So 5x395 = 1975, 2x = 790, for your 7x total of 2765.
Ahhhhhh. Ok I get that. Thank u!
caseminole is offline  
Old Mar 7, 2015, 12:12 pm
  #111  
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Join Date: Oct 2001
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Posts: 21,419
Originally Posted by ptc8329
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.
I've been tracking PQDs since they announced them, so I had an easy reference point. I went back and looked, and I did not have one single trip where I would have come out ahead under the new system. Why? Because I live in Austin, which is usually a competitive market for airfare and which frequently involves a connection, and because I normally book both business and personal travel 2-3 weeks in advance, in accordance with both company policy and an interest in saving money. This includes the two P fares I purchased for personal travel last year, provided that I take the class-of-service bonus into account. Also, your $450 challenge would be for one-way travel. Here are just a few fares less than $900 round-trip from coast to coast:

SEA/BOS: $258 (G)
SFO/MIA: $260 (G)
LAX/JFK: $268 (G)
PDX/ATL: $420 (T)
SMF/RIC: $412 (T)
BOI/ALB: $390 (T)

All fares from EF, showing fares on UA for all travel dates -- and these aren't cherry-picked, either. I did six searches and got six winners.

I have no problem with the airlines giving more rewards to people who pay more. They could have done so by increasing fare basis code multipliers, adding class-of-service bonuses, adding a "every $1,000 PQD -> 10,000 extra RDMs" clause, or whatever they cared to do so. Heck, they could have kept the current system, eliminated the 75K cap, and said that they'd reward customers per trip based upon whichever policy earned more miles. Instead, they chose to balance the books by penalizing flyers like me in order to give more rewards to flyers like you. That's their right, but they shouldn't be surprised when I start looking around for other carriers who value my business more than UA does.

UA is betting that they'll bring more HVFs to their airline -- presumably mostly on routes where DL is noncompetitive due to limited service, needing a connection, or whatnot -- and that there is a steady stream of cost-conscious customers who will fill the rest of the plane regardless of mileage policies. They may even be right; the value of free E+ as a gold/plat who books in advance is non-trivial, and I tend to check luggage, especially on leisure trips. Minus a status match, UA works out to be the cheapest option. Migrating to DL to avoid UA's new policies seems like cutting off my nose to spite my face. AA is an option, but I'd like to give them another year or two to decide if they're going to be USdbaAA or AAdbaUS.
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Old Mar 7, 2015, 12:13 pm
  #112  
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Originally Posted by ptc8329
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.
Incentivizing a higher spender is fine - however doing it while basically deliberately screwing everyone else is not fine. Truthfully this is all smoke and mirrors accounting. Someone incorrectly decided that outstanding miles should be a liability on the books, which I strongly disagree with given there is no actual liability or cost until a ticket is redeemed - until that happens, RDMs are nothing but pixie dust floating around waiting for inventory and demand to come together, which in many cases, never happens.

Comparing to the hotel award scheme is not a fair comparison - hotels award based on spend at a basic level, but given the layers and layers of various promotions and bonuses, the actual points that appear in the account bare little resemblance to the final value of the folio.

While there may or may not be dark clouds on the horizon for AA, for now they're doing it right - incentivizing higher spend without screwing bread and butter customers.
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Old Mar 7, 2015, 4:20 pm
  #113  
 
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Nobody was getting screwed, before or now.

HVF were getting about 5% rebates, LVF were getting 30%

now both are getting the same percentage discount off their spend if they are at the same status.

FF miles are a financial liability and accounting rules typically allow a historical overall use rate of 80%. Approximately 20% of miles expire unused. These facts stein airlines financials, public documents ( or can be calculated from statements therein)
LaserSailor is offline  
Old Mar 7, 2015, 5:11 pm
  #114  
 
Join Date: Apr 2011
Posts: 302
I'm more annoyed by the 75,000 cap. I manage my FIL account who is GS. He is going to a conference that just booked him a ticket that is $12,400 and he will still only earn 75,000 really frustrating.
myb821 is offline  
Old Mar 7, 2015, 5:15 pm
  #115  
 
Join Date: May 2003
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Originally Posted by LaserSailor
Nobody was getting screwed, before or now.

HVF were getting about 5% rebates, LVF were getting 30%

now both are getting the same percentage discount off their spend if they are at the same status.

FF miles are a financial liability and accounting rules typically allow a historical overall use rate of 80%. Approximately 20% of miles expire unused. These facts stein airlines financials, public documents ( or can be calculated from statements therein)
But you can't get around two facts-

#1: UA is giving out far fewer miles than before.
#2: UA has massively reallocated (compared to last year) the miles they are giving out.

You can argue that it's a fairer system this year, and I'll go along with that. But you can't say, at the same time, that nobody was getting screwed last year, because if the new system is more fair, then the HVFs last year were not getting their fair share.
Mike Jacoubowsky is offline  
Old Mar 7, 2015, 5:32 pm
  #116  
 
Join Date: Mar 2010
Programs: United 1K MM, Marriott Gold
Posts: 417
Originally Posted by myb821
I'm more annoyed by the 75,000 cap. I manage my FIL account who is GS. He is going to a conference that just booked him a ticket that is $12,400 and he will still only earn 75,000 really frustrating.
I don't understand the rationale behind the 75,000 cap. Has anyone come up with a likely answer yet?

And it is so unfair to the best of the best customers.
Neil35 is offline  
Old Mar 7, 2015, 5:57 pm
  #117  
 
Join Date: Oct 2005
Posts: 102
Originally Posted by Neil35
I don't understand the rationale behind the 75,000 cap. Has anyone come up with a likely answer yet?

And it is so unfair to the best of the best customers.
I think it was copied from Delta . Has anyone been booking one ways instead?
ptc8329 is offline  
Old Mar 7, 2015, 6:00 pm
  #118  
 
Join Date: Dec 2009
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Originally Posted by myb821
I'm more annoyed by the 75,000 cap. I manage my FIL account who is GS. He is going to a conference that just booked him a ticket that is $12,400 and he will still only earn 75,000 really frustrating.
out of curiosity, before the switch what would the RDM count have been in the old system?
bob_the_d is offline  
Old Mar 7, 2015, 6:12 pm
  #119  
 
Join Date: May 2001
Location: RNO, NV, USA.
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Originally Posted by bob_the_d
out of curiosity, before the switch what would the RDM count have been in the old system?
Likely much less than 75,000 RDM.
restlessinRNO is offline  
Old Mar 7, 2015, 6:19 pm
  #120  
 
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
Originally Posted by Neil35
I don't understand the rationale behind the 75,000 cap. Has anyone come up with a likely answer yet?

And it is so unfair to the best of the best customers.
Maybe the whole "entitled" issue that bothers United so much about its elites is really at the root of... everything. United could be looking at the uber-rich and thinking, what do they need with even more RDMs? They're rich already! Similar to the arguments about whether it makes sense to pay out Social Security to somebody who really doesn't have a need for it. It doesn't matter that they "paid into it." What matters is that it's silly for them to care. Speaking from UA's viewpoint.
Mike Jacoubowsky is offline  


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