May 1, 2021, 1:27 pm
Last edit by: WineCountryUA
Award travel updates
The details:
Archive: "Dynamic Award Pricing" by UA; questions, experiences, .... {Archive}
Introducing a broader range of award prices
Updates to award travel are on the horizon. For flights on or after November 15, 2019, we’ll no longer publish an award chart listing the set amount of miles needed for each flight.The details:
- Some award prices will be lower than what’s currently published in our chart. You may have already seen these prices, and you’ll be able to get them immediately.
- Other award prices may be higher than what you see today, especially if you’re traveling at a popular time. These prices will take effect immediately for travel November 15 or after.
- Starting November 15, we’re removing close-in fees, so you won’t be charged the extra fee of up to $75 for booking last-minute award travel.
- A flexible award travel calendar is available on united.com or in our app.
Frequently Asked Questions
What is changing?
For travel on or after November 15, we will no longer publish an award chart listing the set amount of miles needed for award flights. Award pricing will now fluctuate based on a variety of factors, including demand. Additionally, starting November 15, we will no longer charge a fee of up to $75 for award flights booked within 21 days of departure.When will these updates take effect?
The award pricing changes apply immediately to flights on or after November 15, 2019. Until then, award prices will be the same as or lower than what’s currently published in our award chart.How many miles will I need for award travel after November 15?
Award prices will now fluctuate based on a variety of factors. Some air awards will be available for less than what’s listed in our chart, which you may have already noticed. After November 15, award prices may also be higher, especially if you’re traveling at popular times. Use our flexible award calendar to get a monthly view of the award prices for a specific destination.Why are you making these changes?
Increasing award prices for the most in-demand flights allows us to offer better returns for our shareholders. If your award travel is flexible, these updates will help you make the most of your miles.How will these updates affect award travel availability?
United MileagePlus members with Premier® status and qualifying United Chase Cardmembers can continue to book award travel without blackout dates. For other members, most award flights that are available today will continue to be available after these updates take effect.Do the lowest-priced awards have any extra flight restrictions?
No. Our lowest priced awards do not have any added restrictions; the fare rules for all award travel apply.How can I find the lowest priced award for my travel?
The award calendar on united.com or in our app will continue to show the lowest available price for your destination.Will I earn miles on my flight if I book an award?
No. As with current award bookings, award travel in the future will not be eligible to earn miles with MileagePlus or any other loyalty program.What if I need to change my existing award?
If you need to change your award ticket, you will be issued a new ticket for which new pricing and additional fees may apply.What if I purchase a close-in award before November 15
The close-in booking fee will still apply to all tickets booked within 21 days of departure prior to November 15, 2019. We will not refund fees paid prior to November 15, even if travel occurs on or after November 15.
Archive: "Dynamic Award Pricing" by UA; questions, experiences, .... {Archive}
"Dynamic Award Pricing" by UA; questions, experiences, .... (No Award Chart Nov 2019)
Jun 11, 2023, 1:05 pm
#436
FlyerTalk Evangelist
Join Date: Aug 2005
Location: BOS/EAP
Programs: UA 1K, MR LTT, HH Dia, Amex Plat
Posts: 32,306
Jun 11, 2023, 5:02 pm
#437
Join Date: Oct 2013
Location: SFO
Programs: UA 1K, AA EXP, Hyatt Glob, Hilton Diamond, Marriott Plat, Total Wine & More Reserve
Posts: 4,588
). 30k when IN is available, some 25.5k JN.
Jun 12, 2023, 2:57 pm
#438
Join Date: Jan 2018
Programs: UA LT GS | UA LT Club | Marriott LT Titanium
Posts: 1,250
Interesting story in the Wall Street Journal discussing the downgrading of elite travelers this year, dynamic award pricing, and the move towards free agency.
A quote from a United executive leads me to believe that the latest award changes might be temporary.
It seems they made this change to bring award pricing in line with cash pricing -- which has rocketed due to revenge travel, China de-risking, and Russian airspace.
Should the cash pricing go back down, like what's currently happening in the used-car market, it seems logical that UA would bring down the award pricing. Quote below:
----------
Delta Air Lines and United have ushered in steep hikes for booking award trips to destinations in Europe, Asia and Australia—in some cases doubling the number of miles needed, says Kyle Potter, executive editor of travel industry blog Thrifty Traveler.
These changes are driven by dynamic pricing models that many airlines now use for rewards flights, which change based on travel demand.
“We are trying to strike the right balance between delivering value and savings for our customers, while also reflecting the broader economic factors such as what the revenue ticket pricing is, what inflation impact is and what market demand is,” says Michael Covey, managing director of the MileagePlus loyalty program at United.
------------
Link to article: https://www.wsj.com/articles/frequen...rades-7c94c48d
A quote from a United executive leads me to believe that the latest award changes might be temporary.
It seems they made this change to bring award pricing in line with cash pricing -- which has rocketed due to revenge travel, China de-risking, and Russian airspace.
Should the cash pricing go back down, like what's currently happening in the used-car market, it seems logical that UA would bring down the award pricing. Quote below:
----------
Delta Air Lines and United have ushered in steep hikes for booking award trips to destinations in Europe, Asia and Australia—in some cases doubling the number of miles needed, says Kyle Potter, executive editor of travel industry blog Thrifty Traveler.
These changes are driven by dynamic pricing models that many airlines now use for rewards flights, which change based on travel demand.
“We are trying to strike the right balance between delivering value and savings for our customers, while also reflecting the broader economic factors such as what the revenue ticket pricing is, what inflation impact is and what market demand is,” says Michael Covey, managing director of the MileagePlus loyalty program at United.
------------
Link to article: https://www.wsj.com/articles/frequen...rades-7c94c48d
Jun 12, 2023, 4:31 pm
#439
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,657
When a recession arrives, airlines will offer >100k credit card bonuses rather than reduce award prices.
Jun 12, 2023, 5:03 pm
#440
Join Date: Jan 2018
Programs: UA LT GS | UA LT Club | Marriott LT Titanium
Posts: 1,250
That's like building a desalinization plant because you're thirsty 
Tick-tock, perishable inventory, need to move those seats fast...
Can reduce cash pricing or reduce mile pricing, and Kirby desperately needs cash right now to reduce debt, so it'll be miles.
BTW, not talking about recession.
Simply referring to pricing coming down on routes that are 100% overpriced right now. SFO-LHR, SFO-NRT, SFO-SIN, SFO-DEL, etc...
When that happens, I think they reset the back-end mileage chart, and drop redemption pricing.
Tick-tock, perishable inventory, need to move those seats fast...
Can reduce cash pricing or reduce mile pricing, and Kirby desperately needs cash right now to reduce debt, so it'll be miles.
BTW, not talking about recession.
Simply referring to pricing coming down on routes that are 100% overpriced right now. SFO-LHR, SFO-NRT, SFO-SIN, SFO-DEL, etc...
When that happens, I think they reset the back-end mileage chart, and drop redemption pricing.
Jun 12, 2023, 5:03 pm
#441
Join Date: Jun 2015
Posts: 710
Exactly. The airlines are laser focused on cash generation. Awards tickets cost them cash. They would much rather entice someone to buy a slightly cheaper ticket or sign up for a credit card than incur the cost of an award ticket.
Jun 12, 2023, 5:52 pm
#442
Join Date: Jan 2018
Programs: UA LT GS | UA LT Club | Marriott LT Titanium
Posts: 1,250
MP and UA are separate entities, each with its own pile of debt to pay off.
UA gets cash when a passenger redeems a mileage ticket, while MP gets cash when a credit card company prints miles and has to pay them for those miles.
Fascinating thread (maybe UA bankruptcy thread) during covid discussed this topic for those wanting to learn more.
Jun 12, 2023, 6:19 pm
#444
Join Date: Oct 2009
Programs: UA 1K, Hilton ♦ , Hyatt Carbonado, Wyndham ♦, Marriott PE, "Stinking Bum" elsewhere.
Posts: 5,024
That's like building a desalinization plant because you're thirsty
Tick-tock, perishable inventory, need to move those seats fast...
Can reduce cash pricing or reduce mile pricing, and Kirby desperately needs cash right now to reduce debt, so it'll be miles.
BTW, not talking about recession.
Simply referring to pricing coming down on routes that are 100% overpriced right now. SFO-LHR, SFO-NRT, SFO-SIN, SFO-DEL, etc...
When that happens, I think they reset the back-end mileage chart, and drop redemption pricing.
Tick-tock, perishable inventory, need to move those seats fast...
Can reduce cash pricing or reduce mile pricing, and Kirby desperately needs cash right now to reduce debt, so it'll be miles.
BTW, not talking about recession.
Simply referring to pricing coming down on routes that are 100% overpriced right now. SFO-LHR, SFO-NRT, SFO-SIN, SFO-DEL, etc...
When that happens, I think they reset the back-end mileage chart, and drop redemption pricing.
In the medium term, UA has to make a profit or they will cease to exist. With nearly every cost increasing monthly, how can they decrease fares? Inflation is persistent, and you can't easily put the inflation genie back in the bottle.
Jun 12, 2023, 6:31 pm
#445
Join Date: Feb 2004
Location: CLE
Programs: UA GS+LT UC, AA EXP+LT PLT, Fairmont LT PLT, Marriott PLT, Hilton DIA, Hyatt Glob, Avis CHM
Posts: 4,683
Actually, the opposite. A mileage redemption results in MP paying United cash. Sounds weird, but it's true.
MP and UA are separate entities, each with its own pile of debt to pay off.
UA gets cash when a passenger redeems a mileage ticket, while MP gets cash when a credit card company prints miles and has to pay them for those miles.
Fascinating thread (maybe UA bankruptcy thread) during covid discussed this topic for those wanting to learn more.
MP and UA are separate entities, each with its own pile of debt to pay off.
UA gets cash when a passenger redeems a mileage ticket, while MP gets cash when a credit card company prints miles and has to pay them for those miles.
Fascinating thread (maybe UA bankruptcy thread) during covid discussed this topic for those wanting to learn more.
Jun 12, 2023, 6:33 pm
#446
Join Date: Jan 2018
Programs: UA LT GS | UA LT Club | Marriott LT Titanium
Posts: 1,250
1. Fuel is back down to pre-covid rates.
2. Labor is roughly the same as pre-covid. Slightly higher union contract, but offset by reduced FA staffing/flight negotiated during covid.
Inflation isn't materially impacting UA's cost structure.
So you're right, when fares come back down, UA can reduce prices instead of reducing mileage rates.
However, I think 'debt' is currently running the show at UA. Kirby is sitting on $30B+ in debt with interest rates rising.
I could see UA leveraging their legalized collusion relationships to keep cash fares high, but reduce mileage rates to fill seats.
We'll see...
Jun 12, 2023, 6:38 pm
#447
FlyerTalk Evangelist
Join Date: May 2007
Location: Houston
Programs: UA Plat, Marriott Gold
Posts: 12,704
Jun 12, 2023, 6:54 pm
#448
Join Date: Oct 2009
Programs: UA 1K, Hilton ♦ , Hyatt Carbonado, Wyndham ♦, Marriott PE, "Stinking Bum" elsewhere.
Posts: 5,024
That's the funny thing about airlines. The two largest cash expenses are labor and fuel.
1. Fuel is back down to pre-covid rates.
2. Labor is roughly the same as pre-covid. Slightly higher union contract, but offset by reduced FA staffing/flight negotiated during covid.
Inflation isn't materially impacting UA's cost structure.
So you're right, when fares come back down, UA can reduce prices instead of reducing mileage rates.
However, I think 'debt' is currently running the show at UA. Kirby is sitting on $30B+ in debt with interest rates rising.
I could see UA leveraging their legalized collusion relationships to keep cash fares high, but reduce mileage rates to fill seats.
We'll see...
1. Fuel is back down to pre-covid rates.
2. Labor is roughly the same as pre-covid. Slightly higher union contract, but offset by reduced FA staffing/flight negotiated during covid.
Inflation isn't materially impacting UA's cost structure.
So you're right, when fares come back down, UA can reduce prices instead of reducing mileage rates.
However, I think 'debt' is currently running the show at UA. Kirby is sitting on $30B+ in debt with interest rates rising.
I could see UA leveraging their legalized collusion relationships to keep cash fares high, but reduce mileage rates to fill seats.
We'll see...
Like I said, I would like to believe your scenario but I just don't see it. DL never retrenched once they devalued the Sky Pesos, why should UA be any different?
Jun 12, 2023, 6:57 pm
#449
Join Date: Jun 2015
Posts: 710
That works fine for credit card miles, but United isn't getting paid by anyone for miles accrued from actual flights. Presumably they accrue a liability for those. Reducing that liability is fine, but I still think they'd prefer cash from someone.
Jun 12, 2023, 7:11 pm
#450
Join Date: Oct 2009
Programs: UA 1K, Hilton ♦ , Hyatt Carbonado, Wyndham ♦, Marriott PE, "Stinking Bum" elsewhere.
Posts: 5,024
I'm not sure, but I would bet that UA accrues a liability to MP for every mile you earn flying. So, hypothetically, if you earned 10K miles, UA incurs a debt to MP of $100- by "buying" those miles for your benefit. When you redeem those miles, MP pays UA $100-, thereby cancelling the original debt created by your flying activity.
Last edited by zombietooth; Jun 12, 2023 at 7:16 pm