PQD requirement for foreign members, will it ever happen?
Feb 21, 2019, 9:36 pm
#31
Join Date: Jul 2008
Location: IAH, YYC
Programs: UA 1K
Posts: 752
As a Canadian based 1K, I hope this doesn't change. Obviously I'm biased, but the truth is that I literally go out of my way to stay loyal to United. Living in YYC, it would be far more convenient and quicker to fly TPAC via YVR, and TATL via YYZ (or even direct with WS). Both options have way more frequency and shorter overall flight times than the UA option, for example, if I misconnect at ORD, I'm waiting a minimum of 6 hours for the next flight, but at YYZ there is a flight every hour to get me home. However, I choose to stay loyal to United because I value the benefits that status confers. As a result, UA gets approx US$10k of spend per year from me that they wouldn't have otherwise.
A lot of FT members say "if UA made xxx change, I would leave and my spend would go to zero", but the reality is that US based fliers have limited options which suit their price and schedule, so UA can afford to impose a dollar requirement on them without sacrificing too much revenue (it may even be a net revenue driver for them). Also to the extent they alienate one of their elites, AA or DL are probably doing the same making it a net zero sum game. In contrast, I can say with certainty that if UA imposed a PQD limit on me, my spend with them would definitely go to zero, because I have no reason to transit via UA hubs when AC hubs are more convenient for me*.
My guess is for residents in other countries with less convenient UA connections than Canada, the choice to defect would be even more compelling if there was a PQD requirement. I'm sure in contrast to US elites, we are a pretty small part of the revenue mix, but we're almost like a windfall gain to UA due to the PQD waiver. Why would they want to give that up?
* Side note: For what it's worth, AC play the same strategy in their domestic market with AQD and extremely stingy PQM on lower fare classes, leaving Canadians with a choice of either suffering with an lackluster program for status, or defecting to one of the US big 3 like I did.
A lot of FT members say "if UA made xxx change, I would leave and my spend would go to zero", but the reality is that US based fliers have limited options which suit their price and schedule, so UA can afford to impose a dollar requirement on them without sacrificing too much revenue (it may even be a net revenue driver for them). Also to the extent they alienate one of their elites, AA or DL are probably doing the same making it a net zero sum game. In contrast, I can say with certainty that if UA imposed a PQD limit on me, my spend with them would definitely go to zero, because I have no reason to transit via UA hubs when AC hubs are more convenient for me*.
My guess is for residents in other countries with less convenient UA connections than Canada, the choice to defect would be even more compelling if there was a PQD requirement. I'm sure in contrast to US elites, we are a pretty small part of the revenue mix, but we're almost like a windfall gain to UA due to the PQD waiver. Why would they want to give that up?
* Side note: For what it's worth, AC play the same strategy in their domestic market with AQD and extremely stingy PQM on lower fare classes, leaving Canadians with a choice of either suffering with an lackluster program for status, or defecting to one of the US big 3 like I did.
Feb 21, 2019, 10:52 pm
#33
Join Date: Sep 2012
Location: SEA
Programs: UA MP (1K, 1MM)
Posts: 268
My guess is for residents in other countries with less convenient UA connections than Canada, the choice to defect would be even more compelling if there was a PQD requirement. I'm sure in contrast to US elites, we are a pretty small part of the revenue mix, but we're almost like a windfall gain to UA due to the PQD waiver. Why would they want to give that up?
I do feel a bit spoiled, however, as I was able to make 1K last year on < $10,000 spend :-) So maybe I just have to take some of the good with the bad.
Feb 21, 2019, 11:47 pm
#34
Join Date: Feb 2015
Location: SFO
Programs: UA 1MM 1K, BA Gold
Posts: 430
On AA you get EQDs on non-AA tickets as percentage of miles. For me, EQDs on non-AA flights has always have been higher (sometimes significantly) than what I paid for the tickets. So it's easy to meet the threshold if you are a foreign member. Same with Delta, but they play some games with AF/KL tickets where they issue it on Delta stock if you use a US credit card, so you get regular (spend-based) MQDs instead of higher, miles-based MQDs.
Note that a system like this makes it easier for US-based members to meet the spending requirement if they travel a bit internationally.
Note that a system like this makes it easier for US-based members to meet the spending requirement if they travel a bit internationally.
Feb 22, 2019, 7:08 am
#35
Join Date: Mar 2010
Programs: United 1K MM, Marriott Gold
Posts: 417
On AA you get EQDs on non-AA tickets as percentage of miles. For me, EQDs on non-AA flights has always have been higher (sometimes significantly) than what I paid for the tickets. So it's easy to meet the threshold if you are a foreign member. Same with Delta, but they play some games with AF/KL tickets where they issue it on Delta stock if you use a US credit card, so you get regular (spend-based) MQDs instead of higher, miles-based MQDs.
Note that a system like this makes it easier for US-based members to meet the spending requirement if they travel a bit internationally.
Note that a system like this makes it easier for US-based members to meet the spending requirement if they travel a bit internationally.
Feb 22, 2019, 9:32 am
#36
Join Date: Mar 2009
Location: DCA
Programs: UA 1K; *G and *A Top 1000; HHonors Diamond; *$ Gold; Global Entry
Posts: 2,269
United would have to come up with a way of awarding PQDs like Delta does for tickets issued on Partner stock operated by partner airlines.
I didn’t meet the $12k PQD threshold for 1K last year but did fly quite a bit on Lufthansa and SWISS flights/tickets so I don’t feel too bad about it.
I didn’t meet the $12k PQD threshold for 1K last year but did fly quite a bit on Lufthansa and SWISS flights/tickets so I don’t feel too bad about it.
Feb 22, 2019, 9:46 am
#37
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
I believe there should be one, across the board, policy regarding the attaining of status. While I understand those living outside the US love that there is not a PQD threshold I believe a standard threshold maintains the integrity of the program. Just my opinion.
Feb 22, 2019, 10:05 am
#38
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,015
This is no longer true for DL (and hasn't been true for over a year now). As of January 1, 2018, DL MQD earn is now purely based on marketing carrier and ticketing carrier has no bearing. So if you buy a AF or KL marketed flight on an 006 ticket, it will now earn miles/MQD's based on mileage using the partner charts. MQD/mileage earn will be based on spend only if the AF/KL flight is DL marketed.
Feb 22, 2019, 10:31 am
#39
FlyerTalk Evangelist
Join Date: Oct 2006
Location: SFO/SJC
Programs: UA Silver, Marriott Gold, Hilton Gold
Posts: 14,878
I could see see an argument where if they devise a way for PQD to happen when flying on partners, that PQD is required no matter where you live. But until then, I’m guessing the calculation from those who have access to the numbers is that it would cause UA to lose too much business.
example, when I was an expat in India, and when PQD and dollar-based earning first started, there would have been zero incentive for me to use MP or UA on my trips back home to US and Canada when as much or more of my travel was within India and Asia and therefore impossible to do on UA. In that case, it would make more sense for me to use one of or some
combo of LH/TK/SQ/AC (etc.) when there would be no possibility of earning UA status. Also, probably would have been much easier to do my Asia travel on non *A, where instead, I typically used SQ and TG almost exclusively. The PQD waiver kept me on UA when possible. Alternatively, needing to meet PQD with a reasonable PQD rate on partners would have done the same.
Feb 22, 2019, 10:42 am
#40
Join Date: Oct 2015
Location: SAN
Programs: 1K (since 2008), *G (since 1990), 1MM
Posts: 3,214
I think it would be a very interesting statistic in 2020 of percentage of non-US based 1K members. Not that we (the general public) will be told but the higher PQD requirement only hurts domestic 1K members. Will not change their miles flown just their airline of choice as most 1K members from 2019 will have the CC waiver for Platinum (akin to PQD waiver).
I could be wrong but I suspect UA is going to see a significant increase in percentage of non-US based 1K members.
I could be wrong but I suspect UA is going to see a significant increase in percentage of non-US based 1K members.
Feb 22, 2019, 10:44 am
#41
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,353
It's a marketing program, for heaven's sake. Why on earth should I, as a customer, care about its "integrity"? I care about getting the best benefit for the least cost, and I detest the PQD system because it is a direct impediment to my doing that.
Besides, the fact that UA is willing to waive the PQD rules based on credit-card spending already means that the program's integrity has been tarnished.
What makes you think that "most" 2019 1K members will have the CC waiver? $25K in spending on a United-branded card is quite a bit for what you get. I have an Explorer card, but I have no desire to shift that much spending from a card with better benefits just to get a PQD waiver.
Feb 22, 2019, 10:57 am
#42
Join Date: Aug 2015
Location: WAS/TYO
Programs: AA PPro, TP Gold, UA Silver, Bonvoy/Hilton Gold, Global Entry
Posts: 296
See, everyone's happy!
In all seriousness though, IMO sticking with UA is a harder and more inconvenient decision for overseas members than it is for domestic members. So I feel only slightly guilty that I hit 1K with $3000 PQD.
Feb 22, 2019, 12:23 pm
#43
Join Date: Mar 2010
Location: PIT
Programs: OZ Diamond, UA Gold
Posts: 9,902
Feb 22, 2019, 12:56 pm
#44
Join Date: May 2009
Location: Washington, DC
Programs: UA 1K 1MM, AA, DL
Posts: 7,417
I think it would be a very interesting statistic in 2020 of percentage of non-US based 1K members. Not that we (the general public) will be told but the higher PQD requirement only hurts domestic 1K members. Will not change their miles flown just their airline of choice as most 1K members from 2019 will have the CC waiver for Platinum (akin to PQD waiver).
I could be wrong but I suspect UA is going to see a significant increase in percentage of non-US based 1K members.
I could be wrong but I suspect UA is going to see a significant increase in percentage of non-US based 1K members.
Feb 22, 2019, 1:12 pm
#45
Join Date: Oct 2015
Location: SAN
Programs: 1K (since 2008), *G (since 1990), 1MM
Posts: 3,214
I do agree with your proposition as it relates to domestic travel (which is not my concern as my domestic travel is quite limited and generally short hops and I travel South West as often as I fly United for domestic travel).
