May 1, 2021, 4:06 pm
Last edit by: WineCountryUA
This is an archive thread, the active thread is "Dynamic Award Pricing" by UA; questions, experiences, .... {Archive}
The details:
Award travel updates
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.
"Dynamic Award Pricing" by UA; questions, experiences, .... {Archive}
Apr 5, 2019, 8:28 pm
#586
Join Date: Feb 2015
Programs: united
Posts: 1,636
The close in fee exists to protect last-minute-fares-cost-more cash pricing.
When you just charge more miles for last minute fares to begin with it doesn't serve a function anymore. Just make the number of miles needed so exorbitant that only the cash fare is an option.
Far more effective than a close-in fee that still often isn't enough to stop cheap mileage redemptions relative to cash airfare.
When you just charge more miles for last minute fares to begin with it doesn't serve a function anymore. Just make the number of miles needed so exorbitant that only the cash fare is an option.
Far more effective than a close-in fee that still often isn't enough to stop cheap mileage redemptions relative to cash airfare.
Apr 5, 2019, 8:30 pm
#587
Suspended
Join Date: Oct 2004
Location: Bay Area
Programs: DL SM, UA MP.
Posts: 12,729
Dynamic pricing, in theory, balances supply/demand and makes waitlisting obsolete. A high-demand J seat that today goes for 70,000 miles and has a WL of 20+ can ostensibly be priced at 200,000 miles come November. Academically, I am curious how many takers there will be at that price.
There must have been enough Anytime award redemptions to make them believe they can pull this off and have awards with essentially no price ceilings.
Apr 5, 2019, 8:37 pm
#588
Join Date: Feb 2015
Programs: united
Posts: 1,636
I don't think they want you redeeming miles into J on a flight where they can sell that seat for $5 grand at all.
Apr 5, 2019, 8:57 pm
#589
Join Date: Oct 2007
Programs: Club Premier Platino, Aeroplan Prestige
Posts: 11
I always enjoy the responses that go something like "It's not fun being screwed by United but I understand why they are screwing me...." Frequent flyer programs create nasty cases of Stockholm Syndrome.
Apr 5, 2019, 8:57 pm
#590
Join Date: Oct 2001
Location: Somewhere...
Programs: AA PLT/3MM, UA GM/1MM, DL DM/1MM, FB Plat, AS MVP Gold, WN AList+
Posts: 1,588
Minor positive...DL has been sneaky on these issues for years because they knew it was a competitive disadvantage - and it is only because of other things that they offer in terms of better service that it has not affected their bottom line more. Still, I see a lot of things from them pushing those DL Amex cards which are becoming less and less attractive each year.I always felt that one reason UA has (not yet) gone down this road is that they knew they were far from out of the woods on Jeffie's issues.I guess they feel that they are getting closer to that point - but do not want to be sneaky considering some of their recent troubles in other directions. AA has already largely trashed their program, UA feels it can now as well. Maybe things will change with the next recession - maybe not - when all of sudden airplanes are not quite as full as they are now. But the bank rewards programs are getting more attractive and the Airlines cards are getting less attractive - even if you already fly a lot and buy airline tickets on them.
Apr 5, 2019, 9:00 pm
#591
Join Date: Jun 2010
Location: ROC/NYC/MSP/LAX/HKG/SIN
Posts: 3,212
I believe UA may or may not load a partner award chart for partner airlines. Bloggers seem to indicate it is currently unchanged for now.
Apr 5, 2019, 9:08 pm
#592
Join Date: Feb 2015
Programs: united
Posts: 1,636
But I do understand the business theory behind the decision. That's not a defense of UA; but it is reality.
Apr 5, 2019, 9:15 pm
#593
Join Date: Nov 2006
Location: BOS
Programs: UA 1K (2MM); AA LT Gold (1.9 MM); SQ; WN; DL; "Bonvoy Ambassador""
Posts: 398
Yes; it will be interesting to see how close in that decision to lower miles is made. I assume it will be just a few days or hours before the flight since it will be tempting for the airline to hold that seat for sale as long as possible (especially if in a premium cabin).
Last edited by WineCountryUA; Apr 5, 2019 at 9:55 pm Reason: merging consecutive posts by same member
Apr 5, 2019, 9:24 pm
#594
Join Date: Dec 2009
Location: USA
Posts: 1,153
Do a large percentage of people only take their "dream trip" if they can do it by redeeming miles?
Apr 5, 2019, 9:28 pm
#595
Join Date: Mar 2001
Location: New York / Hawaii
Programs: UA Global Services, HH Diamond
Posts: 5,178
Actually, I think the real intention is to deter customers from choosing flights where the tickets can be sold to paying customers at a big profit. Instead, most shoppers will look for routings and dates with lower point redemptions.
I don't think they want you redeeming miles into J on a flight where they can sell that seat for $5 grand at all.
I don't think they want you redeeming miles into J on a flight where they can sell that seat for $5 grand at all.
Apr 5, 2019, 9:29 pm
#596
FlyerTalk Evangelist
Join Date: Apr 2001
Location: NYC
Posts: 27,234
At the end of the day, DL is transitioning it’s award system to be more like B6 or WN. IME, most SkyMiles awards on DL metal get you value of around 1.3 cents per mile. Sometimes it will be more, and sometimes less, you just have to do the math. For domestic flights I don’t think this results in a huge change, but clearly the days of 5-10 cents per mile on international premium class rewards are coming to an end - because a ticket that prices at $5000 will now cost something like 385k miles r/t. In the past the award chart would price it at 125k or whatever Saver level, but that was rarely available unless you waitlisted, or you could pay the anytime price of 2-3x. If the fare is $2000 then it would be only 150k miles or so.
It’s definitely been a devaluation but I don’t consider it the end of the world (and I almost exclusively redeemed for international premium class).
I do think the big question is what happens to partner awards - with SkyMiles those offer much better value but are more difficult to find. And related, what happens to pricing on Int’l First Class partner awards (SkyMiles doesn’t offer these at all)? Those are often $10-20k tickets, and at 1.3c, that’s 750k-1.5mil miles which surely seems crazy.
It’s definitely been a devaluation but I don’t consider it the end of the world (and I almost exclusively redeemed for international premium class).
I do think the big question is what happens to partner awards - with SkyMiles those offer much better value but are more difficult to find. And related, what happens to pricing on Int’l First Class partner awards (SkyMiles doesn’t offer these at all)? Those are often $10-20k tickets, and at 1.3c, that’s 750k-1.5mil miles which surely seems crazy.
Apr 5, 2019, 9:35 pm
#597
Join Date: Feb 2015
Programs: united
Posts: 1,636
Instead of the customer logging in and cursing United: "they NEVER have any award space!", this way there is always award space to display. But they use pricing to achieve the same result.
Apr 5, 2019, 10:01 pm
#599
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,060
At the end of the day, DL is transitioning it’s award system to be more like B6 or WN. IME, most SkyMiles awards on DL metal get you value of around 1.3 cents per mile. Sometimes it will be more, and sometimes less, you just have to do the math. For domestic flights I don’t think this results in a huge change, but clearly the days of 5-10 cents per mile on international premium class rewards are coming to an end - because a ticket that prices at $5000 will now cost something like 385k miles r/t. In the past the award chart would price it at 125k or whatever Saver level, but that was rarely available unless you waitlisted, or you could pay the anytime price of 2-3x. If the fare is $2000 then it would be only 150k miles or so.
It’s definitely been a devaluation but I don’t consider it the end of the world (and I almost exclusively redeemed for international premium class).
I do think the big question is what happens to partner awards - with SkyMiles those offer much better value but are more difficult to find. And related, what happens to pricing on Int’l First Class partner awards (SkyMiles doesn’t offer these at all)? Those are often $10-20k tickets, and at 1.3c, that’s 750k-1.5mil miles which surely seems crazy.
It’s definitely been a devaluation but I don’t consider it the end of the world (and I almost exclusively redeemed for international premium class).
I do think the big question is what happens to partner awards - with SkyMiles those offer much better value but are more difficult to find. And related, what happens to pricing on Int’l First Class partner awards (SkyMiles doesn’t offer these at all)? Those are often $10-20k tickets, and at 1.3c, that’s 750k-1.5mil miles which surely seems crazy.
Last edited by xliioper; Apr 6, 2019 at 6:20 am
Apr 5, 2019, 10:12 pm
#600
Join Date: Mar 2018
Posts: 26
I live north of IAH, I can't bring myself to drive so far past the airport just to fly Southwest.