Nicoolio

Just the overall focus on how valuable these programs can be - selling the dream.

GregoryGardner

What status is worth clearly depends on the passenger.

I think it is much more interesting to guess how much status costs United to provide. I suspect the answer to that is driving the recent pqp changes.

therossinator

Points and miles tend to be just like that to a lot of people. Matthew of Liveandletsfly made a timely post recently: "I’d fly for fun because I see it as an award in itself. The “itch” to fly and the anticipation of stepping onto an aircraft is an addictive aphrodisiac."

Lots of folks feel that way too but don't have the means to justify mileage runs or the expense account to fly luxuriously. TPG and other hobby media outlets capitalize on that and do a great job hyping it up and making status a coveted aspiration goal.

MSPeconomist

Even if you accept TPG's valuations, shouldn't the comparison point be the value of Plat minus the value of Gold as a suggestion of what one might wish to pay for the higher status?

canadiancow

So if you earn 1K from business travel, you owe taxes on that $10k right? Right?

I think it's worth $0

narvik

My valuation:

Silver: $5.00
Gold: $100.00
Platinum: $250.00
1K: $500.00

Not flying United at all: Priceless!

Howard

From my perspective, the most value comes from the GPUs (now PlusPoints). In 2019 we confirmed GPUs at booking for a round trip transatlantic flight for three passengers. We also had connecting transcontinental domestic segments that never cleared off the waitlist. I believe we could have bought cheap P fares at booking all the way through for about $1,000 extra per person per direction. If our GPUs had cleared all the way through, you could argue the GPUs would have been worth $6,000. Since the domestic segments never got upgraded, let's say the value was $4,000 instead of $6,000.

On the other hand, the GPUs were themselves a marketing program. We would never have taken an international trip if we didn't have the GPUs, so UA sold three round trip international W class tickets that they wouldn't have sold otherwise.

TomMM

Agree. Last week I booked a flight to ICN on DL and for some reason it didn't ticket. Had to call and was on hold for 30 minutes before an agent answered. First thing I thought of was how nice it would be to have status on DL... As a 1K I've never had to wait more than a minute to reach a phone agent.

jsloan

Not at the values they have listed.

No, you can’t, because there’s an absolute upper bound on the value of the PlusPoints: your valuation of the miles + copay required to secure the same award. With UA points rapidly depreciating, using one cent per mile for a banked UA award isn’t out of place. TATL, it’s 20K miles plus a $550 co-pay from W, or ~$750.. except that it’s also $550+20K from a K fare, so if you paid extra to get to a W fare, you have to subtract that fare difference from the value of the GPU.

This is definitely part of the value of the program to United. UA has successfully sold me more travel than I might otherwise have taken. I don’t consider that a cost, because I enjoy the travel and can accommodate it in my budget, but it’s something to keep in mind when trying to judge claims like “1K is worth $10,000.”

FlyingHighlander

A lot of people seem to be ignoring the usual disclaimer on these TPG articles:

zombietooth

Agree with this. $750- is the top end for 40 PlusPoints.
However, I've noticed on a lot of my TYO flights that there never seem to be any fares less than W, so is it possible that, for some routes, no K fares will ever be available?

Also, the CPU rate for me is nil, so the value for that category is highly inflated.

IAH-OIL-TRASH

I’m not sure I want to figure out what 1K is worth, but as a million miler, the value of it Is definitely enhanced if one can bestow a decent chunk of the benefits on another.

Aussienarelle

My profile somewhat. I do fly OALs but purchased enough to meet UA PQMs/PQDs

This is my profile. I am going to travel. The GPUs meant I was going to book United to use that benefit. Similarly this year for Plus Points.

I agree that providing GPUs/Plus Points costs United but I argue that those seats would have been unsold inventory (I used all my GPUs last year). I suspect United will not miss my spend (155,0000 PQM/$15,000 PQD). I see great deals on the FT Premium Deal thread so looking forward to my free agent spend going forward to make the most of my dollars.

Like others I valued my 1K status for the GPUs I could use but not sure that the value is the differential between my fate price and the Polaris fare.

mr8

PlusPoints: The RPU flexibility and 2xGPU on any fare adds like an extra $200ish value.

Award Tickets: Gotta deduct a couple hundred for the new "close in" fee that they charge for award tickets booked within 30 days.

CLEAR: The complimentary CLEAR membership is a nice gesture, but the CLEAR product is pretty worthless IMO.

Marriott: Gold is pretty useless. Would have been nice if they had granted 1K/GS members Plat status.

Overall, it's probably negative value compared to last year.

jsloan

Yes, it is common for there to be no fares available below W in some markets. In other markets, W is quite expensive and G/K fares are quite inexpensive. (I actually purchased and upgraded an R fare this summer because it was cheaper than W. If I’m in the same situation next summer, I’d be buying K or L and using 80 PlusPoints).