UA dramatically increases mileage redemptions for merchandize / gift cards
Apr 7, 2020, 1:27 pm
#16
Join Date: Oct 2004
Location: PHX
Programs: AA EXP
Posts: 1,461
Yikes, they're really killing the value of miles for merchandise. I've been contemplating grabbing a couple of apple items. Last week the rate was around $0.0075 / mile and it was like that through the weekend. Yesterday it dropped to $0.0060 / mile and today it dropped again to $0.0040!!
Of course this makes me want to dump my miles even more.
Of course this makes me want to dump my miles even more.
Apr 7, 2020, 3:24 pm
#17
FlyerTalk Evangelist
Join Date: May 2006
Location: SEA or BGR, Lower Earth Orbit
Programs: UA 1K
Posts: 17,217
It looks like they increased the redemption rates for Apple products again. Assuming they are seeing people cashing in or they would not be upping the rates.
I ordered 512GB Mac mini 2 weeks ago... it was 146,600 miles (before tax) today that same model is 275,800 miles (before tax) paying cash it costs $1,099 (before tax).
Yes the rate for miles use was bad using the traditional value, but for me it was reducing exposure, I have seen the value of my miles decrease year on year.... I have plenty of CSR points if I need to increase my UA MP balance. I redeemed about 276,800 of my UA miles for 2 iPads and a Mac mini (maybe 1/3 of my balance), in contrast my last miles redemption was 265,000 for a J EWR-BLR-EWR, so vs that it does not feel like a bad value.
I ordered 512GB Mac mini 2 weeks ago... it was 146,600 miles (before tax) today that same model is 275,800 miles (before tax) paying cash it costs $1,099 (before tax).
Yes the rate for miles use was bad using the traditional value, but for me it was reducing exposure, I have seen the value of my miles decrease year on year.... I have plenty of CSR points if I need to increase my UA MP balance. I redeemed about 276,800 of my UA miles for 2 iPads and a Mac mini (maybe 1/3 of my balance), in contrast my last miles redemption was 265,000 for a J EWR-BLR-EWR, so vs that it does not feel like a bad value.
Apr 8, 2020, 8:30 am
#19
Join Date: Jul 2013
Location: SJC
Programs: Southwest, Alaska, United, American Airlines
Posts: 994
Right, and it's guaranteed to become an even worse deal as United essentially pays "hard dollars" for those redemptions. And anything involving hard dollars will be frustrated by UA (and every major airline) to the maximum extent possible.
Apr 8, 2020, 10:53 am
#20
FlyerTalk Evangelist
Join Date: May 2008
Location: San Francisco
Programs: GM on VX, UA, AA, HA, AS, SY; Budget Fastbreak
Posts: 27,612
that said, when I flew and earned miles, I always used them before or had plans to use them. I still get miles via Chase. I would be willing to swap some miles for an amazon Or grocery gift card since I still buy stuff for food. I’m hardly buying anything else simply because I don’t need much at this point.
i recently used open table points for a shopping gift card at 50% discount. May as well as get something useful NOW instead of planning to dine out anywhere in the future.
Apr 20, 2020, 11:30 pm
#22
FlyerTalk Evangelist
Join Date: Feb 2007
Location: Los Angeles / Basel
Programs: UA 1K MM, AA EXP, Hyatt Globalist
Posts: 26,927
Apr 20, 2020, 11:43 pm
#23
Join Date: Nov 2007
Location: Colorado
Programs: UA Gold (.85 MM), HH Diamond, SPG Platinum (LT Gold), Hertz PC, National EE
Posts: 5,656
Wished I had went beyond simply buying a watch two weekends ago and dumped all my miles that day. Merchandise and flights are horribly over priced now.
it would be like doubling gas prices when oil is in negative territory right now.
it would be like doubling gas prices when oil is in negative territory right now.
Apr 21, 2020, 7:06 am
#25
Join Date: Jun 2010
Location: Florida
Programs: United 1K, Marriott Ambassador, Hilton Gold
Posts: 673
While not directly relevant, there is also a large banner every time I search for an award flight reminding me that "miles never expire" and that I could book the ticket with cash for the "low price of $6XXX" 
(was looking at a one way award from SYD-MCO). Clearly fits with the theme that they are doing everything they can to discourage mileage redemption. I understand their pain given the current situation and that they need cash but seems more than a bit unfair (with regards to the gift cards/merchandise).
(was looking at a one way award from SYD-MCO). Clearly fits with the theme that they are doing everything they can to discourage mileage redemption. I understand their pain given the current situation and that they need cash but seems more than a bit unfair (with regards to the gift cards/merchandise).
Apr 21, 2020, 11:47 am
#26
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Cash is king. Neither UA nor any carrier can think of is looking for ways to spend cash in order to get miles off its books. Made no sense pre-bailout and now, even less.
Merchandise & cards are even worse than ticket redemptions.
Merchandise & cards are even worse than ticket redemptions.
Apr 21, 2020, 3:47 pm
#27
Join Date: Nov 2010
Location: IAH & CMH
Programs: UA GS, UA MM, Marriott Ambassador, Hilton Diamond, Uber Platinum :)
Posts: 773
I had a merchandise order that was lost in transit... called today (before realizing the price doubling). The ‘helpful’ agent cancelled my order and put the miles back in my account. Lovely.
Conserve cash but giving me less incentive to spend on future United flights... chapter 7 here they come...
Conserve cash but giving me less incentive to spend on future United flights... chapter 7 here they come...
Apr 21, 2020, 8:48 pm
#28
A FlyerTalk Posting Legend
Join Date: Sep 2002
Location: LAX/TPE
Programs: United 1K, JAL Sapphire, SPG Lifetime Platinum, National Executive Elite, Hertz PC, Avis PC
Posts: 42,209
"Hey look Charlotte, we can cash in those United miles and get a free gas BBQ from Home Depot, it's not like we'll be travelin' anytime soon!"
I guess one man's scam is another man's opportunity.
Apr 22, 2020, 2:21 am
#29
Join Date: Jan 2013
Location: Delaware
Programs: UA Mileage Plus, Amtrak Guest Rewards
Posts: 1,393
Well, they are charging the same miles for $500 in merchandise vs a Polaris round trip to Asia with a retail value of ~~~$5,000. To me, it looks like a deliberate attempt to get miles off their liabilities at a substantial cost advantage for United by screwing over the ill-informed who can't calculate and compare the value of miles.
"Hey look Charlotte, we can cash in those United miles and get a free gas BBQ from Home Depot, it's not like we'll be travelin' anytime soon!"
"Hey look Charlotte, we can cash in those United miles and get a free gas BBQ from Home Depot, it's not like we'll be travelin' anytime soon!"
While not directly relevant, there is also a large banner every time I search for an award flight reminding me that "miles never expire" and that I could book the ticket with cash for the "low price of $6XXX" (was looking at a one way award from SYD-MCO). Clearly fits with the theme that they are doing everything they can to discourage mileage redemption.
(was looking at a one way award from SYD-MCO). Clearly fits with the theme that they are doing everything they can to discourage mileage redemption.Would be even more unfair to see them go belly up. If I have a choice of using my miles tomorrow or not at all, I'll definitely pick tomorrow.
Apr 22, 2020, 10:44 am
#30
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,412
I was originally thinking that they should use the opportuntiy of empty planes to get people to burn their miles with low marginal costs, but then I realized that concept would definitely cost them some cash. After all, they won't have to worry about the liabilities at all if they go completely belly up.
From a business perspective, it makes sense. From a customer loyalty perspective, it'd probably build them some goodwill to offer a few discounts on future award travel, yes.