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UA Future Flight Credits for ex-employees

UA Future Flight Credits for ex-employees

Old Sep 6, 23, 4:21 pm
  #1  
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UA Future Flight Credits for ex-employees

As a small business owner, I purchase the tickets for employees. When the itinerary changes, sometimes they get a future flight credit.
But when they are no longer with the company the credit stays in their name, but under my Mileage Plus account.
UA claims they cannot transfer the credit back to me, the ticket purchaser.

I'm sure this amounts to millions of dollars in credits no one can use.
Is there anything we can do?

Last edited by pnirenberg; Sep 6, 23 at 5:27 pm Reason: Typo's - senior moment as well.
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Old Sep 6, 23, 4:36 pm
  #2  
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I'm not sure what leads you to believe United "wants to do" something differently than they're currently doing.

Buy refundable tickets if this is a considerable problem.
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Old Sep 6, 23, 4:44 pm
  #3  
 
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Originally Posted by pnirenberg
As a small business owner, I purchase the tickets for employees. When the itinerary changes, sometimes they get a future flight credit.
But when they are no longer with the company the credit stays in their name, but under my Mileage Plus account.
UA claims they cannot transfer the credit back to me, the ticket purchaser.

It seems like UA wants to do the "right thing" but they didn't think it all the way through.
I'm sure this amounts to millions of dollars in credits no one can use.
Is there anything we can do?
Sounds like a lovely parting gift for former employees then.

Hate to say it, but if it's in their name and going to expire, may as well send them the FFC code and wish them well. At least for employees leaving on good terms, anyway.
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Old Sep 6, 23, 6:23 pm
  #4  
 
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Originally Posted by pnirenberg
As a small business owner, I purchase the tickets for employees. When the itinerary changes, sometimes they get a future flight credit.
But when they are no longer with the company the credit stays in their name, but under my Mileage Plus account.
UA claims they cannot transfer the credit back to me, the ticket purchaser.

I'm sure this amounts to millions of dollars in credits no one can use.
Is there anything we can do?
It's a bit like investing in training, if the workplace climate is not motivation enough to stay then just like the ffc you need to look at it like a sunk cost and move on to the next new hire(s). If unused ffc by your ex employees is in the millions, how high is turnover?
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Old Sep 6, 23, 6:37 pm
  #5  
 
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How much are we talking about here?

Per my knowledge, most of our company's work tickets are not purchased until the trip has firmed, so the likelihood of a last minute cancellation is low. Also, most of our company's travelers usually have other (future) trips where they can utilize work related travel credits in the event there are any.

If we are talking about a few hundred dollars per employees, let it go and expense it (but only if the travel credit had been recorded as an asset previously). It's not worth pursuing the small amounts. Let the employee know at separation, and let them use it as they see fit post-employment.
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Old Sep 6, 23, 6:37 pm
  #6  
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Originally Posted by pnirenberg
As a small business owner, I purchase the tickets for employees. When the itinerary changes, sometimes they get a future flight credit.
...
This has always been true. Large corporations do negotiate the ability keep the ticket / credit.

Note this is true for personal tickets, many threads on folks that purchase tickets for other people and then the relationship turns bad.

This is why some business purchase refundable tickets
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Old Sep 6, 23, 7:54 pm
  #7  
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Millions of dollars w/ this problem? You must be a good customer for UA or you have an exceedingly high turnover. With a substantive corporate contract with UA you will be able to re-use these credits for others. I'd discuss it with your UA account manager
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Old Sep 6, 23, 9:05 pm
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Nowhere did the OP suggest it's costing his own company millions. I'm sure his comment encompassed all businesses in his situation.
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Old Sep 6, 23, 9:14 pm
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Originally Posted by pnirenberg
As a small business owner, I purchase the tickets for employees. When the itinerary changes, sometimes they get a future flight credit.
But when they are no longer with the company the credit stays in their name, but under my Mileage Plus account.
UA claims they cannot transfer the credit back to me, the ticket purchaser.

I'm sure this amounts to millions of dollars in credits no one can use.
Is there anything we can do?
In the UA world (and most other airlines) the Traveler > The Payer.... Which makes complete sense -- the contract is with the individual travelling -- not who paid for it.... As other have pointed put -- this is why companies purchase only refundable fares.... If as a business owner you have high turnover then I would suggest you do not purchase airline tickets so far in advance.....
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Old Sep 7, 23, 2:18 am
  #10  
 
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Originally Posted by pnirenberg
Is there anything we can do?
  • Purchase refundable fares,
  • work with a travel agency that can book non refundable fares that are "refundable for a fee",
  • have a large enough business account/contract with UA where the person managing the account can authorize those exceptions.
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Old Sep 7, 23, 5:17 am
  #11  
 
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It may not be as easy as "let the employee use the credit." See below one of my travel credits from a cancelled business trip, booked through my corporate travel agency. If I'm no longer working for the company, the corporate travel agency won't book a personal trip for me with what was originally company funds, and UA's response to the traveler trying to use the credit directly is "go back to the agency that booked the trip." I'm not an accountant, but I would guess that if they did let a departed employee use the credit, it would then be treated as additional compensation, requiring an updated W-2, etc. Easier to just write it off.

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Old Sep 7, 23, 6:16 am
  #12  
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Originally Posted by pnirenberg (Post # 1)
As a small business owner, I purchase the tickets for employees. When the itinerary changes, sometimes they get a future flight credit.
But when they are no longer with the company the credit stays in their name, but under my Mileage Plus account.
UA claims they cannot transfer the credit back to me, the ticket purchaser.

I'm sure this amounts to millions of dollars in credits no one can use.
Is there anything we can do?
Have the employees purchase their own tickets and you reimburse them.
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Old Sep 7, 23, 6:43 am
  #13  
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Originally Posted by tarheelnj
It may not be as easy as "let the employee use the credit." See below one of my travel credits from a cancelled business trip, booked through my corporate travel agency. If I'm no longer working for the company, the corporate travel agency won't book a personal trip for me with what was originally company funds, and UA's response to the traveler trying to use the credit directly is "go back to the agency that booked the trip." I'm not an accountant, but I would guess that if they did let a departed employee use the credit, it would then be treated as additional compensation, requiring an updated W-2, etc. Easier to just write it off.

No, UA can re-book these over the phone. I just did that a few weeks ago. Same as any agency ticket - UA can take that over. Of note ... still working for the same company and re-using it for a work trip
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Old Sep 7, 23, 6:59 am
  #14  
 
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Originally Posted by tarheelnj
It may not be as easy as "let the employee use the credit." See below one of my travel credits from a cancelled business trip, booked through my corporate travel agency. If I'm no longer working for the company, the corporate travel agency won't book a personal trip for me with what was originally company funds, and UA's response to the traveler trying to use the credit directly is "go back to the agency that booked the trip." I'm not an accountant, but I would guess that if they did let a departed employee use the credit, it would then be treated as additional compensation, requiring an updated W-2, etc. Easier to just write it off.

I have a similar situation -- while I book most of my own travel a pro-bono client has their corporate TA book my travel for work with them.

Had a +/-$900 domestic trip with them get canceled (I was hospitalized about a week before and my primary contact's mother passed and he had to return to his home country so we decided the trip didn't make sense). That credit has been sitting in my MP account labeled "business travel" with a "call your travel agent to use this" note..

On an upcoming INTL trip I thought I'd help them be a good steward of their funds by reminding them of the credit... TA said they found the credit club it could only be used fore purely domestic travel and this bought a new ticket with new money (curiously the fop is labeled 'check' on the eticket... )

As a result it seems they can't use the credit and I can't use the credit so it is money that just disappears in UA's favor.
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Old Sep 7, 23, 8:07 am
  #15  
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Originally Posted by lincolnjkc
On an upcoming INTL trip I thought I'd help them be a good steward of their funds by reminding them of the credit... TA said they found the credit club it could only be used fore purely domestic travel and this bought a new ticket with new money (curiously the fop is labeled 'check' on the eticket... )

As a result it seems they can't use the credit and I can't use the credit so it is money that just disappears in UA's favor.
Our corp TA couldn't even find mycredit (early Covid cancellation) ... UA was able to re-book it. I doubt there is a domestic restriction - I am sure the TA just made that up
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