2011 Mileage Plus and OnePass elite program developments
#616




Join Date: Jul 2005
Location: SAN
Programs: UA 1MM/1K, HH Diamond
Posts: 7,297
Honestly, this has to be one of the easiest calculations for UA to make. I think simply by the fact that they made this change, it's easy to conclude that segment qualifiers generate less cash on balance. The total average revenue of those at 100 segments is simply less than the total average revenue of those at 100,000 miles, probably considerably so. If it weren't, this change wouldn't have been considered.
I certainly understand folks being upset if in that range, but arguing the math here seems to be searching for outlying examples to disprove a very simple calculation that's already been made based on actual figures. And of course, there will always be some examples of high revenue segment flyers who are dinged here - unfortunately, no system can possibly be perfect.
I certainly understand folks being upset if in that range, but arguing the math here seems to be searching for outlying examples to disprove a very simple calculation that's already been made based on actual figures. And of course, there will always be some examples of high revenue segment flyers who are dinged here - unfortunately, no system can possibly be perfect.
#617


Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,721
Sarcasm aside, what makes it worse to collect $79 from a GM than giving it away for free to someone who maybe achieved 2P for flying one rt every 2 months on a 3 segment leg? (I realize that I am arguing indirectly against me, an employee getting it as the $79 dude would get it before me, for my loyalty, but cash is king.) $79 today is money in the bank. Give away a product when people are willing to pay for it? Let it go unused when people are willing to pay for it?
Maybe UDU should be eliminated, and all of status should again get a limited number of coupons, thus putting a value on the product again.
By the way, I think that $79 price point was too low, they could have made more my selling it segment by segment at the gate, provided Y wasn't empty and there were enough people on the flight that might have considered it. It is was empty in Y, then $79 is $79 more than they would have gotten.
Last edited by fastair; Nov 17, 2010 at 11:23 am
#618
Join Date: Feb 2010
Location: MLB, SMF, and many points in between
Programs: Back to UA with a bit of Hyatt and some Marriott
Posts: 3,476
What they can do is continue to tier out benefits so they reward higher-and-higher value customers. That's what this is. Instead of 8-and-done CR1s, now you have effectively unlimited, for your higher-value customers. But folks who fly exactly 1k get the shaft to make it balance out.
The SWU change for CO flyers is the same, in reverse. Instead of 4 usable on all fare classes, now there are effectively unlimited (if you fly enough) but only on higher classes. Again, no problem for guys who are flying all over the world on Y/B fares, but it comes at the expense of folks who buy dirt cheap international economy fares and want to upgrade.
This is probably the wave of the future in FF programs...more benefits for the truly high-value flyer at the expense of what we might call "marginal elites."
I guess to CO/UA I'm one of those "marginal elites" since I'm a high-frequency rather than high-mileage flyer and while I fly a variety of fares, they're only occasionally full Y. Some years I exceed 120 EQS; others I finish up between 100 and 120. Rarely do I hit 100 EQM.
I'd like to stay with UACO, but I need to figure out if I'm willing to buy 5-20 segments a year or if I'd prefer to switch to a carrier with whom the 100+ I already fly a year will get me top tier.
#619


Join Date: Nov 2007
Location: Colorado
Programs: UA Gold (.85 MM), HH Diamond, SPG Platinum (LT Gold), Hertz PC, National EE
Posts: 6,516
So chime in Bill and tell the FT community what you heard this morning!
#620
A FlyerTalk Posting Legend




Join Date: Aug 2003
Programs: UA 1K 1MM (finally!), IHG AMB-Spire, HH Diamond
Posts: 62,526
I'm sorry, but now that UDU exist, aren't CR1's becoming useless?
Obviously I don't fly too many domestic itins yearly so I can "afford" to be "reckless" with them.
#621
Moderator: Luxury Hotels and FlyerTalk Evangelist


Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 18,252
#622


Join Date: Nov 2007
Location: Colorado
Programs: UA Gold (.85 MM), HH Diamond, SPG Platinum (LT Gold), Hertz PC, National EE
Posts: 6,516
CR1's were used this year when my wife was with me, for DEN-ANC and back, as well as OGG. While the UDU's may have worked out for both of us, I prefer to not "wait and see" when the wife is with me.
#623
A FlyerTalk Posting Legend




Join Date: Aug 2003
Programs: UA 1K 1MM (finally!), IHG AMB-Spire, HH Diamond
Posts: 62,526

But next year, it will be more difficult due to lack of accrual of instruments until hitting 75K EQM.
#624




Join Date: Aug 2006
Location: US
Programs: AA/UA/DL
Posts: 2,821
1. p.s. flight.
2. If there were a space, you can confirm right after purchasing the ticket.
3. If UDU/companion upgrade goes to CO way, CR-1 is a good tool for your
companion.
CO abandon companion upgrade requires you to abandon your companion (lower elite or non elite) first unless you want to get lower upgrade priority.
CR-1 may be used on the one who is abandoned to upgrade (maybe) ahead.
Even before you fight with those non elite who pays 69 USD and sit in F.
You don't feel it's important it's because you have never had CR-1 and you don't know how good it is.
CO dose train their elites well.
Last edited by pigx5; Nov 17, 2010 at 11:27 am
#625
Join Date: Feb 2008
Location: ORD
Programs: Newly minted AA EXP Plat., disatisfied UA 1K, Marriott Silver & Hilton Gold
Posts: 704
Roughly 20 of my short segments, this year, were over $1/mile, because they were booked short notice. Another 30 were at least 50 cents a mile. And the next 20 were well above Mileage Run levels (well in excess of .04/mile). Yes this year I picked up probably 30 cheap United segments. But hey they set the price not me. And they did quite well on at lest 40 flights. I think there are a lot of road warriors like me who are looking for an airline that appreciates our annual travel spend and wants to be our partner. I wish United could step up to the table.
#626
FlyerTalk Evangelist




Join Date: Feb 2002
Location: San Francisco/Tel Aviv/YYZ
Programs: CO 1K-MM
Posts: 10,859
it's easy to conclude that segment qualifiers generate less cash on balance.
It probably has more to do with the 4-mileage based tiers than anything else. If CO has 30-60-90 (25k/50/75) and then you have 100k or 100 segs, there isn't much of a leap from 90 to 100 segs, but 120 makes more sense in that scheme. That's all it is, I wouldn't read too much more into it. If UA keeps Plat with its current benefit structure, then there's not much difference between plat and 1K aside from SWU, which someone flying little UX segments won't benefit from much anyways.
#627




Join Date: Jun 2007
Location: YVR SFO
Programs: UA G
Posts: 4,868
My speculation is that since most of the shorter segments are UX (and therefore operated by companies that UA subcontracts to), that the profit margins for UA are much smaller on these flights.
Again, I speculate, but from UA's perspective - Somebody who flies a lot of segments, mostly on UX, does not add much to the bottom line of UA. And UA is then obligated to give them all the benefits of 1K for very little revenue / profit. So in order to balance the equation, they increase EQS to 120 to achieve 1K.
I wonder whether many / most segment runners wouldn't be better off on WN? My coworker, based in SAN, flies more miles and segments than I do. 100% domestically, to many locations large and small around the country. He swears by WN - he's always A and boards first, rewards are easy to earn and the system is straightforward, but most importantly to him the rewards are EASY to redeem for any flights he wants to take in the US! His international travel for pleasure is almost nonexistent, so he just buys tickets when he actually does fly international.
As of May 23, 2010, Southwest Airlines operates scheduled service to 69 destinations in 35 states. And I don't think this includes new destinations previously served by AirTrans. AirTran Airways serves more than 70 destinations throughout the United States, Mexico and the Caribbean
United Airlines flies to 73 domestic destinations
Again, I speculate, but from UA's perspective - Somebody who flies a lot of segments, mostly on UX, does not add much to the bottom line of UA. And UA is then obligated to give them all the benefits of 1K for very little revenue / profit. So in order to balance the equation, they increase EQS to 120 to achieve 1K.
I wonder whether many / most segment runners wouldn't be better off on WN? My coworker, based in SAN, flies more miles and segments than I do. 100% domestically, to many locations large and small around the country. He swears by WN - he's always A and boards first, rewards are easy to earn and the system is straightforward, but most importantly to him the rewards are EASY to redeem for any flights he wants to take in the US! His international travel for pleasure is almost nonexistent, so he just buys tickets when he actually does fly international.
As of May 23, 2010, Southwest Airlines operates scheduled service to 69 destinations in 35 states. And I don't think this includes new destinations previously served by AirTrans. AirTran Airways serves more than 70 destinations throughout the United States, Mexico and the Caribbean
United Airlines flies to 73 domestic destinations
Nothing like showing up to SJC 20 minutes prior to departure for security and still making it on the plane in your A20 position. ^
#628
A FlyerTalk Posting Legend




Join Date: Aug 2003
Programs: UA 1K 1MM (finally!), IHG AMB-Spire, HH Diamond
Posts: 62,526
Roughly 20 of my short segments, this year, were over $1/mile, because they were booked short notice. Another 30 were at least 50 cents a mile. And the next 20 were well above Mileage Run levels (well in excess of .04/mile). Yes this year I picked up probably 30 cheap United segments. But hey they set the price not me. And they did quite well on at lest 40 flights. I think there are a lot of road warriors like me who are looking for an airline that appreciates our annual travel spend and wants to be our partner. I wish United could step up to the table.
These changes, and future changes all hinge on an inherent mistrust of the customer - that is the real CO influence shining through.
They are like Best Buy, who admitted they viewed some of their customer base as devils and others as angels.
#630




Join Date: Aug 2006
Location: Vancouver, BC
Programs: UA MM *Gold, Accor Classic
Posts: 1,923
I have decided to go to AC, have 700,000 miles with UA and will use them up but will go to AC, do 35,000 miles or perhaps a little more, be an Elite, be happy with what I get and forget about all the nonsense and worry with UA. After so many years with UA, it's time to say good bye.

