2011 Mileage Plus and OnePass elite program developments
#706
Join Date: Sep 2007
Location: Colorado
Programs: UA Gold 1MM, Marriott Gold
Posts: 1,158
So how much do you spend to be a 2P?
Also, how do you account for spend on *A partners? Because of that alone, you can't have tiers based on spending because that data won't be available. What you can do is base the model on EQMs that differ by fare class. And once you go down that path, you'll hear cries of devaluation.
Finally, CO insists that there be a 0P (75K EQMs based on this week's announcement, so you need a spending threshold for that).
Not so easy is it?
Also, how do you account for spend on *A partners? Because of that alone, you can't have tiers based on spending because that data won't be available. What you can do is base the model on EQMs that differ by fare class. And once you go down that path, you'll hear cries of devaluation.
Finally, CO insists that there be a 0P (75K EQMs based on this week's announcement, so you need a spending threshold for that).
Not so easy is it?
With regard to *A and partners... well, to draw a hard line, those flights would no longer count as we're talking $$ spent on a single airline for benefits on that airline. Yeah, that would suck for a lot of people but UA ultimately doesn't care how much money you spent on SQ or LX - they only care how much you spent on UA. If you want the benefits of 1K you should fly UA for them. I could be wrong but I don't think money spent on other carriers counts towards GS today so this would be no different.
#708
Join Date: Sep 2007
Location: Colorado
Programs: UA Gold 1MM, Marriott Gold
Posts: 1,158
No, just UA metal.
I respect your opinion on a lot of topics but your math is way off base here.
Most segment flyers spend a lot more per ticket for multiple connections because they have to rather than simply adding segments for the sole reason of achieving status. For example, I did DEN-ORD-PIA-ORD-MKE-DEN because I had to visit customers in both Peoria and Milwaukee the same day not because of a $69 fare sale. (IIRC that trip alone was close to $900).
My own example: 104K EQMs and 104 EQS - qualified on both miles and segments. Number of tickets bought in 2010 was 30 (only 1 international) which is an average of 3.47 segments/ticket. My average ticket price however was $550.
From what I gather in this thread: http://www.flyertalk.com/forum/unite...become-1k.html my total spend for the year looks to be right in the middle of the pack.
I did not go out of my way to tack on extra segments but I did add 2 PS transcons and a SYD trip which skews my EQM number higher than it normally should be. The PS flights were both sub-$300 and the SYD trip was a tware for $700. On a cost per mile basis, my trips are much higher than a discount flyer. I also think my travel pattern is fairly typical of the average business road-warrior type.
Most segment flyers spend a lot more per ticket for multiple connections because they have to rather than simply adding segments for the sole reason of achieving status. For example, I did DEN-ORD-PIA-ORD-MKE-DEN because I had to visit customers in both Peoria and Milwaukee the same day not because of a $69 fare sale. (IIRC that trip alone was close to $900).
My own example: 104K EQMs and 104 EQS - qualified on both miles and segments. Number of tickets bought in 2010 was 30 (only 1 international) which is an average of 3.47 segments/ticket. My average ticket price however was $550.
From what I gather in this thread: http://www.flyertalk.com/forum/unite...become-1k.html my total spend for the year looks to be right in the middle of the pack.
I did not go out of my way to tack on extra segments but I did add 2 PS transcons and a SYD trip which skews my EQM number higher than it normally should be. The PS flights were both sub-$300 and the SYD trip was a tware for $700. On a cost per mile basis, my trips are much higher than a discount flyer. I also think my travel pattern is fairly typical of the average business road-warrior type.
Last edited by iluv2fly; Nov 17, 2010 at 9:48 pm Reason: merge
#709




Join Date: Jan 2000
Location: SMF
Programs: UA 1K 2MM
Posts: 1,629
Excellent idea!!
Could be interesting to see whether Smisek's smiling face will get any reaction out of passengers when he does his recorded talk at the start of flights from now on. I tend to doubt it--FTers and similarly informed MP members are after all just a small slice of the passenger pie--but we'll see...
Lurker

PS: first time on FT in almost 11 years I have not signed off with a "
"
#710


Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,721
Not true. And never has been true. The only metric that counts is RASM. There is no way for the airlines to price their product differently based on passenger loyalty. It is all governed by tariffs. As far as they're concerned, passenger A and B are equal at time of ticketing. They do value loyalty but passenger loyalty is waning, price now is the most important decision factor for most passengers. As clearly shown by many comments above, people are willing to jump ship to AA because they "might" take away two CR-1s. I think what UA/CO have realized that you shell out all the benefits to people and they don't reciprocate. Loyalty is a 2 way street. But if you stay loyal, they are prepared to reward you.
You're insinuating that Joe Nobody got the seat ahead of an elite. That's not true of the process (as far as CO is concerned). Every Elite is accommodated FIRST before they offer an upsell to non Elites, as this is only offered at check in. Keep in mind this is different from the fare upsell to a higher fare class which qualifies for an automatic upgrade which can happen anytime prior to departure. Is it fair that they highlight that "if you only pay $150 more you can confirm in first?" Sure. If I paid a low fare and someone is willing to pay a higher revenue value and sit in first, tough on me.
Just not true.
You're insinuating that Joe Nobody got the seat ahead of an elite. That's not true of the process (as far as CO is concerned). Every Elite is accommodated FIRST before they offer an upsell to non Elites, as this is only offered at check in. Keep in mind this is different from the fare upsell to a higher fare class which qualifies for an automatic upgrade which can happen anytime prior to departure. Is it fair that they highlight that "if you only pay $150 more you can confirm in first?" Sure. If I paid a low fare and someone is willing to pay a higher revenue value and sit in first, tough on me.
Just not true.
And the only (2) metrics that count are RASM and CASM. A ticket issued does cost money. GDS fees, distribution costs, carrying costs, incremental fuel and labor.
#711




Join Date: May 2005
Programs: United 1K 3MM
Posts: 393
Here is the response to a letter I sent yesterday concerning the change in segments required and the number and how CR1s are earned from UA1P1KGS...
[I]Hello Mr 1KPath,
Were always glad to hear from 1K Three Million Miler members like you. Thanks for writing.
I'm sorry you're disappointed with how Regional Upgrades will be earned beginning in 2011. Wed like to reward members earlier in the same year that they have activity. Prior to making any changes to our program, we look at how it will impact all of our members.
Today, in order to earn two (2) Regional Upgrades, you first need to reach 100,000 elite status miles (EQM) and then fly 10,000 additional flight miles on United in a quarter. In 2011, you will automatically earn two (2) Regional Upgrades as soon as you reach 75,000 EQM or 90 EQS, and will earn two more at every 25,000 EQM or 30 EQS thereafter with unlimited earning potential. In addition, now all EQM/EQS you earn (not just flight miles on United), will count towards earning Regional Upgrades.
[I]Hello Mr 1KPath,
Were always glad to hear from 1K Three Million Miler members like you. Thanks for writing.
I'm sorry you're disappointed with how Regional Upgrades will be earned beginning in 2011. Wed like to reward members earlier in the same year that they have activity. Prior to making any changes to our program, we look at how it will impact all of our members.
Today, in order to earn two (2) Regional Upgrades, you first need to reach 100,000 elite status miles (EQM) and then fly 10,000 additional flight miles on United in a quarter. In 2011, you will automatically earn two (2) Regional Upgrades as soon as you reach 75,000 EQM or 90 EQS, and will earn two more at every 25,000 EQM or 30 EQS thereafter with unlimited earning potential. In addition, now all EQM/EQS you earn (not just flight miles on United), will count towards earning Regional Upgrades.
#712


Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,721
No, just UA metal.
I respect your opinion on a lot of topics but your math is way off base here.
Most segment flyers spend a lot more per ticket for multiple connections because they have to rather than simply adding segments for the sole reason of achieving status. For example, I did DEN-ORD-PIA-ORD-MKE-DEN because I had to visit customers in both Peoria and Milwaukee the same day not because of a $69 fare sale. (IIRC that trip alone was close to $900).
My own example: 104K EQMs and 104 EQS - qualified on both miles and segments. Number of tickets bought in 2010 was 30 (only 1 international) which is an average of 3.47 segments/ticket. My average ticket price however was $550.
I respect your opinion on a lot of topics but your math is way off base here.
Most segment flyers spend a lot more per ticket for multiple connections because they have to rather than simply adding segments for the sole reason of achieving status. For example, I did DEN-ORD-PIA-ORD-MKE-DEN because I had to visit customers in both Peoria and Milwaukee the same day not because of a $69 fare sale. (IIRC that trip alone was close to $900).
My own example: 104K EQMs and 104 EQS - qualified on both miles and segments. Number of tickets bought in 2010 was 30 (only 1 international) which is an average of 3.47 segments/ticket. My average ticket price however was $550.
On the good side, for those that need to fly more to hit status....just think, you will get 1MM faster and have more miles to burn, as well as get to hear me say "Thank you" 20% more times as I scan your BP!
Last edited by fastair; Nov 17, 2010 at 10:22 pm
#713


Join Date: Aug 1999
Location: Australia
Posts: 2,844
I am sorry but my head is spinning and I have lost count of whether anyone received confirmation that Million Milers will continue to receive 2 CR!s at the start of each year.
I have already forwarded on my concerns to the 1K email address but I imagine they are snowed under at the moment so do not expect a response soon.
I too worry what further enhancements are coming for us .
I have already forwarded on my concerns to the 1K email address but I imagine they are snowed under at the moment so do not expect a response soon.
I too worry what further enhancements are coming for us .
#714
Join Date: Sep 2007
Location: Colorado
Programs: UA Gold 1MM, Marriott Gold
Posts: 1,158
I understand your math...not a biggie that people don't understand mine...you all are reading into it too much...my math is kindergarden. If you spent $500 for each flight and qualified on segments at 100, but not on miles, then for you to qualify on segments with a 120 segment min, you would spend even more. About 300 posts ago, I was pointing out many examples where segments to very populated cities with LCC presence could be very cheap, while acknowledging that in many smaller markets (i.e. PIA) it can be very expensive. My recently posted math makes no comparison of the sort, only the exact same flying, but with 20 more segments is > the exact same flying with 100 segments. It represents a 20% increase in spend. In every single case, regardless of what cities, as long as the person needs to do the same thing 20% more times to get the same MP designation.
On the good side, for those that need to fly more to hit status....just think, you will get 1MM faster and have more miles to burn, as well as get to hear me say "Thank you" 20% more times as I scan your BP!
On the good side, for those that need to fly more to hit status....just think, you will get 1MM faster and have more miles to burn, as well as get to hear me say "Thank you" 20% more times as I scan your BP!

... And I'm supposed to be happy about this???
#715




Join Date: Jul 2009
Location: IAH
Programs: UA Gold
Posts: 363
1K Voice is NOT doing the math correctly! We now start to earn 2 CR1s each QUARTER with 10,000 BIS miles by qualifying for 1K flying in the PREVIOUS year. The new algorithm is that we do not start to earn any CR1s until 75,000 EQM for the CURRENT year, regardless of 1K qualification by flying in the PREVIOUS year.

Seems like there will be a lot of Q3 and Q4 expiration dates on CR1's as few people will earn any the first half of the year **not talking to you 200K+ earners out there
**
#716


Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,721
I fail to grasp your point though. UA now wants 20% more flights from me for the same status as someone who will spend 20% (or more) less $$. Under the new rules I am now less of an elite than someone who spends as little as $3000/year??
... And I'm supposed to be happy about this???
... And I'm supposed to be happy about this???

Last edited by fastair; Nov 17, 2010 at 10:48 pm
#717




Join Date: Mar 2007
Location: SJC/SFO
Programs: WN A+ CP, UA 1MM/*A Gold, Mar LT Tit, IHG Plat, HH Dia
Posts: 6,377
The much more practical way of taking revenue into account in awarding elite status is to offer fractional EQM and EQS on low-cost fare classes. Many other airlines do this already. For example UA could start offering 50% EQM and 0.5 EQS on S, T, K, and L fares. That'd really put a stop to people earning 1K for $4000. Of course, any such change would elicit howls of protest.
#718
Moderator: Luxury Hotels and FlyerTalk Evangelist


Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 18,252
Please, please understand that no major legacy carrier is run to benefit the customers, employees, OR shareholders. They exist for one and only one reason: to ensure that top management keeps getting those 8 figure salaries and bonuses, no matter what.
#719
Join Date: Sep 2007
Location: Colorado
Programs: UA Gold 1MM, Marriott Gold
Posts: 1,158
I think your perspective is a bit twisted. Why would UA's shareholders celebrate getting $3000 when they can have my $20,000 instead??
Are you seriously trying to argue that a steeply discounted 100K mile flyer is more valuable to UA than a full-fare 100 segment flyer? That is some contorted logic right there.
If this is UA's management philosophy then they don't deserve my business.
#720


Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,721
How well were United's shareholders treated when United went bankrupt? I have absolutely no doubt that United views bankruptcy as just another business strategy (mainly used to screw employees by invalidating labor contracts) and just doesn't care about the effect on shareholders.
Please, please understand that no major legacy carrier is run to benefit the customers, employees, OR shareholders. They exist for one and only one reason: to ensure that top management keeps getting those 8 figure salaries and bonuses, no matter what.
Please, please understand that no major legacy carrier is run to benefit the customers, employees, OR shareholders. They exist for one and only one reason: to ensure that top management keeps getting those 8 figure salaries and bonuses, no matter what.

I think your perspective is a bit twisted. Why would UA's shareholders celebrate getting $3000 when they can have my $20,000 instead??
Are you seriously trying to argue that a steeply discounted 100K mile flyer is more valuable to UA than a full-fare 100 segment flyer? That is some contorted logic right there.
If this is UA's management philosophy then they don't deserve my business.
Are you seriously trying to argue that a steeply discounted 100K mile flyer is more valuable to UA than a full-fare 100 segment flyer? That is some contorted logic right there.
If this is UA's management philosophy then they don't deserve my business.
Last edited by iluv2fly; Nov 18, 2010 at 10:25 am Reason: merge

