USAirways raises price to buy miles, now .035!

 
Old Oct 6, 2011, 1:25 pm
  #1  
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USAirways raises price to buy miles, now .035!

AlohaDaveKennedy mentioned this in the Hotel Stay thread of the GS subforum, but it bears repeating here. An unwelcome surprise for anyone waiting on that GS hit, or simply topping off an account. Now, it's $35 per 1000 DM (plus the 7.5% tax) to buy Dividend Miles!

Did I miss this news, or is this as surprising to others as it is to me?
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Old Oct 6, 2011, 1:33 pm
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What was the prior rate?
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Old Oct 6, 2011, 1:34 pm
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EDITED:
My mistake. I mixed up the price for sharing rather than buying. Corrected as follows:

For 1K miles, it was
$0.0275 per mile + 7.5% tax recovery fee = $29.56

It's now
$0.035 cents per mile + 7.5% tax recovery fee = $37.63.

Last edited by sc flier; Oct 6, 2011 at 1:50 pm
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Old Oct 6, 2011, 1:38 pm
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Originally Posted by sc flier
It's gotten cheaper for a small purchase because they dropped the $30 processing fee.

For 1K miles, it was
$0.01 per mile + 7.5% tax recovery fee + $30 processing fee = $40.75.

It's now
$0.035 cents per mile + 7.5% tax recovery fee = $37.63.

It's bad news if you were interested in buying larger quantities of miles.
That;s not correct, you mixed up buying and sharing.

Prior rate for 1K was

$27.50 + tax
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Old Oct 6, 2011, 1:41 pm
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Originally Posted by sc flier
It's gotten cheaper for a small purchase because they dropped the $30 processing fee.

For 1K miles, it was
$0.01 per mile + 7.5% tax recovery fee + $30 processing fee = $40.75.

It's now
$0.035 cents per mile + 7.5% tax recovery fee = $37.63.

It's bad news if you were interested in buying larger quantities of miles.
That's the share miles rate, right? I meant the rate to buy miles. It used to be, I think, $0.0275 (plus the 7.5%) so 1000 miles was a total of $29.56. Now that would be $37.62. An increase of a bit over 25%. Quite a price hike! Makes mileage runs more enticing at a lower threshold, I suppose.
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Old Oct 6, 2011, 1:43 pm
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Thumbs down

No - I paid $29.56 OTD before the increase! $37.63 is not cheaper than $29.56. Boooooo! Kill the Umpire! Foul Ball! Send Him to the Bleachers! We Want Our Money Back! You're Outta Here! Give 'em the Bum's Rush! Minor Leaguers! Whose Runnin' the Club - Jeff Smisek?

And the angry mob has taken to the field......its a riot sports fans!




Originally Posted by sc flier
It's gotten cheaper for a small purchase because they dropped the $30 processing fee.

For 1K miles, it was
$0.01 per mile + 7.5% tax recovery fee + $30 processing fee = $40.75.

It's now
$0.035 cents per mile + 7.5% tax recovery fee = $37.63.

It's bad news if you were interested in buying larger quantities of miles.
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Old Oct 6, 2011, 1:48 pm
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And the difference gets bigger the more miles you buy - 2K miles would be about 50% more expensive.

Jim
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Old Oct 6, 2011, 1:51 pm
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Some folks complained that US was selling cheap miles in a "desparate cash grab" and that *A partners wanted US out of *A because of it (which I never really believed).... now other folks complain that the price of miles has gone up....

It is rather unfortunate that the price of miles has gone up but US will probably continue to experiment with the promos and bonus offers, adjusting as the market will bear. Won't be surprised if the next 100% bonus offer doesn't go over too well and the offer after that has some extra sweetener thrown in.
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Old Oct 6, 2011, 1:55 pm
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I corrected my error. Sorry 'bout that mix up.

The price to buy 50K miles went up from $1478.13 to $1,881.25!
sc flier is offline  
Old Oct 6, 2011, 2:09 pm
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Hopefully they offer the share miles for 1 cent with a 100% bonus again.
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Old Oct 6, 2011, 3:43 pm
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I think they might be on to us.

The interesting thing is that it's now the same price as UA miles (though UA has an annual limit and doesn't run 2fers deals).
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Old Oct 6, 2011, 4:12 pm
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my lucky day?

I guess I got in just before the price increase, because I purchased 1000 miles at 10 a.m. this morning (PST) and was charged $27.50 + $2.06 handling for a total of charge of $29.56.

I just checked my email receipt (sent at 10:03 a.m.) to confirm it.
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Old Oct 6, 2011, 7:38 pm
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No - it is just poor sportsmanship by the USAirways team. They should forfeit the game. We should all declare a players strike until all our conditions are met. Oops, my bad - wrong sport.

Originally Posted by eponymous_coward
I think they might be on to us.
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Old Oct 6, 2011, 8:05 pm
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Originally Posted by sc flier
EDITED:
My mistake. I mixed up the price for sharing rather than buying. Corrected as follows:

For 1K miles, it was
$0.0275 per mile + 7.5% tax recovery fee = $29.56

It's now
$0.035 cents per mile + 7.5% tax recovery fee = $37.63.
By the new rates, assuming US does another 100% bonus at some point you would be looking at about $376 for 20K. If you are trying to decide whether it's worth it to push for extra hits at the top levels where each tier gets you 20K, that works out to around $94 per 5000 miles. So it may be worth it to do more car or hotel hits to push over the line.
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Old Oct 6, 2011, 9:04 pm
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I guess I need to just start using the miles I have... and not plan on buying any more. It will take me at least five really nice itineraries to use them up. I'll add where needed with future Grand Slams (if they continue). Hate it too, but what are you going to do? Storm the Bastille? (US headquarters?)
It just seems like all of the airlines are starting to align themselves in many ways like this. Just like the banks. C'est la vie!
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