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New US policy: No more 500 mile minimum per segment

 
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Old Feb 14, 2008, 7:00 am
  #61  
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I must confess to not understanding the business logic of this move. FF programs are designed to create loyalty. This erases any incentive for folks with lots of short haul travel -- usually the most lucrative to the airlines in unit revenue -- to remain loyal. Might as well fly a "real" low cost carrier. Worse, it incentivizes folks to choose other ff programs. For example, unless UA changes its policy (doubtful in my mind, given the lack of business logic here), US frequent flyers will have incentive to switch to MileagePlus. And others, like Shuttle pax, may choose to switch to other airlines (like DL) completely.

The connecting pax is far less lucrative, but I think most US pax who connect to short haul flights ARE lucrative. US serves a lot of small cities (particularly in the East) which you can fly out of -- at a premium -- for the convenience of not driving to the big hubs. Why discourage folks from booking these higher revenue flights? They might just choose a nonstop on a low fare carrier from a major city.

The reality, of course, is that MOST of us will lose few miles out of this change. Heck, most of my frequent flyer miles these days come from credit cards (particularly the astonishingly lucrative sign-up promos). But the psychology here can influence choices. Heck, I'll be much more likely to use my mileageplus card for US travel.
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Old Feb 14, 2008, 7:05 am
  #62  
 
Join Date: Jan 2002
Location: Boston, MA, USA
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Thumbs down The last straw?

This may be the last straw; UA has been looking better and better for more than an year now.

I've been with US since 1995, elite almost annually; Gold the last half-dozen years. I can remember when, if there were first-class seats, I was usually in one.

In recent years I've weathered US/DM improvements like -
  • Elimination of TA upgrades (they were an unusual US perk, but welcome)
  • Removal of first-class seating (now fewer seats than other legacy carriers)
  • Degradation of the first-class product (not now competitive with [e.g.] UA, AA)
  • Reduction in Gold bonus miles (100% to 50%) (not now competitive)
  • Addition of many non-BIS flyers to Preferred status in 2006 (others have written about this extensively and well)
  • Fewer opportunities to earn bonus miles by, well, flying on planes
The result - far fewer opportunities to sit up front, and (often as not) a disappointing experience when I get the upgrade (pre-departure beverage? snack basket?)

In contrast, looking at UA's mid-level elite tier (Premier Executive), I see -
  • Access to E+ seating
  • Plentiful flying-based bonus offers
  • 100% Bonus miles
  • Fair, transparent access to North American upgrades
After weighing all the ^s and s, late in 2007 I decided to stay with US through 2008. Tipping the scale in US's favor has been the BofA card, with 10K tier miles with each annual $25K spend - that's put me over the top for Gold a few times (including in '07).

I understand BofA disappears in ~3/09; I think I may be long gone by then.
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Old Feb 14, 2008, 7:06 am
  #63  
 
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I reacted more negatively than usual to this one and emailed US to complain for the first time. It must be the continuous, progressive loss of value in their FF program and nickel and diming of its best customers that is driving me away. They've convinced me that it's only going to get worse.

In the short-term they will lose. Disgruntled DM members will be cashing in points for award travel like drunken sailors, before US imposes more cuts ("to offset rising fuel costs" --- please).

In the long term they will lose. High-yield customers will either move away entirely or split their business b/t 2 or 3 carriers. Short hauls on the airline you can earn status and points on, long-hauls on whomever has the cheapest price and best service.

Last edited by PittDoc; Feb 14, 2008 at 7:32 am
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Old Feb 14, 2008, 7:07 am
  #64  
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I wrote to [email protected] to complain. Hopefully if enough people speak up they'll back down.
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Old Feb 14, 2008, 7:11 am
  #65  
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Suddenly, I will consider hated SW for my frequent flights from PHX to LAX, since there are so many more than on US! Those extra miles were the tipping point for me. Sigh.
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Old Feb 14, 2008, 7:13 am
  #66  
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It is only 6am on the West Coast. I predict this thread will get over 5 pages today.

On a more serious note, I will be very interested to see the projections about how much revenue this is supposed to save (I assume that such projections will be forthcoming in the next 48 hours, since they will need to do something to justify the decision.)
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Old Feb 14, 2008, 7:15 am
  #67  
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Penny wise, pound foolish?
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Old Feb 14, 2008, 7:15 am
  #68  
 
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Quote by Mopper:"The reality is that airlines are for profit and they are perfectly entitled to do things that they feel wlll generate more profit. I suspect US weighed their options and felt that this move was superior to raising prices, charging more miles per award ticket, or other options. It certainly could be that US is taking a decision that will cost them more than it will save them (because of the plethora of reasons that I'm sure will be posted here within minutes), but accusing them victimizing customers is absurd. Free markets give you choices - they don't owe you anything."
Response:
The free market only exists when the Government doesn't interfere.
Our political leaders pick and choose who to help. If as a tax payer my money helps bail out an airline, then I should have a say in how it treats me.
We live in a socialized nation which pretends to be democratic. The socialism occurs behind the scenes so it looks like we have choice.

Last edited by Facedoc; Feb 14, 2008 at 7:19 am Reason: spelling
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Old Feb 14, 2008, 7:24 am
  #69  
 
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This is so stupid.

First the web booking bonus disappears, now this.

I need to get me over to CO or UA. I'd been sticking with US exclusively, at least as much as possible, but now I don't know.

This is enough to put me on a WN plane. (God, please don't make me do that).
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Old Feb 14, 2008, 7:27 am
  #70  
 
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Originally Posted by twa777
US may just be finding that they don't need to promote those shorter routes as much to fill their planes.
US had best understand that the reason they've been able to maintain market share in markets like ROA, LYH, CHO, ELM, ILM, GSO, CRW, AVL, CHS, MDT, etc, etc, etc is in a large way due to the momentum of so many long time frequent flier members.

Many of the high revenue folks left over the past few years, but there are still gazillions who carry the US FF card. Boneheaded moves like this are sure to push more away.

This may make sense for West, but on the East side, there are so many high cost, short haul routes that this feels like a slap in the face.
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Old Feb 14, 2008, 7:28 am
  #71  
 
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I will say this, much as it was said when they pulled the black Tuesday crap a couple of years ago:

The only thing they understand is revenue. Don't just write to executive.office or any of the individual executives. Fax or e-mail them copies of itineraries you purchased on other airlines. Continue that practice.

But you have to actually do it. Tempe is counting on the fact that FF miles and status are like liquid crack to some (and worse for others--see FT).

Get status matched and go. I have an upcoming trip where I refunded it (two turboprop/RJ segments of less than 500 miles) and bought a WN business select fare--why bother for 400 miles? That's what was scribbled on the receipt that's now in Tempe's hands (or whenever they get out of bed it will be).

Coming from me (since if they keep records from CCY they know that I only fly US when it's good for me to do so--which is usually not lucrative for them) it won't mean much. Coming from people who have never complained or rarely do, it'll mean a ton.

Show them in very concrete terms how much money is walking away.
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Old Feb 14, 2008, 7:29 am
  #72  
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Originally Posted by ClueByFour
I will say this, much as it was said when they pulled the black Tuesday crap a couple of years ago:

The only thing they understand is revenue. Don't just write to executive.office or any of the individual executives. Fax or e-mail them copies of itineraries you purchased on other airlines. Continue that practice.

But you have to actually do it. Tempe is counting on the fact that FF miles and status are like liquid crack to some (and worse for others--see FT).

Get status matched and go. I have an upcoming trip where I refunded it (two turboprop/RJ segments of less than 500 miles) and bought a WN business select fare--why bother for 400 miles? That's what was scribbled on the receipt that's now in Tempe's hands (or whenever they get out of bed it will be).

Coming from me (since if they keep records from CCY they know that I only fly US when it's good for me to do so--which is usually not lucrative for them) it won't mean much. Coming from people who have never complained or rarely do, it'll mean a ton.

Show them in very concrete terms how much money is walking away.
^ Smart.
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Old Feb 14, 2008, 7:31 am
  #73  
 
Join Date: Jan 2008
Programs: DL-PM/R, 1985 US
Posts: 301
Hey US!

I've been a FF with you since Piedmont.
This is the dumbest, most insulting move you all have made in some time.

I am lucky enough to have a choice when it comes to my short hop carriers.
My choices will not include US.

BYE
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Old Feb 14, 2008, 7:33 am
  #74  
 
Join Date: Nov 2000
Location: Atlanta, GA
Posts: 723
Last Straw - I'm done - Hello SW

I've been a loyal US flyer for almost 13 years. Living in Norfolk, VA US has been the predominant carrier for years. Avoid SW and others for as long as I can. My primary route is ORF-DCA, a short 150 or so miles, 28 mins in the air, the ulimate in convenience for my commute. Fares currently are $590. Insane but they know a captive audience when they see one. Well, as of today, they are wrong. SW files ORF-BWI a couple of times a day (more than US flys to DCA) for a 1/5 or less of the cost of the US trip. Sure I will have to catch a bus from BWI to the Amtrak and take a short train ride into DC but my travel buget will love. By my calculations I'l be able to make 5 trips via BWI for the cost of 1 DCA trip on US.

For many years I've been willing to pay this fare because it makes my life better and I've dreamed about accumulating points for a nice vacation. Having taken a few I've come to learn that capacity for DM awards is getting more difficult each time.

The added BS about a new fee for mileage awards redeemed within 2 weeks of travel is stupid. As a previous poster put it "it costs US no more to issue 2 months in advance then it does 2 days in advance". Especially if I use the website to do redeem.

It seems the Sales Prevention Department has added Staff at US and they are in full force.

What I can do is start using my United Mileage Plus to get full miles on my ORF-DCA flights when I must fly into DCA for schedule constraints and use SW when I have the time to fly into BWI.

US - I'm just done!

When I have time in the next day or two I'm sending a nice letter to all the folks in the senior ranks of US. Sure, they have the right to change their policy just as much as I have the right to fly a different airline. One that values short haul flyers, who by the way, contribute a significantly higher share of margin to the bottom line then long haul domestic flyers do.

By US, you've finally shown me your true colors. Hello UA and SW. You are my new airline providers.
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Old Feb 14, 2008, 7:38 am
  #75  
 
Join Date: Nov 2000
Location: Atlanta, GA
Posts: 723
Oh yeah, one more thing....

I just remembered I have not yet renewed my US Club Membership, which expires this month. Well, that's not happening now since I mostly fly to DCA and will be moving most of my flying to SW. So US, there goes $310 in new revenue.

Boy, those bean counters in Tempe are really smart. Nice way to have multiple impacts to the bottom line with one change in policy.
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