United MileagePlus Abolishes Award Charts

United will be making some massive changes to their MileagePlus frequent flyer program. They haven’t formally announced these changes, but rather have just talked to some bloggers. Since they didn’t contact me, I’ll just go off what other bloggers have shared.

These changes are awful.

United isn’t just following Delta’s lead when it comes to their frequent flyer program, but in many ways is surpassing them when it comes to lack of transparency and dynamic award pricing.

I mean, I think their intentions are pretty clear, based on the fact that they lifted the embargo on this news on a Friday afternoon, which is when you announce things that you know are objectively negative.

What MileagePlus is changing

A few weeks ago there was some buzz around MileagePlus pricing domestic economy awards at a much lower rate than was reflected in the United Award chart. At the time I noted:

Personally I’m much more concerned about the overall trend we’re seeing from United MileagePlus as they move towards dynamic award pricing.

We’re seeing more variability than ever before when it comes to United’s award pricing, and I don’t consider that to be a good thing, especially for those of us looking to get outsized value from our miles.

And that seems to in fact be the case. For travel starting November 15, 2019:

  • MileagePlus redemption rates on United will be dynamic, and there will no longer be a minimum or maximum price for awards
  • United isn’t immediately adjusting redemption costs on partner airlines, but they’re also not publishing a partner award chart anymore, so I expect we’ll see those change over time

United says that these changes are being made to better “match award pricing to customer demand.” Of course in reality this means a lot more customers will be paying a lot more miles for a lot more travel. Airlines make these changes because they’ll come out ahead, not because members come out ahead.

The only good news is that United is eliminating close-in award ticketing fees as of that date. That’s not surprising, though, given that the program is now revenue based, so you’ll be charged based on how much a ticket costs.

My initial take on this news

Based on my initial check of United award pricing, it seems to me like prices largely aren’t changing that radically overnight between November 14 and November 15. However, I imagine that’s intentional, because they don’t want the changes to seem too radical at first.

I imagine over time the changes will get significantly worse, since there will be no transparency here, and soon enough we’ll see MileagePlus award tickets that cost a million miles, like we see with SkyMiles.

Lastly, it’s worth explaining that there’s a difference between dynamic pricing and fully revenue based pricing. That’s to say that a ticket that’s retailing for $10,000 in cash won’t necessarily cost 100x as many miles as a ticket retailing for $100 in cash.

It’s starting to be the end of an era…

Update: Having slept on this, I have quite a few more thoughts on the United change, and what it means for the future of frequent flyer programs.

Using United miles

I’ll of course have more thoughts on the best ways to use United miles going forward once we see the full impact of these changes. Partner awards won’t be immediately impacted by the move to dynamic pricing, so those will likely continue to be the best value.

In the meantime, there are several great United redemptions you may want to consider before the new pricing takes effect.

And for future reference, you can find the full United award charts here.

What’s your first thought regarding these MileagePlus changes?

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Eric Guest

ANy impact on United Upgrade Award Chart which is 30K miles applied to upgrade Star Alliance flights from (Y/B Class) to Business Class?

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Mark S Member

It will be interesting to see how dynamic award pricing works out with empty planes. People vote with their dollars and negative extremes don't do well in the marketplace. I own two Business saver awards purchased before this nonsense erupted at 80,000 each way between SYD and DFW. Admittedly hard to get but I got them. In today's world (literally today) the mileage requirement is 200,000 plus one way (no saver) into the future es far as you can see. There is no reason to have a Chase/UA card except for the bag fees if you are in UA economy and non-elite. Bank your miles with Chase Ink or similar and move them over to UA only when you need to. It's a sad day when a lifetime 1K and UA shareholder must write a comment like this..

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dmg New Member

Sorry to resurrect this six-month old thread. I just tried to book a United award flight on-line even though it is not yet November 15, the supposed day the changes with United Airlines will take place. In the past, a saver business class ticket, for a location I visit often, cost 60,000 miles each way. It is now 325,000 miles each way, as saver awards are not available. I checked several months for availability and found the new "pricing" in most instances even to near by locations. In my example, that I repeatedly viewed over several months of pricing, a round trip that used to cost 120,000 miles (60,000 each direction) now costs 650,000 miles! It does not take a genius to realize that United miles miles are now worth next to nothing unless you happen to pick a location that United feels should be less miles to only a few locations that I do not visit. I wonder how Chase Bank regards the devaluation of miles. Chase Bank spent billions of dollars over the years with United in their joint mileage program. The bank depends on customers keeping United brand credit cards and for those customers to continue to use those cards. United has the right to make those severe devaluations in its MileagePlus program. However, customers now have little to no incentive to get new Chase Bank credit cards with their meager 50 or 60 thousand points sign up bonus. Those miles are essentially a joke compared to the new cost of many award tickets. Did anyone at Chase Bank condone or have any input about what United would do with their previously successful partnership credit card use and miles and earnings? If so, and it was approved by Chase Bank, it is time for me to close my certificates of deposit with Chase Bank and transfer them to a bank that makes logical decisions. To me, there is no longer an incentive to make purchases with a Chase Bank credit card and have any miles credited to United Airlines. The earned miles have so little value now. One is better off to keep one Chase Bank United card for some benefits and cancel the other Chase Bank United cards. On the other hand, Chase has some good hotel cards (Marriott, IHG etc) that are worth keeping. What a shame this severe devalue was done. Our world runs in cycles. It will not be long before another recession hits America and people and companies will curtail flying. When that happens, and it will, the airlines will come back to lure customers by reversing many devaluations that never should have been. What does the removal of the mileage chart mean? It means, in most case, miles have little to no value anymore.

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Gordon Roberts Guest

United continues to whittle away customer benefits/comfort/service to feed greater profits. David Dao was an iconic example of the United business model: we act in our own financial interest and sometimes people are hurt in the process. I have switched to the Star Alliance's Avianca mileage program and changed to Delta and Alaska for travel in the United States. After many encounters with hostile and aggressive customer service, lengthy flight delays, repeated mechanical failures and outrageously substandard service it was necessary (and a pleasant relief) to change. MileagePlus lost its charm for me years ago when I was awarded 36 miles for a trip from Mexico City to Houston and 40 miles for travel from Medellin to Bogota.

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Ella Guest

I've been using Chase through US Mileage Plus to fly Star Alliance internationally. So now I'm starting to question the value of UR points, as other programs aren't very good where I like to go. I may be rethinking my whole card strategy, if *any* airline mile programs survive!

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