United cancels four mile Hong Kong award tickets

On Sunday United had a glitch whereby they were pricing award tickets to/from Hong Kong for four MileagePlus miles, regardless of the cabin, route, or award type.

A full two days later United issued the following statement, which I wrote about here:

Hi Everyone, over the weekend, we discovered a united.com programming error that allowed customers to obtain Mileage Plus travel awards to and from Hong Kong for as little as four miles roundtrip per person, substantially below published levels, which we disclose to customers. We have since corrected the error and will be in contact with customers who have tickets issued at the incorrect award amounts. Customers will be given the choice to redeem at the correct mileage amount or re-deposit their award with all fees waived. We regret any inconvenience this has caused you, and appreciate your understanding.

Shannon Kelly
Director, Customer Insights
United Airlines

Then there were another two days of silence, until they issued this statement just now:

Hi Everyone, I want to provide you with a further update on our Hong Kong award programming error from this past weekend. Specifically here’s how we are proceeding with these reservations:

  • For those customers who had sufficient mileage in their account for the correct award amount, the correct amount of miles were deducted at the time of redemption. Any customers who do not intend to use the published number of miles for their ticket may cancel their reservation without paying a fee and we will refund all miles, taxes and fees.
  • For those customers who did not have sufficient mileage in their account for the correct award amount, the correct amount of miles could not be deducted at the time of redemption. These tickets have been canceled for non-payment and all taxes and fees have been refunded.
  • For those customers who have already begun travel, or are ticketed to begin travel on or before July 21, we will not cancel these tickets and will allow travel to be completed in full. This is intended as an accommodation to those customers whose travel is already underway or the departure date to begin travel is imminent.

We hope you’ll agree this was a unique circumstance. Unlike other widely reported “mistake fares,” the number of miles required for these awards – the correct purchase price – was clearly disclosed to customers throughout the MileagePlus award redemption process and is also available on our MileagePlus travel award chart.

We are in the process of communicating with affected customers at this time. Once again, we appreciate your understanding.

Shannon Kelly
Director, Customer Insights
United Airlines

On the plus side they’re honoring the tickets for those that are scheduled to begin travel before July 21, which I think is the right to do, given that it took them four days to issue this response. I think that’s the only positive thing that can be said about United’s handing of the situation. Now it’s four days later and passengers still haven’t been contacted, aside from United posting a “statement” on internet bulletin boards, which hardly counts as “notice.”

I’m not going to beat a dead horse, so I’ll just finish with two thoughts:

  • Why isn’t this covered under the DOT’s rule on price change? I’m not saying it should be, I’m just saying I think it would be really useful for future reference to understand under what circumstances the DOT enforces ticketed award reservations when it comes to their price change rule. They issued a statement saying that award tickets are covered under the DOT rules, so I’m curious why specifically they don’t apply to this situation (again, not saying they should, but rather just asking why they don’t, so we know for future reference).
  • Most mistake fares are the same. I’ve seen a ton of hostile comments on both sides of the argument. There are those that are convinced this should be honored and they’ll sue United if they don’t, and then there are those that think that anyone that took advantage of this is an absolute scum of the earth. Let’s be honest with ourselves and admit that this was a mistake. We all know it was a mistake. And while this may have been a drastic mistake, we also all knew that United’s business class tickets to Australia a few years back were also a fat finger mistake where they left off a zero. My point is simple — we can all selectively be ignorant to what best suits our needs, but when it comes down to it I really don’t see a huge difference between a four mile mistake fare and a $1,400 business class mistake fare. No one that’s being honest with themselves would think either are intentional. But there are plenty of people I know that took advantage of the $1,400 fare, that are now preaching about how immoral taking advantage of a four mile fare is. I don’t buy it. If you’re against all mistake fares and think they’re immoral to take advantage of, I completely respect that.

While I’m speaking only for myself, I think it has been fun. These kinds of deals can lead to endless hours of entertainment if you don’t take them too seriously, and hopefully most of you feel the same way.

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YVR604miler Guest

This is still going?! I'm just gonna go look for next deal! ps. Andy Bluebear, I totally was just being [funny] sarcastic, sorry it didn't come across right. Didn't mean to pick on you.

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Sean M. Diamond

@Bob - I think the point I am making is that it is a commercial choice that airlines make to engage (or not engage) in fare distribution with fuel surcharges. I know this because this is what I do for a living (on the airline side). As I mentioned earlier, the consumer level fuel dump issues are usually such a tiny percentage of overall interline billings that taking action to stop them would often cost more than the additional revenue that those actions would generate. To use another analogy, a grocer may chose to put samples of his vegetables out on the street to entice customers in, but sometimes it rains and they get ruined. If it rained every day, he'd no longer find that the benefits outweigh the costs and he'd stop doing it. That's what airlines do. When more people begin to use a specific method to fuel dump (and believe me, there are methods used by some travel agents that make the folks on FT seem quite amateur in comparison) and the cost-benefit analysis favours changing the rules, the airline will change the rules. Until they do that, the rules are still what the airlines want them to be. So, in response to your questions : 1) Because mass market publicity and the resulting adoption of the publicised methodology pretty much pushes the cost-benefit analysis into the red as too many people use it and skew its benefits. So they act quickly to change the rules. 2) If someone engages in throwaway ticketing as part of a fuel dump, that is a different story. Most fuel dumps (again, not necessarily the FT ones) are perfectly legitimate though. I would not consider a throwaway segment on a fuel dump to be ethical. 3) That's something I completely disagree with and was something I opposed vehemently back when I served on TalkBoard (IIRC, both Lucky and Gary also voted with me on that issue). If the goal of FT is to share information, the access to information should not be restricted artificially, for better or for worse. 4) Believe me, airline revenue accounting departments know more about fuel dumps than the most active FTer has forgotten. Any basic revenue accounting software can identify every fuel dumped PNR on a flight in no more than a few seconds if someone wanted to go fishing for it. Using the regulations to avoid ticketing with fuel surcharges is not a violation of anything and airlines will not accuse anyone of violating anything as a result. Interesting discussion that I don't think we necessarily disagree on in principle, but rather just on the semantics of some of the applications.

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Bob Law Guest

Sean M.: I appreciate you trying another example, but don't agree that airlines intend fuel-dumped fares for reasons stated up-thread. Btw, I understand how fuel-dumps generally work (e.g., 1x, 3x, OJ). Are fuel dumps really intended by airlines? I'll posit some thoughts: 1) If the airlines intended fuel dumped fares, there would be no need for code words and mystery. Why not out in the open? If they are intended, they could be replicated in the future and there would not be backlash at a blog such as AFWD for revealing a popular trick. 2) Contrast fuel-dumped fares with hidden-city ticketing, throwaway ticketing, etc. Fuel dumping is like hidden-city ticketing and throwaway ticketing on crack, of course. In your example, the second leg, ATL-SAV, is most likely a throwaway ticket. But, here's the distinction: fares that lead to hidden-city ticketing or throw-away ticketing (such as domestic fares without fuel dumps) may always be around due to airlines wanting to differentiate between the relative pockets of different markets. The loopholes for "tricks", on the other hand, are closed from time to time (e.g., AFWD). 3) Why does flyertalk not want the "tricked" deals to appear on the mileage runs page? If it's a normal fare, why is it moved to trick-it page? By your implication, a fuel-dumped fare and any other fare shouldn't be treated differently. This different treatment by flyertalk to protect these kinds of fuel-dumped fares are, of course, to keep it from the penetrating eye of airlines as much as possible. I even know some tricks just by being a flyertalk member. I wonder how fast my post would be closed if I posted them on flyertalk? 4) It appears that fuel dumpers for the most part get away with it (which, I'm perfectly OK with). What if an airline catches a fuel dumper, just as they might catch an egregious hidden-city ticketing passenger? Would it be OK for an airline to either ask the passenger to pay for all of the fuel surcharge money that the airline lost, or such passenger would risk cancellation of mileage account and ban on future travel? I bet flyertalk would be in an uproar and mad... the same folks who say United shouldn't honor a 4 mile award fare. Price increase post-purchase doesn't sound so good now, huh? I want to again state how poor the 50% off coupon analogy is. Let's just take hidden-city ticketing. LAX-ORD one-way costs $200, just as a hypothetical, but LAX-ORD-MKE is $150. I only want to end up in ORD and will buy the LAX-ORD-MKE ticket and throw-away ORD-MKE. ORD-MKE is a 25% off coupon by your description. At least ORD-MKE is a part of a normally published fare and isn't some random flight like the 13-miler that passenger has little to no likelihood of flying. The most ironic thing is that I support fuel dumps, and I don't wish to expose any tricks. But, I do, again, want to point out the hypocrisy of those who fuel dump and the concept that fuel-dumps are excepted from moral judgment but mistake fares are not.

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Andy Bluebear Guest

@YVR604miler Er, I was sticking up for you, you boob. I guess some people are just that contrary that they like to disagree/look for an argument wherever they can find it.

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Sean M. Diamond

Ok, lets try to put this in simpler terms. Supposing that a ticket from New York to Tokyo cost $1000 plus $800 in fuel surcharges. However, adding a segment from (for example) Atlanta to Savannah added $50 in fare, but took away the $800 in fuel surcharges on the first leg. If you actually wanted to buy NYC-TYO//ATL-SAV on a single ticket, the CORRECT price would be $1050 and no fuel surcharges. There is no "mistake" in play here. It isn't as if the correct price is $1850 and you are somehow getting away with a lower price due to a temporary error. The actual price intended to be charged is being charged. The lower prices comes about because of the rules that are set by the airline itself. This may seem counter-intuitive (buying more gets you a lower price), but then again so is the fact that buying a round-trip fare is often lower than buying just a one-way fare on the same flight. Bottom line - a fuel dump is buying something at a price that the seller actually intends to sell it at, while a mistake fare is taking advantage of an error to buy something at a price that the seller does not intend. There is a huge difference between the two.

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