Ouch: United MileagePlus Raises Partner Award Costs

By: Ben Schlappig

Published: April 29, 2020

59 comments

Unbelievable. At a time when loyalty programs should be trying to woo customers, United Airlines is instead trying to push them away.

A couple of days ago United MileagePlus quietly revealed plans to make it harder to earn status on partner airlines. Well, now the program has eliminated partner airline award charts, and has even raised award costs on partner airlines in some markets.

In this post:

United MileagePlus’ 2019 devaluation

In April 2019, a significant devaluation was announced to the United MileagePlus program for travel as of November 15, 2019:

United eliminated award charts and made award pricing for travel on United flights dynamic
United said they would eliminate award charts for travel on partner airlines, but would maintain the current pricing (they quickly backtracked on this, though)

In 2019 United introduced dynamic award pricing for their own flights

United finally pulls partner award charts

When the changes were announced last April, United said they’d eliminate all award charts, though up until now they haven’t actually pulled partner award charts from their website. That finally changed this week, as MileagePlus no longer has any sort of partner award chart online.

A United spokesperson explained this move as follows:

“We announced in April of last year that all award pricing will be dynamic beginning November 2019. This change is consistent with other major carriers and allows us to align information regarding all MileagePlus award flights, whether it is for travel on United or one of our partner airlines.”

In other words, United eliminated the partner award chart so that they can be consistent, and so that information (or lack thereof) can be aligned.

United MileagePlus has finally pulled the partner award chart

Surely United won’t raise award pricing, right?

When I initially saw that the partner award chart was eliminated, I assumed that the folks at United just had a bit of time on their hands right now, and got around to eliminating the award chart.

I didn’t expect that they’d actually raise award costs right away. Logic would suggest that frequent flyer programs will become more competitive and generous in the near future in light of circumstances, rather than less competitive.

United had said last April they had no plans to raise partner award costs as of November 2019, though that turned out to be a lie, as United immediately raised last minute award pricing, including for partner awards.

Well, as it turns out, United very much had a motive here. As soon as they eliminated partner award charts, they also raised award costs. In many/most regions, partner award costs have increased by 10%.

The below Detroit to Frankfurt business class ticket on Lufthansa used to cost 70,000 miles one-way, but the price has gone up by 10%, to 77,000 miles.

The below New York to Seoul Incheon business class ticket on Asiana used to cost 80,000 miles one-way, but the price has gone up by 10%, to 88,000 miles.

The below New York to Singapore business class ticket on Ethiopian used to cost 90,000 miles one-way, but the price has gone up by 10%, to 99,000 miles.

Pricing haven’t gone up across the board, but has in most regions that I’m searching.

United MileagePlus has just raised some partner award costs

Bottom line

United is taking the opportunity during a pandemic to not only finally pull partner award charts (which was expected), but to increase award costs on partner airlines by 10% in most regions. I can appreciate that MileagePlus is trying to cut costs, but it defies logic to be increasing award costs at a time like this.

Wow…

(Tip of the hat to my awesome colleague Jimmy)

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DCS Diamond

April 30, 2020, 6:27 pm

@Leon -- Actually, I think that you are mistaken. I believe that we are about the reenter that age of loyalty programs that you long for because, after years of things moving away from the concept that "the consumer is king and always right" toward programs dictating the terms of loyalty, the pendulum is now poised to start swinging the other way. The reason is that loyalty programs are about the relearn humility that they lost when they felt that they ruled the world and could do anything because planes and guest rooms were checking in full day in and day out. Well, a little invisible bug is about to dramatically change the dynamic to where loyalty programs will have to relearn humility and the concept that the "customer is king and always right" because that is what it'll take to lure back or retain customers who will remain scare due to the dire economic conditions and lingering anxiety about COVID-19 that will inevitably follow the pandemic. It will require the discovery an effective vaccine to normalize things again. But even then, planes and hotel guest rooms will not return to filling to capacity again until many years down the road. So, Ladies and Gents, loyalty programs do not know it yet, but we are about the reenter the "Golden Age of Loyalty", and you heard it here first... ;-)

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Steve Diamond

April 30, 2020, 5:24 pm

Lucky, all, I do have the same question as Jamie and Stephen: Can I change the dates on an existing award ticket without the ticket being repriced to the new (higher) level ? If so, how far in advanced can be booked ? The United website that tickets are valid 24 months from issue, but you can only book flights online 11 months in advance at United. In my case it would be a partner award on Asiana metal.

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DCS Diamond

April 30, 2020, 4:26 pm

Here's why this devaluation of partner awards makes perfect sense *right now* from United’s perspective: As a result of the coronavirus pandemic disruption of commercial aviation worldwide, which has forced all flying activities to a screeching halt, frequent-flyers **globally** are now flush with points both from refunds for all cancelled award travel and from all planned award travel that did not happen or won't happen until business resumes. I ask you: is there a better time to devalue than when there is a glut of currency? I think not.

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Leon Guest

April 30, 2020, 4:15 pm

To me, this is the last nail on the coffin. "Loyalty programs" as we had been introduced to some 40 years ago has turned into an extra currency (points), that are pretty much worthless. The programs now has absolutely no link to loyalty creation, and may well be an expense to all travelers. What was a good idea forty years ago to fill up empty seats now is a bait and switch game played by banks and airlines (and now hotels following suite).

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DCS Diamond

April 30, 2020, 4:15 am

@Eskimo -- Well, I avoided you. In any case, I just agreed with your recent comment over at OMAAT's post titled "United MileagePlus Makes It Harder To Earn Elite Status On Partner Airlines", and even paid you a compliment of sort: "Believe it or not, I agree with what you just stated above. Stick to the facts, avoid psychobabble and you just might be an interesting commenter " Take that for whatever you think it is worth. G'day, mate!

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