Author Topic: Is United MileagePlus about to go down the tubes?!  (Read 2645 times)

Offline Moishebatchy

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Is United MileagePlus about to go down the tubes?!
« on: April 02, 2015, 03:12:13 PM »
Heavy speculation, perhaps, but the writing may be on the wall:

http://blog.wandr.me/2015/04/what-will-dynamic-award-pricing-mean-to-united-airlines/

Sounds an awful lot like revenue-based mileage redemption rates... :(

Offline Aj3042

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #1 on: April 02, 2015, 03:15:54 PM »
Oh boy...

Offline coralsnake

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #2 on: April 02, 2015, 03:23:29 PM »
Heavy speculation, perhaps, but the writing may be on the wall:

http://blog.wandr.me/2015/04/what-will-dynamic-award-pricing-mean-to-united-airlines/

Sounds an awful lot like revenue-based mileage redemption rates... :(
And again, UA follows in the ways of DL...
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Offline AJK

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #3 on: April 02, 2015, 03:39:59 PM »
And again, UA follows in the ways of DL...
If it weren't so potentially bad, it'd be comical.
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Offline Chapshnell

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #4 on: April 03, 2015, 10:00:19 AM »
If this happens the value of MR points will shoot up IMO.

Offline MosheP

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #5 on: April 03, 2015, 11:36:46 AM »
United currently values points at .035 cents.  A $4000 biz class ticket USA-TLV would only be 114,285 points. 

Currently that same award will cost you 160,000 points.

Offline DrDanny

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #6 on: April 03, 2015, 02:33:14 PM »
United currently values points at .035 cents.  A $4000 biz class ticket USA-TLV would only be 114,285 points. 

Currently that same award will cost you 160,000 points.
Values points ≠ Sells points.

Offline Proisrael

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #7 on: April 03, 2015, 03:30:07 PM »
Well at least on price mistakes you can get the value through miles as well

Offline EJB

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #8 on: April 03, 2015, 03:33:17 PM »
Values points ≠ Sells points.

That is correct. Each airline assigns a value to their points for their financial statements. That information is not public knowledge, though. It not only is different from the price they sell their points at, but is also different from the price you value their points at. Their valuation has to do with their costs, while your valuation is often based on their prices.

Offline MosheP

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #9 on: April 03, 2015, 04:25:41 PM »
Values points ≠ Sells points.
Imagine this sales pitch...

Buy our points for .035 and we will give you .015 cents in value towards redemption on flights.

Why would anyone purchase points when the redemption value is less then the cost of the points?

The current model is vague and ambiguous, thereby allowing United to sell points at a disadvantageous rate.  Imagine how it would look if they suddenly change the sales price to purchase points in order to assign a lesser value to the points we've already earned.

Offline EJB

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #10 on: April 03, 2015, 04:28:01 PM »
Imagine this sales pitch...

Buy our points for .035 and we will give you .015 cents in value towards redemption on flights.

Why would anyone purchase points when the redemption value is less then the cost of the points?

The current model is vague and ambiguous, thereby allowing United to sell points at a disadvantageous rate.  Imagine how it would look if they suddenly change the sales price to purchase points in order to assign a lesser value to the points we've already earned.

That is correct, but they do not encourage people to pay for trips by buying the number of points required for the trip at the .035 rate. The option of purchasing points is intended to fill the gap between what you have and what you need. That is how united (and everyone else) gets away with charging more than double what their points are worth.

Offline Dan

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #11 on: April 03, 2015, 04:39:46 PM »
Might be doom and gloom though it seems unlikely that UA would lead here.  I'd see DL doing this first and then having UA copy.

More likely that saver awards will stay the same and standard awards will be priced according to the cost of a ticket.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline coralsnake

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #12 on: April 03, 2015, 06:43:13 PM »
Might be doom and gloom though it seems unlikely that UA would lead here.  I'd see DL doing this first and then having UA copy.

More likely that saver awards will stay the same and standard awards will be priced according to the cost of a ticket.
Thats what I assumed. Hence:
And again, UA follows in the ways of DL...
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Offline Dan

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Re: Is United MileagePlus about to go down the tubes?!
« Reply #13 on: April 03, 2015, 06:46:45 PM »
DL doesn't really have truly dynamic pricing. At least not yet.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.