United has addressed some initial confusion stemming from its announcement yesterday that on 01 February 2014 the award chart chart will be massacred.
1. United claims the cost of premium seats on partner carriers is “out of sync” with what current mileage levels.
Frankly, the levels at which we currently offer these awards, particularly in the premium cabins, have not kept up with the increased cost from our partners to United. It’s been several years since we’ve adjusted our award pricing, and in many cases what we’ve been charging for awards has gotten highly out of sync with what it costs United to supply partner award seats to our customers. Being able to book premium-cabin award travel across 30+ MileagePlus partners is of course a strong benefit of the program, and we wanted to maintain access to these itineraries instead of restricting them altogether—an approach other programs have taken.
With no transparency into what United actually pays for these seats, we can only take United’s word for this, but I find it unlikely that United would allow such an imbalance to exist for so long. I also find it a non-credible threat that United would ever restrict access to these seats altogether, though legacy United demonstrated this was more than theoretically possible with StarNet blocking.
2. Award date changes after 01 Feb 2014 will not incur repricing.
Our existing change process will apply. Changes to awards that require a change in date do not result in a change to the award price. Any other change will require an add/collect in miles and fees for changes or cancellations will still apply as per our existing policies.
We still need more clarification in this area–if origin/destination remain the same but routings or carriers change, will there still be no reprice? That could be very valuable, particularly for MileagePlus elite members who can modify award reservations for no fee. I am fully prepared to zero out my MileagePlus account, as depressing as that makes me feel.
3. For United awards (much cheaper), connecting flights on Star Alliance carriers can be added as long they are in a lower cabin of service.
Finally, a note about mixed-carrier Saver Awards. Although there will now be two charts, it will be still be possible to combine United/United Express and MileagePlus partner award flights on the same itinerary. However, the MileagePlus partner award cabin level will need to be lower than that of the United-operated segment(s) in order to take advantage of the United Saver Award price. So, for a US to Europe itinerary where the long-haul segment is in United Global First, the intra-Europe connecting segment would need to be in Business or Economy (as they typically already are) to take advantage of the United Saver Award price. Similarly, for a US to Europe itinerary where the long-haul segment is in United BusinessFirst, the intra-Europe connecting segment would need to be in Economy to take advantage of the United Saver Award price.
This has to be the oddest of the rule changes, though at least it allows flyers to reach the 2/3s of Star Alliance destinations that United does not serve directly. Still, it seems foolhardy that you pay United for a business class ticket and on the one hour flight from Frankfurt to Nice you are relegated to coach even if there is business class space. But this is a concession–if you can call it that–that will help lessen the pain.
More analysis will be forthcoming.
Matthew,
I’m feeling SO lucky to have hired you to find our tickets to Europe a couple of weeks ago! The new chart would have torpedoed our summer.
The question I’m grappling with is how to change the strategy. We are well on our way to saving 400k miles on AA, but using them to take my dad on a long promised trip to Asia. I think I can generate the necessary 460,000 United miles to return to Europe in business in the summer of 2015, but if UA doesn’t release more award space how on earth will we find the seats? This summer’s availability was miserable even with partners, at least for the dates we needed. In other words, do we double down to generate the needed additional United miles, and bet that with diligent searching and your service we will find seats, or walk away from MP altogether?
I want to know if these changes will mean that more partner availability will open up? For example, SQ F or LH F? That would make the changes worth while!
Hi Sfmom–my hunch is that American will announce a similar devaluation later this year or early next year. I am glad you are saving AA miles, because award space tends to be great on Cathay from SFO-HKG in business if you book about 330 days out–that is an ideal use of American miles. There are several occasions in which I have booked families on United flights to Europe–once I got a family seven seats on flights from Brussels to Chicago and back. But as a back-up, business to Europe on partners is not a deal-breaker at 140K r/t. I hate the thought of paying an extra 20K miles each way–a substantial 40% devaluation–but if you stock up AA miles instead and wish to return to Europe you will be looking at the inevitable fuel surcharges of $800-1000/ticket on BA, since they seem to be the only carrier that releases multiple award seats.
My advice–use a Chase Sapphire or INK card and/or an AMEX card–cut up your United-branded credit cards.
@Lane: It will have no effect on the release of partner space. SQ will continue to hold it back and LH, I fear, will not only continue its pattern of holding back space until 15 days before travel, but eliminate it all together for Star Alliance partners.
If I book an award this January for December 2014 travel, can I change the travel dates (for instance) this May for February 2015 travel? If so, how long can I sit on these award bookings at the current rates with the intent to change the travel dates in the future?
@Ricahrd: Tickets are valid 330 days from date of issue, so you could only extend it up to about 11 months form day of booking. So if you book a ticket on January 1, you really cannot extend it past around December 1.
Thanks Matthew! I’m really going to need to stockpile in earnest. Having looked at it my plan is to focus on Chase and dump United. If we get stuck with surcharges to Europe via BA or Virgin via Chase it will still be a great deal considering we are trying to do two international trips for four in business in one year! Thanks again.
Mathew, isnt united award ticket valid for one year from date of issue? The united website says that. I may be wrong. Please advice. In which case as mentioned to Richard, he could make changes upto December 31?
https://www.united.com/web/en-us/content/help/rewardflightsearch.aspx
@James, though agents often overlook it (Even beyond a year), the rules officially are all segments must be flown by one year from date of issue.
Matthew,
Per your point above, was it ever confirmed/verified the extent of the date changes that can be made without triggering the higher rates? Assuming 21+ days out, with no fee for elites, was there existing poicy allowing dates chafes with time, routing and carrier? I thought it had to be the exact same flight (same time, flight number) but on a different date. I could be wrong. If time, metal and routes can be changed, is this confirmed for after 2/1? Thanks.