United Airlines has once again quietly raised the miles required for many of its saver awards booked within two weeks of departure, with no notice and immediate effect. Previously, these awards cost 15,000 miles one way for certain U.S. domestic flights booked at short notice, but we are now seeing prices of 20,000 miles or more. The MileagePlus devaluation applies even when the cash price remains low and availability unchanged.
United MileagePlus’s Latest Sneaky Devaluation: Close-In Domestic Awards Jump 33%
What strikes me here, as always, is not just the numerical increase (though a 33% jump is steep). It is the way it was done: silently, without announcement, and without any meaningful warning to members. We have seen devaluations before…a lot of them. In fact, United would dispute that this is a “devaluation” because it does not publish award charts anymore, even if “saver” awards have stuck to a fixed price.
Once again, your miles are worth less. The same seat you once could secure for 15,000 miles is now going to cost 20,000 miles, an increase that forces you to spend more if you cannot plan earlier. For a loyalty program that claims to be the best in business, it continues to disappoint under the leadership of ex-Comcast executive Richard Nunn.
United CEO Scott Kirby has promised “big news” with MileagePlus…I hope this isn’t it.
I just find it so stupid. When customers accumulate miles, they are doing so with the expectation of future value, that the program will honor redemptions at the rates advertised when they earned those miles. When airlines raise the price unannounced, they erode that trust.
Of course, the fine print gives United the “right” to do this: United promises nothing. But it’s a silly way to erode trust.
There is another layer here: the “close-in” premium. While in one sense it may be logical to charge more for last-minute space, the beauty of frequent flyer programs, at least in a historic sense, is that it was a vehicle for airlines to unload seats that otherwise would go empty.
If you are someone who stacked MileagePlus miles because you trusted the program, this change is just the latest wake-up call. Loyalty at United is less valued than you were led to believe.
So what should be your takeaway?
- Book in advance: If you plan to redeem with United, do not wait until the last minute. The value is now worse.
- Evaluate alternatives: Other programs still offer lower close-in awards; options like Air Canada Aeroplan are still pricing at lower levels (though Aeroplan has also has variable pricing for United awards)
- View miles as a spend-now currency: Consider miles less of a “banked asset” and more of a consumption-driven currency. If you hold miles hoping for a windfall, you WILL be disappointed. Miles are almost always a depreciating asset.
CONCLUSION
In short: United moving award levels without warning is a continued problem for loyal flyers. It is one thing to evolve a program; it is quite another to change value silently. That is not loyalty. It is a business decision done at the expense of trust.
Hat Tip: View From The Wing
United is on the way to becoming more “premium”, like Delta SkyPesos, but isn’t at SkyPesos level yet. American is still non-premium / standard. Alaska has more value and are folksy, not premium, but they will eventually be SkyPesos eventually.
The pandemic caused me to lose status and was the push for me to become a free agent. I have successfully burned too large balances of 3 airlines’ miles and have 2 left to go.
People are getting numb to it all. Bottom line. With that devaluations will continue alongside romantic pitches by flight attendants of exotic vacations and unique destinations just a few charges away. That is until people begin to realize that their airline credit cards are a scam and there are better options out there in cash back etc. Only then will airlines backtrack – but it will be too late. People will not buy into it a second time. They destroyed trust, as every corporation does that gets bigger and with less competition, all to make shareholders happy at the expense of their customers. Because they feel like they can.