Last night, United Airlines announced radical changes to the way elite status is earned in the MileagePlus program, starting in 2020. What do these changes mean for you?
First, let’s review the changes.
Introduction Of Premier Qualifying Flights (PQF) + Premier Qualifying Points (PQP)
Premier Qualifying Miles (PQM), Premier Qualifying Segments (PQS), and Premier Qualifying Dollars (PQD) are gone. In its place are Premier Qualifying Flights (PQF) and Premier Qualifying Points (PQP). The move represents a shift away from distance as a metric of loyalty.
I had a chance to speak to Luc Bondar, United’s loyalty chief, yesterday ahead of the announced changes. He stressed that distance is no longer an accurate measure of loyalty. In terms of pricing, he’s absolutely correct. As inconceivable at is, a round trip between Washington and Philadelphia might cost more than a round trip between Washington and Hong Kong. Whether that is a smart strategy is a whole different matter.
Under the new chart, elite status will be earned based upon a combination of spending and segments or spending alone. PQPs will only be based upon flights flown; there will no longer be any mulipliters for flying in premium cabins. Each PQP translated to 1USD.
The result is a dramatic increase in spending required to achieve upper tier status.
| Premier status | PQF + PQP | Or PQP only |
|---|---|---|
| Premier Silver | 12 PQF and 4,000 PQP | 5,000 PQP |
| Premier Gold | 24 PQF and 8,000 PQP | 10,000 PQP |
| Premier Platinum | 36 PQF and 12,000 PQP | 15,000 PQP |
| Premier 1K | 54 PQF and 18,000 PQP | 24,000 PQP |
Status can be earned by a combination of PQF and PQP or simply a higher amount of PQP. In all cases, a minimum of four segments on United will still be necessary to qualify for status.
But distance isn’t totally irrelevant.
Earning on Star Alliance + Other Partners – Distance Matters
Currently, only tickets booked on United stock (016) count toward meeting your PQD requirement. Starting next year, all Star Alliance and select partner tickets, even when not booked with United, will count toward meeting your PQP minimum.
United does not have access to your ticket prices, so will instead award PQPs based upon a fraction of the redeemable miles you will earn on the flight.
| Star Alliance partner | PQP total |
|---|---|
| Preferred partner PQP | Award miles divided by 5 |
| MileagePlus partner PQP | Award miles divided by 6 |
Preferred partners include:
- Air Canada
- Air China
- Air New Zealand
- All Nippon Airways
- Austrian Airlines
- Avianca
- Azul Brazilian Airlines
- Brussels Airlines
- Copa Airlines
- Eurowings
- Lufthansa
- SWISS International Airlines
Confused? So was I. But I’ll try to explain.
Let’s say you are flying a J fare on a Lufthansa-issued ticket from LAX-FRA. Currently, J fares earn 200% of actual miles flown. That means the 5,806 mile journey earns 11,612 award miles.
Going forward, United will award PQPs based upon dividing that award mile amount by five for preferred partners and six for other partners. So since Lufthansa is a preferred partner, divide 11,612 by 5 and you get 2,322.40 PQP.
It is a tad ironic that United’s efforts to simplify earning status and take away the distance metric have actually resulted in a new way in which distance matters more than ever.
I’ll discuss “opportunities” with partner-issued tickets in a later post.
More Ways To Earn PQPs
In addition to base fares and surcharges, you can earn PQPs via the following ancillary spending:
- Economy Plus seating or subscriptions
- Preferred seat purchases
- MileagePlus Upgrade Award co-pays
- Paid upgrades
No Changes to MillionMiler Status
United’s website is rather cryptic about potential changes to the MillionMile program, which grants Premier Gold status for life at 1 million miles, Platinum at 2MN, 1K at 3MN, and Global Services at 4MN.
These changes do not impact the way you qualify for MillionMiler status, which is based on the actual distance you fly.
Bondar assured me that there are no changes planned for MillionMiler benefits.
No More Foreign Address Waivers
United currently exempts those outside the USA from meeting minimum spends requirements. This waiver will end next year; all worldwide members will need to meet the minimum PQF + PQP requirements.
No More Chase Credit Card Waivers, But Opportunity For 1,000 PQP
United currently grants an exception to its PQD minimum for Chase/United co-branded cardholders. By placing $25,000 worth of spending on your card, the United-imposed minimum spending threshold is eliminated.
Under the new program, you can earn 500 PQP for spending $12,000 and another 500 PQP for spending an additional $12,000. But 1,000 PQP is the max you can earn through Chase.
The following credit card applies:
- United Explorer Card
- United Club Card
- United Explorer Business Card
- United Club Business Card
- United MileagePlus Awards Card
- United MileagePlus Card
- United MileagePlus Business Card
Some discontinued legacy cards have additional benefits. More info here.
Reduced PlusPoints Earnings
For every 3,000 PQPs you earn after qualifying for 1K status, you will earn 20 PlusPoints. That’s a reduction from what roughly translated to 40 PlusPoints you would earn under the old program.
> Read More: United Introduces PlusPoints, A New Upgrade Currency
What Is Loyalty?
Bondar was very clear. There will be winners and losers under this new model, but United views its new approach as transparent and fair. To that point, United is being totally transparent and fair. But is spending alone a good sign of loyalty?
I view it as one indicator of value, but still think that there is something to be said for loyalty at the margins. By that I mean the discretionary flyer who has a choice in airlines but chooses United. No, that flyer won’t spend nearly as much as some business travelers, but actually be more loyal. The business travelers who spends thousands of dollars on United is often forced to by company contract; rewarding this traveler does not necessarily bring any loyalty since the traveler does not have a choice. But rewarding a more discretionary travel can pay far greater dividends if the other business is already a given.
That said, my position is more a theoretical one. In United’s defense, at least this new metric of measuring loyalty is transparent and levels the playing field worldwide.
While these changes will swell the ranks of Silver and Gold members, I expect it to make Platinum and especially 1K status more exclusive.
Now the interesting thing will be whether American and Delta match. I think both will take a wait-and-see approach until next year.
CONCLUSION
Bondar said the new policy hurts those who “game” the system. Later today, I’ll focus on how qualifying for top-tier status may theoretically be “game-able” thanks to the new puesdo PQP earning rates on partner-issued tickets.
Am I happy about the changes? Not really. I don’t think 1K status is worth $18,000 and 54 flights. But is the news surprising? Not really. Is it devastating to me? Not really…it just means I’ll burn more miles and further look beyond United.
Any idea how this new scheme will affect non-US residents?
Yes, see above. Non-US residents are no longer exempted.
So disappointing
Ok. I think this is finally the chance for me to make a clean break with United. I fly a lot relatively speaking, but most of my flights are international. Spending that much time in the air without any real promise of benefits beyond Silver is just not worth it. And frankly, unlike flying mostly domestic flights, there is no ban on foreign airlines with better packages. If I instead go with Lufthansa, I’ll potentially get more benefits with a mere Star Alliance Gold starts than I will from United Silver.
How do you game the system? Going forward. As a retiree I’ll never be able to maintain 1k as I’ll never spend $24000 in tickets. I’m mad
@ Matthew — I don’t understand where you are getting your information about partner earning. You do NOT earn redeemable LH miles based on distance, but price. What makes you think that United would use M&M Status miles for their calculation rather than redeemable miles? I would love if you are correct, but I don’t see where you are getting your information. Please prove me wrong.
Gene, when you purchase a Lufthansa-issued ticket and credit it to United, the redeemable miles earned are based upon distance flowed and fare class multiplier.
https://www.united.com/ual/en/us/fly/mileageplus/earn-miles/airline-partners/lufthansa.html
@ Matthew — What about footnote 5 on this page?
https://www.united.com/ual/en/us/fly/mileageplus/earn-miles/airline-partners/premier-qualifying-credit.html
Forgive me if I’m being dense, but I don’t understand your point.
Footnote 5 says:
This just means the Premier multiplier (e.g. 1Ks earn 11 RDMs per dollar spent), does not apply to PQPs.
@ Matthew — I guess I’m the one who is dense…looking forward to your article on the partner “loophole,” especially since we already have almost 13,000 PQP booked in LX F. We were going to re-qualify for LH SEN, but I’ve decided it isn’t worth much without the ability to transfer in miles and then use them on Companion fares. We can also use our otherwise useless AMEX Plat airline fee credits for a United club membership(s) if necessary.
Maybe we will again become 1Ks in place of AA EXP, which I can’t imagine bothering with anymore.
Currently I am targeting Platinum for this year while maintaining my EXP on AA. This provides some benefits when travelling abroad giving Star Alliance Gold status…..
To do so, I have spent $25k on Chase United cards for the PQD waiver. (Current PQD = $2,700.
I will do a couple of mileage runs to and from London in addition to my regular tripos to get to the 75k PQM so expect total PQD to be in the region of $6k by the end of the year. This is nowhere near the $9k PQD currently required and only half of the future PQP requirement of $12k.
Given that this is primarily for the Star Alliance and minimal Premier Platinum benefits I will not commit to any of the above in 2020 and will just not bother flying United in future.
This is probably the objective of the plan as I am obviously not a frequent flyer in which United is interested.
It will be interesting to see what impact this has on their Chase credit card partnership. I will be closing both the business and personal Explorer cards on renewal date. The measly 1k PQP for $24k spend is of no interest whatsoever and I would far rather be spending on my Chase Sapphire Reserve where I get real value..
Just my opinion though1
Interestingly, as a business traveler who does not live near a United hub, I currently have 60 PQS and $13K PQD. That puts me in easy striking range of 1K where today I merely earn Gold. I don’t have an incentive to save money, so a few more last minute one-way bookings or unrestricted economy fares next year and I’ll be 1K.
All in all, this is a smart move for United to boost their bottom line with business travelers. The flip side, as you mention, is that loyal leisure flyers will be encouraged to book on partner airlines. Next time I fly to Asia, I’ve got a lot more options, none of which will be United.
My prediction is that a lot of business travelers who currently qualify for Gold and Platinum will upgrade to 1K next year. Global Services shouldn’t be affected, but I expect 1K will be significantly less valuable in terms of upgrade availability, etc. Makes me think of Delta top tier status where upgrades are super sparse, even for Diamond tier elites.
This whole thing is hogwash. As a USG employer our flight prices are artificially lower than if purchased via the United website. For example I have had flights that round trip through the defense travel system were about $1400 rt but on UA were over $3000 rt. I barely make gold due to PQDs not miles.
Also the change site mentions that paying for E+ as a way to increase PQPs. What if as gold or higher you get it free at booking? Unless they take away that perk and make everyone pay for it that is a lost source of PQPs for UA Gold and higher.
hahahahah basically: “as someone who doesn’t pay for my own travel, it’s not fair that I am not rewarded for not spending money on this airline that already gives my employer a reduced rate.” lolol
Your lolz may fall on deaf ears because 90% of people here as few pay their own way. I’m just saying that the switch is doubly annoying since my tickets are already deflated so I would have to fly even more to maintain status
As a higher paying 1K customer ($40k, no GS) I am happy about the changes. I hope the ranks of 1K shrink. It has taken the airlines years to address that $$$ is the only loyalty worth rewarding because that’s the only thing shareholders care about. I don’t mind. They are in a business to create shareholder value.
Having a good laugh at everyone who thought PointsPlus was all positive…told ya another shoe was going to drop! No different than the last time UA announced a seemingly only positive benefit (1K pre-boarding).
“Swelling the ranks of Gold and Silver” – Matthew is that just from people dropping from 1K/Plat (or MMers who just stop trying)? Otherwise I don’t think you are going to have all these new low status folks.
United PrasmPlus
I’ve managed to earn Silver with 700-1500 PQD for the last few years. Sure, you can call me a gamer. Well I’m done. This is beyond the pale. Thankfully I haven’t booked any travel for next year. If I had, I would be demanding a full refund. Shame on United.
What about the bonuses awarded for PQM for each status previously? So if I’m silver for next year I don’t get to enjoy any additional mileage bonus… Seems like status just got worth less and harder to achieve.
Earning hasn’t changed, just qualification.
UA is firing a bunch of mostly long-haul flying 1Ks who consistently spend $15-20k a year with them. To me that’s just insane. What business in its right mind fires that kind of customer?
Well, in fairness, I will still fly them. If they are the cheapest discount international business. Which I’ve noticed in the last year they usually aren’t.
This is a terrible move. It hurts people that travel international for business but tied to corporate travel policies and get budget tickets. I think flying 15 hours in an economy seat for business On $2k ticket should have merit than flies 3-4 times a year in first class! I am going to make platinum on United despite also having the chance to hit gold on Delta this year too. I am now seriously considering my remaining long haul flights on Delta as United doesn’t value my business.
If United things money is the most important metric then count me out. All the airlines have gone to award miles based on cost of ticket rather than distance, now the elite qualitative too! What is their goal? To eliminate any loyalty!
Matthew,
Do you have any insight into why UA suggests that the changes will result in an increase in Premier Members? (Is it due to allowing Star Alliance spend to accrue PQD?)
Also, any thoughts about potential changes to GS qualifications?
Thanks, John
Hi John,
No change to GS qualifications, though they remain unpublished.
United figures there will be more Gold and Silver members because gutting the distance requirement will allow many domestic flyers who buy pricey tickets to become elite.
After 36 years as a mileage plus member, 2019 is the first year in many, that I, as a 1K, sling with my wife received the best benefit from the program (absenting a few upgrades), boarding earlier. We always fly business domestically and globally. Does spending 24,000 automatically get us 1K? Must I fly 54 segments in addition? The 24,000 is easy. The 54 segments pushes me out of United’s calculus. We’re quite happy to fly business on Eva, Singapore, Emirates, but also want to support our local airlines. We are on the west coast, so many US airlines are out of the question for international travel.
I am one of the definite losers in this new scheme. I fly to Asia 3x a year and have been a constant gold for 12 years. I do not live in the USA. This year I hit platinum. However with the new strategy I wont hit silver in 2020. I started flying business home and now will have to fly business both ways in order to even come close but by my quick calculations, I wont hit gold, maybe not even silver AND increasing my travel spending by 300%. How I long for the old Continental.
I am now exploring new airlines and unless they change, it looks like Air Canada will be the winner.
The way i understand this. If i fly from Chicago to Shanghai with united and paid $1200 for a econ0my ticket round trip, i will get about 1000 PQP ($1200 minus taxes and fees. If i paid $1200 same for Canada Air, round trip would be 15000 miles divide by 5 (preferred partner), i would get 3000 PQP base on mileage instead of dollar spent. did i get this wrong?
I will be hurt by this. For both business and pleasure, I travel exclusively via United.
I always try to be loyal to United in order to accumulate travel points so that I can board early (and maybe… upgrade).
I also have a United Explorer Mileage Plus card to generate points.
With these 2020 changes:
/a/: I will no longer have an incentive to be loyal to United Airlines.
/b/: I will look to other airlines for my trips. If I cannot board early or upgrade, there are many other options to fly.
/c/: I will have no use for the United Explorer Card . The Capital One card is MUCH better and provides more miles which can be used on ANY airline (not just United).
seems to be really dumb by United. to get 1k status I need to fly partner airlines and since I fly from Canada that means fly AC to Asia and United does not get any money from that. However it also means I should just join AC program. I have 2MM status with UA and this year I flew 230,000 miles. However other than using my GPU or points I will be on partner airlines for 2020.
Shouldn’t your number of years of loyalty also somehow factor in to the equation??? There should be some sort of bonus/multiplier for every year of elite status… even if small. Are all those years of loyalty really worth nothing now? Feeling quite betrayed by the new program.
I think so. United has chosen to move in a different direction.