14 Responses

  1. Tom
    Tom at |

    Burn Baby Burn. It’s always been true and especially true now. Every day I’m more and more glad that I’ve stopped flying United and flying wherever the greatest value at the time is–Rarely is that United. My guess is that this is about more redemption tiers a la Delta or maybe even a variable standard redemption as does AA… of course unless there is a DL announcement very soon about pure revenue based redemption. Clearly DL moves with respect to no redemption chart is all about going revenue based–they’re ‘training’ people to pay whatever the reward search is telling them to pay rather than some ‘normal amount’ from a chart.. United doesn’t have the cahones to make the bold move to a pure revenue based redemption scheme as a leader but they’re anxious to be a follower.

  2. Michael d
    Michael d at |

    How badly does United need the cash they get from selling miles to Chase? If It becomes too hard or too expensive for me to redeem award tickets then no more United Chase cards for me. Do you think the United Chase cards will become less attractive and reduce the United’s cash revanue from those points significantly?

    Are miles -> good miles (cash) and bad miles (award) -> no miles?

  3. United Plans to Introduce Revenue-Based Redemptions This Year - View from the Wing - View from the Wing

    […] Aramean notes that United plans to “begin introducing dynamic award […]

  4. Drew
    Drew at |

    2nd qtr they’ll launch it?
    Don’t you think we’ll get notice on such a major change?

    1. Ben
      Ben at |

      That depends entirely on how it is enacted – if it becomes a hybrid system (i.e. saver/standard redemption is still intact but they also offer the ability to buy tickets at a fixed price per mile), there wouldn’t be any need to give notice as it would technically become a new feature that is not taking away from the existing redemption options.

  5. United Making a Move toward Revenue Based Awards | MileValue

    […] Wandering Aramean got “part of an internal memo describing [United’s] plans for the coming year.” It says: […]

  6. CP
    CP at |

    Some people now buy miles to top off their account in order to get an award, currently at around 3 cents per mile. If a dollar value is assigned to points and awards are priced based on some conversion from the fare price, then issues may arise relative to the price of miles. Who would want to pay 3 cents per mile if a mile is worth 3 cents or less when buying a ticket? Would UA stop selling miles?

  7. michael d
    michael d at |

    ” Does simplifying to a revenue-based system make customers happier, even if they end up paying more??”

    In general no but when you find those who do then you have discovered a gullible subset of your customer base who will bite any hook anytime you dangle it in front of them. Just like those who pay for award magic and the ilk .

  8. michael d
    michael d at |

    There is a smiley face at the end of the last post but I put it in brackets

  9. Nick
    Nick at |

    Pay with points option is a long way from revenue base redemption only. Rev based redemption may work for domestic but would be horrendous for international travel.

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