First time here? Check out the site's "greatest hits" or read a random post from the archives. Feel free to ask a question, and consider subscribing to the latest posts via RSS or e-mail. Thanks for visiting!

United giveth, and United taketh away. Well, taketh away mostly. Two weeks ago, on Good Friday, United Airlines sent an e-mail to its members announcing changes to its Mileage Plus program. (I was on vacation, and didn’t see the e-mail until over a week later.) The response, both in the print media and in the blogosphere, was resoundingly negative, accusing United of devaluing its members’ miles by 20%. The message boards lit up with disillusioned travelers demanding vengeance.

Then, as if to dampen the blow, United announced a confusing new sub-program of Mileage Plus, called “Choices,” which is tied directly (and solely) to one’s use of the Chase-issued United credit credit — assuming you have one, of course. Clearly, this is designed to lock you into their credit card, as well as their mileage program. More on Choices below.

But are these changes to the world’s second-largest frequent flyer program a “Friday Night Massacre,” a tweaking at the margins, or a silver-lined cloud? Let’s break it down.

There are three categories of changes: Saver Awards (the awards with limited seats available), Standard Awards (which can “buy” a seat on any flight), and new fees. Note that there are no changes to upgrade awards. Also, these changes don’t take effect until October 16, 2006. Until then, the old rules apply.

Most people care primarily about Saver Awards, so let’s look at those first, and in detail:

Economy Class Saver Awards
The redemption rates for Economy Class Saver Awards — the most commonly requested awards, and the ones that are limited in their supply — are largely unchanged. However, there are two notable changes for coach-level awards:

- between the Hawaiian islands (+5K / +100%)
- to/from Australia/New Zealand to the Americas (+20K / +33%)
- the (seldom-used?) award between the Middle East and the Caribbean (-5K / -6%) Yes, decreased 5K. Whoo.
- 15K short-haul award: Fly less than 700 miles each way within North America, it’ll cost 15K instead of 25K (-40%). The downside: When this was an occasional promo, the distance was 750 miles. Those 50 miles matter, since popular routes like Chicago-New York (733 mi) are excluded. Update April 2007: While United made it sound like a permanent feature, short-haul awards ended on February 28, 2007. Bad form, United!
- All other economy-class saver awards remain the same.

The good news is that domestic tickets over 700 miles are still 25K, mainland to Hawaii or the Caribbean is still 35K, North America to Europe is still 50K, etc. etc. Most travelers can already breathe easier. The changes to intra-Hawaiian and Australia/New Zealand-bound tickets were widely expected. Both these awards were well below the competition’s redemption rates. I’m sad to see these change, but I’m not surprised.

North American First Class / International Business Class Saver Awards
Saver Awards for business class (on 3-class planes) or first class (on 2-class planes) are going up in several markets:

- within North America (+5K / +12.5%)
- between North America and Hawaii (+15K / +25%)
- within Hawaii (+5K / +50%)
- from Hawaii to the Caribbean or Central America (+15K / +25%)
- to/from Australia/New Zealand (+20K, like economy class / +22%)

The North America-Hawaii increase is probably the most obnoxious, and makes this award a so-so value. Clearly, they’re out to bilk the honeymooners. The service up front in a 2-class plane to the islands will now only cost 5,000 fewer miles than a far superior business class flight between North America and Europe in a 3-class plane (with better food, entertainment, legroom, etc.) The Australia/New Zealand increase stinks, too, but is perhaps more palatable given the duration of the flight; it’s also not a surprise, given how comparably cheap this award has been, compared to the competition, for years.

International First Class Saver Awards
For international travel on three class aircraft, first class is of course the cream of the crop. And this is where some of the most marked saver award increases are found.

- Australia/New Zealand to/from the Americas (+20K / +16.7%)
- Europe to/from the Americas (+25K / +25%)
- North America to/from South America (+10K / +10%)

Again, no surprise on Australia/New Zealand. The real shocker is the Europe fare. It’s absurd, actually, since Asia-North America flights (unchanged) are now cheaper. More miles for a shorter flight. What’s the sense in that??

Standard Awards
Standard Awards allow you to use miles to buy a seat on any flight that is still for sale. It’s like buying a full-fare ticket: If there is a seat left, you can buy it. But it costs more. Now, it costs even more. Unlike Saver Awards, where many regions were spared, there are increases in 80% or so of the routes, too many to mention. The smallest increase is 10K miles (for example, within North America), while the largest jump is a whopping 70K miles (bringing a North America to Australia ticket from 200K to 270K). Ouch.

Short Term Redemption Fees
This is where I get cranky. Charging money to cash in your miles is purely punitive, but main competitor American Airlines has been charging fees for short-term redemptions for some time. Join the crowd, eh? At least the fees aren’t as high as American’s: United will charge $50 for redemptions 7 to 13 days prior to travel, and $75 within 6 days of travel. (American charges $50 for redemptions within 6 days, and $100 for redemptions 7 to 20 days prior to travel.) If you book two weeks in advance, you avoid the fees. Top-tier elites (1K and UGS) are exempt from the fees as well. Granted, I plan my award travel well ahead of time, but this new fee leaves a bitter taste in my mouth.

“Choices”
Finally, Choices. Perhaps to make up for the increase in redemption rates and fees, holders of the Mileage Plus credit card from Chase can now add another layer to the mileage redemption onion. Miles earned through credit card activity are now tracked separately in the Mileage Plus account, and labeled as “choices.” The choice? You now have the option of using the miles labeled “choices” to retroactively refund the cost of travel booked on united.com. (For air travel, the rate is 1 cent per mile. For hotel and car bookings, it’s less.) The retroactive credit is an interesting twist. Of course, you don’t have to use the miles this way: You can use them as normal redeemable miles, as always. Thus “Choices.”

Since JPMorgan Chase is a major creditor to the new UAL Corp., it’s not surprising to see a credit-related gimmick being rolled out. But frankly, this seems like a non-event to me. It’s nice to have an option, I guess, but the 1 cent-per-mile rate stinks. The upside: You can EARN miles on tickets you buy using your “choices.” But you’re still better off, value-wise, going for traditional redemptions.

Three final pieces of advice, regarding these changes: 1) If you are looking to redeem miles, don’t rely on United’s website for availability, especially if your destination is served by a partner airline. Call. The phone agents can work magic and find availability you can’t. 2) If economy class saver awards are sold out, and if you are considering a standard award instead, be sure to check for saver award availability in first or business class before you book. It may be available, and cheaper than the standard award. People often neglect to check the premium cabins. 3) Try to maximize the value of your miles. Even with the heightened redemption rates, there are still good deals to be found. Unsure whether to use your miles or pay with cash, or looking for more redemption advice? Run it through Miles or Buy.

Bottom line: The awards that did change were hit pretty hard. Am I disappointed at these changes? Absolutely. But the majority of awards are unchanged, and the “price” still seems reasonable. Do I think the short-term redemption fees are obnoxious? You bet. Am I running to the barricades and threatening to kick United to the curb? Not yet.

(image)