MileagePlus award travel could cost more on transcontinental routes starting this fall. (Image: United Airlines)
United is the latest carrier to introduce variable pricing for award travel, with an announcement that it will do away with MileagePlus Standard Awards this fall and replace them with a new category called Everyday Awards, “with pricing that will vary from flight to flight.”
The company said that Standard Awards will no longer be available for reward travel booked starting November 1. However, United said it will continue to offer MileagePlus domestic Saver awards (which are subject to capacity controls) at levels of 10,000 or 12,500 miles one-way for economy class seats, depending on distance.
Unlike Delta, which did away with its SkyMiles awards chart when it switched to variable award pricing, United said it will still publish an Everyday Award chart listing the maximum price of a ticket in miles, although the actual cost might be less at the time of booking. Southwest Airlines also has variable award travel pricing, based on the dollar cost of a trip at the time of booking.
United Airlines Boeing 737-900 (Image: Chad Slattery / United)
A United executive told USA Today that once the change takes effect in November, a domestic Everyday economy class award could run as much as 65,000 miles roundtrip vs. the current fixed rate of 50,000 miles, especially on popular transcontinental routes. He also said that United plans to increase the availability of Saver award seats by more than 10 percent in domestic and Canadian markets.
United said on its website that changes to its Saver awards starting in November will include lower prices on many short-haul, intra-regional economy seats for flights outside the U.S., like within Europe; increased Saver award prices in “select international markets;” and higher prices for United Business Saver Awards on premium transcontinental routes and some Hawaii routes.
The company also said that effective for award travel booked on or after November 1, all members (even elites) who fail to show up for their flights and want to redeposit their miles will face a $125 redeposit fee.
The coming changes will not affect Mileage Upgrade Awards, United said.
What’s behind the changeover to variable mileage pricing?” Since flight prices fluctuate based on a variety of factors, we’ve decided to take those same factors into consideration for award travel pricing,” United said on its website.
You can see United’s new Saver/Everyday award pricing chart here.
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Well spoken. And you had to expect UA to do something; they’re always the me-too airline. I just wish they and AA would eliminate the surcharge within 14 days. No human interface to help make it happen, why the fee? Certainly keeps me from burning off miles, and counter to their goals to reduce FF liability. Meanwhile my DL SkyPesos keep accumulating.
I hear you. In the early 2000’s, I used to be able to fly one economy round trip from the US to southeast Asia and earn enough miles for two free round trips within Asia. Now I have to fly six rounds trips to Asia to be able to earn one free round trip within Asia. By my math, the Mileage Plus program is now only one twelfth as valuable as it used to be. Oh and the paid tickets cost a lot more now so that factor of 1/12 goes down to half or a third of that.
At least we (hopefully) have another year to spend all our miles before they change the program next year and screw up saver awards too.
Change “…others understood…” to “…only one understood…”. The only US airline truly left standing after deregulation is Southwest. All the others had multiple** trips through bankruptcy charade to stay in business thanks to their well-connected executives. Pensions were sloughed off to taxpayers – that’s not thriving, that’s cheating.
** American only went through once but absorbed TWA which had gone through at least twice.
I yearn for the days in the 1980’s when round trip domestic US awards were 25.000 miles in coach, 45,000 in first class. The coach seat pitch then was 35″, meals were free and because of less air traffic congestion, travel times were actually quicker than they are today (nonstop flights from Tampa to Los Angeles took 5 hours, today they are scheduled for 5 hours, 25 minutes). You received a minimum of a 1000 miles for a short flight. Your status with an airline was not a factor since all passengers were treated equally and much better than today. Flights were not oversold. Finally, after deregulation in 1978, fares became very reasonable as fare wars broke out between the numerous airlines that existed then. Some airlines couldn’t adapt to the competitive environment (for example: Pan Am and Braniff), while others understood how to compete and thrived.
My Dad, a United Mileage Plus member since the program started, decided this week to switch his spending to the Alaska mileage plan (including switching credit cards). Instead of doing something to make him doubt his decision United is telling him he made the right choice.
Like all of the big 3. Eliminate competition and then gut the FF programs. I wish regulation would return and they couldn’t continue to “enhance” (gut) the programs. I hope the stricter TSA security and the oil glut hurts them in the wallet and see how “loyal” their customers are. DL has RUINED a summer vacation for us.
Again good old United giving us loyal frequent flyers with another slap in the face. Gosh they don’t realize that it’s now harder to accumulate miles so they have to make it even harder by raising the price???
Sorry but United never helps us they just figure out more ways of charging us more for less.
I can’t wait for the day to tell United that I am no longer putting up with their crap. Unfortunately the U.S. government by allowing them to merge have given them the power to do what ever they want and screw us all. We need serious competition to return and gut United.
Wellll…if they actually increase Saver award space, that’s good. I likely wouldn’t ever book a standard award anyway, I’m just very skeptical that Saver space won’t be next to change…
The new structure seems incredibly complex. They aren’t messing with saver awards for now, but I have a feeling I should redeem my points before they’re watered down. Can we sub Alaska for United in Star Alliance? Life would be so much more pleasant.
u should give them credit holding out for so long. IIRC, UA and AS are the only 2 still offering an absolutely flat rate last-seat domestic award – UA calls it “Standard” and AS calls it “Refundable”.
B6/WN are 100% revenue based awards, AA has a variable but very fair pricing, while DL hides the award chart and quotes you the king’s ransom.
purists laugh at anything that isn’t saver award, but a reasonably priced last-seat award is the difference between stranded during extreme weather or getting home the same day (major lifesaver during Superstorm Sandy for me)