no united airlines Credit card? You’ll soon be earning fewer miles than other travelers.
United Airlines is overhauling its MileagePlus frequent flyer program, offering more miles and lower redemption rates to travelers who hold the airline’s credit card, including some long-haul business class seats. This is the latest move by airlines to reward customers who pay the most.
The changes mark the biggest shake-up to the lucrative program in more than a decade, when United began rewarding customers based on how much they spend, not just the distance they fly.
United Chief Commercial Officer Andrew Nocera told CNBC in an interview that the airline has been working on the changes for about 18 months, and that the airline aims to reward its most loyal customers.
The changes come as United Airlines seeks to stand out in an increasingly competitive landscape of travel and points credit cards. That space also includes American Express” platinum, capital oneVenture X and Chase’s Sapphire Reserve Card.
A United Airlines plane is taxiing for takeoff from San Francisco International Airport.
Teyfan Coskun | Anadolu | Getty Images
“In the credit card industry in general, there’s been a lot of change over the past five to 10 years in terms of the number of travel credit cards,” Nocera said. “What I’m thinking about in making these changes to United Airlines is to make sure that if you have a credit card, it’s on the top of your wallet, and if you don’t have a credit card, you have a reason to get one. If you want to fly on United, and you want to get it, and you want to travel to Tahiti or Rome or anywhere else it might take us, it seems incredibly attractive.”
This change will take effect from April 2nd. United Airlines will display discounts on award tickets on its website “so customers can see exactly how much they can save on travel by having a United Card,” the company said.
The update to United Airlines’ loyalty program is part of a trend among airlines to reward frequent flyer members based on their spending. About a decade ago, major airlines tweaked their loyalty programs to reward customers based on the number of miles they traveled.
Airlines also encourage customers to sign up for credit cards by offering perks like free checked baggage and early boarding.
United MileagePlus changes
United MileagePlus primary cardholders will earn more miles per dollar spent on United flights compared to customers without a card, and at a higher rate than they currently do. If you actually use that card to buy tickets, your income will also increase.
On the other hand, customers without cards will earn less than they do now.
For example, travelers who don’t have a co-branded United Airlines credit card will earn 3 miles for every dollar spent on tickets, up from the current 5 miles. Under the new structure, cardholders will earn more than 6 miles on purchases made with their card. Those with MileagePlus elite status can earn miles at a higher rate.
United Airlines debit cardholders can earn more miles after spending $10,000, United said.
Redemption rate discount for card members
United Airlines will also allow customers with its credit cards to redeem miles for tickets at a discount of at least 10% compared to customers without cards.
As an example, an economy class award ticket costs 15,000 miles, the airline said, and without Elite Premier status it costs 13,500 miles. United Airlines said it has special discounted inventory of award tickets for cardholders, including top-tier Polaris seats.
Benefits for elites
Customers with MileagePlus Premier elite status enjoy deeper discounts and better mileage redemptions. Elite cardholders can get at least 15% off mileage tickets.
United Airlines said a 200,000-mile long-haul business class Polaris cabin seat will be worth 170,000 miles if the cardmember has Elite Premier status. United Airlines has added Polaris’ lowest-cost “Saver Award” seats to MileagePlus members with United cards. Until now, these seats were only available to the upper elite.
If you have both a credit card and status, your income rate will also increase. MileagePlus 1K, the highest tier before the Global offering, earns you 17 miles per dollar spent with the United Club credit card.
What does the basic economy flyer look like?
United travelers who do not have a credit card cannot earn miles on basic economy tickets. american airlines It similarly announced last year that it would no longer allow that class of traveler to earn miles, following an earlier move. delta airlines. However, there is an exception for United Airlines elite Premier status holders, who can earn miles in basic economy.
What about business travelers?
Business travelers are often required to book with a company credit card based on the company’s travel policy. However, United Airlines said individuals who personally hold a United Airlines credit or debit card will earn more miles than employees who do not.
