Here’s How to Play Them…

Airline press releases announcing frequent flyer program rule changes are masterpieces of linguistic subtlety, and United’s recent presentation of changes in Mileage Plus rules upholds the tradition. So here’s a list of each major change and my translation of what it really means to you—

Dedicated Saver Award Seats: Through March 15, 2007, “United is reserving a number of Saver Award seats on every flight to every domestic and international United destination.”

Translation: It sounds like there are more seats available, but note the vagueness about the number of seats. Where’s the word “increase”? In fact, nothing’s changed. United has always reserved a number of seats on every flight, but it is not increasing the number reserved.

Short-Haul Saver Awards: Through 2006, the mileage requirement for flights shorter than 700 miles within the continental US and between the US and Canada (for example, Chicago-Washington/Dulles or San Francisco-Seattle) declines from 25,000 miles in economy to 15,000 miles, and from 40,000 to 30,000 in First Class.

Translation: We succeeded so well with the former short haul award, which set the flight limit at 750 miles, that we had to cut back! Trimming 50 miles from the distance actually cuts out a number of popular routes New York/JFK-Chicago, for example, at 737 miles. Still, this is not a bad deal at 30,000 for First Class.

Standard and Select Saver Awards: Effective Oct. 16, the mileage requirement increases for domestic First Class Saver Awards (restricted) from 40,000 to 45,000 miles (only 12.5%); domestic Standard Awards (anytime) increase from 80,000 to 90,000.

Hawaii: Business Class increases from 60,000 to 75,000 miles, First Class from 80,000 to 90,000 miles.

Europe: Business Class Saver Awards stay put, but Standard Awards increase from 150,000 to 180,000. First Class Saver Awards jump from 100,000 to 125,000; Standard Awards increase 20,000 miles to 220,000.

Asia: Rates don’t change for Saver Awards, while Standard Business Class awards skyrocket from 150,000 to 200,000, and First Class from 200,000 to 240,000 miles.

Australia: Business and First Class Saver Awards increase 20,000 miles each, while Business Class Standard Awards also skyrocket from 150,00 to 220,000 (47%); First Class Standard Awards jump from 200,000 to 270,000 (35%).

Translation: This is an eyeful, but in most cases United is just bringing its redemption levels closer or up to that of other airlines. Domestic First Class is now where American’s has been, for example, and is still much better than Continental, as no Saturday-night stay is required. Continental and Delta just increased their Business Class anytime awards to Europe, too; British Airways, Northwest and Virgin Atlantic Business Class still cost 20,000 miles more. The one exception is Australia: On this route United is trying to discourage First Class redemptions, as it wants travelers (and they do) to pony up the $12,000+.

Standard and Saver Award Booking Fees: Also effective Oct. 16, Standard and Saver Award travel booked fewer than six days before departure will cost $75 per ticket and fewer than seven-to-thirteen days $50 per ticket. No fees for travel booked more than 14 days in advance and for 1K Mileage Plus and Global Services members.

Translation: Times are tough so we have to find revenue any way we can.

YOUR MOVES

What to Do Before Oct. 16 Spend the miles in your account for flights you might take in the following 22 months—that’s the award window (11 months out) plus the extension window (another 11 months out) at the present mileage redemption rates. If you don’t take the flights, just redeposit the miles for only a $75 fee—this amounts to your hedge fee to beat the increases.

Make some of your “placeholder” bookings at the Saver Award level, and some at the Standard level. Decide which award to use, based on seat availability, when you go to change the booking to an actual itinerary you’ll fly. Keep the ticket’s “routing” the same and you’ll avoid a change fee. This strategy locks you in at the current levels for almost two more years!

The Silver Lining The new fees and increased costs may cut down the demand for premium awards, leaving more seats open. Mileage upgrades are usually best for Business Class travel and those requirements haven’t increased and probably won’t anytime soon. Why? They cost fewer miles, earn miles and elite credit, and are much easier to find seats than regular awards.

Current award charts: www.united.com/page/middlepage/0,6823,1137,00.html

New award charts: www.united.com/awardchanges