The Upgrade Mindset’s Take on United’s Devaluation…

… And what you really ought to be thinking about.

You likely know my take on this, but I’ll give it to you again right upfront.

I don’t think anyone ought to be earning large amounts of United miles except by flying, which is fine with me if United is your carrier. But, minus some edge cases, like better rates with the Starwood Preferred Guest card (see more on that in FCF’s June report here), the recent United mileage devaluation is only important to those addicted to United MileagePlus.

I recommend building a war chest of elastic, transferable points, which allow you to ignore point-program devaluations like this one, for the most part.

In an era of imploding “loyalty” program benefits, it’s quite refreshing when a program modestly “devals” award-types most of you like to use. Below you’ll get an executive summary on the good, bad, and the ugly of what United has just rolled out.

“Good” Changes / Increases

• Europe Business Class: Only increases 2,500 miles one-way for saver awards, but if you’re flying U.S. to/from Europe, it’s probably not on United because of its skimpy allocation of saver award seats. Which means you’ll be paying 70,000 miles one-wayin Business Class on United’s partners, which hasn’t changed, to Europe. SPG members can get Europe partner awards as cheaply as 65,000 points round-trip (80,000 miles) with Asiana.
• United Partner Awards: Just 5,000 to 10,000 mile increase in First and Business Class on some awards for travel to Asia, the Middle East, and the South Pacific. As most people with United miles use partner awards, this minor-deval is encouraging.

Bad Changes

• Asia First and Business Class: From/to the U.S. have increases of 5,000 to 10,000 miles one-way for most regions. If you read our report from last month about our research uncovering zero availability on United’s Asia routes, you’ll know our take on United credit cards. Given that there’s no availability, how relevant is an increase?
  
• South Pacific: 10,000-mile increase each way in Business; 20,000 in First for saver awards. Given the high cost of premium seats on this route, there is still value here for high-mileage rollers. Again, zilch availability on United to this region, so deval is irrelevant. (That said, FCF is seeing several months of availability at a time to the South Pacific on Qantas—check our alerts here, here, and here, including the trick to getting Business Class for the price of coach and First for 15,000 fewer miles than Business Class.)
• Transcons suffer a 40% hike: That means New York/Newark to Los Angeles and San Francisco and Boston to San Francisco. The new rate is 70,000 miles, a 20,000-mile round-trip increase. The better deal here for flights on United is via its partner Singapore Airlines (an Amex, Chase, and SPG partner) at just 40,000 miles round-trip (30,000 / 43% less than United is now going to charge), or Asiana (SPG partner) at 45,000 miles round-trip.
• Hawaii Business Class: Now a joke at 80,000 to 100,000 miles round-trip. Through All Nippon (SPG partner), you can fly “round-the-world” for just 105,000 miles (go here for more), so you won’t see me biting on this, and published fares are often just $1,200, so a 1.2¢ per-mile return is a waste of mileage-earning effort. Best deal right now to Hawaii is via American / British Airways / Amex Rewards, details here.
• Southern South America:Increase of 5,000 miles each way in Business and 10,000 (20,000 for Everyday awards) miles in First. If I were flying United to South America, I’d book through Asiana for 70,000 to 90,000, which is up to 70,000 fewer miles round-trip in Business and First Class.

Quick Notes:

• Commendable: United is giving a lot of advance notice—the changes take effect on Nov. 1—unlike Delta, which changes rates overnight.
• Commendable: United has an award chart, again unlike Delta.
• Not an issue: Standard Awards, now to be called “Everyday” awards, are increasing. I don’t recommend these so I will spend little time telling you that increases are around 5,000 to 25,000 one-way, in general.
• Chintzy: Higher redeposit fee: up to $125. Go here for details.
• Great news: No change in upgrade mileage awards.
• Best move: Lock in current rates before Nov. 1.