Testing, testing: Will miles be United's new form of passenger compensation?
It looks like United will be testing giving out miles to travelers as form of compensation instead of vouchers starting on Sunday.
This announcement came from a memo posted on Twitter by Skift Senior Aviation Business Editor, Brian Sumers. A screenshot of the alleged memo said that, "Beginning on Sunday, February 16, select Customer Care team members will award goodwill compensation solely in the form of MileagePlus Miles." TPG values United MileagePlus miles at 1.3 cents each.
The memo goes on to say that customers without a MileagePlus account will essentially be asked to enroll in order to receive compensation in mileage form. United is testing this strategy "for a few months" and promises to "share the results" — although it's unclear if those results would be shared internally or with passengers.
United is not the first major domestic carrier to offer miles as a form of passenger compensation, but it is the first to test ditching vouchers altogether.
Previously, United offered travelers compensation via electronic certificate vouchers (instead of paper vouchers, which I can say from personal experience, is a win in itself). The vouchers ranged in value depending on the complaint. Unlike other airlines, such as American, United vouchers were not valid for redemption on different carriers within the alliance. For instance, you could not redeem a United certificate on a Star Alliance partner such as Air Canada.
Related: Closing the gap for United elite status without ever flying
One of the hidden perks of vouchers is you can use that "free money" to purchase subsequent flights in cash, earning PQF's or PQP's toward United Premier status, as opposed to an award booking. Unfortunately, receiving miles instead of a voucher would make it even harder for passengers to work their way toward elite status.
Additionally, this places those who don't otherwise accrue MileagePlus miles at a disadvantage since passengers can only book all-cash or all-points tickets, not a combination. With a voucher, passengers could at least put $75 toward a $200 flight.
Related: Best United Airlines credit cards of 2020
I can't say I'd prefer miles over a voucher, mostly because I'm curious how they will calculate a proper mileage offer.
TPG has reached out to United for comment and will update this post with any additional information.
What are your thoughts on this change — Would you prefer miles or a voucher to redeem toward a cash flight?
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- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
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| 3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
| 2X | Earn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets. |
| 1X | Earn 1X Miles on all other eligible purchases. |
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Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.Earn 90,000 Bonus Miles50,000 Bonus MilesAnnual Fee
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Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees