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I believe the following only 20%, but it’s a point of view to consider. I have grown addicted to flying business and first class, so I am definitely still in the the-United-chart-devaluation-is-a-horrible-thing camp.
Economy class award prices rose modestly on some routes and stayed the same on others.
This so-called “devaluation” of United miles is great news for most frequent flyer mile enthusiasts! We will be much happier with our supposedly less valuable United miles for three reasons:
- We will book far more trips than before with our United miles. The value is now in economy class awards, which cost fewer miles than premium cabin awards, meaning more trips for us.
- We’ll book more award flights for our friends to travel to or with us, which will make us happier.
- No longer will our trip decisions be in any way influenced by the airline and cabin that we can fly–and that’s the way it should be.
Why will we be happier with “less valuable miles”?
More Trips
A United award redemption used to cost me 100k or more miles for a roundtrip because I would redeem for at least business class on longhaul segments.
Going forward I plan to redeem United miles for economy travel, which will range from 35k to 85k miles roundtrip depending on whether I want to stay close–Central America–or stray far–the Middle East.
Fewer miles per trip means more trips, which is why I started collecting miles.
Fewer miles per trip also means less effort on accruing United miles and more effort on accruing other rewards to make my trips cheaper like Arrival miles, which can be used for any hostel, hotel, car rental, train, bus, or other form of travel that accepts credit cards.
Having those costs taken care of also means more trips.
More trips is a good thing, so the United devaluation is a good thing.
More Redemptions for Friends
This year, I redeemed over 130,000 frequent flyer miles as gifts to friends, so they could travel with me or visit me. These awards have brought me as much or more happiness than the awards I’ve booked for myself.
When I have the chance to efficiently use my miles for my own business and first class award trips, I am likely to greedily hoard them. But with the comfort level of my flights reduced, I am more likely to offer people miles to visit me at home or on the road.
I’m not a perfect altruist, so this devaluation is a nudge in the right direction.
Ideally I wouldn’t need to use my miles on my friends because they would learn from me and accrue their own miles. But in practice, we all have some family or friends who cannot open credit cards to accrue miles because:
- they have bad credit
- they don’t have the discipline to use credit cards and pay them off each month
- they’re foreign
- they’re too young
To give those people–who think they cannot afford to travel–the gift of travel is one of the most valuable gifts I can give them. In 2014, I plan to give more of those gifts, especially with my United miles.
Our Only Concern Will Be the Destination
I’ve long thought that people come to the frequent flyer mile hobby from a variety of places.
- Travel–These are the wanderlusters, who want to travel more, more, more and discover that miles are a way that they can fit that into their budget. This is how I first got into the game.
- Status–These are the business travelers whose first brush with the miles world is status. They are looking to maximize the perks of all the time they spend in the air.
- Deals–These are the deal seekers. They coupon (as a verb!) and drive a hard bargain on craigslist. This is often the perspective of young families who need to stretch their budget for 4-5 of everything. They see miles as the extension of their deals mentality into the world of travel.
- Luxury–These are folks who want one or a lifetime of luxurious trips. They might be planning for a honeymoon and want to surprise their fiancee with first class everything. They might be wealthy enough to afford all the travel they want in economy, but would prefer to fly first class instead even if it means buying some miles or paying fuel surcharges.
Different blogs approach the miles game from different angles, so your favorites are probably the ones where your approach and the authors’ are similar.
While I originally approached the miles game from a Travel and Deals perspective, I have crept towards a Luxury perspective as I’ve become addicted to flying some of the world’s nicest first class cabins.
I still have never booked a trip solely to fly or test out a product, but I’ve let the chance to fly certain products have an undue influence on my trip choices–which is a shame because the lasting memories are still on the ground for me.
Now with United miles, I will be booking almost exclusively economy class redemptions.
Some people see a difference between certain airlines’ economy products, but not me. Airline product will be out of the equation on United awards for me, so I can focus exclusively on the destination. That’s great news because some of the top places on my current to-travel list have no good products serving them and are close enough where an economy redemption will still be comfortable. (I’m thinking Guatemala, Panama, Venezuela, and Colombia soon.)
I started collecting frequent flyer miles to travel more often to more interesting places. Now that can be my focus again with United miles without the distraction of flat bed seats.
Your Take
Who have I convinced that the United devaluation is the best thing for us? I know that many of you are furious about the devaluation, and I am not happy myself, but I hope this post and Eight Silver Linings of Today’s Massive United Mile Devaluation have at least made you reconsider the position that the devaluation is all bad.
As I tweeted Friday:
Happy Aloha Friday everybody! The United devaluation stinks, but we'll all find the next way to travel more, better, and cheaper with miles.
— MileValue (@MileValue) November 2, 2013
Let me have it in the comments. 😉
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I like it… (don’t love it, but I can make my peace with it :))
Why does everyone assume those currently widely available Economy Saver fares are still going to be available under the devaluation? To put it another way, where do you think those other FF are going to redeem their miles when confronted with the option (if they even have the balance) to book for two at ~600,000 in J/F vs ~200,000 in Y?
I’m pretty much fine with the devaluation cuz I fly economy no problem =]
Now if Chase raised the sign up bonuses to compensate everyone’s fury, that’d be perfect =]
Hi.
You are absolutely correct. The devaluation of the United Miles are great if you are delusional, otherwise it is a bad deal.
I wish I had a Travel Booking service for FF award redemption. Look for a surge in business as the new award chart’s implementation date approaches?
I’m bummed. I partake in the miles hobby b/c I want long flights in 1st or Business. No silver lining here.
[…] Three Reasons Why the United Devaluation is the Best Thing For Us Author admin Date November 6, 2013 Comments: Leave a comment […]
Swap you my Panama condo for award booking (which has gotten just a little bit more complicated because of all of this).
Hmm interesting offer! Email me.
My favorite part of this post is “the lasting memories are still on the ground for me.”
I was pretty happy when the top miles and points earners were all vying for “aspirational redemptions” and leaving the back of the plane to those of us trying to move four or five people around the world as cheaply as possible. The tantalizing ‘over-water suites’ and ‘lie-flat hard product’ high up in the awards tree meant that I was never really competing with the pros, but it looks like I now have to share my low hanging fruit with the more points-fortified pluckers. Crap: bad for them turns out to be bad for me, too.
Chris K makes a good point. Maybe you will see more competition and less availability. I hope not!
We just experienced our first flight in LH First from MUC to CPT as well as the MUC First Class Lounge. WOW! The idea of going back to Economy for long haul flights is not appealing. Furthermore, more people will be claiming the economy flights so there will be an acute shortage on the flights I might want, which is also not appealing. All in all, I think the United Devaluation is a bummer and other airlines will soon follow with their own devaluations, so this sounds to me like it’s going to be a double whammy! The lesson: use your miles before Feb. 1, 2014 to lock in those business and first class flights while the going is still good!
Gotta roll with the punches. I will be doing shorter hops in economy with my URs. Thankful I am now on my first United business class to SE Asia. Squeeked it in I guess.
Are you smoking that crack again? Is this a paid response from United? You cray-cray
As your post makes clear, the devlauation means that more people will be chasing after economy class milage seats, making it harder for each of us to get what we want: luxury folks can’t get business and first because of the miles required and economy folks can’t get seats because of the luxury folks flying economy. No silver lining here!
Collaboration & Competition
This miles game is such a vast topic. I don’t believe one single person could figure out this earning and redeeming game completely on their own. I’m talking from scratch….. reading every “terms & conditions”, searching every credit card site, memorizing award charts, making the errors while traveling. It boggles the mind. Happily, I am learning this hobby from bloggers like MileValue that on a daily basis are willing to generously share most of what they know. Woot, woot!
I’m not immune to competition, I have spent days searching airline websites to piece together travel for my family of four. I was feeling the competition for seats.
With the United miles devaluation, rather than joining the rant, thank you for focusing on and reminding me how this hobby can be a force for collaboration and connection (between our friends, family, travel companions and fellow miles hobbyists.) I want to plan and enjoy travel that builds connections and collaboration.
I think you left off one of the better examples. I think it was costing United a lot to provide these partner awards. By devaluing the business and first awards, they have reduced their costs. This will make them more likely to continue offering the ability to redeem for partner awards. I know it’s what they said in the announcement and nobody likes to hear it, but United is a company and doesn’t like losing money.
So while I don’t like this, I can accept it. I mean come on, did anybody will think it was fair to them that business flights only cost about 50% more than economy but cost the airline several times more?
I think most people stay interested in the points game because it’s always changing. Yes, it sucks that our plans are going to be different, but travel is supposed to be enjoyable, so just relax. These companies don’t owe you anything: you pay to fly, you receive the transport, and miles are a bonus; or you make a purchase and get your merchandise, and points/miles are a bonus. We shouldn’t expect to get anything beyond what we pay for, but I am excited to travel in luxury for free someday. It’ll take a while longer now, but this isn’t the end of the world…
Scott, I guess you mistakenly used your April Fools story today but in case you didn’t. I have 10 questions for you:
A. Are you related to the CEO or any of the Board member of United?
B. Do you have substance abuse problem?
C. Does someone at United have pictures of you in an uncompromising position?
D. Is someone at United holding one of your family members hostage?
E. Do you really think more Economy Award Seats are now going to become available?
F. Do you believe in Santa Claus?
G. Have you ever been hypnotized?
I. Do you have a learning disability?
J. Are you a member of the Tea party?
Maybe you should look up the work “devalue”
I’ll save you the trouble. “reduce the worth”
Is your next story going to be titled “How The Devaluation Of The Dollar Helps The American Economy?
I strongly suggest you find another subject to write a blog on because clearly airline reward travel
Delta just devalued their rewards. Any comments on how that’s good for flyers Einstein?
I know I may be flamed for this one, but if the devaluation results in better availability, I’m all for it. I’ve booked full Standard awards for scheduling reasons – and that hurt! I’d rather pay 25% more for more availability, than 100% more when there’s no space.
IF UA releases more award space at higher rates…
and IF there are less award bookings because of higher rates…
THEN it’s not as bad as everyone claims.
2 big IF’s though….
My guess is that you probably like ObamaCare too as you think less personal choice will be good for the consumer. Yes, reeking havoc on the value of our mileage portfolios is a good thing. There was nothing ever preventing these redemptions previously, but the collective value and worth of the miles have been greatly reduced. Maybe United could now just say that awards are only valid for redemptions to Topeka and we could all extol the virtues of how great Kansas’ Capital city is.
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[…] few days ago LifeMiles joined United and Delta in announcing an award chart devaluation, which will take place on October 15, […]