Some frequent fliers received what looked like a great offer from United Airlines this week. Under the headline “Get the Year End Bonus You Deserve,” the promotion offers Mileage Plus members from between 2,000 and 40,000 bonus miles, just for flying United. The miles increase from the first to the third trip between Oct. 1 and Dec. 15, 2008, with higher bonuses for international travel.
Sounds great, right? Well, maybe. It turns out the promotion is only valid on certain fare types — H class and above. Internet fares, special sales and super saver fares are excluded.
A few examples: The lowest fare available San Francisco to Seattle for a Friday early evening, Sunday afternoon roundtrip in November is $159. The lowest fare eligible for bonus miles? $535.
A midweek trip from Los Angeles to Boston? $384 compared to $813.
International fares are not as different because of taxes and fuel surcharges, but an eligible coach ticket in November between Washington and Frankfurt would cost at least $300 more than the lowest published United fare.
Many of these less expensive ineligible fares require at least a week or two advance notice, though some are last minute fares. Leisure travelers who need miles can buy them much more cheaply. For example, simply buying 5,000 miles (the “bonus” level for two domestic roundtrips) from United costs only $196.25.
Clearly the promotion is aimed at business travelers. And it puts those travelers who really want extra miles squarely at odds with their company budgets. Some may resist, others may be tempted just to book the higher fares, and still others may simply wait until less expensive fares are sold out.
This isn’t the first promotion United has done that is limited to higher fares, and they are probably not the only culprit. In tough times, the idea of encouraging travelers to fly more with bonus miles is a good one. But this offer is more like giving free sodas with a $20 snack box.
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I received that email, and I dont recall it saying the miles were ‘free.”
However, you hit the nail on the head with whom the airline appears to be targeting. It’s clearly designed for business travelers (and leisure travelers who have the means to buy more expensive tickets). This is another example of rewarding those who choose to pay more with something they may consider to be beneficial. Airlines are for-profit businesses. United has a fiduciary responsibility to provide a positive financial return to its stakeholders. If this is one step in how they choose to acheive that goal, so be it. As you noted, the price differentials between lowest available fares and qualifying fares can be steep – so buyer beware.
What I wonder is why any anyone would want to earn United bonus miles. It’s very difficlt to get “saver” level awards. United has a good route network, though not as good as other airlines, especially the combined Delta-Northwest. United’s product isn’t exactly great, either (except for Economy Plus). Finally, it remains to be seen whether United will survive long-term, absent a merger partner (such as Continental).