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Another UA Attempt To Make Money  
User currently offlineTonyBurr From United States of America, joined Mar 2001, 1033 posts, RR: 0
Posted (10 years 7 months 1 hour ago) and read 2828 times:

On its website UA has the offer to transfer miles from your account to another account. Very nice! A quick electronic transfer, no hassel, no agents involved. When you go to it it shows that it cost $.01 per mile and a $25.00 fee. So if you were going to transfer say 25,000 miles it would cost you $250.00 + $25.00 = $275.00. Not bad if someone wants a free ticket, but where is the "cost" to UA ?

7 replies: All unread, jump to last
 
User currently offlineCaetravlr From United States of America, joined Oct 2000, 909 posts, RR: 1
Reply 1, posted (10 years 6 months 4 weeks 1 day 22 hours ago) and read 2712 times:

I am sure that the main cost involved is whatever it costs them to have a programmer set up that functionality in the computer system. Nothing too major there. However, they are under NO obligation to allow you to transfer miles at all. Therefore, it is actually quite shrewd to allow you to do it online, and charge a nominal fee. Other costs will be incurred if something goes wrong and the miles end up in limbo somewhere, and an agent has to step in and make some sort of corrections. All in all, not a bad idea at all.


A woman drove me to drink and I didn't have the decency to thank her. - W.C. Fields
User currently offlineTripseven From United States of America, joined Mar 2001, 72 posts, RR: 0
Reply 2, posted (10 years 6 months 4 weeks 1 day 22 hours ago) and read 2669 times:

Wow, for the consumer this is a complete ripoff. For $275 I could pay outright for a roundtrip anywhere in the US. Now UA tells me I have the opportunity to pay $275 for a "free" ticket. Give me a break.

However, good for UA if they can actually find people dumb enough to pay for this.


User currently offlineLeskova From Germany, joined Oct 2003, 6075 posts, RR: 70
Reply 3, posted (10 years 6 months 4 weeks 1 day 21 hours ago) and read 2559 times:

Hi,

I can only agree with Caetravlr on this: it's not something they're obliged to do, they could just simply keep the old standpoint of simply not allowing you to transfer miles... I'd venture the guess that this is more of an idea for those who, for example, have 53000 miles but need 55000 for a free ticket - not for someone wanting to transfer all miles needed for a free ticket: since most airlines (not sure about UA) will allow you to issue a free ticket for someone else, there's no need to transfer larger amounts of miles anyway.

So, in my example, the cost would be for transferring 2000 miles, which would be $20, plus the $25 charge - $45 in total for getting that free ticket...

Honestly - I think it's a great idea, and I think the cost that they charge is OK.

Regards,
Frank



Smile - it confuses people!
User currently offlineFlashmeister From United States of America, joined Apr 2000, 2900 posts, RR: 6
Reply 4, posted (10 years 6 months 4 weeks 1 day 21 hours ago) and read 2507 times:
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What this really shows is an attempt by UA to get folks to use their miles. Airlines have to carry FF mile accrual as a liability, and UA wants that liability gone. Simple as that.

User currently offlineAvt007 From Canada, joined Jul 2000, 2132 posts, RR: 5
Reply 5, posted (10 years 6 months 4 weeks 1 day 21 hours ago) and read 2488 times:

I don`t understand that on A.net of all sites, people get pissed off when the airlines, who are not charities, try to make money, which is the sole reason for being in business in the first place! No one is forcing you to transfer points, or buy tickets. If it makes money for UA, and costs them very little, then congratulations should be in order.

User currently offlineVectorVictor From United States of America, joined Feb 2005, 0 posts, RR: 0
Reply 6, posted (10 years 6 months 4 weeks 1 day 19 hours ago) and read 2383 times:

...people get pissed off when the airlines, who are not charities, try to make money

Hmmm, let's see. Lands' End, probably the most succesful catalog clothing retailer in existance, charges absolutely nothing for alterations, offers free shipping on returns and guarantees every product for life. They also booked a $66.9 million profit in 2002 (per: hoovers.com).

Apples to oranges you say. Well not really. They could easily charge customers $3-5 per pant leg to sew a hem and "make" a ton of money and probably lose many customers along the way.

This is what the airlines - like United, et. al. - cannot grasp. Providing unique and extra-ordinary customer service like eliminating a laundry list of fees and surcharges is money in the bank, it is PROFIT. Why can't just one person in Elk Grove realize this?

They do in Dallas at Southwest and the do in Dodgeville, Wisc. at Lands' End. Both profitable companies.


User currently offlineAvt007 From Canada, joined Jul 2000, 2132 posts, RR: 5
Reply 7, posted (10 years 6 months 4 weeks 1 day 14 hours ago) and read 2258 times:

Don't get mad at them for trying to make money, it's what the airline exists to do. If you don't like the product, don't buy it.

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