TonyBurr
Topic Author
Posts: 1067
Joined: Tue Mar 27, 2001 1:00 pm

Another UA Attempt To Make Money

Fri Feb 27, 2004 11:25 pm

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 ?
 
caetravlr
Posts: 861
Joined: Mon Oct 16, 2000 8:19 am

RE: Another UA Attempt To Make Money

Sat Feb 28, 2004 2:07 am

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
 
tripseven
Posts: 70
Joined: Tue Mar 20, 2001 1:28 am

RE: Another UA Attempt To Make Money

Sat Feb 28, 2004 2:16 am

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.
 
Leskova
Posts: 5547
Joined: Wed Oct 08, 2003 3:39 pm

RE: Another UA Attempt To Make Money

Sat Feb 28, 2004 3:30 am

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 avatar
flashmeister
Posts: 2681
Joined: Fri Apr 28, 2000 4:32 am

RE: Another UA Attempt To Make Money

Sat Feb 28, 2004 3:51 am

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.
 
avt007
Posts: 1989
Joined: Mon Jul 10, 2000 4:51 am

RE: Another UA Attempt To Make Money

Sat Feb 28, 2004 3:55 am

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.
 
VectorVictor
Posts: 384
Joined: Tue Mar 01, 2005 5:31 am

RE: Another UA Attempt To Make Money

Sat Feb 28, 2004 5:55 am

...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.
 
avt007
Posts: 1989
Joined: Mon Jul 10, 2000 4:51 am

RE: Another UA Attempt To Make Money

Sat Feb 28, 2004 10:08 am

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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