United Makes it Easier to Share Award Miles with Family and Friends

Rhea-AI Summary

United Airlines introduces MileagePlus miles pooling, allowing members to combine miles with family and friends for joint account use. This feature enhances flexibility for award travel and group redemption on United.com.

Insights

Market Research Analyst

The introduction of MileagePlus miles pooling by United Airlines represents a strategic move to enhance customer loyalty and differentiate its offerings in a competitive market. From a market research perspective, this initiative can potentially increase customer retention and attract new customers who value collaborative consumption and shared experiences. The airline industry is highly competitive and loyalty programs are a key factor in customer decision-making. By being the first major U.S. airline to implement such a feature, United could gain a competitive edge.

It's important to note that customer loyalty programs are not just about rewards; they are also about the perceived value and convenience they offer. By enabling miles pooling, United is addressing a common pain point for groups who travel together but struggle to use individual miles effectively. This could lead to an increase in customer engagement with the MileagePlus program, potentially boosting revenue as pooled miles may lead to more frequent redemptions for flights. This feature could also encourage more spending on United's co-branded credit cards, which often serve as a significant source of revenue for airlines through the sale of miles to credit card companies.

Consumer Behavior Specialist

United's decision to allow miles pooling taps into the broader trend of collaborative consumption and the sharing economy. Consumers today, especially millennials and younger generations, show a preference for services that offer flexibility and collective benefits. This new feature aligns with those values, potentially increasing the appeal of the MileagePlus program to these demographics. Additionally, the social aspect of miles pooling could lead to organic marketing benefits through word-of-mouth and social sharing as friends and family discuss travel plans and benefits.

From a behavioral standpoint, the ability to pool miles may also create a sense of community among participants, which can be a powerful motivator for consumer actions. The psychological effect of pooling resources for a common goal, such as a family vacation or group trip, can create a positive association with the United brand. However, it's essential to monitor customer feedback and usage patterns to ensure that the program's implementation meets user expectations and does not introduce unforeseen complexities or dissatisfaction.

Financial Analyst

When evaluating the financial implications of United's MileagePlus miles pooling, it's important to consider both the potential revenue increase from boosted engagement and the costs associated with offering more accessible rewards. The program could lead to more redeemed flights, which, while reducing the liability of unused miles on United's balance sheet, could also increase the airline's passenger service costs. However, the incremental revenue from additional bookings and the sale of miles to credit card partners may outweigh these costs.

Furthermore, the timing of this release, just before the summer travel season, suggests a strategic move to capitalize on the high travel demand period. If successful, this could result in a positive impact on United's quarterly earnings following the launch. Investors should look for changes in MileagePlus program engagement metrics and redemption rates in subsequent earnings reports to assess the financial impact of this initiative.

United becomes first major U.S. airline to allow members of its loyalty program, MileagePlus^®, to pool their miles with family and friends into a joint account

This new feature makes it easier for family members of all ages -- and groups to share and use miles for award travel

MileagePlus miles pooling is now available on United.com

CHICAGO, March 21, 2024 /PRNewswire/ -- Just in time for summer travel planning, United today launched MileagePlus miles pooling – a new way for MileagePlus members to contribute and combine their miles into a joint account. Available on United.com, groups of up to five members can now share and redeem miles in one linked account. United allows any MileagePlus member – whether relatives or close friends – to be in a pool with other members. United is the first and only major U.S. airline to offer this feature.

"We're always looking for new ways to provide the most value to all of our loyalty members and are proud to be the first major U.S. airline to allow our members to pool their miles with their loved ones and friends," said Luc Bondar, Chief Operating Officer of MileagePlus. "MileagePlus miles pooling further reinforces United's position as the leader in family and group travel and gives our members more flexibility to use their miles while making it easier to connect to the destinations and moments that matter most, with the people that matter most." 

As 81% of parents report intent to travel with their children in the next year and nearly 60% report concern about travel affordability, according to a 2023 U.S. Family Travel Survey conducted by the Family Travel Association, the introduction of MileagePlus miles pooling aims to make travel even easier for families or groups looking to get away; even the youngest family members can contribute as there's no minimum age to become a MileagePlus member.

MileagePlus miles pooling is now available to all MileagePlus members by logging in to their account on United.com. For those not already MileagePlus members, the program is free to join here. 

How MileagePlus miles pooling works

Any MileagePlus member over 18 years old can become the pool leader and create a pool for free when logged in to their account on United.com.

• Pool leaders can invite up to four of their family, friends, or close travel companions of any age to join the pool if they have an active MileagePlus account. There is no minimum age to join MileagePlus.
• When logged in to their MileagePlus account on United.com, members will be instructed on how to contribute miles to the group pool as well as how to redeem pooled miles for award flights on United and United Express*.
• There are no limits to the number of miles that may be contributed to an active miles pool.
• Pooled miles can be used when booking a ticket on United.com or in the United mobile app. 

For example, if a group of friends is planning an upcoming summer getaway and each friend has their own individual MileagePlus accounts with their respective number of miles, they can combine all, or a select amount of their personal miles into one central 'pool' that can be used to purchase flights and offset the cost of ticket prices.

Contributing miles to a MileagePlus miles pool will not affect an individual member's Premier^® status. Only members who travel on a ticket using pooled miles will earn any eligible Premier qualifying points (PQP), not the member who contributed them. Members cannot pool PQP, Premier qualifying flights (PQF), PlusPoints, or TravelBank cash.  

The MileagePlus program provides the most ways to earn and use miles of any other U.S. airline. Members earn miles that never expire with every flight purchased, through spending on the United Family of Cards from Chase, by making purchases on MileagePlus Shopping^SM and more. Members can opt to fully cover a trip with their MileagePlus miles or use a combination of money and miles to save on the out-of-pocket cost of their next flight**.

*For full terms, restrictions, and conditions, see here.
**MileagePlus miles pooling is excluded from money and miles at this time.

About United

At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".

 

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SOURCE United Airlines

FAQ

How many members can share and redeem miles in a linked account through MileagePlus miles pooling?

Groups of up to five members can share and redeem miles in one linked account.

Which major U.S. airline is the first to offer MileagePlus miles pooling?

United Airlines is the first and only major U.S. airline to provide this feature.

Who is the Chief Operating Officer of MileagePlus at United Airlines?

Luc Bondar is the Chief Operating Officer of MileagePlus at United Airlines.