United Air Woos Elite Flyers By Smoothing the Path to Upgrades

(Bloomberg) -- United Airlines Holdings Inc. is adjusting its loyalty program to boost the chances for its most elite frequent flyers to obtain upgrades on flights.

The carrier is converting the current regional and global rewards system in its MileagePlus program to a bank of points, dubbed PlusPoints, that can be used to apply for upgrades, the Chicago-based airline said Tuesday. Travelers who reach United’s top platinum and 1K elite levels attain the perks.

The program changes take effect Dec. 4.

United said frequent travelers will be able use the points to join upgrade lists on multiple trips. The points won’t be deducted from the account until the upgrade clears. The changes are expected to alleviate “pain points” United frequent flyers had expressed with the program, Luc Bondar, the carrier’s vice president of loyalty, said in a conference call.

“Our goal here is to see our premier members achieve upgrades more often when they fly,” he said. Alaska Air Group Inc. has also focused on how frequently elite members of its Mileage Plan program receive an upgrade as a way to lure more frequent travelers.

A regional upgrade under the current system will be worth 20 PlusPoints after the conversion, and a global upgrade will be 40. Passengers reaching the 1K level, for example, have been receiving six global and four regional upgrades, which will now be 320 points in the revamped program.

The changes to the two highest elite tiers are the latest in a series of recent tweaks United has made to its loyalty scheme. In August, the carrier said its miles would no longer expire.

To contact the reporter on this story: Justin Bachman in Dallas at jbachman2@bloomberg.net

To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan Warren

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