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United adds frequent flier perks

Its credit card users can cash in points for tickets, rooms

Chris Walsh, Rocky Mountain News

Published May 2, 2006 at midnight

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United Airlines is expanding its frequent flier program by offering exclusive perks to users of its co-branded credit card, allowing them to use points like currency to book flights, hotel rooms and rental cars.

"It's a complete reinvention of our frequent flier program, giving our customers more choice" in obtaining rewards, said Kenneth Feldman, United's vice president of loyalty and e-commerce.

The move comes amid complaints by frequent fliers that it's getting tougher to book award travel on United and other carriers. In addition to cutting back on domestic flights, some airlines are reducing the number of seats they reserve for lower-level rewards. And, with the proliferation of airline-branded credit cards, more consumers than ever are accruing and redeeming miles.

Under United's new program, members continue to earn points by charging purchases on their United credit card, which is offered through JPMorgan Chase & Co.

Points can still be used as traditional frequent flier miles, but consumers also can cash them in as monetary credits. After using the card to book travel on United's Web site, members simply wait for their monthly statement and decide whether they want to use the new "choice" points, cash or a mix of both.

Every 10,000 points earned on the card equals a $100 credit for flights, with higher redemption levels for hotel rooms and rental cars.

Under United's frequent flier program, earning a free round-trip domestic flight typically requires 25,000 miles - regardless of the flight's actual cost - and is subject to capacity restrictions.

Landing a free seat without restrictions will set you back 40,000 points.

"What I like about this is that it actually opens up redemption to a lot of people who don't have a lot of miles" and therefore normally couldn't cash in for free flights, said Colorado Springs-based Randy Petersen, who runs several frequent flier Web sites and publications.

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