United Airlines is revolutionizing the way travelers utilize their frequent flier miles by launching the MileagePlus Gift Card Exchange program. This innovative initiative allows members to transform gift cards from over 60 prominent retailers into valuable frequent flier miles, enhancing the travel experience and providing more flexibility in how loyalty rewards are used.
The MileagePlus Gift Card Exchange program is a novel approach by United Airlines to cater to its frequent fliers, offering them the opportunity to convert gift cards from popular retailers such as Home Depot, Starbucks, and Target into United frequent flier miles. To participate, members must possess a minimum of $25 in unused gift card credit. This strategic move is designed to attract and retain loyal customers, especially business travelers, by adding a unique option to the traditional rewards program landscape.
Loyalty programs have long been a decisive factor for customers when choosing an airline. United's entry into the gift card exchange market is a pioneering step, setting it apart from competitors. While platforms like Points and PlasticJungle have facilitated the buying, selling, and swapping of gift cards among individuals, United is the first airline to directly engage in this space.
The potential market for this program is vast, considering that gift card purchases in the United States surpassed $100 billion in 2011. Before recent legislative changes, gift cards often depreciated over time, leading to approximately $6 billion in lost value for holders in 2009 alone. However, a federal law enacted in 2009 now mandates that gift cards must have a minimum expiration date of five years from the date of purchase, safeguarding consumers' investments.
United frequent fliers interested in the gift card exchange program can easily participate by logging into their MileagePlus accounts online. After selecting the retailer of the gift card they wish to trade, members enter their gift card details. United then converts the gift card value into miles and credits them to the member's frequent flier account.
While the program is a significant addition to United's loyalty offerings, it's worth noting that the exchange rates for converting gift cards to miles may vary and might not always represent the best value proposition for all customers. It's essential for members to assess the conversion rates and decide if the trade is beneficial for their specific travel needs.
According to a report by the Mercator Advisory Group, the volume of unused gift cards in the U.S. was estimated at $3 billion in 2020. This untapped reservoir of value can now potentially be redirected towards travel experiences with United's program.
Furthermore, the airline loyalty program market is highly competitive, with a 2017 study by Colloquy showing that U.S. consumers held 3.8 billion memberships in customer loyalty programs, with travel and hospitality programs accounting for a significant portion.
For more information on the MileagePlus program and its benefits, visit United's official MileagePlus page.
For details on federal regulations regarding gift cards, refer to the Consumer Financial Protection Bureau.
United Airlines' MileagePlus Gift Card Exchange program is a creative solution that adds versatility to the traditional use of frequent flier miles. By tapping into the substantial market of unused gift cards, United not only provides a valuable service to its members but also sets a new standard in the airline industry's loyalty program offerings.
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