United Airlines Launches Auction Rewards

United Airlines is giving greater meaning to loyalty rewards having launched a new program in which members of its frequent flyer program, Mileage Plus, can use their miles to bid on big-ticket items.

Mileage Plus Auctions, which rolled out last month, lets frequent flyers redeem miles for top awards other than airline flights, including private golf lessons, spa treatments, a flight simulator experience and a four-day U.S. Winter Olympic experience.

“We were looking for a creative [outlet] to give our consumers others ways they can use their frequent flyer miles,” said United Airlines spokesperson Robin Urbanski. “A lot of our customers were asking us to use their miles for things other than air travel. What is so creative about this [program] is a lot of things on the auction are things money can’t buy.”

Through the program, United Airlines wants to reward loyal consumers with once-in-a lifetime experiences or treasures, Urbanski said. Members can bid on items in a variety of categories, including action and adventure, gourmet, sports and rest and relaxation. The auctions offer big-ticket items, including 2005 Chrysler Crossfires, which two Mileage Plus members bid on and redeemed separately for 1.4 million miles and 1.45 million miles, respectively.

To participate, consumers must be a member of United Airlines Mileage Plus program. Members can enroll in the Mileage Plus Auctions online at United.com/autions. Miles earned are based on frequency and length of flights.

More than 45 million people worldwide are enrolled in United Airlines’ Mileage Plus program. Some 4,000 members have enrolled in Mileage Plus Auctions. The site receives 30,000 visitors each week, Urbanski said.

The program marks a growing trend by airlines to offer programs in which frequent flyers can redeem points or miles for items beyond air travel. United Airlines also lets its frequent flyers redeem miles for hotel stays, car rentals, music downloads, and newspaper and magazine subscriptions.

“Fares are so cheap now people are more reluctant to use their miles to travel,” Urbanski said. “They want to keep their miles for other things. We really focus on giving our customers more ways to use their miles so their miles are more useful.”

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