Upcoming changes to the Southwest Airlines Rapid Rewards program may be worse than we thought. The airline hasn’t released details, but we already know that:
The value of points is going to change. Currently they offer a fixed value per point. When the price of a ticket goes up, the points price goes up proportionately (and vice versa). Going forward, points will become less valuable when redeemed against the most expensive tickets at the busiest times – when you need your points most! – although they might become more valuable when redeemed for flights that aren’t selling.
Fewer points are earned on the cheapest tickets. Southwest cut points-earning by two-thirds, from 6 points per dollar down to 2, on their least expensive tickets (Wanna Get Away) that most people buy. This prepares for the change in nomenclature to basic economy. Other airlines offer fewer points earned on these fares, and in Delta’s case none, so they aren’t out of step with the industry even though it’s a huge devaluation.
They are introducing basic economy fares. Their least expensive fares are not going to offer advance seat assignments or changes. It’s unclear what restrictions or costs will be associated with cancelling a ticket and receiving future travel credit. These fares will not come with free checked bags.
And they are going to start expiring travel credits. In 2022 they made travel credit never expire. Going forward they will expire after 12 months, but just 6 months for cancelled basic economy tickets.
Since customers redeem points directly against paid ticket prices, presumably the least expensive redemptions will be for their basic economy tickets.
- Most award tickets may not come with seat assignments
- And those award tickets will no longer include free checked bags
- Will these redemptions even be fully refundable? How will new restrictions on travel credits for basic economy fares affect cancelling tickets and redepositing the points?
Southwest has not shared many details about their changes, which are universally bad for customers. Points aren’t going to retain their value against expensive tickets, though the airline hasn’t said what they’ll be worth. You’ll earn fewer points, too, when buying the cheapest tickets plus they’re taking away checked bags. But the real open questions I think are whether award tickets won’t even get seat assignments or free points redeposit when you cancel.
I reached out to the airline with questions about these changes and haven’t received answers but will share when I learn just how bad they will be for points travelers.