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Southwest Airlines has provided information about changes to its Rapid Rewards program in the November monthly statements. Beginning January 1, 2024, there will be a 4% increase in the Rapid Rewards points needed per dollar for flights purchased with points. This means it will cost more points to redeem for the same airfare, signaling a devaluation.
Devaluation Insights:
Despite the increase, the impact may not seem significant, with the redemption rate shifting from 1.2 to 1.15 cents per point (on average). However, for current Rapid Rewards members, there’s a silver lining – those who book before January 1, 2024, can secure flights under the existing points system. Last time they reduced the point value was in 2021 when Southwest experienced a sudden 6% (on average) drop in the value of its points. Fortunately, this time around, they’ve provided advance notice, giving everyone an opportunity to make the most of the existing rates before the changes take effect.
Opportunity for Savings:
Southwest is offering a 20% discount with the promo code MAX20. Act quickly, as this offer is valid for bookings made by November 11th, 11:59 PM, for travel between December 1, 2023, and March 6, 2024. Be mindful of blackout dates: December 22-23, 2023, December 26-28, 2023, December 30, 2023, and January 1, 2024.
Recognizing Patterns:
This move by Southwest fits a common pattern seen in the industry. It begins with credit card companies enticing new customers with high sign-up bonuses. Over time, loyalty program terms may shift, as observed with the 4% increase in Rapid Rewards points. To balance this, companies often introduce discounts or promotions, as seen in Southwest’s MAX20 offer.
Conclusion:
Southwest Airlines is making it a bit more expensive to use points for flights, but there’s good news for existing members who book before January 1, 2024. The 4% increase may not seem big, but it means each point is now worth 1.15 cents instead of 1.2 cents (on average). On the bright side, Southwest offers a 20% discount with code MAX20—just book by November 11th to save. This fits a usual industry pattern: tempting bonuses, then changes in loyalty programs. For smart travel, stay updated, grab discounts like MAX20, and keep an eye on your credit card perks. Staying on top of things helps you get the most out of your travel plans, even when things change unexpectedly.
New to earning miles and points? Read my tips on how to collect them effortlessly [link]. I’ve got a beginner’s guide to credit card points and miles to help you start. If your credit card is declined or pending, don’t stress—it’s not over. Check this [link] for basics on the credit card application process and what to do with a reconsideration line. Explore my list of sweet spots to make the most of your miles and points. Enjoy your points and miles journey!
Disclaimer: This article is neither sponsored nor paid, and I am not affiliated with any of the mentioned programs at the time of writing.
