AwardWallet receives compensation from advertising partners for links on the blog. The opinions expressed here are our own and have not been reviewed, provided, or approved by any bank advertiser. Here's our complete list of Advertisers.
Just recently, Southwest announced it would add variable pricing to its Rapid Rewards program. It was buried in the announcement that was highlighted by the end of Southwest's “Bags Fly Free” policy. But to award travelers, this change is just as significant.
We now have a better idea about what that means, as Southwest has begun charging variable rates for award flights. The results — while mixed — are generally not good.
How Southwest Awards Used to Work
Southwest's award pricing has always been somewhat variable, as it was tied to the price of a cash fare. As cash pricing went up, so did the points required. Because of this, the value has always been somewhat predictable.
In recent redemptions, AwardWallet users have averaged 1.52¢ per point. However, not all redemptions offer this much value due to how taxes and fees factor into redemptions.
This consistency — plus the ability to book any open seat with points and not worry about award availability — made Southwest Rapid Rewards an attractive program.
Much like we see airlines ditching award charts and moving to dynamic pricing based on demand, Southwest is tweaking their pricing structure. Now, one can expect to pay more points per dollar during peak times and possibly less during off-peak times. Because demand is fluid, travelers can expect the valuation to ebb and flow.
What Do Southwest Variable Redemptions Look Like Now?
Southwest just launched variable pricing this in the past day, so we are just beginning to see what these new redemptions look like in practice. In evaluating a variety of routes during perceived peak and off-peak times, there is definitely some variance. Here are some examples.
Flying Chicago (MDW) to Savannah (SAV) for Memorial Day weekend is priced at $291 or 24,500 Rapid Rewards points. After factoring in taxes and fees, that's only a redemption rate of 1.16 cents per point — well below the previous average.
How about going to Coachella music festival? This Denver to Palm Springs flight costs $251 or 20,000 points — coming in at 1.23 cents per point.
Some other flights that came in well below the average customers were previously getting:
- Los Angeles (LAX) – Kahului (OGG): 1.15¢ per point
- Cleveland (CLE) – Orlando (MCO): 1.25¢ per point
- Dallas (DFW) – Montego Bay (MBJ): 1.35¢ per point
- Nashville (BNA) – Cancun (CUN): 1.24¢ per point
- Las Vegas (LAS) – Lihue (LIH): 1.12¢ per point
Of the flights we looked at across a broad range of cities and dates, most are in the 1.24-1.54¢ per point range. These definitely come in on the low end of the values before variable pricing took effect.
Adding insult to injury, on March 27, 2025, Southwest opened up their schedule through January 5th, which includes the Thanksgiving and Christmas holidays. On ALL the routes searched below around the holidays, the value was a paltry 1.1-1.2¢ per point.
November 25th, 2025:
- Pittsburgh (PIT) – Orlando (MCO)
- Philadelphia (PHL) – Dallas (DFW)
- Baltimore (BWI) – Los Angels (LAX)
December 21st, 2025:
- St. Louis (STL) – Fort Myers (RSW)
- Boston (BOS) – Austin (AUS)
- San Francisco (SFO) – Las Vegas (LAS)
On the positive side, we did find flights where the value was higher. This Nashville (BNA) to New York (LGA) — oddly over July 4th Weekend — came in at $129 or 7,500 points. This 1.65¢ valuation is solid.
This Oakland (OAK) to Las Vegas (LAS) flight is $109 or just 6,000 points, a 1.72¢ per point value — much better than some others we found.
There are some higher valuations to be found, but they seem harder to dig out than the lower-end numbers. One interesting note, gone are the random points numbers required. Whereas paying 13,271 was commonplace with Southwest, now the awards end in clean numbers such as XX,000 or XX,500 points. This aligns with what we see in other programs.
Related: How to Earn the Southwest Companion Pass
Final Thoughts
Southwest continues to steal the headlines for its negative changes, and how it's implementing variable pricing is sure to keep them top of mind. The once-consistent value that Rapid Rewards provided is now a little more murky.
Travelers can expect to pay more points during high demand times than they once did — and that's bad news. However, there may be opportunities to get better value in certain circumstances. Having flexibility and avoiding travel during high-demand times may help unlock greater value for your Rapid Rewards points.
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
