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Southwest has announced an adjustment to the value of Rapid Rewards when redeeming for airfare. Unlike most adjustments in the industry, this one is both good and bad depending on the type of tickets you normally redeem your Rapid Rewards — but the least expensive tickets are going up in price.
New Values
Southwest has a revenue-based earning and redemption program. When redeeming Rapid Rewards, you receive a fixed dollar value for your points based on the type of ticket (Business Select, Anytime or Wanna Get Away) you are purchasing. Prior to the change, you would receive the following values:
- Business Select: 120 points per dollar
- Anytime: approximately 100 points per dollar
- Wanna Get Away: approximately 72-74 points per dollar
After the change, you will now receive the following values:
- Business Select: 78 points per dollar
- Anytime: approximately 78 points per dollar
- Wanna Get Away: approximately 76-78 points per dollar
Is This a Positive Change?
If you regularly book Business Select or Anytime fares, this is a significantly positive change as the cost you'll pay with points has decreased considerably. On the other hand, if you typically book Wanna Get Away fares, then you have taken a small hit, although the change is very small since a $100 ticket will now set you back 200 to 400 points more, which is nowhere near some of the other devaluations we have seen in the airline industry.
Business Select fares see the biggest margin of gain with a $300 fare now pricing at 23,400 points instead of 32,000 points.
Our Take
Win. A small increase in Wanna Get Away, but huge decreases in Anytime/Business Select fares may find people paying up to cash in on more last-minute redemptions.
Source: One Mile at a Time
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