{"id":203179,"date":"2025-03-27T15:14:50","date_gmt":"2025-03-27T15:14:50","guid":{"rendered":"https:\/\/awardwallet.com\/blog\/?p=203179\/"},"modified":"2026-04-08T14:11:42","modified_gmt":"2026-04-08T14:11:42","slug":"variable-award-pricing","status":"publish","type":"post","link":"https:\/\/awardwallet.com\/news\/southwest-rapid-rewards\/variable-award-pricing\/","title":{"rendered":"Southwest Launches Variable Award Pricing \u2014 And It\u2019s (Mostly) Bad News for Points Value"},"content":{"rendered":"

Just recently, Southwest announced it would add variable pricing<\/a> to its Rapid Rewards program<\/a>. 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.<\/p>\n

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.<\/p>\n

How Southwest Awards Used to Work<\/span><\/h2>\n

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.<\/p>\n

In recent redemptions, AwardWallet users have averaged 1.52\u00a2 per point<\/strong>. However, not all redemptions offer this much value due to how taxes and fees factor into redemptions.<\/p>\n

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.<\/p>\n

Much like we see airlines ditching award charts and moving to dynamic pricing<\/a> 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.<\/p>\n

\"Nose<\/p>\n

What Do Southwest Variable Redemptions Look Like Now?<\/span><\/h2>\n

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.<\/p>\n

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.<\/p>\n

\"Chicago
Award pricing from Chicago to Savannah on Memorial Day Weekend. Credit Southwest Airlines<\/em><\/enter><\/figure>\n

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.<\/p>\n

\"Denver
Denver to Palm Springs. Credit: Southwest<\/em><\/enter><\/figure>\n

Some other flights that came in well below the average customers were previously getting:<\/p>\n