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Southwest sent its Rapid Rewards members an email yesterday, and posted the following announcement on their website (bolding mine):

“We created Rapid Rewards® because we think you deserve to actually feel rewarded. And, from time to time we must make some updates to our program. Beginning April 17, 2015, the number of Rapid Rewards Points needed to redeem for certain flights will vary based on destination, time, day of travel, demand, fare class, and other factors. However, there are still many flights which will stay at the current redemption rate. And don’t forget that when fares go on sale, so do the points needed for redeeming for a reward flight on those fares.

As an active Rapid Rewards® Member, you know first-hand about the great benefits of our frequent flyer program including:

  • Unlimited reward seats
  • No blackout dates
  • Points that don’t expire1

You may also know that we’re all about creating flexibility for you to use your Rapid Rewards Points:

  • We don’t charge a fee of any kind if you wish to change or cancel your reward flight at any point2.
  • We don’t charge a fee of any kind for you to use your points, even if you are redeeming at the last minute3.
  • And, there is no minimum point balance requirement to redeem for reward travel.

One thing we’ll never change is our continued goal to bring you the best rewards program in the business.

Southwest Airlines plane from below

My Thoughts

Rapid Rewards has been a very, well, rewarding, program. It actually underwent another devaluation back in September 2013 when it changed the number of points you needed for Wanna Get Away fares from 60 per $1 in airfare to 70 per $1 in airfare (a decrease in per-point value from 1.7 cents to 1.4 cents). However, the fact that Rapid Rewards points are so easy to redeem given their fixed value and no blackout dates, and that the airline is extremely flexible and does not charge a fee for flight changes still made it a great one to participate in it.

Another reason is that it is a 1:1 transfer partner of Chase Ultimate Rewards if you have the Sapphire Preferred or Ink Plus cards, so you can transfer points and book Southwest flights at your convenience without having to actually fly Southwest much. Not only that, but if you get one of the Southwest credit cards, the points you earn on them actually count toward the ultra-valuable Companion Pass, doubling the value of your points or dollars.

Now, however, it looks like Southwest is changing from a fixed-value points program to a variable-value one where they will be charging Rapid Rewards members more points for busier flights. The airline sort of already does this – if an airfare on a certain route, date or flight is higher, the more points you have to pay, just as you would if buying with cash.

Though short on details, the fact that Southwest felt the need to contact its members about coming pricing changes is probably a very bad sign, and one that certain redemptions are going to go through the roof. Hopefully most will remain at the current levels, but if you tend to fly busy routes with variable airfares, you might want to book all the awards possible before April 17 since you can rebook and reprice them at no additional cost anyway.

No mention was made of the Companion Pass, so if you have one of them or earn it this year, presumably your privileges are safe.

However, as with all things points and miles-related, take nothing for granted, and book what you can as soon as you can since programs can change at any minute.

The Platinum Card® from American Express

The American Express Platinum card has some of the best perks out there: cardholders enjoy the best domestic lounge access (Delta SkyClubs, Centurion Lounges, and Priority Pass), a $200 annual airline fee credit as well as up to $200 in Uber credits, and mid-tier elite status at SPG, Marriott, and Hilton. Combined with the 60,000 point welcome offer -- worth $1,140 based on TPG's valuations -- this card is a no-brainer for frequent travelers. Here are 5 reasons you should consider this card, as well as how you can figure out if the $550 annual fee makes sense for you.

Apply Now
More Things to Know
  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
  • Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
  • $550 annual fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$550
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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