Are Southwest Business Select Fares Worth the Extra Cost?
TPG reader Jason sent me a message on Facebook to ask about booking Southwest awards:
"I fly Southwest twice a month to and from work. Is it worth paying extra for Business Select fares?"
There's a lot to like about Southwest and the Rapid Rewards program. The flexible change and cancellation policies make it easy to get a good deal, and the cost-based award pricing is great for scoring cheap domestic fares. However, the airline isn't ideal if you're looking for a premium experience. Southwest doesn't offer business or first-class seats, and while the more expensive fares do come with a few extra perks, they aren't worth the added cost.
The main advantages of Business Select fares are that they're fully refundable and they earn more points. If you cancel a trip, the value of your Business Select ticket can be refunded to your original form of payment, whereas Wanna Get Away fares are only credited as travel funds valid for 12 months. You can also get same-day changes without paying the fare difference, but that's not likely to be a huge asset unless you tend to change plans at the last minute. Even then, a Wanna Get Away fare may still be cheaper.
You'll earn twice as many Rapid Rewards points per dollar — 12x your fare instead of 6x (assuming you don't have A-List status, which comes with higher earning rates). In addition, you'll get access to the priority security lane, priority boarding in the A1-15 group and a premium drink. Those are all nice benefits, but they don't make up for the sometimes staggering price difference between the two fare classes.
For example, I priced out a nonstop Wanna Get Away fare from Denver to New Orleans over the weekend before Valentine's Day at under $180 round-trip. Those exact same flights in Business Select were going for a whopping $960! That's an extreme example, but not an uncommon one. I found a similar markup on fares between various destinations departing less than one week out.
In most cases, you'll be better off buying a Wanna Get Away fare and paying for Business Select benefits as needed. For the sake of comparison, enrolling in an expedited security program (or two) shouldn't cost you more than $200 annually — let's call it $5 per flight if you're taking two round-trips per month. EarlyBird Check-In and a premium beverage cost $20 per flight combined. Even the extra 10,000 points you'd earn from Business Select in the example above would cost less than $300 if you bought them outright.
Business Select is a dubious value for paid fares, but it's especially terrible when you're booking an award, since some of the added benefits don't apply. You don't earn points on award tickets anyway, so the higher earning rate won't help you. Similarly, Southwest awards are already easily refundable, so the option to get a refund to your original form of payment is redundant.
The only cases where paying for Business Select makes sense are if the price difference is minimal (which does happen occasionally), or if Wanna Get Away fares are entirely unavailable. Otherwise, save your money.
If you have any other questions, please tweet me @thepointsguy, message me on Facebook or send me an email at info@thepointsguy.com.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.