Southwest is offering 40% bonus points: Here’s when it makes sense to buy them
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Update: Some offers mentioned below are no longer available. View the current offers here – Southwest Rapid Rewards Premier Credit Card, Southwest Rapid Rewards Priority Credit Card, Southwest Rapid Rewards Plus Credit Card, Southwest Rapid Rewards Performance Business Credit Card
Southwest just launched a new buy-points promotion that may sound good at first blush: get 40% more points when you purchase Southwest points now through Sept. 19, 2019. Since we don’t often see buy-points deals from Southwest, this promotion likely leaves many Southwest flyers wondering whether this is a good deal.
For better or worse, Southwest points have a fairly defined value. You’re not going to be able to get spectacular value out of buying points and redeeming them for first-class awards like you can with Alaska miles. Instead, Southwest award flights are redeemable based on the following general formula:
- Business Select fares: 78 points per dollar (1.28 cents per point)
- Anytime fares: 78 points per dollar (1.28 cents per point)
- Wanna Get Away fares: around 76-78 points per dollar (1.28-1.31 cents per point)
That said, this formula is based on the base airfare cost, before taxes and fees. So, the actual value you’ll get from an award will be around 1.4-1.5 cents per point. TPG’s current valuation of Southwest points sits at 1.5 cents per point.
Armed with that knowledge, let’s check out how much Southwest is selling points for during this promotion:
|Buy Points||Discount/Bonus||Price Per Point|
|Buy 2,000 — 4,000 points||No discount or bonus||3.0 cents|
|Buy 5,000 — 9,000 points||No discount or bonus||2.75 cents|
|Buy 10,000 — 60,000 points||40% bonus||1.96 cents|
As you can see, even with the 40% bonus, the price of Southwest points is higher through this promotion than the value you’d get from them.
What if you’re just shy of an award?
The rate for buying just 2,000 to 4,000 points is punitive at 3 cents per point — more than twice the value of Southwest points. And purchases of up to 9,000 points costs 2.75 cents each. So, you’re going to want to look for another source when you’re looking to top off your account. Your best bet for quick Southwest points are Chase Ultimate Rewards points, which transfer to Southwest instantaneously.
Other ways to earn Southwest points
If you’re short of a redemption and have some time before booking a flight, I’d recommend generating more points by signing up for a Southwest credit card — or spending on an existing one — like one of the three below:
- Southwest Rapid Rewards Plus Credit Card
- Southwest Rapid Rewards Priority Credit Card
- Southwest Rapid Rewards Premier Credit Card
All three of these cards are currently offering up to 60,000 bonus points as a sign-up offer. You’ll earn 40,000 points after you spend $1,000 on purchases in the first three months your account is open. Plus, earn 20,000 points after you spend $12,000 on purchases in the first 12 months your account is open.
If you have a business, you can sign up for the new Southwest Rapid Rewards Performance Business Credit Card to score an awesome 80,000-point bonus for spending $5,000 on purchases in the first three months. Or, sign up for the Southwest Rapid Rewards Premier Business Credit Card and earn 60,000 points when you spend $3,000 on purchases in the first three months.
Alternatively, you can transfer Chase Ultimate Rewards points to Southwest if you have a card such as the Chase Sapphire Reserve (50,000 point sign-up offer after you spend $4,000 on purchases in the first three months from account opening), Chase Sapphire Preferred Card (60,000 point sign-up offer after you spend $4,000 on purchases in the first three months from account opening) or the Ink Business Preferred Credit Card (80,000 point sign-up offer after you spend $5,000 on purchases in the first three months from account opening).
Will buying points help you toward the Companion Pass?
One of the most valuable airline perks around is the Southwest Companion Pass. It allows its holder to bring a companion on any Southwest flight along with them for just the cost of taxes and fees. For couples, the Companion Pass practically means 2-for-1 flights on Southwest — even if you’re using Southwest points for the flight.
For some travelers just shy of the Companion Pass, it could make sense to overpay for Southwest points if the purchased points were elite-qualifying. However, buying Southwest points isn’t a shortcut to the Companion Pass. As explicitly stated in the terms:
Purchased points do not count towards A-List, A-List Preferred, or Companion Pass qualification.
If you have the Southwest card, would you get double points?
Southwest point purchases are processed by Points.com instead of Southwest directly, so the purchase won’t code as “airfare” on credit cards that offer a bonus for travel purchases. That said, you might be able to get bonus miles for using a Southwest credit card, as one of the card payment options is “Rapid Rewards credit card.” In TPG testing for buying United miles, selecting the co-branded card option in the drop down prompted bonus miles.
However, even if you get bonus points, it doesn’t help the case for buying Southwest points through this promotion. Let’s take the example of buying the maximum 60,000 points for $1,650. You’ll get 24,000 bonus points from this promotion and might get 3,300 bonus points from the purchase ($1,650 x 2 points per dollar spent). That’s a total of 87,300 points for $1,650 — or 1.89 cents per point. That’s still well above TPG’s valuation of Southwest points at 1.5 cents each.
So, does it ever make sense to buy Southwest points?
There’s really only one time I’d suggest someone take advantage of a Southwest buy points offer: If you’re trying to book a great Southwest deal before it sells out or have an urgent flight need and
- are just short of Southwest points
- don’t have Ultimate Rewards points to transfer, and
- need to minimize your out-of-pocket cost as much as possible
Only then would I say that it’d make sense to buy enough points to complete the redemption. Otherwise, I’d recommend avoiding this promotion and only using Southwest points you earn through flying or spending on a credit card.
Featured photo by Alberto Riva/The Points Guy.
This is The Points Guy’s permanent page about Southwest’s “buy miles” promotions, so you can bookmark it and check back regularly for the latest offer. Keep in mind you may see some reader comments referring to older deals below.