Ends today: Southwest now lets you convert vouchers into points — but is it a good deal?
Today is the last day to take advantage of the chance to turn Southwest travel funds into Rapid Rewards points. Due to the unprecedented uncertainty around the future, every major airline continues to extend its change-fee waivers. If you've got an upcoming trip or you're thinking about booking future flights, airlines want to reassure you that you can cancel for future credit — without paying a $200 (or more) penalty.
But there's one airline that never charges change fees, even well before the pandemic. And that's Southwest.
If you voluntarily cancel a Southwest booking, you'll receive a travel fund for future use on any flight. These vouchers typically carry a one-year expiration policy and can only be used by the originally-ticketed passenger. Due to the pandemic, many funds have been extended through Sept. 7, 2022.
Sign up for the free daily TPG newsletter for more airline news!
Southwest's conversion feature
This feature debuted in August, giving travelers even more flexibility from travel funds by converting them into Rapid Rewards points. The Dallas-based carrier first announced this capability in April.
As mentioned, one of the downsides of travel funds is that they can only be used by the originally-ticketed passenger. That means that even if you purchased a ticket for a friend or family member, they'll get to use the value of the ticket for future travel.
But Rapid Rewards points can be redeemed for anyone you choose, never expire and never have change or cancellation fees. As such, they're much more flexible than travel funds.
Related: 9 ways to earn points with the Southwest Rapid Rewards program
So, should you convert travel funds into Rapid Rewards?
Well, it boils down to the conversion ratio. And based on the tickets we've analyzed, it appears to be fixed at just under 1.3 cents per point. TPG's valuation for Rapid Rewards is 1.5 cents per point, so you're gaining some value when converting funds to points.
However, when you redeem Rapid Rewards, you're still on the hook for the taxes and fees associated with your ticket. Though you're gaining some value in the conversion, you're going to need to pay out of pocket for the taxes. (Travel funds can be applied to the entire ticket, inclusive of taxes.)
In addition, you don't earn Rapid Rewards points on award tickets, but you do with tickets booked with travel funds. Furthermore, you don't earn tier-qualifying points (TQPs) or Companion Pass qualifying points (CPQPs) for award travel. So even though you're gaining some value in the conversion, you'll be losing out on the points you could've earned when flying on a paid ticket.
As long as the conversion covers the difference in taxes and you're comfortable forgoing earning points and status qualification, then I'd consider converting funds to points, especially if you want to use vouchers for other passengers. You can also review our article on 4 types of travelers who should convert Southwest funds to points.
Again, this feature is only available through today — Dec. 15, 2020 — so time's running out to weigh your options. Just note that once you process a conversion, it's non-reversible.
Related: How to redeem points with the Southwest Rapid Rewards program
Terms and conditions of the conversion
In order to qualify for the points conversion, your travel fund must expire on Sept. 7, 2022. In addition, the name on the travel fund must match the name on the Rapid Rewards account. Though you can book award travel for anyone, the points themselves must be converted into the account of the originally-ticketed passenger.
Finally, the funds must've originated from a ticket purchased on Southwest.com, through a customer representative or approved by your employer.
Related: No, Southwest didn't devalue its Rapid Rewards program overnight
Bottom line
Southwest has been offering the ability to convert restrictive travel funds into much more flexible Rapid Rewards points since August, but today is your last day to do so. There are times when it could make sense to convert your travel funds to points — assuming the conversion rate is lower than the points valuation. Note that you can't apply points to pay for taxes and fees though.
Whatever you do, make sure you've made up your mind, because conversions are non-reversible. And make your decision soon, since the feature is set to disappear at the end of the day today.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees