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Your Southwest Rapid Rewards points will be worth less in 2024

Nov. 10, 2023
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3 min read
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Your Southwest Rapid Rewards points will be worth less in 2024
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Planning to book a trip in 2024? Well, flying to your next destination via Southwest Airlines has just gotten a little more expensive — at least when it comes to using your Southwest Rapid Rewards points.

If you are a Southwest Rapid Rewards member, you may casually skim (or skip altogether) reading every word in your Rapid Rewards account statement.

As first reported by Frequent Miler and confirmed when this TPG writer checked the bottom of her Rapid Rewards account statement email on Nov. 10, Southwest recently issued the following notice:

Starting Jan. 1, 2024, for flights purchased using Rapid Rewards points, the number of Rapid Rewards points required per dollar of base fare will increase by approximately 4%.

So, what does this mean for travelers?

Related: Southwest revamps Rapid Rewards by lowering thresholds for status

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Southwest Rapid Reward points will be worth less in 2024

Planes at John Wayne Airport
PAUL BERSEBACH/MEDIANEWSGROUP/ORANGE COUNTY REGISTER/GETTY IMAGES

Currently, TPG values Southwest Rapid Rewards points at 1.4 cents apiece, which means your points will soon be worth 1.3 cents each once the change takes effect. However, people who book travel for 2024 before the Jan. 1 change will not be affected. Therefore, we recommend reserving award flights before the increase occurs.

"We recently shared with Rapid Rewards® Members that beginning Jan. 1, 2024, they’ll see a modest increase in the number of Rapid Rewards points required per dollar of the base fare to redeem Wanna Get Away®, Wanna Get Away Plus®, Anytime, and Business Select® fares," a Southwest spokesperson told TPG in a statement. "We continue our focus on enhancing the Customers’ experiences and remain committed to delivering nonstop Southwest Hospitality. We’re making this change as a normal course of business to adapt to the current environment and increased cost pressures."

Though Southwest is giving its customers ample notice regarding the change, this is not the first time the airline has devalued its points program, which already ties the number of points required to the cash price. In 2021, the loyalty program decreased the value of Rapid Rewards points by 6%.

Related: The best Southwest Airlines credit cards

Bottom line

southwest plane in air clouds
SEAN CUDAHY/THE POINTS GUY

While a 4% increase in the number of points needed to book an award flight is not a huge loss, it's interesting that an already revenue-based program would see a devaluation like this. With the current pattern, though, it wouldn't surprise us if this happens again with Rapid Rewards in another couple of years.

Featured image by STEPHEN M. KELLER/SOUTHWEST AIRLINES
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

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Rewards Rate

4XEarn 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.
4XEarn 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.
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2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

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 $6,000 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.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.