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Southwest Just Made It More Expensive to Redeem Points for Its Cheapest Fares

April 03, 2018
•
2 min read
Southwest 737
Southwest Just Made It More Expensive to Redeem Points for Its Cheapest Fares
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Southwest Airlines has adjusted the value of its points in its Rapid Rewards frequent flyer program. Rapid Rewards has been revenue-based since 2011 — meaning you earn and redeem points based on the price of your ticket.

The program is making a few changes according to View From The Wing, the first being that it's lowering the number of points per dollar needed for Business Select fares by 35% and Anytime fares by 22%.

Now for the bad news: It's increasing the number of points needed for cheap Wanna Get Away fares by 6%.

Southwest modified its redemptions rates today — here's a breakdown of the changes:

  • Business Select fares used to cost about 120 points per dollar and will now cost about 78 points per dollar.
  • Anytime fares used to cost about 100 points per dollar and will drop to 78 points per dollar.
  • Wanna Get Away fares used to cost 72 to 74 points per dollar and should now cost about 76 to 78 cents per dollar.

It appears that Southwest is standardizing award redemptions across all fare types, which makes sense given that points are earned and can be redeemed based on the dollar value of the ticket. Southwest was essentially penalizing customers for redeeming for its two more premium fare classes, but now all points will essentially have the same value no matter what ticket type you redeem for.

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View From The Wing reports that most redemptions are made for Wanna Get Away fares, so for some this could be seen as a devaluation. Although for those who prefer to redeem for Business Select or Anytime Fares, this is definitely positive news.

The difference between Anytime and Wanna Get Away fares is that Anytime fares are refundable. Business Select fares are refundable and come with priority boarding, access to the priority security lane and a complimentary premium drink.

This change could very well alter Rapid Rewards points' standing in TPG's points valuations. Currently we peg the currency at 1.5 cents per point.

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  • Intro Offer

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  • Annual Fee

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  • Recommended Credit

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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.