This was one of the less-talked-about but pretty significant moves the airline made a few weeks ago when it announced a slew of changes — including the end of free checked bags.
And, as expected, these loyalty changes aren’t great.
What exactly happened? Southwest shifted over to what it’s calling “variable” redemption rates. Other words we might use: volatile and unpredictable.
Previously, Southwest’s award pricing was closely tied to its cash prices at a relatively fixed rate: If the cash price went up, the points price went up at a fairly consistent rate.
In our most recent valuations, TPG valued Southwest Rapid Rewards points at 1.35 cents apiece. And generally speaking, you could count on getting 1.3 to 1.4 cents per point in value if you redeemed your points for a flight.
Now, the best bang for your buck points could differ pretty significantly from one flight to another.
Hit particularly hard, it seems: Southwest’s high-demand Hawaii flights, where we’re seeing quite a few redemptions offering a far less appealing 1.1 cents per point in value.
It’s salt in the proverbial wound after the airline already slashed the number of points most customers can earn.
A silver lining? We are seeing some flights where you may be able to get more value out of your points than before.
With Delta Air Lines’ own SkyMiles program usually charging 350,000-plus miles per flight to and from Europe, this is an incredible deal. And the amount of business-class award availability we’re seeing right now is the best we’ve seen in a long time. We’re talking peak summer flights back from Paris, Barcelona, Rome, Dublin and more — and many flights have more than four business-class seats available!
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