Oct 6, 2013, 5:07 pm
Last edit by: nsx
In late September Southwest began sending out emails announcing that starting March 31, 2014, we would need to "pay" 70 points per dollar of cash fare when redeeming for a Wanna Get Away fare (the non-refundable cash fare class). This is an increase from the 60 points per dollar level set at the beginning of the new revenue-based Rapid Rewards program two and a half years ago. Whether you call this a 14.3% devaluation or a 17% increase in points required, it's the same damage.
The official notice is at http://www.southwest.com/html/genera...oints_faq.html
This thread discusses three main subjects:
1. Given that the point price for any award increases in lockstep with the cash fare, and given that cash fares are increasing, doesn't devaluing the exchange rate constitute a double dip price increase? Shouldn't a revenue-based redemption program maintain a fixed exchange rate?
2. The devaluation applies not just to new earnings, but to points earned when there was no hint that the redemption exchange rate would ever change. Is this fair or was it to be expected? Should Southwest gross-up existing points balances, so that the devaluation affects only future earnings?
3. This thread contains some discussion touching on the effect this devaluation will have on customer perceptions of the merits of revenue-based redemption programs relative to chart-based redemption programs.
The official notice is at http://www.southwest.com/html/genera...oints_faq.html
This thread discusses three main subjects:
1. Given that the point price for any award increases in lockstep with the cash fare, and given that cash fares are increasing, doesn't devaluing the exchange rate constitute a double dip price increase? Shouldn't a revenue-based redemption program maintain a fixed exchange rate?
2. The devaluation applies not just to new earnings, but to points earned when there was no hint that the redemption exchange rate would ever change. Is this fair or was it to be expected? Should Southwest gross-up existing points balances, so that the devaluation affects only future earnings?
3. This thread contains some discussion touching on the effect this devaluation will have on customer perceptions of the merits of revenue-based redemption programs relative to chart-based redemption programs.
[Wiki] WN 14% Devaluation of RR2 points for WGA redemption effective March 31, 2014
Sep 23, 2013, 9:20 am
#1
Original Poster
Join Date: Jan 2012
Posts: 52
[Wiki] WN 14% Devaluation of RR2 points for WGA redemption effective March 31, 2014
I just got an email saying WN will go from 60 points per dollar to 70...Interesting that my wife has not gotten this yet...No way it's targeted right?
Sep 23, 2013, 9:26 am
#2
Join Date: Mar 2003
Location: at 35,000 feet
Programs: WN A-List; Hyatt Glob: CC/HH Gold, Hertz 5*
Posts: 1,473
Upcoming Change to Rapid Rewards
Got this email on one of my least active account. I expect this across the board, just slow roll-out. At least they give us ample time to use up our points before the devaluation.
++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++
Dear Robbert,
We want to inform you of an upcoming change to the Rapid Rewards® Program that will affect the number of points needed for reward travel. Wanna Get Away® reward flight bookings made on or after March 31, 2014 will require 70 points per dollar. This is an increase from the 60 points per dollar currently required. Anytime and Business Select® reward flight redemption rates, as well as the points per dollar you earn when flying, will remain the same as they are today.
Rest assured, Rapid Rewards will continue to provide industry-leading benefits that you enjoy today—including unlimited reward seats, no blackout dates, and points that don't expire*. We hope you understand that in order to continue providing these benefits, we must make changes to the Rapid Rewards Program from time to time.
Thank you for your continued loyalty, and for more information about redeeming points, please visit southwest.com/redeem.
Sincerely,
Ryan Green
Senior Director Loyalty Marketing & Partnerships
++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++
++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++
Dear Robbert,
We want to inform you of an upcoming change to the Rapid Rewards® Program that will affect the number of points needed for reward travel. Wanna Get Away® reward flight bookings made on or after March 31, 2014 will require 70 points per dollar. This is an increase from the 60 points per dollar currently required. Anytime and Business Select® reward flight redemption rates, as well as the points per dollar you earn when flying, will remain the same as they are today.
Rest assured, Rapid Rewards will continue to provide industry-leading benefits that you enjoy today—including unlimited reward seats, no blackout dates, and points that don't expire*. We hope you understand that in order to continue providing these benefits, we must make changes to the Rapid Rewards Program from time to time.
Thank you for your continued loyalty, and for more information about redeeming points, please visit southwest.com/redeem.
Sincerely,
Ryan Green
Senior Director Loyalty Marketing & Partnerships
++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++
Sep 23, 2013, 9:37 am
#5
Join Date: Sep 2011
Location: ORD/MDW
Programs: AA EXP, DL-Plat, WN-CP | Hotels: Choice-Gld, IHG-Plt, Rad-Gld, HH-Dia, Hyatt-Glob, Marriott-LtPlt
Posts: 2,889
Wanna Get Away® reward flight bookings made on or after March 31, 2014 will require 70 points per dollar. This is an increase from the 60 points per dollar currently required. Anytime and Business Select® reward flight redemption rates, as well as the points per dollar you earn when flying, will remain the same as they are today.
Since I have no intention of redeeming points for AT or BS fares, I don't care that those rates are unchanged.
Sep 23, 2013, 9:39 am
#6
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,483
I wonder if they will increase the renewal bonus on the Chase cards... as the 6,000 renewal bonus on the Premier card no longer covers the $99 annual fee.
Sep 23, 2013, 9:48 am
#7
Join Date: Feb 2000
Location: Pittsburgh
Programs: Whoever Has the Best Bonus
Posts: 5,183
I got the email too. We'll see what Chase does. If it's not a 'wash' again and the annual fee on the Southwest credit card is MORE than the credit I get back, I'm cancelling the card.
Sep 23, 2013, 9:57 am
#11
Join Date: Mar 2012
Location: Austin, TX
Programs: National EE, Hyatt Discoverist, Hilton Gold, Marriott Gold
Posts: 508
Got the email, too. Can't say I'm surprised with all the credit card offers at 50,000 miles for signups. Now WN is only marginally cheaper than UA on my domestic flights awards to SAN and LAX. Guess I'll start looking at who has the better itinerary after March 31st.
Sep 23, 2013, 10:01 am
#12
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,174
Yeah, I think that the bean counters took a look at the rate 2.0 points are piling up and blanched. 50K offers, double/triple points, etc.
Evolve and now this.
Will have to reconsider my flight choices going forward, WN.
Evolve and now this.
Will have to reconsider my flight choices going forward, WN.
Sep 23, 2013, 10:02 am
#13
Join Date: Jul 2008
Location: Pewaukee, WI
Posts: 120
I could see after that date awarding less points for newly purchased flights, but telling customers your points are less valuable if you do not use them after 5/14 seems like a slap in the face.
I guess WN has to think of things like this to get around charging for bags?
I guess WN has to think of things like this to get around charging for bags?
Sep 23, 2013, 10:03 am
#14
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,483
Some have speculated that WN may have realized that they set the earning rates for Anytime and BS fares too high, so tinkering with redemption rates is certainly one way to deal with that.
Sep 23, 2013, 10:04 am
#15
Join Date: Feb 2000
Location: Pittsburgh
Programs: Whoever Has the Best Bonus
Posts: 5,183
I do like the fact that its ONLY bad news and somehow we're still industry leading frequent flier program. I guess they do realize that all the programs are crap and maybe they are the least crappy of them all. The truth is, they aren't. Much better choices out there now for places that have competition.