Point formula change = One-time boost in the value of your points stockpile!
Jan 27, 2014, 9:13 am
#1
Original Poster
Join Date: Sep 2002
Posts: 396
Point formula change = One-time boost in the value of your points stockpile!
Did WN change the formula for earning/redeeming points? I thought you earned and redeemed on the base fare + excise tax? It looks like its showing earning and redeeming only on base fare.
Example:
Base Fare $119.07
+ Excise Taxes $8.93
$128.00
+ Segment Fee $4.00
+ Passenger Facility Charge $4.50
+ Security Fee1 $2.50
Total per Passenger $139.00
$128 is what I thought you'd earn points $128 X 6 = 768 points
but the site is showing 714 points, which is the $119 X 6
Same thing when redeeming points
Example:
Base Fare $119.07
+ Excise Taxes $8.93
$128.00
+ Segment Fee $4.00
+ Passenger Facility Charge $4.50
+ Security Fee1 $2.50
Total per Passenger $139.00
$128 is what I thought you'd earn points $128 X 6 = 768 points
but the site is showing 714 points, which is the $119 X 6
Same thing when redeeming points
Jan 27, 2014, 11:22 am
#3
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
Did WN change the formula for earning/redeeming points? I thought you earned and redeemed on the base fare + excise tax? It looks like its showing earning and redeeming only on base fare.
Example:
Base Fare $119.07
+ Excise Taxes $8.93
$128.00
+ Segment Fee $4.00
+ Passenger Facility Charge $4.50
+ Security Fee1 $2.50
Total per Passenger $139.00
$128 is what I thought you'd earn points $128 X 6 = 768 points
but the site is showing 714 points, which is the $119 X 6
Same thing when redeeming points
Example:
Base Fare $119.07
+ Excise Taxes $8.93
$128.00
+ Segment Fee $4.00
+ Passenger Facility Charge $4.50
+ Security Fee1 $2.50
Total per Passenger $139.00
$128 is what I thought you'd earn points $128 X 6 = 768 points
but the site is showing 714 points, which is the $119 X 6
Same thing when redeeming points
It is probably worth looking at re-faring existing points reservations if the price hasn't changed since they should now require fewer points. ^
Jan 27, 2014, 11:45 am
#4
Join Date: Jul 2013
Posts: 5,813
There used to be somewhere that said how these fares were calculated and indicated that "some" taxes were included in the fare calculation. I looked for it today and couldn't find it. Does anyone know where that was and if it's still there?
Jan 27, 2014, 12:03 pm
#5
Original Poster
Join Date: Sep 2002
Posts: 396
http://www.rapidrewards101.com/#/knowledge/Earning
How are the points I earn on a flight calculated?
Points earned from flights are calculated using the Base Fare + Excise Tax portion of the advertised fare.
Points Earned on a Wanna Get Away?® Fare
Base Fare ($111.63) + Excise Tax ($8.37) = $120
$120 x 6 Points Per Dollar= 720 Rapid Rewards® Points Earned
Total cost for the ticket is inclusive of additional taxes and fees, including all government excise tax, government segment fee, September 11th Security Fee, and airport passenger facility charges. Points are not earned on these additional taxes and fees.
How are the points I earn on a flight calculated?
Points earned from flights are calculated using the Base Fare + Excise Tax portion of the advertised fare.
Points Earned on a Wanna Get Away?® Fare
Base Fare ($111.63) + Excise Tax ($8.37) = $120
$120 x 6 Points Per Dollar= 720 Rapid Rewards® Points Earned
Total cost for the ticket is inclusive of additional taxes and fees, including all government excise tax, government segment fee, September 11th Security Fee, and airport passenger facility charges. Points are not earned on these additional taxes and fees.
Jan 27, 2014, 1:36 pm
#7
Join Date: May 2012
Location: DCA, lived MCI, SEA/PDX,BUF (born/raised)
Programs: Marriott (Silver/Gold), IHG, Carlson, Best Western, Choice( Gold), AS (MVP), WN, UA
Posts: 8,689
http://www.rapidrewards101.com/#/knowledge/Earning
How are the points I earn on a flight calculated?
Points earned from flights are calculated using the Base Fare + Excise Tax portion of the advertised fare.
Points Earned on a Wanna Get Away?® Fare
Base Fare ($111.63) + Excise Tax ($8.37) = $120
$120 x 6 Points Per Dollar= 720 Rapid Rewards® Points Earned
Total cost for the ticket is inclusive of additional taxes and fees, including all government excise tax, government segment fee, September 11th Security Fee, and airport passenger facility charges. Points are not earned on these additional taxes and fees.
How are the points I earn on a flight calculated?
Points earned from flights are calculated using the Base Fare + Excise Tax portion of the advertised fare.
Points Earned on a Wanna Get Away?® Fare
Base Fare ($111.63) + Excise Tax ($8.37) = $120
$120 x 6 Points Per Dollar= 720 Rapid Rewards® Points Earned
Total cost for the ticket is inclusive of additional taxes and fees, including all government excise tax, government segment fee, September 11th Security Fee, and airport passenger facility charges. Points are not earned on these additional taxes and fees.
Jan 27, 2014, 5:28 pm
#12
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,613
My flight last Thursday posted at the old earning rate. My flight today posted at the new earning rate, 32 points less (424 vs. 456) for a nonstop $48.90 fare. The change is a wash for new earnings vs. new redemption.
The good news is that this change creates a slight value increase for your stockpile of points if you redeem before the March 31 devaluation. For my cheap flights, I'm seeing a 7% reduction in redemption price. This is half the amount by which my remaining and post-March points will be devalued! And it gives me time to further increase the benefit by redeeming all my existing points prior to March 31.
I suspect that this change was designed to have precisely this effect: a small one-time boost in the value of existing points to take some of the sting out of the March 31 devaluation. If this was intentional, it was very, very clever. I wonder if some middle managers decided to "give Customers the pickle" below the radar of upper management and the finance people.
The good news is that this change creates a slight value increase for your stockpile of points if you redeem before the March 31 devaluation. For my cheap flights, I'm seeing a 7% reduction in redemption price. This is half the amount by which my remaining and post-March points will be devalued! And it gives me time to further increase the benefit by redeeming all my existing points prior to March 31.
I suspect that this change was designed to have precisely this effect: a small one-time boost in the value of existing points to take some of the sting out of the March 31 devaluation. If this was intentional, it was very, very clever. I wonder if some middle managers decided to "give Customers the pickle" below the radar of upper management and the finance people.
Last edited by nsx; Jan 27, 2014 at 5:35 pm
Jan 27, 2014, 5:47 pm
#13
Join Date: May 2006
Location: TUS/PDX
Programs: WN CP/A-List, AS MVPG75K
Posts: 5,798
Maybe on WGA fares it is but on BS fares that 7.5% reduction is a fairly sizable number of points. This is especially true on higher value (i.e. BWI-PHX) BS fares where the reduction is 470 points (940 if an A+ member). 
So good for redeeming points, but not so good for earning on BS or AT fares especially for A+ members.
So good for redeeming points, but not so good for earning on BS or AT fares especially for A+ members.
Jan 27, 2014, 6:04 pm
#15
Join Date: Mar 2011
Posts: 6,286
I suspect that this change was designed to have precisely this effect: a small one-time boost in the value of existing points to take some of the sting out of the March 31 devaluation. If this was intentional, it was very, very clever. I wonder if some middle managers decided to "give Customers the pickle" below the radar of upper management and the finance people.
All information across the site that references points earning and/or redemption still refers to the formula involving base fare plus excise tax.
