Big4Flyer

I've been thinking this same thing but if this is the case I think they should just make a policy that all points bookings at the WGA level are non-refundable. by doing that they could continue to offer them at low levels but remove the losses caused by speculative bookings. I'm sure they thought through that though and must have decided that this way they can still claim "no blackout dates" and "no change fees." I miss when there were twice as many airlines. While I wouldn't say that it seems like every airline is a ULCC, it sure seems like that's where they're heading.

DaveInLA

I agree any change at this point will be bad, but I'm not sure how this will be different than what is already in place. Current redemptions are based on the cash price, and that is also based on the factors described. Higher demand flights cost more and therefore require more points. How is that different than what is coming?

pirossalma

Can you give the source/webpage where you found this? I could not find it among media releases - but maybe I searched wrong page.

tatterdema

http://swamedia.com/channels/Southwe...-field?l=en-US

Halfway down the page under fare rules. Re-reading it over and over, I think it just applies to the sale fares?

alggag

I'm just surprised that the booking system would actually be smart enough to handle something like peak demand variability on points especially if all the rumors are true about it basically just displaying a blue screen of death at things like redeye flying and luggage fees.

That said, I wonder if it's possible that this might be foreshadowing more fare classes like the ones that appear in the surveys. Stuff like no change/no cancel WGA fares in addition to the existing WGA fare class.

nsx

We have already seen this with he lack of any WGA fares on some Thanksgiving dates.

nsx

More likely than not, I think.

TravelerMSY

It would be in their interest if they could sneak in some fare classes that existing pax couldn't reprice to. As it is- it's difficult for them to lower fares close to departure because a lot of the inventory would just go to customers already on the plane repricing. It would be interesting to have a Southwest pricing analyst here to school us on what we got right and wrong vs. their strategy.

mile ho

Most of the flights I'm on are full. I don't think they are having much trouble filling their planes.

I believe this is simply a strategy to obtain cash instead of points for the sought after seats (Fri/Sun, etc.) by making it less palatable to use points.

I'm sure there's more to it than that. But at the heart, I think that's it.

Now, as an A+er, I'm hoping that some relief will be given to those who have earned the status. The perks for A+ are really sad and need some updating and upgrading. Honestly, for the number of flights flown, more needs to come back our way.

dfwgolfer1

Why would a company put out a teaser for bad news? That would be the worst PR move of all time.

Except... Simple explanation for the lack of details in my opinion... They are testing to see how the market reacts to the $#@! news, and then will evaluate how much they can stick it to their frequent fliers. If there is a massive uproar, the changes will be mild. If there is not much resistance (i.e. "I will never fly Southwest again!") in blogs, newspapers, forums, etc then they will roll out less garbage.

Despite the billions of dollar profits, Southwest is constantly pressured to improve the bottom line... Whether it be getting rid of fuel hedges, trimming fat, adding more seats to 737s, keeping prices high. In one swift accounting move, they can weigh the risk of loyalty lost, change their program, and reduce their liabilities.

For the record, these changes are complete crap. The WN FF program already is trash, except for the CP. WN wants to complete in Atlanta apparently... They are doing a pretty good job at completing for worst FF program with Delta.

illinidad

This.

vah4883

It seems that they have already updated the "How to Redeem" page in website in advance: https://www.southwest.com/rapidrewards/how-to-redeem

ursine1

It's a factor multiplication that increases the effect exponentially.

If, right now, some flights cost, say, 2x to 3x more on certain nights for example, then you pay 2x to 3x more points. Cash and points fares are linked.

In the new scheme, you pay 2x to 3x more points, plus an additional multiplier on the points redemption value; i.e. 70/1$ regular becomes 80/$1 or 90/$1 (or more). Cash and points fares aren't linked anymore.

The effect is much, much greater.

Now… I suppose it's possible (but not probable) that Southwest will do the opposite, in effect "leveling" the cost of points based bookings.

Low cost fares would use a higher points multiplier, and higher ones a lower multiplier.

But this seems very unlikely.

ursine1

It's not a teaser.

There isn't more information coming later.

The announcement includes all the info they are willing to share.

It's a new, non-transparent, dynamically-variable calculation, the details for which will not be known publicly, except through direct experience.

They're not running anything up the flagpole; what it is is what it is.

And yes, it's crap.

expert7700

2015: We're all screwed due to Southwest's Variable Change
That next trip to or from Vegas? Darn our luck, it'll requires one more point than anyone has in their RR account.

Ideas under consideration for 2016:
1) Save more time! You will be automatically booked on a flight to a city you do not want to visit. Failure to show will result in loss of your points and loss of ability to earn points in the future.

2) Choose to Redeem 25k, 50k, even 100k points for a Southwest Scratch Card (tm). Scratch this off to reveal what (low demand) flight routing, and (off peak) dates/times you are booked on for your outgoing and return* flight.
*In the event you DO travel on your outgoing segment, your return will be VOID to save shareholders money.