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Southwest: Hawaii Routes Will “Ignite” Rewards Card Apps

Credit cards are big business for airlines, and Southwest Airlines is looking to spark an increase in credit card applications with the allure of free flights to Hawaii based on points earned and flights purchased with the branded credit card.

Multi-year deals with banks are a typical part of airline business operations. They two industries make deals that allow companies to buy points and miles to use as rewards for frequent travelers and high-spending customers – which translates to free flights.

Now, Southwest is looking to make an even bigger mark in the credit card niche with new flights to Hawaii. Customers have always those free flights through Southwest, Andrew Watterson, Southwest’s chief revenue officer, told Skift. But the airline never had a plane that could handle the route.

Until now, that is. With Southwest’s new 737Max aircraft, making the trip out to the islands will start up from the west coast. The company hopes it will spur credit card sign-ups from major bases—San Diego, the Bay Area, Los Angeles, and Sacramento.

“The credit card is core to the airline business,” Watterson told Skift. “[Though the new routes are] not just for credit cards, but it is part and parcel of it. We view Hawaii expansion as something that will ignite credit card applications.”

The airline took the same tactic in the past to garner credit card sign-ups with added flights to Mexico and the Caribbean. Watterson says those enticing destinations are necessary to get the applications filled.

“You have that kind of sexy place for the credit card,” he told Skift.

[Photo: Shutterstock]

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2 Comments
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southpac March 16, 2018

but Alaska has flown to Hawaii for years using current model 737's ? (not sure if -700 or -800s)

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sdsearch March 16, 2018

A "sexy" place to visit that I would not want to visit using an airline with no reserved seating, no food available on board, that doesn't entice me to sign up for their credit card one single bit. For me, Southwest is fine for short flights, but for the long flight to Hawaii, I'll pick another airline, thank you.