Southwest to change FF program

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Jan 6, 2011, 4:38 am

DeltaJoe

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Join Date: Aug 2010

Location: Atlanta

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Southwest to change FF program

Will be interesting to see if DL and others follow this devaluation of the FF program:

Atlanta Journal-Constitution
January 6, 2011

Southwest changes frequent flyer program

Southwest Airlines announced a major change to its frequent flier program, saying it will use points based on the cost of a ticket rather than credits per flight.

The changes go into effect March 1. Southwest plans to begin flying to Atlanta by acquiring AirTran Airways in a deal likely to close in the second quarter, pending government approvals.

Southwest senior director Ryan Green, who heads up the airline’s Rapid Rewards frequent flier program, said the company plans to integrate the Southwest and AirTran frequent flier programs sometime after the deal closes, but “it’s too premature at this point to speculate on when that would happen” or how the integration will work.

http://www.ajc.com/business/southwes...er-796547.html

Jan 6, 2011, 5:38 am

dickinson

Join Date: Oct 2006

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Interesting, but shouldn't this discussion be in the Southwest forum?

Jan 6, 2011, 6:16 am

hazelrah

Join Date: Jul 2005

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Posts: 3,912

Quote:

Originally Posted by DeltaJoe

This may more properly be called a revaluation. In my admittedly brief look at RR 2.0, the value to those purchasing business fares is improved. Also, provided there is activity in oneds RR account within a 24 month period, RR miles do not expire. Aslo RR rewards can now be used internationally. So in some respects Southwest is improving its program.

This is opposed to the massive Delta SkyPesos devaluation that is taking place as follows:

1) HUGE inflation in the number of miles handed out, with a commensurate surge in the amount of SkyPesos required to redeem awards.

2) Planned reduction in upgrades due to first class "monetization".

Last edited by hazelrah; Jan 6, 2011 at 6:24 am

Jan 6, 2011, 6:30 am

DeltaJoe

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Quote:

Originally Posted by dickinson

Interesting, but shouldn't this discussion be in the Southwest forum?

I considered that, but felt its impact on the industry in general, and DL in specific, would be of interest to folks in this forum. Those DL folks who never go to the Southwest forum would never know of this change...and how it could eventually morph into being embraced by the legacy carriers.

Jan 6, 2011, 6:35 am

RatherBeOnATrain

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Quote:

Originally Posted by DeltaJoe

Will be interesting to see if DL and others follow this devaluation of the FF program:

NSX posted a fantastic summary and analysis of the new program in the SW forum:
http://www.flyertalk.com/forum/south...-1-2011-a.html

I'm going to remember this part of NSX's post every time I read another of the never-ending "The Award Calender is Broken" rants that are posted, seemingly hourly, here in the Delta forum:

Quote:

Originally Posted by nsx

I believe that Southwest has very precisely identified and attacked the crucial weakness of legacy programs: the bait and switch nature of tightly capacity controlled awards. Rapid Rewards 2.0 is a perfect fit with Southwest's brand as a no-gimmicks airline. The program may not be the most generous, but it is simple and completely free of any hidden catches. Unlike mysterious capacity controls, price-based redemption provides us an excellent ability to predict ability to redeem for free travel.