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Rapid Rewards 2.0 begins March 1, 2011

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Old Jan 8, 2011, 11:02 am
  #601  
nsx
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Originally Posted by SWSNA
Just to make sure I'm interpreting correctly - this eliminates the 2/28/11 rush to push over 100 credits, right? I expire in May, and I'll probably be at around 90 by 2/28/11 without doing a MR or car rental extravaganza. With this new announcement, I don't think I have any incentive to re-qualify early - I'll be extended to 12/31/12 whether I hit 100 credits tomorrow or 5/31/11, right?
Originally Posted by Aitchly
There is no added benefit to getting the CP qualification completed before 3/1 that will not exist after RR2 goes into effect.
Some incentives to qualify for CP before March 1 remain:

1. You get to use the CP earlier, with the same 12/31/2012 expiration date.

2. Your credits become Standard Awards rather than banked points. The Standard Awards are worth more if you need to book award travel less than 7 days ahead.
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Old Jan 8, 2011, 11:02 am
  #602  
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Originally Posted by toomanybooks
So presumably DING fares can't be purchased with the new WN points?
Probably correct but unknown at this time.
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Old Jan 8, 2011, 11:04 am
  #603  
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Originally Posted by headinclouds
A simple question about awards that I could cull out from the many pages posted. I will earn my 16th credit this month. If I redeem an award before 1-Mar-2011, then all of the old rules apply for that award. If the award is not claimed, then my award ticket gets converted to points. Is this correct?
The award is use it (by 2014 with extension) or lose it.

I recommend earning 1 extra credit so you have the option to create one more Standard Award from points within a year from now.
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Old Jan 8, 2011, 11:06 am
  #604  
 
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Originally Posted by dil345
Sorry to ask, but answer is hard to find in this long post. I only need one more credit by 3/1 to get to 16. What would be the best option to earn that by then? Thanks!
A car rental that has at least a 2x bonus seems pretty cheap, easy and quick.
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Old Jan 8, 2011, 11:20 am
  #605  
 
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Originally Posted by nsx
Some incentives to qualify for CP before March 1 remain:

1. You get to use the CP earlier, with the same 12/31/2012 expiration date.

2. Your credits become Standard Awards rather than banked points. The Standard Awards are worth more if you need to book award travel less than 7 days ahead.
OK, I think I have it.

#1 is important but only for new qualifiers. For re-qualifying for CP, it won't make a difference, I don't think.

Hadn't thought about #2 - those Standard Awards are better than points, assuming they don't clamp down on the availability. However, I don't think they are that much better that I'd want to do a MR for 10 or 15 credits. Definitely worth it to go from 15 to 1, however.
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Old Jan 8, 2011, 11:27 am
  #606  
 
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Originally Posted by ftnoob
Answer #1
RR credits cannot be converted to RR points.

Answer #2
Only earning keeps your points alive.

Answer #4
TQP for flying are calculated as 6x/10x/12x the stated fare. You cannot get any TQP from the regular RR Visa cards. When the new, more expensive, RR Premier Visa debuts, you'll be able to earn 1,500 TQP per $10,000 spend.

Answer #5
Hotel points conversions are governed by the rules of their respective programs. If you want RR credits instead of points (without using your conversion option), you need to allow enough time for the transfer to be posted by SWA before March 1.

I have no reason to master the A-List rules, so I skipped your Question #3.
Thanks ftnoob

I lost A-list a while back and got a bit excited by the fact that the qualification drops from 32 back to 25. I won't be able to get it immediately but probably in 2011 I will get it back, especially if I get a SW credit card.

MikeyZBT is definately right about the 25% devaluation, now needing 20 segments to get one free r/t, which now must be of the same value as the original flights. That hurts a bit, but as others have pointed out, future devaluations are probably not needed since the system stablizes. A devaluation, but whether it is lower than the legacy carriers probably depends on your fly and redeem patterns.

What about Rapid Rewards Dining? Previously, you would have to spend $100 to get a 0.25 old RR credit, except when promotions ran, when they would reduce it to $25 spend for 0.25 RR credit. I wonder if under the new point system, you will get 1-5 new RR points for each $1 of spend? I've always used the dining program to keep my AA and UA points alive. Using dining to keep low volume flying relatives RR accounts active could make sense. I think my relatives will still be going up on SWA at least once every two years, so may not be an issue for me, but at least the low dining spend is an option.

The feature of being able to CC spend and not only earn points but also earn A-list status is attractive. The question is whether I want to give up my 1% Discover Cash back bonus (with other bonues up to 5% here and there), for a 1.67% spend-on-Southwest bonus plus A-list perk. As they say ... Cash is king!

I've got a very inexpensive flight coming up in March with the 25% Denver discount where I got tickets for $45 each way. I'm only going to earn 45x6=270 points for that flight, instead of 1 RR credit, which is worth 1200 points. So, clearly there is devaluation there.

I'm pretty low on most hotel balances, but I might go play with Hilton. Can 4700 points be converted into any number of RR credits?
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Old Jan 8, 2011, 11:29 am
  #607  
 
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Originally Posted by toomanybooks
Thanks very much, I had not seen that page.

If one attains A-List in the first 2 weeks of the year, he gets it for almost 2 years, in my example 2012 and 2013. But then it says IN THE NEXT SENTENCE he must re-qualify every calendar year.

I guess that refers to earning in 2013 for 2014 validity if you qualified in 2012. But to me it's awkwardly worded.

25 short cheapo flights ought to be doable in a few days every other year in January.
Except for the first year to quickly get A-list, what is the point of packing flights in Jan every other year. Assuming you actually fly 25 one ways each year you will remain A-list.

Last edited by benmaller; Jan 8, 2011 at 3:27 pm
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Old Jan 8, 2011, 11:43 am
  #608  
 
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Originally Posted by FCfree
What about Rapid Rewards Dining? Previously, you would have to spend $100 to get a 0.25 old RR credit, except when promotions ran, when they would reduce it to $25 spend for 0.25 RR credit. I wonder if under the new point system, you will get 1-5 new RR points for each $1 of spend? I've always used the dining program to keep my AA and UA points alive. Using dining to keep low volume flying relatives RR accounts active could make sense. I think my relatives will still be going up on SWA at least once every two years, so may not be an issue for me, but at least the low dining spend is an option.
As I posted in post #7 on the first page, RR Dining will be 3 points/$1.

The opinions expressed here are mine alone and do not reflect those of Southwest Airlines, SW's directors, board or employees.
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Old Jan 8, 2011, 12:00 pm
  #609  
 
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Originally Posted by swag
Absolutely true.

The good news is that RR2 seems relatively immune from future devaluations. Pegging awards to a dollar amount of spend should result in a more stable program. Within each fare class, the reward is 10%. If airfares rise, as they inevitably will, the ratio stays at 10%.

More importantly, partner point value will naturally decrease with inflation. If a fare rises 25% from $200 to $250, the amount of credit card spend required for that award will rise 25% also.

Compare that to the legacy airlines: $25K of card spend for a free roundtrip is constant, so as the price of the roundtrip rises, the airline will eventually have to increase the award chart (either bump to 30K or reduce the "saver" level inventory). When they do that, this affects not only those who earn via partners, but also those who earn by flying.
Value proposition and choices program

Even if the legacies raised their economy redemptions to 30K you can still use it to redeem for last minute expensive fares whereas on 2.0 you're just out a bunch of points or cash. I just did a quick check on UA vs. WN LAX - LGA, 1/14-1/17. The WGA fare on WN was $654.50 and the flight was available on UA as a XY ticket which means it is available to anybody. You could redeem the same trip on UA for 25,000 miles + $10. If you used your points it would have cost 39,270 points. If you are basing the redemption solely on card spend at the minimum you would have to spend $19,635 on WN or $39,270 at the high end if you rarely fly vs. $25,000 on the high end or $8,333.33 of spend on UA since the card earns 3 miles / $1 on united.com. Most flyers would fall somewhere in between. Same dates for LAX - SFO at comparable departure times on WN the WGA fare is $299.40 or 17,964 points which would be earned by spending $8,982 all on WN or $17,964 elsewhere. On UA the price of the fare is $280.40. With UA you have three options first you can redeem 25,000 miles + $10 second the cash + miles option of 10,000 miles and $90. I personally would take the miles + cash when available because it is always a good value to get 15,000 miles for $90 since they are worth a lot more on long haul premium cabin redemptions or you could get another ticket for the miles. Also cash + miles is great for people who don't have all the miles and want to redeem. Correct me if I am wrong but it doesn't look like there is a points + cash option with WN. The third option is a statement credit. Nobody likes to redeem 25,000 miles for a $100 flight so with the Choices Program as a card holder with UA you have the option to get a statement credit at the rate of $.01 / mile for all miles earned via card spend. You earn 3 miles / $1 for all spend on united.com, 2 miles for spend on UA non-website transactions, alliance partner spend, gas, groceries, food and 1 mile / $1 for everything else. Exact earning ratios can be found on their site. The choices program is not widely known so most people only focus on the 25,000 ticket redemption rates but it is a great program for those that want to use miles but the ticket prices are very low.

One way redemptions, mixed classes of service and bypassing capacity controls

UA allows one-way redemptions on their flights as well as flights operated by their alliance partners for half of the mileage required. This is great since you can now fly one way in economy and back in first or business. Using the choices program mentioned above allows you to circumvent all capacity controls since you are on a revenue flight so if there is a seat for sale you can book it. On top of that you would also earn miles for the flight because it is a revenue flight and not an award flight. Being a revenue flight means that you would earn miles for the flight + elite bonuses and upgrades. There are capacity controls for pure mileage redemptions but I have figured out that inventory management opens up a lot of flights usually within a week or two of departure which is great because that's when flights are the most expensive. Last but not least miles earned on UA in any manner can be redeemed for hotels, car rentals and products. The redemption values are usually around $.01 / mile not great but it's an option and miles.

I hope this helps people compare the two programs for those that get their flights primarily from credit card spend and are thinking about looking for another airline when 2.0 comes online. Sorry it's all about UA but that is the program that I am most familiar with.
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Old Jan 8, 2011, 12:21 pm
  #610  
 
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Originally Posted by UnitedEF
With UA you have three options first you can redeem 25,000 miles + $10 second the cash + miles option of 10,000 miles and $90. I personally would take the miles + cash when available because it is always a good value to get 15,000 miles for $90 since they are worth a lot more on long haul premium cabin redemptions or you could get another ticket for the miles.
How are you getting the 15,000 miles for $90? Are you earning miles on the Miles and Money award?

I wonder if Miles and Money (and Choices) will exist after Continental and United (and OnePass and Mileage Plus) are integrated.
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Old Jan 8, 2011, 12:25 pm
  #611  
 
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OK on my current Companion Pass (expires 3/2011) I look to be one of the lucky ones who get a free mini-extension. I only need 1 more credit - have 99 right now, so should get to enjoy this until 12/31/2012 the way I read it.

I am totally confused, however, on what to do with my current Awards, both active and expired. Has anyone figured out a good strategy on this yet? On the expired ones, do I just wait until right before their 12month past expiration is about to hit and renew them for the $50 fee?

What about all of the active ones that have expirations in 2011 or 2012 after the 3/1/11 date? Help please!!

Active: 2/22/11, 4/2/11, 4/21/11, 5/10/11, 6/2/11, 10/2/11, 1/3/12
Expired: 11/2/10, 11/2/10, 1/2/11, 1/2/11, 1/4/11
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Old Jan 8, 2011, 12:30 pm
  #612  
 
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Originally Posted by FCfree
I do not see the legacy carriers FF programs as simple. Its 25k miles except when its 50k miles. Its bag fees except when you've got status or you are flying first class. OK -- they are simple about change fees, that's all the time. And, its redeposit fees all the time too.

There may be a bit more math to Southwest, at least until we get this all figured out, but Southwest must have figured that we can handle it. Maybe its because its the smart folks, those with advanced degrees in math, economics, and business, not the kettles, that fly Southwest? I'd like to think so.
Maybe all the people with advanced degrees fly Southwest? I think thats one big maybe.

When I travelled in the past, I had easy luck getting 25,000 coach awards and 50,000 first class awards on AA and CO. International Premium awards are a totally different story, tough to get First or business class availability. That part of travel is where your capacity control point is more valid. But even then, most carriers expand Premium award availability for top level elites as well as waive redeposit fees. I don't seem them considering Southwest for future travel as evidenced by the thread asking non-WN flyers if they are going to consider WN given the new RR 2.0. They won't forgo their unlimited complementary drinks, meals at meal time, lounge access, high upgrade success ratios and cushy seats.
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Old Jan 8, 2011, 12:34 pm
  #613  
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Originally Posted by benmaller
Except for the first tear to quickly get A-list, what is the point of packing flights in Jan every other year. Assuming you actually fly 25 one ways each year you will remain A-list.
Well, I don't have 25 paid one-ways a year. More like 15-18. I get most of my WN credits from credit card points, hotel stays, and car rentals.

I could be missing something, though, or overthinking. Perhaps A-List isn't worth it for a guy like me. Or maybe I should just travel more.
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Old Jan 8, 2011, 12:44 pm
  #614  
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Originally Posted by dmdflyer
I can not find anything about the new conversion policy from hotel programs. The exchange rate of points from hotel programs such as Starwood has not been published. This information is needed to make a decision if it is better to convert Starwood points to SWA credits before 03/01,or delay the transfer after 03/01. Why would I delay the transfer after 03/01? Because Starwood works at a ratio of 1:1 with most programs ,and if everything works as expected, then 1200 Starwood points will be worth 1 credit as opposed to the current ratio of 1500:1.
Yes, that would be good to know. Of course, if you transfer 20K Starpoints, you get the 1200 rate now.
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Old Jan 8, 2011, 12:48 pm
  #615  
 
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Hey, I have 10.75 RR Credits.

I have 20000 Holiday Inn Points, would it be worth my while to use those 20000 Holiday Inn points for 4 RR Credits to get close to 16 for another standard award

Or

Keep the HI points for free nights at hotel rooms?
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