Rapid Rewards 2.0 begins March 1, 2011
#601
Moderator: Southwest Airlines, Capital One
Original Poster
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,624
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?
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.
#602
#603
Moderator: Southwest Airlines, Capital One
Original Poster
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,624
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?
I recommend earning 1 extra credit so you have the option to create one more Standard Award from points within a year from now.
#604
Join Date: Mar 2001
Location: LAS-DEN
Programs: WN CP & B-list. Disillusioned fmr UA-1P/2P,F9-Ascent; Fmr AA-Plat,CO-Gold,NW-Silver,TWA-Elite
Posts: 1,630
#605
Join Date: Nov 2004
Programs: SWA CP
Posts: 211
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.
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.
#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.
#606
Join Date: Mar 2001
Location: LAS-DEN
Programs: WN CP & B-list. Disillusioned fmr UA-1P/2P,F9-Ascent; Fmr AA-Plat,CO-Gold,NW-Silver,TWA-Elite
Posts: 1,630
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.
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.
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?
#607
Join Date: Sep 2009
Location: Austin TX
Programs: HH Dia, Hyatt Plat
Posts: 442
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.
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.
Last edited by benmaller; Jan 8, 2011 at 3:27 pm
#608
Join Date: Aug 2010
Location: DAL
Posts: 268
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 opinions expressed here are mine alone and do not reflect those of Southwest Airlines, SW's directors, board or employees.
#609
Join Date: Mar 2009
Location: LAX
Programs: Mosaic 2, Bonvoy Gold, Hilton Diamond, Hyatt Globalist, Premium Cabin free agent
Posts: 848
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.
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.
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.
#610
Join Date: Nov 2000
Programs: AA Plat, Alaska MVP, HHonors Gold, IHG Plat, Hertz PC, National Executive Elite, UA Kettle
Posts: 897
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.
I wonder if Miles and Money (and Choices) will exist after Continental and United (and OnePass and Mileage Plus) are integrated.
#611
Join Date: Feb 2008
Location: STL
Programs: MR Plat Premier, IHG Spire, Hilton Diamond, Southwest CP
Posts: 623
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
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
#612
Join Date: May 2007
Location: LAS
Programs: Delta Gold Medallion
Posts: 258
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.
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.
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.
#613
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,192
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.
#614
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,192
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.
#615
Join Date: Mar 2010
Posts: 88
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?
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?