nsx

Chase, agreed. Southwest, uncertain. The 60 to 70 devaluation proves to me that Southwest did not accurately price the points it sold to Chase. And we've seen other missteps by Southwest over the years.

Southwest seems particularly poor at anticipating customer reaction to its offerings. I still remember the $25 sale they ran for their 25th anniversary, making it nearly impossible to buy any ticket by telephone or even at the airport counter.

tbaumann3

Another good way to earn a Companion Pass is to use Marriott rewards points to purchase one of their travel packages that includes enough Rapid Rewards miles (110k) to qualify for the companion pass. Search travel packages in the Marriott forum for details.

rsteinmetz70112

One way to fix that is to reduce the number of bonus point multiplier promotions, which also seems to be happening recently.

ursine1

I do have to agree with you on that one; it seems like Southwest very often does not know what they're doing. The devaluation however speaks to more than just the point price Chase pays; it's a larger issue than just CC points.

ursine1

That addresses the problem going forward; the devaluation addresses the points already out there.

olouie

I wonder how much CPs actually cost SW. I think people love the idea, get it and use it for a while but then it starts falling off. Plus it gets people to fly SW and into the points game etc and hooked on using them. I know that if wasnt for CP I would fly United/American more.

rsteinmetz70112

SO how much do you use yours?

Cdnblue

Thank you! I'm looking now.

miniaturekat

Nail on the head. It seems I've seen this discussion come up here and there on FT, maybe a couple times outside the WN subforum.

I think most of us with a CP don't really use it that often. I used mine four times this year, will probably do about the same next year. I've seen/talked to a number of others who only use their CP 1-2 times a year.

Trying to figure out what the CPs cost WN in a year is a difficult calculation, bordering on impossible. Figuring out the lost revenue would be somewhat straightforward, but as you mentioned, a lot of customers stick to WN because of their loyalty program. So while I personally can't even begin to come up with a number my opinion is that the CP doesn't cost WN much in the long-run, if not providing an overall benefit.

miniaturekat

Oh, and to address the OP's question - I'm assuming you're not going to hit the CP by flying, so you need to hit it by earning CPQPs. So....

- Credit card spend
- CPQPs from flying
- Promotions
- Transfer from partner programs
- Portal shopping

rsteinmetz70112

I think you are probably typical, not that anyone but Southwest will ever know. Comping 4-6 additional flights to someone who flies 100 times a year probably is worth it. It amounts to less than a 5% discount, maybe less.

When CP is earned by credit card bonuses that is probably a one time deal for many, assuming similar frequency it probably costs Southwest less than $2,000 in income.

There may be occasional people who use it much more than that, but I'd bet that it would be a small percentage.

That may change with the advent of International Travel.

Cdnblue

I have used my CP pass 6 times so far and it was earned in April of 2013. I intend on using it at least 2 - 4 time more before it expires at the end of 2014. I love my CP pass!^

DebitNM

We earned our CP in Jan 2013. As of last week - we have flown 9 Round trips [so 18 flights] and used the CP pass on all of them. Additionally, we have not paid cash for any of these flights. All of the points were from our 2 Chase cards we got in late 2012 and the points we get each month from using these cards.

We have 4 more RT's with CP [and points as payments] planned and booked already and will most likely do 4 more RT's by the end of this year.

We have used Southwest almost exclusively for the past 10 years of flying. We are hoping the end of the Wright Amendment doesn't cramp our style or limit our choices.

olouie

I use mine a lot (over 10 times a year), but I know of at least 4 other close friends who have it and use it maybe 2-3 times a year. Most of my routes are short hops less than 1.5 hour flights, but since we have it we also pay a premium for business select seats on many flights as we have been sucked into the points game with A+ etc.

Without CP I would still fly but prob 90% of business would go to United or VA since they have better coast to coast direct routes.

InkUnderNails

My usage has fallen under three distinct patterns. My flight purchase pattern ranges from 25-40 RT's per year depending on customer activity.

First was my wife. While she still felt like flying with me from time to time: about 4 times a year, half leisure and half riding along on business trips.

Second was my son. He dropped out of college and without batting an eye I said he could work with me and I would teach him my business. After about four months he was ready to go back to school. Best use of CP by far. If a business is set up so that people can work in pairs (common with repair and technical teams) this is the best bang for the buck. Of course, the CP holder will need to be a part owner or it must be possible to get a "bonus" for designating a working travel partner.

Third, while not of great value under the new rules, being my own companion, getting to preboard, and always getting an empty middle has great value. And, it is every flight, every segment. Granted, I can get automatic reimbursement now and the CP is wasted, but wife still does not feel like traveling and son is out of college with a non-traveling job. Booking the extra seat with the CP is very convenient and does not tie up funds.