Rapid Rewards devaluation coming April 17, 2015
Mar 5, 2015, 3:02 pm
#316
Join Date: Aug 2014
Posts: 96
Gift cards ship for free (for now at least).
The taxes/fees are offset by the points earned (on domestic), and the rest is really about convenience. I feel like the point multiplier value will be different for individual flyers depending on how much they value the refundability of points purchases vs TTFs and the general inconvenience of using gift cards on their particular purchase.
The taxes/fees are offset by the points earned (on domestic), and the rest is really about convenience. I feel like the point multiplier value will be different for individual flyers depending on how much they value the refundability of points purchases vs TTFs and the general inconvenience of using gift cards on their particular purchase.
For example, if we have a flight priced (hypothetically) at $105.60 including taxes and 5.60 govt fees, then when you purchase with points, doesn't it cost 7000 points + $5.60?
Mar 5, 2015, 4:14 pm
#317
Join Date: Sep 2011
Location: ORD/MDW
Programs: AA EXP, DL-Plat, WN-CP | Hotels: Choice-Gld, IHG-Plt, Rad-Gld, HH-Dia, Hyatt-Glob, Marriott-LtPlt
Posts: 2,889
Can someone please explain what the "taxes/fees" savings are when booking with points? I never actually understood this...
For example, if we have a flight priced (hypothetically) at $105.60 including taxes and 5.60 govt fees, then when you purchase with points, doesn't it cost 7000 points + $5.60?
For example, if we have a flight priced (hypothetically) at $105.60 including taxes and 5.60 govt fees, then when you purchase with points, doesn't it cost 7000 points + $5.60?
To see base fare, one must click through as if one wants to purchase the ticket before one can see that level of detail.
Mar 6, 2015, 3:24 pm
#318
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,192
Suddenly that .01 floor isn't looking so solid anymore! A lot of work and planning needed. Gift card shipping cost?
Can the super smart amongst us put a number on at what point multiplier it makes sense to go the gift card route? So many variables, i.e if its for yourself, you earn points (at what value though?), if a gift for someone else it doesn't matter as much.
Can the super smart amongst us put a number on at what point multiplier it makes sense to go the gift card route? So many variables, i.e if its for yourself, you earn points (at what value though?), if a gift for someone else it doesn't matter as much.
1.42 cents for a tax-deductible flight is already around 1 cent in the form of a non-taxable Amazon or WN GC.
Mar 9, 2015, 2:10 pm
#319
Join Date: Jun 2014
Posts: 97
What does this mean for us amateurs?
Hi all,
Sorry if something like this has been answered or linked to upthread, in which case I missed it looking through. I'm curious as to how this devaluation will/might work in terms relative to other FF/CC programs.
More specifically: I'm a small-time FTer -- not a lot of travel, no concerns or ambitions towards status, mostly trying to earn a few free flights a year through credit card use. I tend to switch back and forth between a WN Visa and a Delta Amex, depending on how many miles I have in each account, what's closer to hitting a threshold for a ticket, etc. Started with Delta about a decade ago, then switched to WN because of airport convenience (Newark), but I've been split of late. So is there a way to compare the relative value of a Southwest mile earned on CC vs. a Delta one, either now or when this valuation actually changes? All other allegiances, etc., aside, where would I be better off putting my money? FWIW, both of my cards are 1 mile per dollar, and I tend to spend about 34K total a month...
Grateful for any replies, links, explanations, etc...
Sorry if something like this has been answered or linked to upthread, in which case I missed it looking through. I'm curious as to how this devaluation will/might work in terms relative to other FF/CC programs.
More specifically: I'm a small-time FTer -- not a lot of travel, no concerns or ambitions towards status, mostly trying to earn a few free flights a year through credit card use. I tend to switch back and forth between a WN Visa and a Delta Amex, depending on how many miles I have in each account, what's closer to hitting a threshold for a ticket, etc. Started with Delta about a decade ago, then switched to WN because of airport convenience (Newark), but I've been split of late. So is there a way to compare the relative value of a Southwest mile earned on CC vs. a Delta one, either now or when this valuation actually changes? All other allegiances, etc., aside, where would I be better off putting my money? FWIW, both of my cards are 1 mile per dollar, and I tend to spend about 34K total a month...
Grateful for any replies, links, explanations, etc...
Mar 9, 2015, 4:12 pm
#320
Join Date: Nov 2005
Location: SEA
Programs: HH Silver
Posts: 2,400
Personally, if I was spending 400K a year on a credit card, I would put it on Chase INK, or Sapphire. Then you could take cash out, book travel @ 20% discount, or transfer 1:1 to WN, since you are using them anyway. Plus you would be earning much more, such as the 5X and 2X bonus points. Lol, I only put about 40k a year on my WN card and cannot take enough free flights to use all the points I have earned.
Mar 9, 2015, 5:28 pm
#321
Join Date: Oct 2005
Location: ORD, MDW or MKE
Programs: American and Southwest. Hilton and Marriott hotels primarily.
Posts: 6,462
More specifically: I'm a small-time FTer -- not a lot of travel, no concerns or ambitions towards status, mostly trying to earn a few free flights a year through credit card use. I tend to switch back and forth between a WN Visa and a Delta Amex, depending on how many miles I have in each account, what's closer to hitting a threshold for a ticket, etc. Started with Delta about a decade ago, then switched to WN because of airport convenience (Newark), but I've been split of late. So is there a way to compare the relative value of a Southwest mile earned on CC vs. a Delta one, either now or when this valuation actually changes? All other allegiances, etc., aside, where would I be better off putting my money? FWIW, both of my cards are 1 mile per dollar, and I tend to spend about 34K total a month...
Grateful for any replies, links, explanations, etc...
Mar 9, 2015, 5:36 pm
#322
Join Date: Feb 2012
Location: LAX
Programs: AA, TY, UR, UA, US, WN, MR, SPG
Posts: 1,453
I have the Chase Southwest Plus card that the AF just came up on. I haven't flown WN for 16 months, and don't foresee flying with them in 2015. I have 28,012 RR points with them, and I'm very strongly considering just cashing them out for $275 in Amazon GC and closing the card. Am I crazy? I've never considered cashing out miles/points for GCs (besides Citi TY points back in the day before 1.6x airfare and 1:1 transfers). I just don't foresee flying WN any time soon, and with 3 devaluations in a span of 15 months, I don't see much use in holding on to them. Not sure what else to do with them though. If I cancel the CC, I lose the ability to cash out for GCs.
Mar 9, 2015, 6:13 pm
#323
Join Date: Oct 2001
Programs: LTP, PP
Posts: 8,700
No, you are not crazy. After this deval and Marriott's annual gutting, I'm about to throw in the towel after 10+ years of primarily collecting both and just go the 2% cash back route. If you have no foreseeable need, why bother? Cash out and cancel the card, you can get the AF reversed some 45 days at least. 28k points might not even buy a RT without some long range planning, I just blew 35k for get my daughter back & forth to Orlando for the weekend and its only going to get worse...
Mar 9, 2015, 6:25 pm
#324
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,625
No, you are not crazy. After this deval and Marriott's annual gutting, I'm about to throw in the towel after 10+ years of primarily collecting both and just go the 2% cash back route. If you have no foreseeable need, why bother? Cash out and cancel the card, you can get the AF reversed some 45 days at least. 28k points might not even buy a RT without some long range planning, I just blew 35k for get my daughter back & forth to Orlando for the weekend and its only going to get worse...
Mar 9, 2015, 7:25 pm
#325
Join Date: Sep 2002
Location: Blue Ridge, GA
Posts: 5,512
Mar 10, 2015, 3:53 am
#326
Join Date: Jun 2014
Posts: 97
Personally, if I was spending 400K a year on a credit card, I would put it on Chase INK, or Sapphire. Then you could take cash out, book travel @ 20% discount, or transfer 1:1 to WN, since you are using them anyway. Plus you would be earning much more, such as the 5X and 2X bonus points. Lol, I only put about 40k a year on my WN card and cannot take enough free flights to use all the points I have earned.
But seriously, does that change the game at all? Any recommendation for a small-timer of that ilk?...
Mar 10, 2015, 5:57 am
#327
Join Date: Nov 2005
Location: SEA
Programs: HH Silver
Posts: 2,400
I cant comment on Delta, but like I said, that's about how much I put on my WN card, and never pay for a flight. I think you can use less points on Southwest flights, if that matters. I recently booked a flight SEA-LAS for less than 3000 points. That is why I LUV WN.
Mar 10, 2015, 8:55 am
#328
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,192
So is there a way to compare the relative value of a Southwest mile earned on CC vs. a Delta one, either now or when this valuation actually changes? All other allegiances, etc., aside, where would I be better off putting my money?
Grateful for any replies, links, explanations, etc...
Grateful for any replies, links, explanations, etc...
Sapphire and Ink are good, especially Sapphire for travel (broadly defined, includes parking and tolls). Ink 5x for phone/cable/internet and whatever gift cards you can pick up at Staples/OfficeDepot/max.
These beat WN Visa for me, hands down. Only reason for WN Visa is double points on WN/partner spend and CP-qualifying. If you cannot use a CP, not worth it IMO.
For non-bonus 1x spend, the SPG Amex is hard to beat. I regularly get 3+ cents each value on them (have a reservation next month for 3000 points vs. way over $100 cash). Carlson Visa give 5 points per dollar on all spend, and I consider them worth .5 cents each. But it's been a while since a devaluation, so I sense one coming, and I have a metric ton of them already.
Amex is worth having for the regular deals they offer, like Small Business Saturday in Nov. I saved $270 in about 15 minutes. Plus monthly offers of all kinds ($30 off $300 at Best Buy in December on each card. Visa GCs were eligible).
I have the Chase Southwest Plus card that the AF just came up on. I haven't flown WN for 16 months, and don't foresee flying with them in 2015. I have 28,012 RR points with them, and I'm very strongly considering just cashing them out for $275 in Amazon GC and closing the card. Am I crazy? I've never considered cashing out miles/points for GCs (besides Citi TY points back in the day before 1.6x airfare and 1:1 transfers). I just don't foresee flying WN any time soon, and with 3 devaluations in a span of 15 months, I don't see much use in holding on to them. Not sure what else to do with them though. If I cancel the CC, I lose the ability to cash out for GCs.
Last edited by toomanybooks; Mar 10, 2015 at 9:04 am
Mar 13, 2015, 2:00 pm
#329
Join Date: Mar 2015
Posts: 33
Could they have started the devaluation early? I've been tracking prices (and points) of a late October one-way flight from CMH - MCO. Yesterday the flight was $139 (or 8075 pts), today the price of the flight is still $139 but the point cost has gone up to 8133.
I thought it was odd that the dollar value of the flight stayed the same but the cost for points went up.
I thought it was odd that the dollar value of the flight stayed the same but the cost for points went up.
Mar 13, 2015, 2:29 pm
#330
Join Date: Mar 2011
Posts: 6,286
Could they have started the devaluation early? I've been tracking prices (and points) of a late October one-way flight from CMH - MCO. Yesterday the flight was $139 (or 8075 pts), today the price of the flight is still $139 but the point cost has gone up to 8133.
I thought it was odd that the dollar value of the flight stayed the same but the cost for points went up.
I thought it was odd that the dollar value of the flight stayed the same but the cost for points went up.
$116.19 x 70 point/1$ = 8133
So, it's currently using the correct formula. If you previously saw it cheaper (in points) it must have been a glitch.
