Rapid Rewards devaluation coming April 17, 2015
#91
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
A $45.10 WGA fare costs 2,019 RR points.
$45.10-$5.60 = $39.50, which is the value of using RR points
$39.50/2,019 points is 1.956 cents/point value
A $272.10 WGA fare costs 16,540 RR points.$272.10-$5.60 = $266.50, which is the value of using RR points
$266.50/16,540 points is 1.611 cents/point value
This is, of course, ignoring the fact that you can buy WN GCs at a discount, and the fact that paid fares earn RR points, but shows that lower fares within the WGA bucket are a better value in terms of cents/point.The taxes and fees are the reason the difference is made. It is not specifically related to buckets within WGA fares (i.e., an "N" bucket at $89 vs. "N" at $119 for different routes will still have the discrepancy you point out but the ratio to base fare will remain 70 pts. per $1)
#92
Join Date: Jul 2013
Location: ATL
Programs: HH D, MB G, IHG P, Nat'l EE, Hertz PC
Posts: 496
You have to look at Base Fare - it'll all be 70 pts/$1.
The taxes and fees are the reason the difference is made. It is not specifically related to buckets within WGA fares (i.e., an "N" bucket at $89 vs. "N" at $119 for different routes will still have the discrepancy you point out but the ratio to base fare will remain 70 pts. per $1)
The taxes and fees are the reason the difference is made. It is not specifically related to buckets within WGA fares (i.e., an "N" bucket at $89 vs. "N" at $119 for different routes will still have the discrepancy you point out but the ratio to base fare will remain 70 pts. per $1)
#93
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: 21,624
There's no need to make it more complicated than splitting the current 70 points per dollar into 70, 80, and 90 points per dollar. That's assuming that Southwest doesn't also want to raise Anytime above 100 points per dollar.
#94
Join Date: Jan 2011
Location: MDW
Programs: WN (CP 6x, A+ 2x), Marriott (LT Titanium), Hyatt Explorer, Hertz PC, UA/*A Silver
Posts: 425
The New Southworst Pricing Wizard
All of this speculation about 70/80/90 points per $1 of base airfare only, ignoring excise tax, etc, etc seems waaay too complicated for SW's IT department. Remember how long it took for the 'remember me' box to actually, uh, remember you?
I think they'll actually implement a very simple, three-question wizard when you book. Somthing like this:
1-Where would you like to fly?
2-How many points do you have?
3-Send them in...
Welcome to Southworst Airlines
How about we start organizing community charter flights instead of taking yet another one of these 'enhancements' in the keister? This is just outrageous. First Delta, now these &%@#$@$#^@#$^.
Hello American. At least until you screw me over too, which I expect about 6-12 months after the merger is complete.
I think they'll actually implement a very simple, three-question wizard when you book. Somthing like this:
1-Where would you like to fly?
2-How many points do you have?
3-Send them in...
Welcome to Southworst Airlines
How about we start organizing community charter flights instead of taking yet another one of these 'enhancements' in the keister? This is just outrageous. First Delta, now these &%@#$@$#^@#$^.
Hello American. At least until you screw me over too, which I expect about 6-12 months after the merger is complete.
#95
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,192
Instead, convert your WN points @ 1 cent into a WN GC, then use that to buy the ticket. You'll get the same price (essentially), but also:
1. 10 or 12 points (at least) for the flights.
2. Credit toward A-List/+
3. Credit toward CP.
Only reason I can think of not to do this is that you don't want to risk getting TTFs if you have to cancel.
Of course, next they might "break the penny."
Last edited by toomanybooks; Feb 13, 2015 at 10:31 am
#97
Join Date: Nov 2006
Programs: Marriott Platinum, Hilton Diamond, IHG Platinum
Posts: 3,719
#98
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
I agree. I'm hoping that a separate thread with datapoints will help us see patterns to the changes in award redemption rates.
#99
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: 21,624
I'm hoping that Southwest will just tell us what the new rates are. I'm pretty sure they don't have fancy enough software to support a variety of points per dollar rates, let alone to support points prices completely disconnected from the cash prices. So it should be a different exchange rate for different fare classes. That would be the simplest way to implement it.
#101
Join Date: Jul 2013
Posts: 5,813
#102
Join Date: Mar 2011
Posts: 6,286
I'm hoping that Southwest will just tell us what the new rates are. I'm pretty sure they don't have fancy enough software to support a variety of points per dollar rates, let alone to support points prices completely disconnected from the cash prices. So it should be a different exchange rate for different fare classes. That would be the simplest way to implement it.
People who think WN's IT can't support a dynamically variable points redemption system should consider that this area is directly related to their bottom line; it's not comparable to something like fixing the "remember me" bug. As I mentioned earlier, I suspect this change is a result of (or alternately, could have been the reason for) the "under the hood" IT changes WN has been working on with their bookings systems.
They already have dynamic fare pricing that uses a complicated set of variables to control yield; I suspect a similar algorithm will be put in place to apply a points calculation to those cash fares.
Of course, experience with WN's IT has shown us that this could also turn out to be a huge cluster f.
I guess we'll see after April 17.
#103
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: 21,624
You presume a degree of sensitivity to customer perceptions that is not in evidence. Southwest has always been much more reactive than proactive in seeing the customer's point of view. Even under Herb.
#105
Join Date: Jul 2013
Posts: 5,813