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Rapid Rewards devaluation coming April 17, 2015

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Rapid Rewards devaluation coming April 17, 2015

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Old Feb 13, 2015, 9:08 am
  #91  
 
Join Date: Sep 2011
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Originally Posted by ncSam
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.
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)
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Old Feb 13, 2015, 9:15 am
  #92  
 
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Originally Posted by FindAWay
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)
I see. Thanks for the explanation. The math still derives a higher value for lower fares, because award tickets don't include the excise tax, but I agree now that the devaluation likely has nothing to do with excise tax.
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Old Feb 13, 2015, 9:18 am
  #93  
nsx
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Originally Posted by ncSam
I think it's possible that they're doing something to the sliding scale redemption rates they already have in place within the WGA group, whereby cheaper fares require a smaller number of RR points per dollar than more expensive WGA fares do.
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.
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Old Feb 13, 2015, 9:38 am
  #94  
 
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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.
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Old Feb 13, 2015, 10:25 am
  #95  
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Originally Posted by nsx
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.
As I posted once, under current conditions it is a really bad idea to redeem points for AT or BS almost always.

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
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Old Feb 13, 2015, 11:02 am
  #96  
 
Join Date: Aug 2012
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This is one of the worst announcements I've ever seen. Are they intentionally trying to freak everyone out with the vagueness?
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Old Feb 13, 2015, 11:16 am
  #97  
 
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Originally Posted by freebee
Congratulations, Southwest. When it comes to ticking off customers due to lack of transparency, you've just surpassed Delta.
Look, this sucks, but at least we're given plenty of advanced notice, albeit obscurely.
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Old Feb 13, 2015, 11:30 am
  #98  
 
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Originally Posted by rsteinmetz70112
I also suspect that they will be sneaky about implementing this change with relatively few changes immediately and a slow increases in the coming weeks and months. We likely won't know the full impact for some time.
I agree. I'm hoping that a separate thread with datapoints will help us see patterns to the changes in award redemption rates.
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Old Feb 13, 2015, 1:09 pm
  #99  
nsx
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Originally Posted by FindAWay
I agree. I'm hoping that a separate thread with datapoints will help us see patterns to the changes in award redemption rates.
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.
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Old Feb 13, 2015, 1:48 pm
  #100  
 
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Of course, they could always be like Delta and not let you know what the rates are so that if an award is mispriced to your detriment, the mispricing is the new official price.
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Old Feb 13, 2015, 1:50 pm
  #101  
 
Join Date: Jul 2013
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Originally Posted by guflyer
Of course, they could always be like Delta and not let you know what the rates are so that if an award is mispriced to your detriment, the mispricing is the new official price.
I think that's exactly what they just did.
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Old Feb 13, 2015, 2:01 pm
  #102  
 
Join Date: Mar 2011
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Originally Posted by nsx
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.
I very much doubt it. If it were a simple formula they would have shared it already.

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.
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Old Feb 13, 2015, 2:09 pm
  #103  
nsx
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Originally Posted by ursine1
I very much doubt it. If it were a simple formula they would have shared it already.
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.
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Old Feb 13, 2015, 2:20 pm
  #104  
 
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Actually I'm more afraid of an end to CP. With CP I'm getting almost 3 cents/pt which is better than any other airline.
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Old Feb 13, 2015, 2:26 pm
  #105  
 
Join Date: Jul 2013
Posts: 5,813
Originally Posted by Robl
Actually I'm more afraid of an end to CP. With CP I'm getting almost 3 cents/pt which is better than any other airline.
Not for a while, they have just launched an promotion in Atlanta offering CP for three round trip flights before mid May.
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