Finally hit by RR devaluation
#1
Original Poster
Join Date: Jul 2011
Posts: 50
Finally hit by RR devaluation
I went to book a flight today and got hit with sticker shock. My $150 flight required 10,000 RR points. Looking online, this devaluation supposedly happened in mid 2018, but until a few weeks ago I was getting about 2 cents per RR point on WGA flights. I can't find anything about people still getting 2 cents until recently or a new 2019 devaluation.
Any idea what happened here? For example, I have a flight I booked in January for mid-march. Cash price was $59, and I used 2517 RR points, ie about the normal 2 cents. Now a $59 flight costs 3242 RR points. That is a very sudden 28% devaluation!
All of my SW travel is within California.
Any idea what happened here? For example, I have a flight I booked in January for mid-march. Cash price was $59, and I used 2517 RR points, ie about the normal 2 cents. Now a $59 flight costs 3242 RR points. That is a very sudden 28% devaluation!
All of my SW travel is within California.
#2
Join Date: Mar 2011
Posts: 6,286
I went to book a flight today and got hit with sticker shock. My $150 flight required 10,000 RR points. Looking online, this devaluation supposedly happened in mid 2018, but until a few weeks ago I was getting about 2 cents per RR point on WGA flights. I can't find anything about people still getting 2 cents until recently or a new 2019 devaluation.
Any idea what happened here? For example, I have a flight I booked in January for mid-march. Cash price was $59, and I used 2517 RR points, ie about the normal 2 cents. Now a $59 flight costs 3242 RR points. That is a very sudden 28% devaluation!
All of my SW travel is within California.
Any idea what happened here? For example, I have a flight I booked in January for mid-march. Cash price was $59, and I used 2517 RR points, ie about the normal 2 cents. Now a $59 flight costs 3242 RR points. That is a very sudden 28% devaluation!
All of my SW travel is within California.
We need more info. City pairs & date? Which fare? And what is the cash cost exclusive of taxes and fees?
#3
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
2517 points is a $49 cash fare, of which $32.26 is base fare. 32.26 x 78 = 2516.28. A $150 cash fare requires about 10k RR points at 78 points per dollar of base fare.
#4
Join Date: Mar 2011
Posts: 6,286
Keep in mind that for a true point valuation comparison, you need to look only at the base fare, exclusive of taxes and fees -- not the advertised "cash fare."
Taxes and fees included with cash fares (but not points redemptions) represent differing proportions of the total cost depending on fare. This makes lower fares seem like a better points "value" than higher ones.
EDITED: At the moment, WGA points redemptions cost 78 points per $1.
Taxes and fees included with cash fares (but not points redemptions) represent differing proportions of the total cost depending on fare. This makes lower fares seem like a better points "value" than higher ones.
EDITED: At the moment, WGA points redemptions cost 78 points per $1.
Last edited by ursine1; Feb 28, 2019 at 3:50 am
#5
Moderator, Southwest Airlines and Choice Privileges
Join Date: Mar 2008
Location: Central Texas
Posts: 3,039
#6
Join Date: Mar 2011
Posts: 6,286
Are you sure? Per my recollection and Change in points redemption value: BS/AT/WGA all 78/dollar = 8% devaluation for WGA, the variable points / $ redemptions for WGA was changed to 78 points / $ for all fare classes.
Even after that last devaluation was announced, I know that I was still sometimes finding 76/$1 redemptions available, but a quick spot check now makes it seem everything is 78/$1.
I don't believe Southwest ever officially stated that WGA redemptions would be fixed at 78/$1, and, for what it's worth they still note that, "The number of points needed for a particular Southwest® flight is set by Southwest and will vary depending on destination, time, day of travel, demand, fare type, point redemption rate, and other factors..."
But here we are.
If anyone has any data points showing lower then 78/$1 redemptions those would be interesting to see. (The previous tracking thread hasn't been updated since 2016, prior to the most recent devaluation.)
Note: That most recent devaluation was in April of 2018, the one-year anniversary of which we're coming up on. :/
Could Hawaii break 80/$1?
#8
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,193
Even after that last devaluation was announced, I know that I was still sometimes finding 76/$1 redemptions available, but a quick spot check now makes it seem everything is 78/$1.
....
If anyone has any data points showing lower then 78/$1 redemptions those would be interesting to see. (The previous tracking thread hasn't been updated since 2016, prior to the most recent devaluation.)
I grabbed some random undesirable cheap fares/itineraries to check. Here is one:
Tuesday, April 9, MDW-ATL, 5:45 am. One-way. First flight of the morning.
WGA $94 cash (actually $93.50)
Breakdown for points:
- Adult base fare
5,443 PTS - U.S. Flight Segment Tax
$0.00 - U.S. Passenger Facility Chg
$0.00 - U.S. Transportation Tax
$0.00 - U.S. 9/11 Security Fee
$5.60 - Total per Passenger
5,443 PTS + $5.60
x1 Passenger - Flight total
5,443PTS + $5.60
or ~61.9 points per dollar, effectively.
Also found one effectively 58 ppd.
For cash:
- Adult base fare
$69.77 - U.S. Transportation Tax
$5.23 - U.S. 9/11 Security Fee
$5.60 - U.S. Flight Segment Tax
$8.40 - U.S. Passenger Facility Chg
$4.50 - Total per Passenger
$93.50
x1 Passenger
Last edited by toomanybooks; Feb 28, 2019 at 6:49 am
#9
#10
Join Date: Oct 2007
Programs: AA, WN, UA, Bonvoy, Hertz
Posts: 2,491
I saw some last year on what I would consider to be not very desirable flights (if you had to fly as scheduled and didn't use A-List standby or other option) where the points required was less than other flights of the same $ price.
However, I would say that I would not use only the $ chart to determine the points version of a given flight and check both if there is any chance that you wanted to use points versus paying for the ticket.
However, I would say that I would not use only the $ chart to determine the points version of a given flight and check both if there is any chance that you wanted to use points versus paying for the ticket.
#11
Join Date: May 2014
Posts: 1,868
I was going to chime in about those, but couldn't remember how long ago it had been - which made me think it was probably longer ago than it feels. Two years sounds too long, but I'd bet on your recollection over mine.
#12
Join Date: Oct 2003
Location: Traveling the World
Posts: 6,075
I went to book a flight today and got hit with sticker shock. My $150 flight required 10,000 RR points. Looking online, this devaluation supposedly happened in mid 2018, but until a few weeks ago I was getting about 2 cents per RR point on WGA flights. I can't find anything about people still getting 2 cents until recently or a new 2019 devaluation.
Any idea what happened here? For example, I have a flight I booked in January for mid-march. Cash price was $59, and I used 2517 RR points, ie about the normal 2 cents. Now a $59 flight costs 3242 RR points. That is a very sudden 28% devaluation!
All of my SW travel is within California.
Any idea what happened here? For example, I have a flight I booked in January for mid-march. Cash price was $59, and I used 2517 RR points, ie about the normal 2 cents. Now a $59 flight costs 3242 RR points. That is a very sudden 28% devaluation!
All of my SW travel is within California.
#13
Join Date: Mar 2005
Location: MSY
Programs: AA Plat Pro, UA Plat, VS Silver, Marriott Titanium, Hyatt Explorist
Posts: 2,531
I still see some 64-65 pt/$ redemptions available on limited flights departing before 6 AM available through end of schedule. Check out DEN-LAX.
#14
Join Date: Mar 2011
Posts: 6,286
Note: The effective point value on that $113 fare is 63/$1. 7,111 / 63 = $112.87.
There are some $59 DEN-LAX fares available closer in for 3,242 points. The base fare on that $59 is $41.56, and 3,242 / 78 = $41.56, so those are also 78 points /$1.
The effective point value on that $59 fare is 55/$1. 3,242 / 55 = $58.95.
As we've discussed, lower fares have a higher effective point value due to the larger percentage of total fare represented by the taxes and fees which are not collected on points bookings.
What we're discussing here is the fixed WGA point conversion value, which appears to remain at 78/$1.
#15
Join Date: Nov 2015
Location: St. Louis, MO
Programs: Southwest Companion Pass
Posts: 790
Looks like the lowest DEN-LAX fares the last few months of the schedule are all $113 or 7,111 points. The base fare on that $113 is $91.16, and 7,111 / 78 = $91.17, so those are all still 78 points /$1.
Note: The effective point value on that $113 fare is 63/$1. 7,111 / 63 = $112.87.
There are some $59 DEN-LAX fares available closer in for 3,242 points. The base fare on that $59 is $41.56, and 3,242 / 78 = $41.56, so those are also 78 points /$1.
The effective point value on that $59 fare is 55/$1. 3,242 / 55 = $58.95.
As we've discussed, lower fares have a higher effective point value due to the larger percentage of total fare represented by the taxes and fees which are not collected on points bookings.
What we're discussing here is the fixed WGA point conversion value, which appears to remain at 78/$1.
Note: The effective point value on that $113 fare is 63/$1. 7,111 / 63 = $112.87.
There are some $59 DEN-LAX fares available closer in for 3,242 points. The base fare on that $59 is $41.56, and 3,242 / 78 = $41.56, so those are also 78 points /$1.
The effective point value on that $59 fare is 55/$1. 3,242 / 55 = $58.95.
As we've discussed, lower fares have a higher effective point value due to the larger percentage of total fare represented by the taxes and fees which are not collected on points bookings.
What we're discussing here is the fixed WGA point conversion value, which appears to remain at 78/$1.