Funds to Point Conversion Now Live!

Old Aug 10, 20, 8:16 am
  #1  
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Funds to Point Conversion Now Live!

I can't believe I'm beating you all to this news!

As of this morning, the ability to convert RTF's (Residual Travel Funds) to Rapid Rewards points is available on southwest.com and SWABIZ.

Aug 10, 2020DALLASSouthwest Airlines Co. (NYSE: LUV) announced today it will allow qualified travel funds to be converted to Rapid Rewards® points now through December 15, 2020. This will provide Southwest Airlines Customers even greater flexibility.

Members who have travel funds that meet specific qualifications will be able to convert their travel funds into Rapid Rewards points at the same rate they would be able to purchase a ticket with points today.

Travel Funds that Qualify to Convert to Rapid Rewards Points:
  • Customer must be a Rapid Rewards Member.
  • Travel fund must expire September 7, 2022.
  • The first and last name on the travel fund must match what is on their Rapid Rewards Account.
  • Travel fund must originate from a ticket purchased on Southwest.com or booked by a Southwest Airlines Customer Representative.
  • Travel funds from corporate tickets (SWABIZ) are not eligible for conversion unless their company specifically requested this for their travelers.
Customers can check the expiration date of their travel funds by going to “View Travel Funds” on Southwest.com. If Customers are not yet Rapid Rewards Members, they can join and then convert their qualified travel funds online.
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Old Aug 10, 20, 8:50 am
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I had been concerned about the exchange rate, but had high hopes that the offer would be fair. I needn't have worried! Thank you for not taking advantage of a bad situation!
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Old Aug 10, 20, 9:21 am
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Thank you, Southwest.

We are sporadic Southwest flyers. For those of you who understand all the ins and outs, please advise. Are we better off keeping travel funds as money if we are confident we will use them before expiration, given that we will then earn points on travel? Or is the conversion value the same as if I had flown? I'm not sure I'm wording this well, but hopefully you understand my question.
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Old Aug 10, 20, 10:07 am
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According to TPG, conversion rate is about 1.3c per point for those who are wondering. (I didn't have any qualifying travel funds yet to check)
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Old Aug 10, 20, 10:07 am
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Originally Posted by SanDiego1K View Post
Thank you, Southwest.

Are we better off keeping travel funds as money if we are confident we will use them before expiration, given that we will then earn points on travel? .
If you are confident in using your travel funds by their expiration date, you are also protected from a future increase in the points-per-dollar conversion rate. And (not to be a Debbie Downer) you are better protected in a bankruptcy.

Points, though, can be used to purchase tickets for anybody, whereas travel funds can only be used by the original traveler.

As a data point: In the AA and USAir bankruptcies decades ago the frequent flyer programs were preserved/converted by the successor carrier (if I remember correctly).

Note, too, the offer to convert dollars to points ends December 15, 2020.
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Last edited by dlaue; Aug 10, 20 at 12:17 pm
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Old Aug 10, 20, 10:22 am
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78 points per $1 of TTFs ratio for those I'm seeing.
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Old Aug 10, 20, 10:52 am
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Getting TTFs or whatever they are called now tied to a specific person into points so that they can be used for others seems to be the main benefit here, no? And no expiration.

If you know of some better way to work this, I would welcome a PM and keep it strictly confidential.

Starting to see some arbitrage possibilities.
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Last edited by toomanybooks; Aug 10, 20 at 11:11 am
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Old Aug 10, 20, 11:15 am
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Thumbs up Very Fair Deal

I've checked a few of my regular routes and the typical point/cash exchange rate is 69 to 76 point per dollar. (depending on the class of service). By taking advantage of this offer, Southwest is providing 78 points per dollar. On one "Wanna Get Away" ticket that I would purchase the cash price is $99 and the points price is 6,864. At 78 points per dollar that's equal to $88 in voucher money. An 11% discount. Last minute or "Business Select" tickets had a lower discount, a little over 2%.

Of course, the real advantages are the name flexibility and lack of expiration.

I see no reason not to do this.
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Old Aug 10, 20, 12:19 pm
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It's worth it to clean up some small TTF, like $1.96. Plus my elderly father had a $79 credit for a flight he didn't take in July (the return was on my points) and he's not likely to fly any time soon with all of this. Even at 78:1, it's worth it to be able to reuse the points for myself or a different family member.

2021 is probably my last year of A-List unless they decide to not reset the flight counter on January 1, 2021. So I'm not inclined to keep more than 7500 points in my balance, when I have large balances on several other airlines which need to get drawn down as well.
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Old Aug 10, 20, 12:20 pm
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Originally Posted by ejmelton View Post
I've checked a few of my regular routes and the typical point/cash exchange rate is 69 to 76 point per dollar. (depending on the class of service). By taking advantage of this offer, Southwest is providing 78 points per dollar. On one "Wanna Get Away" ticket that I would purchase the cash price is $99 and the points price is 6,864. At 78 points per dollar that's equal to $88 in voucher money. An 11% discount. Last minute or "Business Select" tickets had a lower discount, a little over 2%.

Of course, the real advantages are the name flexibility and lack of expiration.

I see no reason not to do this.
Isn't part of the 11% discount the fact that you aren't earning more points on the points-based purchase. So that's what, ~480 more points after taking taxes into account?
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Old Aug 10, 20, 12:49 pm
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I have (3) $100 Luv Vouchers from a series of flight delays in February. One is in my name, the other two in my parents name(s). Could I use all three of these to purchase a ~$300 flight, cancel it for a refund, and then convert the Travel Funds to points?
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Old Aug 10, 20, 1:00 pm
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Count me as impressed twice, first that Southwest has offered this, and second that they've made it so easy to do online with instant results, very well done WN!
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Old Aug 10, 20, 1:01 pm
  #13  
nsx
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Originally Posted by entmodonata View Post
I have (3) $100 Luv Vouchers from a series of flight delays in February. One is in my name, the other two in my parents name(s). Could I use all three of these to purchase a ~$300 flight, cancel it for a refund, and then convert the Travel Funds to points?
Yes, in several steps. Two LUV vouchers plus credit card for a $250 flight. Cancel and refund the credit card. Then $100 LUV plus $200 travel credit plus credit card for a $301 fare. Cancel and refund the credit card. Wait until midnight Central Time for expiration to change to 2022. Convert to points after midnight.
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Old Aug 10, 20, 1:39 pm
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Originally Posted by nsx View Post
Yes, in several steps. Two LUV vouchers plus credit card for a $250 flight. Cancel and refund the credit card. Then $100 LUV plus $200 travel credit plus credit card for a $301 fare. Cancel and refund the credit card. Wait until midnight Central Time for expiration to change to 2022. Convert to points after midnight.
Thanks. Why not (3) LUV vouchers + credit card for a >$300 flight, and then the same cancel/refund procedure?
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Old Aug 10, 20, 1:54 pm
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Only 3 methods of payment to pay for flight so it wouldnt let you do 301 using 3 luv vouchers and a credit card.
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