New: Rapid Reward Point Subscription Plans
 

On the heels of a Rapid Reward point devaluation, Southwest has rolled out a monthly point subscription plan.
Lock in roughly 1,875 points per month to the cost of $50/month. Seems insane to me - not to mention the points do not count toward any A-List or Companion status.

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Maybe the "bonus" points will make it worth while! :rolleyes:

Given the higher mathematics required to figure out the RR plan, I'm sure they'll have no problems finding takers in the general public.

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Cheaper than "regular" points purchase (assuming no bonus) but still higher than points actual value. The 80k plan gets close, especially if you factor in perceived points benefits (refundability, less taxes/fees, etc.) but that's an awfully large & lengthy commitment.

Points value (current, literal):
$1 / 83 = $0.0120

30K:
$51.56 x 12 = $618.72
$618.72 / 30,000 = $0.0206 per point

40k:
$64.16 x 12 = $769.92
$769.92 / 40,000 = $0.0192 per point

80k:
$119.16 x 12 = $1,429.92
$1,429.92 / 80,000 = $0.0179 per point

The blogs got this one right too.
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A subscription plan WORSE than Clark Griswold's jelly of the month club.

This idea is so nuts, it belongs in The Peanut Gallery

Being a revenue based program the points you are buying are more expensive than the value $.012 cpp

You also get points for the credit card spend. Does that change the math significantly?

Sorry.... can not do the math.

We have three WN credit cards and rarely use them. Will actually be dropping one in wifes name shortly and will apply again late this year.

This promotion is downright insulting.

Agreed. (a greed?)

It's an implicit statement that Southwest believes its Customers are suckers, too stupid or trusting to do basic arithmetic.

I recommend that Southwest close this promotion to new buyers and then top off any past purchases to 83 points per dollar spent. Or even leave it open at 83 points per dollar. That would be both courageous and honorable.

Offensive? The sad thing is, there are plenty of people dumb enough to do this. Let's face it, people love subscriptions! Southwest has done nothing wrong although you (and I) may think this is dumb.

No, assuming 2x points per dollar on the CC, it only brings down the largest plan to 1.725 cents per point.

P.T. Barnum is smiling somewhere...

Respectfully suggest that LOTS of people are suckers and stupid. Look around. They are everywhere.

I got $310 back from SAMs last year - most from the 5% off gas purchases.
Got $410 back from Amazon using the Amazon card. (5% on everything and Whole Foods)
Got all kinds of kickbacks on other cards.

Family member will not use credit cards and prefers debit cards. He say credit cards are a ripoff.
Go figure.

We have not paid for flights in a few years due to getting WN/Chase credit cards. And have had companion pass for the past 5 years.

Today's Click & Save email included (for me, may be individualized/targeted) a Points offer that includes an up to 75% bonus.

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At the minimum points purchase to get the 75% bonus, you're paying quite a bit less than any of the subscription plans.

15,000 + 11,250 = 26,250
$412.50 / 26,250 = 0.0157


At the minimum purchase to get any bonus you're still paying less than any of the subscription plans.

5,000 + 3,250 = 8,250
$137.50 / 8,250 = 0.0167

Presumably the subscription plans are aimed at consumers who want to "layaway" or save up for a trip, putting away a smaller amount of money every month and then redeeming after a year. I think those people are going to be really upset when they finally have enough points to purchase their flight, but discover that the fare has increased and now they can't afford it. (Much less learning that they could have bought the fare for a lot less cash than they spent on points.)