Market For Unused Funds?
I am surprised that there is not a larger market for unused Southwest travel funds. The airline has the wonderful policy of allowing funds to be transferred without penalty to another traveller. I can't think of another airline that allows this.
Suppose a frequent traveller has $400 of unused travel funds that are nearing the one-year expiration and he either has no trips planned or has plenty of Rapid Reward certificates. He would be much better off getting 80% of those funds ($320 cash) than letting his $400 expire. The traveller who would otherwise pay $400 would much rather pay $320. An efficient, if underworld, market has long existed for Southwest Rapid Reward Certificates. There are buyers who will accept them with only 2 months remaining until expiration, so that same buyer should be willing to pay $320 for $400 of unused funds with two months remaining until expiration. Any ideas as to why this market, which seems to be within Southwest's rules, has never materialized. Or maybe it exists and I don't know about it. Maybe I overestimate the amount of unused Southwest funds that expire unused, but with business purchases of trips that are later cancelled, I bet it is significant. |
There is a market (although obviously just a fraction of that for Rapid Rewards certs), see http://search-completed.ebay.com/sou...sortpropertyZ1
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Originally Posted by Andy2
Any ideas as to why this market, which seems to be within Southwest's rules, has never materialized. Or maybe it exists and I don't know about it.
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SW ticketless funds
I would be happy to trade for SWA credit anytime. I look to buy this all the time and use it to pay for all my travel hardly ever buying tickets with my Visa card. Of course now that SW is offering double credit for Visa purchases, I am buying those tickets with my Visa.
Happy holidays, Airjonethan |
Why sell them? If you fly frequently enough, you will find out that Southwest credit $$$s (even expired) are fully refundable. I've cleaned up about 10 unused confirmation codes (some of which had expired) and had them refunded back to my credit card in the past several months. [another unwritten benefit for CP holders]
Ditto on nsx's comment - you would have to be really naive to buy credit $$$ from a stranger. There are far too many ways that the seller can take the $$$ back. Find relatives/friends with open credit $$$ and take them off their hands. |
Originally Posted by Tino
Ditto on nsx's comment - you would have to be really naive to buy credit $$$ from a stranger. There are far too many ways that the seller can take the $$$ back. Find relatives/friends with open credit $$$ and take them off their hands. |
1. The "chain" of funds from confirmation # to confirmation # can be tracked by the purchaser of the original confirmation #. I've done this when trying to find lost $$$s and Southwest customer service was very helpful. They even alerted me to confirmation #s that I had forgotten about, and processed a chargeback for me.
2. In the event that the (now resold) funds are not utilized within the 12-month window, the original owner of the funds CAN get them back. I have done this repeatedly in the past for funds that I thought were otherwise gone (through ignorance, not reselling), even if tickets were issued in other people's names. 3. In the event of a flight cancellation, I am not sure if the funds go back to the credit card or if they stay attached to an open conf #. [anyone?] I know in the case of paperless award tickets, a cancelled flight sends the award back to the person who originally earned it. |
3. In the event of a flight cancellation, I am not sure if the funds go back to the credit card or if they stay attached to an open conf #. [anyone?] I know in the case of paperless award tickets, a cancelled flight sends the award back to the person who originally earned it. |
Originally Posted by Tino
1. The "chain" of funds from confirmation # to confirmation # can be tracked by the purchaser of the original confirmation #. I've done this when trying to find lost $$$s and Southwest customer service was very helpful. They even alerted me to confirmation #s that I had forgotten about, and processed a chargeback for me.
Second, if you distrust sellers so much, why buy anything off Ebay? You could buy a $50 power tool and pay the seller and never have it sent to you, or a $300 RR ticket and never have that sent to you, or a $10,000 plasma TV and never have that sent to you. If you watch a sellers feedback and recent sales history, you really shouldn't have a problem. The Ebay feedback system combined with the Paypal system make the total auction system pretty safe I'd have to say. If something looks fishy (e.g., a seller with 0 feedback that only accepts money orders or Western Union money transfers) with the auction, then pass on it. But if it looks safe, then it probably is pretty safe, at least in my experience with Ebay. As much as you'd think to the contrary, most Ebayers actually are honest.
Originally Posted by Mr. July
......Haven't had an actual flight cancellation (where Southwest cancels the flight),
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Originally Posted by gregorygrady
nsx, did you know that?
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Originally Posted by Tino
If you fly frequently enough, you will find out that Southwest credit $$$s (even expired) are fully refundable. [another unwritten benefit for CP holders]
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Wn Luvs U
Is it the policy to cheer CP holders like Tino said?
"" Why sell them? If you fly frequently enough, you will find out that Southwest credit $$$s (even expired) are fully refundable. I've cleaned up about 10 unused confirmation codes (some of which had expired) and had them refunded back to my credit card in the past several months. [another unwritten benefit for CP holders] "" |
Originally Posted by lassen2545
Is it the policy to cheer CP holders like Tino said?
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I've bought or sold over $20,000 worth of stuff on eBay, so that's not an issue.
However, I personally will not enter into a transaction where someone at a later date can take back what they have sold to me (or have it automatically revert back to them by the airline) unless I am getting a huge discount. Sure, the odds are small but I'd hate to show up at the airport one day and find out that my reservation has vanished. Would I pay 50 cents on the dollar for SW funds? Sure. Would I pay 90+ cents? No. That's why the market (according to eBay) pays a premium for paper-based award tickets. |
Originally Posted by Tino
I've bought or sold over $20,000 worth of stuff on eBay, so that's not an issue.
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