New Southwest Rapid Rewards Program Gets Mixed Reviews

Reactions to Southwest's newly announced Rapid Rewards program have been decidedly mixed.

Within hours of the unveiling, the Internet was awash in comments. And for every thumbs-up, there was a countervailing note of no confidence.

Here's a random sampling of comments from travelers and travel bloggers:

• Noticed that you commented on the SWA Rapid Rewards program as outdated and needing to be updated. I think this comment was very narrow-minded and uninformed. I hope you take the time to review the hundreds of comments on SWA's Facebook page and realize their program was the standard that all other program should have been trying to reach. Today's announcement is a sad demonstration of change in a corporation for no good reason.  (Bob Z. via email)
• The new program is much less exploitable than the old one. This also is intentional. It provides value that is much more closely linked to the value that you, the customer, provide to Southwest. Like it or not, you must agree that this is more fair.  (nsx on FlyerTalk)
• As a 20 year loyal customer of Southwest, I cancelled my two Rapid Rewards credit cards and began booking Alaska Airlines instead after hearing about this fiasco. This is a terrible shift for Southwest's flyers, especially if you travel on relatively short flights. Under the current system, you get to fly anywhwere in their system one way after eight flights of any length. This new system requires you to fly 10 times for a reward that only corresponds to your average ticket price.  (AngryAtSWA on SmarterTravel)
• As with anything change brings winners and losers. The winners (besides the airline) are infrequent travelers such as my young children who will get better value from the program as their points won't expire. Also people who normally buy high-fare tickets will see a better ROI. The losers include those who frequently fly short-haul routes on southwest's lowest fares. But that was too good of a deal to last forever. The new program is a devaluation to these flyers, but probably a boon to everyone else. Despite the huge outcry, I predict many "angry" travelers will continue to fly southwest because overall the price will be generally be the lowest when you factor free checked luggage and no fees to cancel or change your ticket.  (Boraxo on SmarterTravel)
• The new program is remarkably similar to that of San Francisco-based Virgin America and it's part of a trend among all airlines to programs that are more based on how much members spend than how far they fly. Southwest's new program also picked up a unique component from AirTran, which will allow members to "buy" tickets on other airlines to destinations not served by Southwest.  (Chris McGinnis in The BAT)
• Overall, I like what they've done here. The earning and redeeming is very simple and sensible. The increased tiering of the program bugs me as someone who has been flying Southwest since Rapid Rewards was the Company Club, but I understand why they're doing it. It's all about catering to the top travelers, even though that's historically a very un-Southwesty thing to do. The only thing I don't like is the credit card requirement for non-Southwest redemption, but overall, they've done a really good job here.  (Brett Snyder on The Cranky Flyer)
• In my experience the other low cost carriers view their frequent flyer programs as a tax rather than a profit center, something they're obliged to offer because everyone else does and something they just want to keep as inexpensive to run as possible. Seems that Southwest has gone the same direction, squeeze out expense and benefits while pretending they're offering a strong value proposition... It's also far more complex than a straightforward mileage system that consumers already "get" and more complex than a credits system based on flights flown. How many customers can do the math without Excel? This program holds zero appeal for me.  (Gary Leff on View From the Wing)
• Finally, an airline that awards frequent flier points based on the dollars you spend versus miles traveled. I never understood why a $200 flight across the country should be deemed by the airline as more deserving of rewards than an $800 flight on a short regional flight. After flying from DC to LA for two and a half years, I can't say I ever complained though!  (Jeff S. via email)

Winners and Losers

Why the stunning divergence of opinion?

With earning rates keyed to both ticket prices and fare types, the new program is significantly more rewarding for travelers who travel on less restrictive, higher-priced fares (Business Select, Anytime) and redeem their points for low-priced Wanna Get Away tickets. That's by design. And it's both logical and fair, in my view. But for travelers who normally earn their points for cheaper, restricted tickets, the change will amount to a downgrade: They'll have to fly more to earn a free ticket.

There are, in other words, winners and losers.

In addition to the change in the underlying value proposition, there's a disconcerting shift away from Southwest's legendary egalitarianism, in which all customers are treated equally. The airline's increasing focus on the business-travel market has required a more differentiated approach, with special perks on offer to travelers willing and able to pay a premium for Anytime and Business Select fares.

The new Rapid Rewards program solidifies that transition to a class-based approach to pricing and services, and the elitism implicit in the new scheme is odious to some.

Also jarring to longtime Rapid Rewards partisans is the loss of the current program's refreshing simplicity. The straightforward value proposition—Fly 16 times to earn a free ticket—will be replaced with a system that literally requires a calculator to manage.

Change is hard, especially if the benefits are questionable.

Southwest's Big Bet

Southwest expects the new program to generate an extra several hundred million dollars in annual revenue, partly from more ticket sales to more, and more engaged, Rapid Rewards customers.

That means they're betting there will be more converts to the new Rapid Rewards than there will be naysayers.

It will be a year or more before that can be reality-checked. My bet, though, is that Rapid Rewards 2.0 will pay off big for Southwest.

Reader Reality Check

What's your bet?

Is the new program a winner or a loser?

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Comments

[Rhonda]

Southwest has really made a huge mistake they are loosing customers by the day and will figure that out eventually... Bad changes they always say why change something that works!!! It
will show in there bottom line eventually...

[Bob]

By the way, Kelly is absolutely right in her analysis of the NEW rapid rewards program. It sucks! Ditch that southwest card and go to another airline. That's what I did!

[Bob]

I am a previous rapid rewards customer and a current one...no more! Southwest Airlines screwed me out the mileage on my account and then when I called customer service to complain and try to get some action, I could not extend the reward. I really fail to see why this happens. Their rewards expire, they renew (for one year) and of course this is something that they actually CHARGE you for! Then, when you cannot travel, you cannot renew, they screw you out of the mileage. I cant say that I have that problem with any other rewards program. They suck! The airline sucks! And I will not be back for ANY reason with them!

[Kelly]

As a 25-year frequent flyer on Southwest, I'm worried about the continuing changes away from what made Southwest different from other carriers. True open seating has gone to a multiple-tier system based on $$$. Rapid Rewards is morphing into a FF program much like the big airlines. I'm OK with these changes, and I understand the value. What worries me is what other changes are in the works...change penalties (Air Tran still charges $75 for ANY change...not matter when), bag fees, etc.

My favorite thing about Southwest is that they don't impose change fees. In my opinion, those fees are intended to take advantage of someone whose plans have changed. I FULLY understand that a customer should pay the best fare available at the time of change...that's fair. But to simply tag a customer $75 to change a flight time, when the original fare is still available, is punitive in my opinion, especially if the customer makes the change online.

Southwest...please don't take this feature away from your customers. I see the evolution of benefits, and I hope this isn't a target of change. My job requires flexibility, as my customers often reschedule...usually with plenty of lead time. Please keep the current policy in place, where if I change a flight, I can still get the best available fare, and not get punished for needing to alter my schedule.

No bag fees and no change penalties. That's what sets Southwest apart. I hope those two policies remain untouchable.

[Dave jensen]

I've been a Southwest "Fanatic" for many, many years. My family talks up Southwest wherever we go. I'm a Companion Pass holder, and I used to have lots of faith in Rapid Rewards. I am now so ticked off at them that, yes, I will find another airline to fly on EVERY one of my usual routes. I am sick and tired of companies giving it to the consumer, and that's exactly what SWA is doing here. This complicated program replacing a beautiful, simple system? And they had the NERVE to tell us it was a "better" program coming down the pike! They've lost our family's business, that's for sure. And I'm already working away on my co-workers who fly out of Phoenix to get them to realize that other airlines have better rewards now.

[Mike]

Stop whining!! Southwest has a track record of staying ahead of the competition by creating value for its customers while still making a profit for its shareholders. This move is what appears to be a compromise that threads that business needle.

What bothers most of these customers is that they can no longer game the system at Southwest's expense.

I can speak first hand how good it has been for our family to fly Southwest. I am retired and my spouse is still working. She travels a lot between San Diego and Sacramento (short haul air travel). We have been able to cobble together a combination of transferable points from Choices Hotels and use of Rapid Rewards credit cards to get a companion pass each of the last five years. This enables me to accompany my spouse, share some of the burden of driving, etc. at the cost of the TSA fee.

We have been able to use the free flights to visit our daughter on the east coast. We have been able to game the system by flying at company expense the short haul and flying coast to coast for free. Now we will have to pay more in line with what it costs Southwest to sell us a seat. We are losers but not enough to negate the remaining advantages.

Bottom line, Southwest has a track record for delivering value vis-a-vis the competition. This is just an on-going tweaking of the system to make it more economically rational.

If the whiners can do better they should take their business elsewhere. Unless they have not done their homework properly, I don't think Southwest is going to lose any sleep from a long-term business perspective. People will either see that they did it right and stay with or return to Southwest or Southwest will go the way of NetFlix if they have blown it. I'll put my money on Southwest but only time will tell.

[George]

Southwest just jumped the shark. Now, they're just another airline among a crowded field of rip-offs and scam artists. I dropped the credit card and instead of checking Southwest's schedule first, I'll throw them in with the rest.

[Mary]

I've had been a fan of Southwest for many, many years. The old rewards program was a large reason why. Now I'm searching for a different credit card since Southwest in no longer worth having.

[Chris]

I have been loyal to SWA mainly because of the free flights I have been earning by pushing just about everything I buy through my SWA VISA. Now that the points take soo long to add up, I will most likely switch to another airline and see how that works. Virgin America is the obvious choice since the planes are better and the prices are comparable. RR 2.0 puts SWA on the same level as Delta without the added perks of free upgrades to First Class, which my switch away from SWA will likely jumpstart rather quick. It was fun while it lasted though.

[Dan]

I took my first Southwest flight from Austin to Lubbock in 1977. Sat in the back and it was noisy but fun.

I have been a Rapid Rewards member since 1988 and a have been fortunate to have gotten a companion pass for the last 10 years. I came to Southwest because I was tired of not being able to use my points on American, Delta and Continental. Southwest made it easy for me to get and use the rewards system it had in place. Originally you could use a free ticket even if they had one seat left, but that changed. Then you had to trade in two rewards for an anytime reward. I guess it was just a matter of time before they changed the entire system to their favor. Unfortunately, many good and loyal customers are looking elsewhere for a better deal.

I'm sure SW thought long and hard about how to change their rewards system and knew there was going to be some fallout from us and they probably thought they could recoup their losses by gaining new customers from other airlines. It doesn't seem from these posts that it is working. What happened to the "Airline that Luv built"?

What really started to change the rewards system in my opinion was the introduction of the Chase Southwest Visa program. I believe they didn't expect to be giving out so many free tickets, companion passes and a-listers. As a result finding a seat was becoming as difficult as a "Legacy Airlines" which incidentally, Southwest is becoming.

So, I'm not making any threats of not using Southwest again, but I have not flown on SW since they've made this change and don't have any immediate plans to change that pattern.
I've had some great inflight moments while flying with Southwest but it seems they no longer value me as a customer.

I've done some sales in my time and one thing we always talked about was; it's much easier to keep a good customer than it is to go out and find a new one? I wish them luck in the future trying to overcome that challenge.

[Pattie]

I truly miss the simplicity of the old system. Since you can't transfer points, at least 16 was an amount easy enough to track. Now -where's the luv? Nice airline but I'm no longer motivated to see if we can always take them. If cheaper, fine but otherwise I'll look.

[Randy Demary]

Looks like my wife and I are losers in this. We'll be winding down our usage of SW. They are often not the most convenient airline for us anyway. Too bad. They were growing on us...

[Iris]

the new system sucks!! Period!

[Tony]

They will bring back the old RR program after they see it had failed. They are just trying anything possible to raise $$ for the shairholder. Give it 2 years max. After being a loyal customer for 18 years, I now fly other airlines to enjoy a flight rather than sitting in the cattle cab.

[Deedy Jensen]

The biggest fans of the new SW frequent flier program are the following: United Airlines, US Air, Delta, NWA etc. After 11 years of being a devoted customer of SWA, I am switching my business to one of the above at every possible opportunity!!!! Southwest has changed something user friendly and customer pleasing into a typical airline program that alienates its customers. At least the other airlines don't try to pretend their programs are user friendly. The SWA red tape ad is an offensive joke!!!

[linza]

I am flying all Delta, getting upgraded regularly and have not taken a SW flight since the program started. I am glad they pushed me into a new airlines. They probably lost over 50 segments with me alone this year.

[Jan Smith]

I haven’t flown SWA since they changed to the points system. What I really hate is that Business Travellers can get big points when travelling on their Company’s nickel and have a bunch of points to spend on the “cheap seats.” If SWA wanted to make it fair, the Bus Points should have to be spent on Business seats. The Bus traveller is flush with points to compete for the cheap seats. Not fair SWA, not fair.

[theresa]

Southwest was my only choice in airlines. I am HORRIBLY disappointed in this "new" program, which essentially makes Southwest as TERRIBLE as the rest of the airlines. I used to be able to use my RR last minute and did so frequently, and as a result chose SW for EVERY FLIGHT.

No longer. It is so very sad. They also aren't answering their phones anymore.

I feel like I have lost a good friend. Has anyone researched to see if they have hired a new IDIOT VP of Marketing that has implemented this "new and improved" read terrible just like all the other airlines policies....

wow. No longer flying SW exclusively. It so really sad. Has anyone researched to see if some other startup airline focused on customer service (as I sit here waiting on a 38 minute hold time)... heard of that before their "NEW AND IMPROVED programs".....

I would say I would switch immediatly but all the other airlines are terrible. Is any other airline trying to be like the old Southwest ? Please advise, I would love to know.

[FAMCM]

I have had a companion pass for 18 years in a row and always fly 100+ flights a year -- I am A-List Preferred and yesterday got boarding pass A40 -- now if someone pays $10 for early bird, they can board before SWA's best customers -- it's crazy! The new RR program is a joke -- I live in Dallas and fly mostly within TX -- now I'll need roughly 20 round-trips per free trip instead of 8 -- don't bother calling -- even on A-List Preferred I waited 20 minutes to get through -- luckily living in Dallas there's always AA -- I'm done with SWA and will be Executive Platinum now -- Southwest was great for so long but now is at the bottom -- Herb must be so sad.....

[melinda]

My daughter flys every month back and forth to Florida. It seem as all our past flights have disappeared, she was one trip to a free flight at the change over, now she's three round trips to a free flight and she's already had two round trips to California since then. I'm so unhappy with it I regret all the time I spent enrolling my family of six and the effort I spent on keeping track of everyones credits. What a mess!

[R Siegel]

My girlfriend and I live on opposite coasts. We have flown SW about every 3 weeks for the past 4 years. We cannot afford the 2x business class rates (the focus of the new program), plus the loyalty program value for our 6,000 mile round trips has dropped 2-4x. I get the idea that airline profits are important, but it seems that keeping the business of high travel/lower fare travelers is apparently not particularly profitable. Also, I have rarely been on a flight where there are more than 1 - 3 people in the Business Class boarding group. So, this program does not exactly seem to be driving business travelers to SW. My girlfriend and I really relied on the Reward tickets for last minute travel (not hardly do-able with the new program) and relied on the lower fares of SW (that have increased significantly over the past 6 months) to see each other 1 - 2 times month for the past 4 years. With prices now much closer between airlines, and the new SW reward program not hardly rewarding us, we have to find a different airline. Sooo ... with about 1/2 million miles of loyalty behind us, and with many truly great thanks to Southwest for the past, we are venturing on to another airline where we can at least get flight credits more closely tied to miles - i.e. loyalty. Sigh, where did the LUV go!

[MEG]

The new design of Southwest Airlines' website provides little information on how the new rewards program works, booking flights with the old rewards and just trying to locate the old rewards. Purchasing a one way ticket at a prime time (6:00 am flying east) can be as high as 50,000 points or more. I mistakenly reissued 3 current rewards and Southwest refused to return the $50 on each of the rewards. We were forced to dispute the charges on the Chase credit card and the charges were finally reversed. The staff at Southwest Airlines only answer questions with a "yes" or "no" answer and do not provide any additional information. Fortunately, Chase offers other airlines programs, so we will most likely make a change.

[jim bass]

I too tried to use the new point system and was astounded at how many points I needed for a flight that used to be so easy to book. It just doesn't work. Add to that the increase in prices for flights that I have been flying for 10 yrs (more actually) and it's time to move on. Sorry guys but looking us in the eye and lying is not going to work. See ya

[Kelly]

I didn't think the new Rewards program was going to be that different when I read the marketing materials, but I was WRONG. The amount of points is takes to book a reward flight is grossy unbalanced with the amount of points you earn for the same flight. I am considering cancelling my SW Credit Card and flying USAir whenever possible. There is no advantage now to flying SW and using that credit card. I could earn more w/ Discover and use my cashback for a flight that would cost more using SW points.

[SWA lost my LUV]

I hate it. SWA was my number one choice b/c of the rapid rewards program, I used to fly on them for personal use at least 2-3 times a month, now i've gone back to AA. Terrible.