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- Noticed that you commented on the SWA Rapid Rewards program as outdated and needing to be updated.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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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
Posted by: jim bass | 05/14/2011 at 01:31 PM
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.
Posted by: Kelly | 05/02/2011 at 06:03 PM
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.
Posted by: SWA lost my LUV | 05/02/2011 at 12:41 PM
Wow! Way to totally alienate your frequent flyers. We are cancelling our SWA credit cards that we have used for years to accumulate CREDITS which were EASY to use and held VALUE for frequent flyers like us. This program is no where near as attractive to a frequent flyer as the old RR program. This was the best thing going. Now is it as crappy as all the other programs. EPIC FAIL, SOUTHWEST!
Posted by: JANET | 04/30/2011 at 09:29 AM
I'm a 25 year loyal customer with a-list and companion pass for the last few years. Went to book flight from Dallas to Oakland 3days out and it was 87,000 points. My last two trips from Dallas to Denver bought 3days advance gave me about 3,800 points. That means it would take about 22 round trips to buy one ticket. A real example -- not the flowery cheap examples you see in sw promotional material. I'm moving on to someone else now that the luv is gone.
Posted by: Dave in Dallas | 04/19/2011 at 06:15 AM
Other posts have said it all. I now will fly off my awards and I'm going with another carrier. Way to screw your loyal customers! Stunningly stupid as it seems the loyal base will be leaving in droves. Goodbye Southwest.
Posted by: Mike S. | 04/05/2011 at 11:26 AM
I would be interested in joining a class action suit for the loss of value that my old rewards represent.
If anyone is of like mind please post and let's get the ball rolling.
Posted by: Chuck Butler | 04/01/2011 at 01:47 PM
This is a horrible change for anyone that had earned rewards under the old system. Mine are all but unusable now. They (Southwest Reps) keep saying that nothing has changed but the truth is you can not find flights within reasonable planning time frames that allow use of the old award tickets. They have also taken the conversion of two tickets to "freedom awards" away. That has left me with 18 virtually worthless award tickets. I never would have thought Southwest Airlines would start doing this kind of cut throat business.
Posted by: Chuck Butler | 04/01/2011 at 01:45 PM
I agree that this new program is unfair. In addition, today I learned that they will no longer post my earned points, which used to post like clockwork on the 28th of the month the day my credit card closed, until the 4th of the following month. Now, not only are our points worth less, but they keep them from you longer. I am not happy!!!
Posted by: John | 03/30/2011 at 09:03 AM
I am not sure how I feel about the new program. I just want the Awards I earned in the previous program to be honored. I was shocked when I went to reactivate my Awards to use towards a flight and saw that they had been cancelled. I spent one entire day calling their customer service. I started the next day at 7:00 and finally got someone. I am now waiting for a manager to call back. They claim that the rules regarding expiration dates had not changed, they were only being liberal and making exceptions in allowing the addition 24 months to use the Award. All though their website stated 24 months and several times I was told not to use old Awards, but to use current and unexpired Awards for travel. Now I have no clue when my remaining Awards expire. For a program that say Don't worry your Awards are safe....Not when they are now gone. In their email they stated that they are sorry that they had caused disappointment. I don't think it is disappointment, maybe in SWA, that I feel. I lost money and faith in an airline that up until today, was my chosen carrier for all locations the flew.
Posted by: Marilyn | 03/30/2011 at 02:30 AM
The conversion to points is a real rip. I have credits that I have been saving for 6 months before the notification and only needed four more for a round trip flight.
I took a round trip flight after conversion and was given 1000 points, not enough to buy one credit, but under the old system, two credits. So Southwest entered an agreement with me (16 flights for a free flight in the period of two years) and then reneged when they felt like it.
I think a class action suit is the answer for this. Anyone who had credits before the point system was announced should be given credits until they reach the free flight.
I emailed Southwest, and got a response that did even address my concern.
Posted by: gerard | 03/28/2011 at 02:38 PM
Glad to hear the Frontier is a good option. I will miss Southwest...but I am out the door.
Posted by: jim | 03/22/2011 at 07:16 PM
I have spent hours on hold--what happened to customer service on Southwest. I cannot even get the customer service to answer! What a mess! I "lost" two of my rewards--after 45 minutes on hold and two days (when they finally straightened it out). Like another writer said, I will use the coupons I have and then shred both of my Southwest Visa cards! I hate the new system.
Posted by: jim | 03/22/2011 at 07:14 PM
No longer a SW Flyer. As soon as I earned my last reward.I Switched to other airlines due to the change in RR progam. It is a really bad deal for the loyal SW flyers. Shame on SW. The other airlines must love them for all the customers that are switching.
Posted by: Gina | 03/22/2011 at 11:19 AM
Yeah, I always thought it was a steal when I, as a "semi-frequent" flier, got a flight out to Florida for free after doing mostly short bumps to LA or Vegas and the occasional trek to Chicago, so I can understand SWA wanting to maximize their customers' investment; still incredibly frustrating daresay angering to realize that my current credits have essentially decreased in value by half on most flights now, however, and the "no blackouts!" doesn't mean squat when there is but a small amount of RR seats on given flights.
Posted by: JR | 03/16/2011 at 08:10 PM
Thumbs down. The biggest incentives to fly Southwest were always 1) the free checked bags and 2) easy-to-accrue rewards. I pack light and don't check bags anyway, and now Southwest's FF program is just the same as everyone else's -- so what incentive do I have to go out of my way to fly on Southwest? Not much, that's for sure. In my mind, now SWA is just lumped in with all the other legacy carriers and their "fuzzy math" FF programs. I was seriously considering getting the SWA Chase Card late last year, but that is DEFINITELY not happening now!
Posted by: Rae | 03/15/2011 at 03:49 PM
I've been an intensely loyal SW flier, stockholder and fan for many years because they were different. And, lest we forget, they were profitable. But they have shafted their base to seek the pot of gold at the end of the business class rainbow.
My Southwest stock has been sold. I will fly Southwest for the rest of 2011, using all of my 11 free round trips and my companion pass as often as possible. And when all my rewards are used up, I'll shred my SW Visa cards and take my business elsewhere.
And if anyone thinks the new system is a better deal for the customer, just go the website, pick some real flights, and do the math.
Posted by: Okie Joe | 03/14/2011 at 04:19 PM
Just tried to use it for the first time. My "old" awards are blocked out for the whole month of July! My "new" credits are so dilluted I can't even use them to buy the tickets. I suppose it is more in line with other programs now, good job. You've lowered the bar to your competitors. I think I will opt for one of the competitors over you if it is close, at least then I *know* that I am getting screwed, instead of being told how "exciting" it is!
Posted by: Lyn | 03/12/2011 at 05:15 AM
I'm not a very frequent flyer and so was thrilled to earn a free flight on Southwest. Just went to book it and found that my credits no longer add up to a free flight. In fact I'm about 10 more flights away from actually getting a free flight. It feels like getting robbed, and my opinion of Southwest will be colored by that opinion until they make good. There's a lot that's been good about Southwest, but loyalty is as loyalty does. I will certainly consider other airlines in the future, and things being close to equal will use the competition first.
Posted by: Randal | 03/11/2011 at 09:14 PM
Always considered Southwest an option for me when I travelled. This has gone from "consider" to never, ever consider unless the flight is pleasure and cheap, cheap, cheap as my flights are Detroit - Chicago, Pittsburgh, Louisville, Baltimore, etc. Going with Delta out of Detroit. Already have no fee baggage as most frequent travellers do. This new program is so different from the old that it is unrecognizable. Terrible move and one that as more find out what exactly it means the more the reviews will be negative.
- A Delta Gold Member thru 2013
Posted by: CM | 03/10/2011 at 11:37 PM
Truly an unSouthwest move. How very disappointing! They touted the program as new and better, but it's a ruse--it's strictly $montivated, and the consumer is the loser. In past years, one felt the RR program was really rewarding, and very generous on SW's part.The more you flew, the better it was all around. It really made you luv them back, and remain loyal to their program. I was always amazed as I stood in borading lines how fellow flyers would talk up the greatness of the airline --what a phenomenon! I thought that geinus on the part of Gary Kelly! Any CEO who can create that unsolicited, unpaid fervor is an outstanding corporate gift. Who would have ever thought an airline could generate such devotion and word-of-mouth promotion? Sadly, the kibitz in the lines in recent days are one of frustration and feelings of being jilted. Clearly the luv is fading. The current program rewards only those who spend top dollar, not the ones who travel frequently and loyally. I now compare other airlines before I book my twice weekly flights, something I never did before the change, it was SW and only SW in years past.
The fare hikes were one thing (and understandable to some extent) but the RR changes are confusingly misleading. If you're an A-List preferred, there's no edge or advantage any longer. I'm using up my credits and then I'll be back to floating between US AIr, United, and all the others who already act like this. BYW, I've been on hold through this entire writing using their new RR number exclusivly reserved for A-List members---it's been about 15 min and still no one has picked-up. Maybe I dialed US AIr??!
Sadly resigned---A-List member #16
Posted by: Jane Ruth | 03/10/2011 at 07:39 AM
I am very unhappy with the new Southwest program and will be looking for a new program. I am currently A list and have a companion pass. I feel they really don't care about me and don't want my business. They are encouraging that I charge my company for an expensive flight just to get points--that borders on being immoral! I am out the door!
Posted by: James | 03/10/2011 at 06:17 AM
This is an unmitaged disaster for Southwest. Try calling the 800 number; you won't get through. Try changing an award ticket at the last minute; you will be penalized. I cannot believe the executives at Southwest really believe they will reap 100's of millions of dollars for this change. Why would you pay double to just be a couple of places ahead in the line? Where is Herb when you need him?!
Posted by: Patrick Cressy | 03/10/2011 at 05:32 AM
AWFUL AWFUL!! They have really screwed us. Try to book a flight with new points - TONS available at VERY LOW point totals. Try to book the SAME FLIGHTS with standard awards? NOTHING AVAILABLE!! This is nothing short of a stealth, mean-spirited devaluing of existing free travel awards. SHAME SHAME Southwest!!!
Posted by: Michael | 03/08/2011 at 02:30 PM
As soon as I earn my next ticket - I'm done with SW. Actually disincentive me for being a good consumer. I just flew coast to coast and I received LESS (1133 points) then I did for a 500 mile trip last month (equiv to 1200 points). Sucking up to the business fliers at our expense. Seriously, 3 more flights and it's over to Alaska and Frontier for me.
Posted by: Steve | 03/06/2011 at 02:43 PM