Skip to main content

Southwest Airlines Community

Point devaluation?

bwallet
Active Member

Has anyone verified the information in the following:

 

https://viewfromthewing.com/southwest-devalues-rapid-rewards-points-by-6-5/

 

The article says that there is no legitimate reason to devalue points. That's not really true since points are a liability on the books, and devaluing them improves the numbers. However, there is no reason to devalue points that is ethical. Points are already devalued over time by inflation.

17 REPLIES 17

Re: Point devaluation?

dfwskier
Top Contributor

I have not verified, but since Southwest has done it in the past, it would not surprise me. The stories at the bottom of the one you posted document that SW has changed point values in the past.

 

FWIW, I made a points reservation yesterday, and the points value had not changed.

Re: Point devaluation?

bec102896
Top Contributor

I did notice points were devalued overnight. One example a flight I booked yesterday which was $90 or 5,400 points now it is 5,900 points still only $90 for the flight. 

 

I am surprised that no email went out and hopefully an email will come out soon because I know several people that won't be happy to read about the points devaluation. 

Re: Point devaluation?

TheMiddleSeat
Top Contributor

6% decrease in value according to this article:

https://thepointsguy.com/news/southwest-2021-devaluation/

 

I would not expect any airline to send out notification of a devaluation so don't hold your breath waiting for an email.

 

--TheMiddleSeat

Re: Point devaluation?

Jsmjeff
Active Member

I use southwest charge cards all the time and have quite afew hundred thousands of points stored. This devaluation is not good. Southwest stock has increased invalue over $15 per share. I will be seeking alternative change card rewards. 

Re: Point devaluation?

bwallet
Active Member

Back of the envelope calculation, this cost me about $200 on the points I currently have. I won't stop flying Southwest. Given that Southwest doesn't have anything "extra" that I want like international business/first class (I took an in-flight shower on Emirates once), I view the miles as just kind of a bonus. However, I'm a little less happy than I would be otherwise.

Re: Point devaluation?

gsking
Active Member

Yeah,  this is kinda lame,  especially after letting us convert cash to points.   Not what I would have expected from SWA.

 

Rather than increasing prices on everyone,  they increase prices on only the money already collected by existing costumers.   Kinda like charging less for new cable customers than existing ones... but worse. 

Re: Point devaluation?

chgoflyer
Top Contributor

This changed overnight, without notification.

 

Points redemption are now 83 points per $1 base fare. Previously they were 78 points per $1 base fare.

 

While not surprising, it is disappointing. Southwest certainly isn't leading the industry's race to the bottom, but they're definitely in the running.

 

This is especially distasteful following the recent conversion of Travel Funds to Points covid accommodation. Those who converted lost significant value (although to be fair they gained refundability & non-expiration).

Re: Point devaluation?

bwallet
Active Member

I'm sure that this was done primarily for accounting purposes. Points represent a liability on their books. If they devalue points, they instantly improve their balance sheet.

Re: Point devaluation?

gsking
Active Member

@bwallet wrote:

I'm sure that this was done primarily for accounting purposes. Points represent a liability on their books. If they devalue points, they instantly improve their balance sheet.


Primarily?   Would there be a secondary reason to instantly take 6% back that you have to your loyal customers?   Other than to piss them off? 

 

Maybe give us 6 months notice so we can use the points.   This would help fill the flights back up to normal levels,  and do a BETTER job of decreasing existing liabilities.