Skip to main content

Southwest Airlines Community

Points math post-conversion with devaluation

JenT
New Arrival

Hi all, we had a trip planned in Aug 2020. I paid $2710.56 for those tickets. When SW offered the conversion of travel funds to points, I went ahead and did this, and received 211,419 points. I received 78 points per $1 spent. 

I understand as a frequent traveler who would have used the points before their Sept 2022, I realize this was a mistake. But, can you help me understand how much of a loss I am taking, given the devaluation?


Thank you!

6 REPLIES 6

Re: Points math post-conversion with devaluation

elijahbrantley
Rising Star

I am not confirming that there was an actual across-the-board "devaluation;" that said, the travel blogs and media are reporting that reward travel now requires about 6% more points to book. So that means for you, you have "lost" the value of about 12,600ish points at the old value. 

 

While I am absolutely not a fan of without-notice devaluations, I have to say that if this is one of the few changes that comes out of the trying times of the pandemic...I'll take it.

 

 

-A List Preferred, Companion Pass holder, Community Champion.

Re: Points math post-conversion with devaluation

Jsmjeff
Active Member

Therr stock is about 30% since the pandemic. I would say they are doing well and screwed faithful rapid rewards members. Remember rapid rewards dont expire but can lose valuation. Where is that said by southwest.

Re: Points math post-conversion with devaluation

chgoflyer
Top Contributor

@JenT wrote:

Hi all, we had a trip planned in Aug 2020. I paid $2710.56 for those tickets. When SW offered the conversion of travel funds to points, I went ahead and did this, and received 211,419 points. I received 78 points per $1 spent. 

I understand as a frequent traveler who would have used the points before their Sept 2022, I realize this was a mistake. But, can you help me understand how much of a loss I am taking, given the devaluation?


Thank you!


 

Points bookings now cost 83 points per $1 base fare.(Base fare is the airfare portion of travel, minus any taxes and fees.)

 

Calculating an exact loss is difficult, as there are multiple factors involved. For example, the amount you converted to points (at 78/$1) may have included taxes and fees, but when you rebook using points you only pay the 911 fee.

 

As noted, many bloggers are using 6% as an approximation. In your case that's $162.64.

 

Points bookings have some benefits that are difficult to exactly value. These include less taxes, and full refundability. These reduce the sting of the 6% somewhat.

 

 

Re: Points math post-conversion with devaluation

DancingDavidE
Top Contributor

@chgoflyer wrote:

@JenT wrote:

Hi all, we had a trip planned in Aug 2020. I paid $2710.56 for those tickets. When SW offered the conversion of travel funds to points, I went ahead and did this, and received 211,419 points. I received 78 points per $1 spent. 

I understand as a frequent traveler who would have used the points before their Sept 2022, I realize this was a mistake. But, can you help me understand how much of a loss I am taking, given the devaluation?


Thank you!


 

Points bookings now cost 83 points per $1 base fare.(Base fare is the airfare portion of travel, minus any taxes and fees.)

 

Calculating an exact loss is difficult, as there are multiple factors involved. For example, the amount you converted to points (at 78/$1) may have included taxes and fees, but when you rebook using points you only pay the 911 fee.

 

As noted, many bloggers are using 6% as an approximation. In your case that's $162.64.

 

Points bookings have some benefits that are difficult to exactly value. These include less taxes, and full refundability. These reduce the sting of the 6% somewhat.

 

 


Using them to book someone else's ticket, and if that person cancels you get the points back the same as if it was your own ticket - as opposed to travel funds in their name for a cash ticket.

 

 

Home airport MDW, frequent visitor to MCO to see the mouse.

Re: Points math post-conversion with devaluation

SWFlyer007
Rising Star

@JenT Am I missing something.  Once you made the conversion to points, didn't you book your flight then?  If so, you didn't lose anything.  

Re: Points math post-conversion with devaluation

gsking
Rising Star

@SWFlyer007 wrote:

@JenT Am I missing something.  Once you made the conversion to points, didn't you book your flight then?  If so, you didn't lose anything.  


No, she planned to rebook before 9/22.  So she's out 6%, plus or minus whatever difference in fares.   

 

That's another gripe I have with SWA... (one of the few,  but this point thing is one more).   You can't book more than several months out,  making annual trip planning difficult.  Even though they extended the expiration,  you still have to sit on the funds until the flight itinerary is released,  and then you're that much closer to them expiring.  

 

I fly a lot,  so I have to be careful which flights are near expiration if I cancel them.   So I took the points deal to "reset" all the expiring funds.   They just thanked my patronage by taking a 6% tip from me.