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Re: Found an issue with changing Travel Funds to Points

Matt4202
Active Member

So you’re saying the fares offered in March weren’t sustainable?

 

Also what about the billions of dollars that the government is giving airlines (not only Southwest) what would be the point of that if they won’t survive?

Re: Found an issue with changing Travel Funds to Points

chgoflyer
Top Contributor

@Matt4202 wrote:

So you’re saying the fares offered in March weren’t sustainable?

 

Also what about the billions of dollars that the government is giving airlines (not only Southwest) what would be the point of that if they won’t survive?


 

Yes.

 

I mean, obviously.

 

I have no idea what your point is regarding the airline industry stimulus. But I'll point out that the primary goal of the grants is to ensure employees continue to be paid. It's essentially an offset to help reduce strain on unemployment. The loans portion is to help with near-term liquidity, but it also comes with explicit terms including limitations on funds use and restrictions on business behavior through the life of the loans. I suppose, to answer your question, the point is to help the airlines survive, and that -- if they don't -- then the money was spent in vain.

 

 

 

Re: Found an issue with changing Travel Funds to Points

Matt4202
Active Member

The last sentence of what you said.


Looks like Southwest got 2.3 Billion in Grants and another 1 Billion in low interest loans. Which is a major boost, on top of that cash on hand at the end of the last quarter was over 4 Billion Dollars.

 

We wouldn’t just throw money to a business that’s going to die anyway. The airlines receiving money will survive through this otherwise it would’ve been spent in vain.

 

Also, the rates offered in March are sustainable. If those rates were offered through October they’d be much better positioned to start getting back up. With many going to be budget conscious in the future Southwest won’t be their first option. I regularly find cheaper flights for my routes with other airlines like Sun Country even Delta Sometimes. I fly with SW because of free bags, but you can get that with others just with their Credit Card. Just saying they should garner loyalty. In your above post you said they’re charging the most they believe they can get away with. From my end the rates offered in March weren’t unbelievable they were great deals, but not mind blowing. And from now through October are crucial months for the travel industry as a whole.

Re: Found an issue with changing Travel Funds to Points

nostresshere
Active Member

Points valuation has not gone down.

 

No taxes and fees (other than the $5.60) on points purchases, but they are included in cash purchases.  Now they are gone from cash purchases.  

 

And of course, any flight you buy today can change in price in an hour.

 

Re: Found an issue with changing Travel Funds to Points

Matt4202
Active Member

And I’ve explained that already. Southwest has increased fares while making them appear the same to the general public.

 

Meaning you are actually paying more than you normally would when redeeming points. There has been a loss in realized value of points as it now costs more points than before to book with Southwest.

Re: Found an issue with changing Travel Funds to Points

chgoflyer
Top Contributor

@elijahbrantley wrote:

@Matt4202 Keep in mind that you can always cancel your points bookings to re-book with cash!  You get the points back and the fee part via travel funds. 


 

Fyi: On points bookings you can actually choose to receive the 9-11 security fee refunded to the original form of payment, to avoid any issues in dealing with travel funds. 

Re: Found an issue with changing Travel Funds to Points

gsking
Rising Star

Great reminder.  In short, it's a way to convert your own tickets to tickets for other people. 

 

If you're paying with the RR credit card and can afford it, it allows you to unload your travel funds into points which won't expire, and revert your personal ticket purchases back to the card to gain more miles and CQP.

 

I'm not sure if I'll ever use my points on me.  As ALP, I double my points, but as you said, only if I buy the ticket.