Despite the confusing naming & branding, "Southwest Vacations" is not Southwest Airlines, it's a travel agency named Mark Travel Corporation, doing business under a licesnsing agreement. You earn RR points on Southwest Vacations packages, because Mark Travel buys them from Southwest (at a low cost) and gives them to customers as a purchase incentive. Mark Travel doesn't redeem RR points because Southwest won't pay them enough for the points to cover their costs. Mark Travel doesn't have the best reputation, and Southwest Vacation packages come with many limitations and restrictions. If there's an issue and you attempt to contact Southwest, they will just refer you back to Mark Travel. I'd recommend using Southwest Vacations with caution. Separately, if you have the Rapid Rewards Visa Card you can book hotels, rental cars, and vacation packages using your RR points through More Rewards. This is also a 3rd party product, and the redemption rate is quite steep, but it's an option. The best use of RR points remains booking Wanna Get Away fares on Southwest.
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