Are you planning to book a trip in 2024? Well, flying to your next destination via Southwest Airlines just got one small more expensive – at least when it comes to using your Southwest Rapid Rewards points.
If you’re a Southwest Rapid Rewards member, you can casually skim (or skip entirely) every word in your Rapid Rewards account statement.
As first reported by Frequent Miler and confirmed when this TPG writer checked the bottom of her Rapid Rewards account statement email on November 10, Southwest recently issued the following notice:
Beginning January 1, 2024, flights purchased with Rapid Rewards points will increase the number of Rapid Rewards points required per dollar of base fare by approximately 4%.
What does this mean for travelers?
Related: Southwest revamps Rapid Rewards by lowering status thresholds
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Southwest Rapid Reward points will be worth less in 2024
Currently, TPG values Southwest Rapid Rewards points at 1.4 cents each, meaning your points will soon be worth 1.3 cents each once the change goes into effect. However, people who book travel for 2024 before the change on January 1 will not be affected. Therefore, we recommend that you reserve award flights before the increase takes place.
“We recently shared with Rapid Rewards® members that beginning January 1, 2024, they will see a modest increase in the number of Rapid Rewards points required per dollar of base rate to redeem Wanna Get Away®, Wanna Get Away Plus® exchange, Anytime and Business Select® rates,” a Southwest spokesperson said in a statement to TPG. “We remain focused on improving customer experiences and remain committed to delivering nonstop Southwest Hospitality. We are implementing this change as a normal course of business to adapt to the current environment and increased cost pressures.”
While Southwest is giving customers ample notice of the change, this isn’t the first time the airline has devalued its points program, with the number of points required already tied to the cash price. In 2021, the loyalty program reduced the value of Rapid Rewards points by 6%.
Related: The Best Southwest Airlines Credit Cards
In short
While a 4% increase in the number of points needed to book an award flight isn’t a huge loss, it’s interesting that an already revenue-based program would see a devaluation like this. However, with the current pattern, we wouldn’t be surprised if this happens again with Rapid Rewards in a few years.