Loyalty Programs Limiting Non-Travel Redemptions
Hotels and airlines are hurting for cash during these times. We have seen many of them refuse cash refunds and trying to persuade customers to choose vouchers instead. Now some loyalty programs are taking another step to avoid paying anything out, limiting non-travel redemptions.
AwardWallet says that Delta, Southwest, and Best Western have all implemented these measures in the last few days.
Delta normally lets you redeem miles for merchandise, hotel stays, car rentals, cruises, and gift cards. But the option to redeem SkyMiles for gift cards has been removed, reportedly on March 16. Qualifying members can still redeem SkyMiles for merchandise, Apple products, hotel, car rentals, and cruises.
Southwest is limiting many Southwest Rapid Rewards members to redemptions for reward flights only. But not everyone is affected. If you have a Southwest co-branded credit card you can still redeem points for non-travel options.
Best Western has also paused the ability to redeem rewards for gift cards and merchandise. The only redemption options left are award stays, charities/scholarships and transfers to frequent flyer programs which do not have very favorable rates.
Conclusion
I wouldn’t be surprised if more airlines and hotels start doing this soon. They probably have to pay out for these non-travel redemptions, so they prefer to hold on to the cash. Not a customer friendly move at all, when people might be hurting financially and using points instead of cash is one way to get by during these times.
let us know if you have noticed any other programs doing this, and if you think that cashing out miles and points right now is a good idea.
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I have an SWA credit card. When I log into SWA Rapid Rewards, the are still gift cards available for redemption, but fewer than before, and the ones that are left are marginal. So, SWA is discouraging this, for sure.
They may be limiting redemptions (for gift cards, for example) because we may be seeing the the mother of all point sales soon from these companies trying to raise cash.
This is clickbait. You can still redeem for flights which is the only use that makes sense.
In fact it makes really good sense right now as many airlines have expanded saver award inventory for future flights or lowers fares (eg Southwest) which lowers the cost. This is the info to communicate.
He is spreading information that SOME PEOPLE might want to know. In no way is that clickbait. Some people might need to use points for stuff because they have suddenly lost jobs or something.
It’s scary times for a lot of folks. Try to be more understanding for crying out loud.
+1
No it’s not. It’s just not of use to YOU. Try to be less self centered.