Southwest Will Devalue Rapid Rewards
Southwest Airlines has revealed today that a devaluation is coming for Rapid Rewards points next year. The notice was shared at the bottom of this month’s Rapid Rewards account statement email.
As far as devaluation go, this is a minor one. Starting January 1, 2024, the number of Rapid Rewards points required per dollar of base fare will increase by approximately 4%.
These devaluation will only apply to flights booked starting next year, and will not affect those who book by December 31, 2024.
Southwest Airlines awards pricing is tied to the cash prices of the flight. The exact value of Rapid Rewards varies a bit between cheaper and more expensive flights usually, but not by much. So if you value Rapid Rewards points at 1.4 cents each for example, they will be worth about 1.35 cents starting next year.
This has happened several times in the past where Southwest has increased award prices with no prior notice. So at least we should be grateful I guess for them giving us time to book before the deadline.
Keep in mind that each award ticket is subject to taxes, fees, and other government or airport-imposed charges from $5.60 per one-way trip. There are no blackout dates or seat restrictions for ticket purchases booked with points.
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Refreshing to see notice and such a reasonable increase. This makes a lot more sense than the companies that increase rates 50-100% all at once. I would say it’s a win relatively speaking.