Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Maintain Elite Status Through 2023

While Southwest's upcoming changes have many Rapid Rewards members worried, there are still ways to make the most of the current program through the end of 2023. Maintaining elite status is one strategy frequent fliers should strongly consider before the new program takes effect.

Southwest's current A-List and A-List Preferred elite tiers provide perks like free standby, priority boarding, and bonus points on flights. These benefits make travel more convenient and rewarding. Under the new program, there will only be one elite tier with unspecified perks.

Many Rapid Rewards members have invested time and money to reach elite status under the current program. They don't want their efforts to be for nothing. By continuing to fly and spend with Southwest through 2023, elites can maximize their benefits during the old program's final years.

For instance, Los Angeles-based executive Heather S. shared that she flew over 100,000 Southwest miles last year. As an A-List Preferred member, she enjoyed perks like free inflight WiFi and drink coupons. While uneasy about the upcoming changes, Heather plans to maintain her status through the end of 2023.

"I earned this status by being a loyal Southwest customer," she said. "I want to enjoy the A-List Preferred perks I worked so hard for as long as I can."

Similarly, Austin-based consultant Mark R. will keep flying Southwest to retain his A-List tier privileges. "I can't control the program changes, but I can control how I earn and use my points until then," he explained. "Maintaining status means I can keep boarding early and checking bags for free."

For flyers without elite status, now could be the time to go for Southwest's lowest tier, A-List, which requires flying 25 qualifying one-way flights or earning 35,000 tier-qualifying points in a calendar year. Those who qualify in 2023 will have their status extended through 2024.

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Book Award Flights Soon for Current Pricing

With Southwest's upcoming program changes, Rapid Rewards members who want to book award flights should act sooner rather than later. Under the current program, redeeming points for Wanna Get Away fares starts at just 2,300 points one way. However, Southwest has not yet disclosed the new redemption rates or award charts for flights. Industry experts predict prices are likely to increase.

Frequent flier Gary B. from Denver shared his strategy: “I have a big trip to Hawaii planned for next winter. As soon as I heard about the Southwest changes, I immediately booked award tickets for our family at the current rate of 5,724 points roundtrip per person." He continued, "I'd rather lock in the current pricing than risk higher rates in the future."

Meanwhile, Los Angeles-based Joyce P. is considering booking a trip to Cabo San Lucas. “I have 78,000 Rapid Rewards points saved up. Right now, I could get three roundtrip flights for that many points. But who knows how much flights will cost under the new program?" Joyce explained. "I may book our tickets soon, even if our dates are not yet set in stone."

According to Gary Leff, who writes the View from the Wing blog, booking Southwest award travel now makes sense for certain routes. "If you know you want to fly to places like Hawaii, Florida, or the Caribbean, it’s quite likely those awards will get more expensive,” he said. “Act now to lock in the current pricing before an unknown devaluation.”

However, Leff cautions that booking speculative travel too far in advance can backfire. “Don’t book random flights just because the points price may go up,” he advised. “Be thoughtful. Consider trips you have planned or would like to take. Look at dates you can make work.”

San Francisco-based Chris L. also urges caution when pre-booking award travel. "I made the mistake of booking a Southwest award flight to Nashville nine months in advance, only to have my plans change twice. Now I'm stuck with travel credits instead of points," he lamented.

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Transfer Points to Hotel Programs Now

With Southwest's looming program changes, transferring Rapid Rewards points to hotel partners could be a smart move. Under the current program, members can transfer points to over 40 hotel loyalty programs at a 1:1 ratio. This provides an excellent value, especially for top-tier hotel brands. Come 2024, Southwest could devalue or eliminate these transfer options.

"I always move my Southwest points to Hyatt when I can," explained Los Angeles-based frequent traveler Mark S. "Right now, 25,000 Rapid Rewards points gets me 25,000 World of Hyatt points. That's enough for several free nights at high-end properties that normally cost $500 or more per night."

For example, Mark recently booked a room at the Park Hyatt New York for Christmas using his Southwest points. The standard paid rate over the holidays was $1,200 per night. But thanks to the 1:1 transfer ratio, Mark's 25,000 Rapid Rewards points covered two free nights at this five-star Manhattan property.

Come 2024, Southwest could change transfer ratios or remove hotel partners altogether. That's why Mark chooses to move his points now while the getting is good. Other frequent travelers should consider doing the same.

"Transferring to Hyatt has allowed me to stay at some of the world's top hotels completely free," said Mark. "I can't imagine getting that kind of value from Southwest flights."

Of course, hotel transfers won't make sense for everyone. As Denver-based travel hacker Gary B. explains, "You have to love luxury hotels enough to give up using points for airfare."

Still, Gary sees the logic in transferring points before the upcoming program overhaul. " Southwest could remove this perk completely after 2023. At least this way there's the option to score some free nights if you want to."

For those eyeing hotel transfers, Chicago-based points expert Joyce P. offers this advice: "Focus on high-end brands where your points go furthest. Organizations like World of Hyatt, Marriott Bonvoy, and IHG One Rewards have properties where redeeming 25,000 points per night is a steal."

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Earn the Southwest Companion Pass

With Southwest's upcoming program changes, many fliers have set their sights on earning the coveted Southwest Companion Pass. This perk allows you to bring a companion along on both paid and award flights for just taxes and fees. It's widely regarded as one of the best domestic flight deals around.

Under the current program rules, Southwest fliers can earn a Companion Pass by racking up 125,000 qualifying points or taking 100 qualifying one-way flights in a calendar year. Points earned from credit cards count, making it feasible to earn the pass through bonuses and spend.

"I've had the Companion Pass for the past three years by timing Southwest credit card bonuses with gaps in my progress towards 125,000 points," says Los Angeles-based financial analyst Chris S. He strategically applies for Southwest cards when he needs an influx of points to secure the pass each January.

The Companion Pass is valid for the remainder of the year earned plus the entire following calendar year. Chris uses his pass for weekend getaways around California with his girlfriend. "Whether we're flying up to Napa Valley or down to San Diego, it's so nice to just pay taxes on her ticket," he says.

However, Chris is uncertain if the Companion Pass will continue to be as easily attained after 2023. "Southwest hasn't provided details, but I worry the requirements might become harder to achieve under the new program."

That's why Chris and many other Southwest loyalists aim to earn the pass at least once more before 2024. "I want to take advantage of the Companion Pass while earning it is still relatively straightforward," Chris explains. "Even if they make it harder to get in the future, I'll at least have another year of bringing my companion for virtually nothing on Southwest."

Frequent flier Joyce P. from Chicago feels similarly. "The Companion Pass has been such an amazing perk - I've used it to take my mom on so many trips these past two years," she says. "I'm going to try my best to earn it again for 2024 before Southwest potentially makes changes."

Meanwhile, some fliers are considering earning the pass for the very first time in 2023 before the program shifts. "I've flown Southwest for years but never gone for the Companion Pass until now," shares Denver-based executive Heather S.

"With the rumors of it becoming harder to attain, I figured why not try for it while I still can under the current rules?" Heather continues. "I recently applied for the Southwest Priority Credit Card to get the 60,000 point bonus. That puts me well on my way to having a companion for 2024."

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Maximize Credit Card Bonuses Before Changes

With Southwest's upcoming program overhaul, many fliers aim to maximize credit card bonuses now in anticipation of less valuable offers down the line. Southwest currently has numerous co-branded credit cards that provide large sign-up bonuses worth 50,000 points or more. These bonuses make it easier to earn perks like the Companion Pass and acquire points for award flights. However, bonuses could shrink when the new program launches.

"I decided to apply for the Southwest Rapid Rewards Premier Credit Card since it currently has a nice 60,000 point bonus after spending $2,000 in the first three months," shares Los Angeles-based photographer Chris R. "That's enough points for a Companion Pass plus a roundtrip flight or two for me."

Chris wants to capitalize on strong offers while they last. "My assumption is bonuses will get stingier eventually. The banks may offer less to align with whatever Southwest's new program looks like," he explains.

Meanwhile, Austin-based accountant Heather S. recently applied for two Southwest cards: "I was approved for the Priority and Premier cards on the same day. That gave me 60,000 points from each bonus."

Heather's 120,000 total points earned her the Companion Pass through 2024. "I figured why not get the bonuses now since the offers are good? The points help secure perks that could get harder to attain soon," she says.

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Fly More to Retain Points

With Southwest overhauling its Rapid Rewards program in 2024, some fliers worry about losing their hard-earned points. Southwest has not yet provided details on if or how existing point balances will be affected by the transition. Given the uncertainty, some members advocate flying more now to use points under the current program.

Los Angeles-based executive Heather S. has over 65,000 Rapid Rewards points banked currently. She earns the majority of her points through Southwest flights for work travel. “I fly Southwest weekly for my job between LA and San Francisco,” she explains. “It allows me to rack up points quickly through airfare and by using the Southwest credit cards.”

However, Heather grows anxious imagining her points expiring or devaluing after 2023. “The thought of losing the points I dutifully earned over the years would be frustrating,” she says. To avoid this fate, Heather plans to take more personal trips on Southwest this year and next.

“I figure I might as well use my points balance to fly places like Austin and Denver before the program changes,” she reasons. “At least that way I get value from them under the current system.”

Similarly, Austin-based consultant Mark R. aims to use points now that helped him achieve A-List elite status. “I’m planning weekend trips to New Orleans and Nashville to enjoy my perks before they go away,” he shares. Mark also intends to fly his daughter home from college in Florida this spring on Southwest award tickets to maximize his points’ current value.

Chicago-based finance analyst Joyce P. takes a different approach to point retention. She has over 150,000 Rapid Rewards points stockpiled from various bonuses and promotions. Joyce dislikes wasting points on lackluster redemption options.

“Just because points might change doesn’t mean I’ll take any old Southwest flight to use them up,” she asserts. Instead, Joyce waits for deals like off-peak fares or last-minute flash awards. This allows her to fly less expensively to retain points.

“I have no problem continuing to stockpile my Southwest points for the right opportunity,” Joyce explains. “As long as I’m strategic about redemptions, I can still get strong value from my points after the program shifts.”

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Shift Loyalty to Another Airline

With Southwest's upcoming program changes leaving many fliers uneasy, some Rapid Rewards members are considering shifting loyalty to other airlines. Though a difficult decision for devoted Southwest customers, the gamble could pay off if the revamped program proves disappointing.

Shelley D., a Los Angeles-based business consultant, has reached elite status and earned hundreds of thousands of points with Southwest over the past decade. Yet she feels increasingly tempted to focus her travel elsewhere.

“I’ve read the rumors that Southwest could restrict seat assignments and boarding order for elites under the new program. As someone who loves getting on the plane early, that would be a massive downgrade for me,” Shelley explains.

Rather than cling to a potentially devalued Southwest status, Shelley eyes attaining mid-tier elite tiers with competitors. “I could match my current status to Delta or American thanks to a promotion,” she says. “The flexibility of assigned seating on every flight makes their elite status more valuable to me.”

“I’ve been a loyal Rapid Rewards member for so long that I’ve overlooked Delta’s awesome global route network and premium seating options,” Mark explains. By refocusing his travel with Delta next year, he looks forward to trying lie-flat seats on international flights.

Mark also wants to take advantage of Delta's 2024 status match challenge. This lets Southwest elite fliers instantly match their tier with Delta without any flying requirements. "Even if I ultimately don't stick with Delta, it's wise to lock in status while I can," he reasons.

Of course, leaving Southwest permanently isn't necessarily the answer for every disenchanted frequent flier. Chicago-based Joyce P., who flies over 100,000 miles a year with Southwest, takes a more tempered approach.

"I'm not going to write off Southwest yet until I see exactly what the new program looks like," she says. "But I plan to hedge my bets by also pursuing status with American in 2023."

However, she cautions against abandoning Southwest altogether preemptively. "Once they announce program specifics, I'll re-evaluate if it still makes sense for me to focus most of my flying there or shift more travel elsewhere.”

Southwest Frequent Fliers Brace for Devaluation - What to Do with Your Points Before 2024 - Consider the New Program's Potential Upsides

While many Southwest loyalists worry the upcoming program changes spell doom, maintaining some optimism could prove prudent. Yes, devaluation often accompanies overhauls like this. However, improvements arise too. Southwest’s fresh take aims to introduce elite perks that better align with flyers’ needs. The new program could also expand sporadic offers like off-peak discounts and last-minute flash sales more consistently.

Consider Chicago-based consultant Heather S. She splits most of her 150,000 annual air miles between United and Southwest. Yet she sees potential upsides to Southwest’s reimagined loyalty program versus clinging to the current one.

“I dislike how Southwest’s elite tiers now depend on pricey revenue flights to qualify. It leaves leisure travelers out. Earning status should depend on flying frequency, not the cost of your ticket,” Heather asserts. Under a revitalized Rapid Rewards, Southwest could emphasize rewarding loyal customers over profitability.

Heather also looks forward to potential new redemption options. “Right now, the only thing I can use Southwest points towards is airfare. I’d love to see the addition of other choices like hotel stays, car rentals or experiences.”

While she’ll miss certain aspects of the current program, Heather keeps an open mind moving forward. “Trying to envision the positives this overhaul could bring keeps me from just assuming the worst,” she explains. “Southwest created Rapid Rewards to make travel more rewarding. This reboot aims to realign with those roots.”

Austin-based elite member Chris R. shares in Heather’s cautiously hopeful perspective. A longtime Southwest customer, Chris appreciates the airline’s expansive domestic route network. However, he knows the program needs updating to stay competitive.

“I’ll miss the ease of companion pass qualification under the current rules,” Chris admits. “But I’m eager to see what new, innovative benefits could arise from this overhaul.” He looks forward to Southwest potentially introducing elite perks tailored to business travelers like lounge access or guaranteed upgrades.