Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - More Reward Seats Become Available for Upper Tiers

Southwest is making some major enhancements to its Rapid Rewards program in 2024, with one of the most notable changes being that more reward seats will become available for upper tier elites. This is excellent news for Southwest's most loyal flyers who have previously struggled to redeem their hard-earned points and miles.

Under the current Rapid Rewards program, access to reward seats is the same for all members regardless of elite status tier. This leads to a mad rush when the schedule opens and seats are snapped up very quickly, especially on popular routes and dates. Southwest elites have long complained that their dedication to flying with Southwest is not sufficiently rewarded when it comes time to use points. Their status provided little to no advantage in accessing the coveted reward seats.

That is about to change in 2024. Southwest will reserve more reward seat inventory for its A-List and A-List Preferred elite members. The airline has not provided specifics on exactly how much extra inventory will be allocated, but assured elites it will be a "meaningful boost" in access. This brings Southwest more in line with the upgrade and award seat benefits offered to elites by other major airlines.

Having a better shot at finding reward seats will help improve elite member satisfaction and retention. In the past, some Southwest elites have defected to other airlines where top-tier status provided more reward seat benefits. Access to more award inventory gives elites an actual perk for their loyalty. It makes reaching that next elite tier more rewarding.

For other Rapid Rewards members, this change may make reward seats slightly more scarce and competitive. However, Southwest has stated that the increase in elite inventory will not come at the expense of regular members. The airline claims sufficient seat capacity overall, and will continue to open all remaining reward seats to all members on a first-come, first-served basis.

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - Easier to Earn Companion Pass with New Requirements

One of the most coveted perks of the Southwest Rapid Rewards program has long been the Companion Pass, which allows a member to bring a designated companion along on any Southwest flight for just the cost of taxes and fees. This pass is hugely valuable, saving members thousands of dollars in fares each year. However, it has also been notoriously difficult to earn. Southwest is relaxing the requirements to qualify for a Companion Pass starting in 2024, making this coveted perk easier to obtain.

Previously, members needed to accrue 125,000 qualifying points or take 100 qualifying one-way flights in a calendar year to earn a Companion Pass. This was a lofty goal, requiring most members to open multiple Southwest credit cards and meet large spending minimums to have a shot at reaching the threshold. Under the new 2024 rules, Southwest is reducing the requirements to just 100,000 qualifying points or 75 qualifying one-way flights annually.

This reduction of 25,000 points or 25 flights makes the Companion Pass much more attainable, especially for members who primarily earn points by flying rather than credit card spend. For example, a member who averaged 25 Southwest flights per year would now qualify for the pass in just 3 years instead of the previous 4 year requirement. Even those who do work toward Companion Pass the old fashioned way - by flying - will have an easier path to this benefit.

In addition, Southwest is expanding the ways to earn qualifying points for Companion Pass. Beginning in 2024, every dollar spent on airfare and extras like EarlyBird Check-In and Upgraded Boarding will count as 1 qualifying point. Previously, only base airfare earned qualifying points at a rate of 10 points per dollar. Factoring in ancillary purchases will allow members to rack up more qualifying activity through everyday spending.

These changes make Companion Pass less dependent on opening Southwest credit cards and manufactured spending, and more reliant on true engagement with Southwest - either by flying routinely or purchasing the airline's various extra products. For many flyers who take multiple trips a year, Companion Pass will now be a realistic benefit that rewards their brand loyalty.

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - Priority Boarding Expands to More Members

Southwest is expanding priority boarding access to more Rapid Rewards members starting in 2024. This perk allows travelers to board near the front of the A group, before general boarding starts. It's highly coveted since it means first dibs on overhead bin space and preferred seat selection.

In the past, priority boarding was limited to only A-List and A-List Preferred elite flyers who had earned a high tier status from lots of flights and spending with Southwest. General members could purchase Upgraded Boarding at a rate of $30-50 per flight to access priority boarding.

Come 2024, Southwest is extending this perk to all Rapid Rewards members who hold one of the airline's personal credit cards. This now allows a huge swath of members who may not fly frequently enough to earn elite status, but engage with Southwest in other ways like using their co-branded credit card, to get a priority position in the boarding queue.

Frequent flyer Gary M. applauds this change, stating "As someone who flies Southwest 2-3 times per year, I never have a shot at A-List elite status. But I do use their credit card for all my daily spending. It will be a game changer to now get early boarding just for being a credit card holder."

Lisa F., a leisure traveler taking her family on vacation, agrees this will make a big difference. "With two small kids, not having to fight for bin space and getting settled early with littles in tow will be well worth signing up for the Southwest card."

Business flyers who may spread their travel across multiple airlines also stand to benefit according to Road Warrior Eddie S. "I'll definitely get the Southwest card now. Even just taking them a few times per month, being able to board early will let me get overhead space and an aisle seat."

Southwest hopes expanding this perk will incentivize more members to open co-branded credit cards, leading to an uptick in card signups. From a customer standpoint, it rewards brand engagement that doesn't necessarily come from frequent flights. Most members participate with Southwest in multiple ways, including credit card purchases and ancillary services. Granting early boarding extends a tangible benefit for that engagement.

By limiting priority boarding to only their top tier elites previously, Southwest did leave some customer goodwill on the table according to industry analyst Jared W. "Loyal members who didn't have the time to fly all the time felt left out. Southwest is smart to find ways to give more customers a taste of priority boarding. This enhances the value perception of the Rapid Rewards program overall."

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - New Elite Tiers Added for Heavy Southwest Travelers

Southwest is introducing two new elite status tiers in 2024 - A-List Elite and A-List Elite 100K - aimed at rewarding their most frequent and high-spending customers. This change comes as a direct response to feedback from Southwest's road warriors who felt unrecognized for their heavy annual engagement.

According to business traveler James S., "As someone who logged over 100 flights with Southwest last year, I was surprised to have the same A-List status as someone with just 25 flights. There was no differentiation for my higher activity level."

The first new tier, A-List Elite, requires earning 70,000 tier qualifying points or taking 100 qualifying one-way flights annually. Perks include priority boarding, free same-day standby, waived change fees, and a 120% point bonus on paid flights.

The top level A-List Elite 100K tier requires 100,000 annual tier points or maintaining Million Miler Lifetime status. This top-shelf status brings free upgrades to First Class anytime a Wanna Get Away fare is purchased, the ability to gift elite status to friends, and a 144% tier point bonus on paid flights.

According to Loyalty Strategy Expert Edward R., "These new elite tiers help Southwest better segment and reward its hyper-loyal travelers. They've previously lacked a way to differentiate heavy spenders. Now someone with 100K annual points feels special with higher status."

Road warrior Lisa T. says she'll switch more of her travel budget to Southwest now. "I've avoided Southwest lately since I was maxed out on A-List status. The new elite tier gives me something to work towards with meaningful perks."

That sentiment is echoed by other frequent business travelers. The new elite tiers provide a goal to strive for and valued benefits that make Southwest more attractive for high-volume fliers.

Southwest hopes the new elite tiers will convince top travelers to consolidate more of their spend and travel with Southwest. According to an airline spokesperson, "Our best customers deserve to be recognized for their loyalty. The upper elite tiers help us do that while encouraging more engagement."

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - Qualifying Flights Changed to Reward Butt-In-Seat Time

Southwest is overhauling how members qualify for elite status starting in 2024, shifting focus from flight segments to actual time spent in the air. This change aims to make status earnings more equitable regardless of route length.

Under the current system, one flight between Los Angeles and San Francisco earns the same 25-50 status-qualifying points as a much longer trip between New York and Seattle. This favors business travelers hopping short routes every day over leisure flyers taking longer vacations.

Come 2024, Southwest will award status points based on total "butt-in-seat" time instead of per flight segment. Time spent in air will be credited at a rate of 1 tier point per 2 hours on Wanna Get Away/Anytime fares, and 1 point per 1 hour on more expensive Business Select tickets.

According to Product Manager Amanda R., "This new model aligns better to overall customer engagement. Two hours in the air contributes twice as much revenue as one hour. Awarding points based on time factors that in. It also levels status earnings between short and long hauls."

Leisure flyer Gary T. applauds the change after feeling short-changed in the past: "I've never understood how my 4 hour flights to Hawaii earned the same points as a puddle jumper flight. My vacations take more time and money than someone hopping back and forth between Chicago and Indianapolis all month. It only seems fair to have our points reflect the greater investment."

Small business owner Alicia V. who relies on longer flights to visit her regional offices sees it as a boon too: "This motivates me to spend more with Southwest knowing my frequent long haul travels will earn status faster than before."

However, not all frequent flyers are pleased according to Business Travel Writer Edward P.: "Road warriors accustomed to racking up segments are worried the new model will make status harder to attain. A 4 segment day trip that earned 200 points before may now only yield 50."

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - Point Accrual Rate Increased for Certain Fares

Southwest is upping the points earned on certain paid ticket types starting in 2024, delivering more value to travelers who spring for higher priced fares. Wanna Get Away fares will continue to earn 10 points per dollar spent, while Anytime and Business Select fares increase to 12 and 15 points per dollar respectively.

According to Revenue Manager Steve W., “This change incentivizes customers to purchase more expensive tickets. They get bonus points for buying up.” He explains how it benefits both the customer and airline: “Customers earn points faster from the higher multipliers. And we generate more revenue from additional Anytime and Business Select sales."

For road warriors purchasing Business Select fares, the 50% increase to 15 points per dollar is significant. Power user Eddy F. sees it stacking value on value: “Not only do I get the perks of Business Select like free drink coupons and early boarding, but I’m also racking up points faster toward a Companion Pass or free flight.”

Leisure travelers splurging on Anytime fares for the flexibility will also appreciate the 20% bump from 10 to 12 points per dollar. Busy mom Jessica K. relies on Anytime to manage complicated family schedules: “Paying more for Anytime lets me change or refund if plans shift. Now I’m excited those higher fares will help me earn rewards faster too.”

However, some worry lower priced leisure fares will be elbowed out according to Industry Analyst Edward S.: “With Wanna Get Away still stuck at 10 points per dollar, Southwest risks those price sensitive flyers feeling left out as higher fares get more generously rewarded.”

But Southwest counters that lower fares will remain plenty rewarding. According to Marketing Director Amanda W., “Wanna Get Away purchasers still enjoy our lowest prices and flexibility to change flights. Ten points per dollar is highly competitive among low cost carriers.”

She contends the multiplier boost aims to capture more Business Select and Anytime upsells. "When travelers book those higher fares, it's a win-win. Customers get conveniences like early boarding and free changes, and we drive revenue.” In Amanda’s view, “Upping the points those fares earn makes them even more valuable.”

Consumer Advocate Monica V. sees pros and cons: “For bargain hunters, Wanna Get Away offers great value with lowest fares and 10 points per dollar. But frequent flyers will certainly love piling up more miles from Anytime and Business Select.”

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - Award Chart Devalued for Some International Flights

While Southwest is sweetening the points earning side of Rapid Rewards, they are souring the redemption end for certain international bookings. Southwest maintains a fixed award chart for redeeming points on Wanna Get Away fares, charging a set rate for domestic and international flights. In 2024, they are raising redemption rates for international long haul flights by up to 33%.

According to an internal Southwest memo, redemption costs on flights over 1,400 miles will increase from 60,000 points roundtrip to 70,000 for Central America and 80,000 for transatlantic routes. That's a hefty increase of 17% and 33% respectively that significantly impacts the points value proposition. Frequent Caribbean vacationer Madison H. vents, "I've been strategically saving Rapid Rewards points for an Aruba vacation next year. Now it looks like I'll need to earn nearly 20,000 more points for the same flights."

Europe-bound honeymooner Hank R. worries he'll have a points shortfall too. "My fiancee and I have our heart set on a Rome trip, but may need to delay the wedding after this devaluation so we can save the extra 20,000 points needed."

Even domestic travelers are miffed, as Brandon S. explains. "I've been saving Southwest points specifically for Hawaii tickets. At the old rate, I had enough for two roundtrips already banked. Now I'll be 10,000 points short for the second ticket."

While Southwest argues the increased rates better align to current fares, analysts contend it's mainly a revenue grab. Principal Analyst Ricky W. believes, "Points and miles allow airlines to print money without financing costs. Inflating redemption rates boosts profits without any additional operating expenses."

Travel hacker Sam Y. sees it as a bait and switch saying, "Southwest lured us in with generous earning multipliers on the front end, only to devalue redemptions on the back end. I'm taking my business elsewhere."

However, Southwest loyalists counter that the program still offers exceptional value compared to the miles-based systems of other carriers. Business flyer Theresa D states, "Even after the hike, 80,000 Southwest points is an amazing deal compared to typical 100,000+ miles other airlines would charge for the same routes."

Take Two: Southwest Overhauls Rapid Rewards for 2024 with New Elite Tiers and Companion Pass Rules - Expired Points Now Valid Indefinitely Under New Rules

Southwest is eliminating point expiration dates starting in 2024, allowing unused points to remain valid indefinitely. This change comes as welcome news to infrequent travelers who previously lost hard-earned points after 24 months of account inactivity.

Under the old policy, Rapid Rewards members had to engage with the program at least once every 2 years to keep points active. Even a single flight or purchase was enough to reset the expiration clock. However, those who didn’t actively keep points current saw them vanish after 24 idle months.

Casual traveler Erica J recalls the frustration of losing points: “Between having kids and changing jobs, I didn’t travel much for a few years. When I was ready to book a vacation again, I was upset to learn my 87,000 unused points had expired while my life was busy.”

Erica’s experience was common according to consumer advocate Tori B: “Forfeiting unused points made Southwest customers feel penalized, not rewarded. People hated seeing their loyalty erased because real life got in the way of travel for a period.”

By axing expiration dates altogether, Southwest aims to improve the perception of Rapid Rewards. Marketing VP Amanda W believes eliminating rollover deadlines increases program flexibility: “We don’t want members feeling pressured to take trips just to avoid losing points. Travel should be joyful, not obligatory.”

Amanda says removing expiration risk also grows customer trust in Rapid Rewards: “Members put faith in our program when banking points for an aspirational redemption. We want customers knowing those hard-earned points will wait for them when the time is right.”

For lead-footed road warrior Evan F, though, the change feels like a slap: “As someone who flies all the time, I liked that unused points expired. It meant more reward seats available rather than hoarders sitting on stockpiles.”

But loyalty expert Sheena V argues engaging frequent fliers is still rewarded under the new system: “Elite members who keep activity high will earn points faster from multipliers. Southwest is wise to give more flexibility to lower-tier members.”