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Southwest Completes Transformation to “Any Airline” + Rapid Rewards Point Value Decreases
I never had a chance to fully share my thoughts on what’s been going on with Southwest. I don’t fly Southwest, being NYC based, but I still have thoughts!
First off, the point value devaluation kicked off yesterday. MilesTalk and Your Best Credit Cards used to value Southwest points at 1.4 cents. In the new system, it seems to give you less value at peak times and more at off peak times. So, I guess you’ll want to use them off-peak! Paying cash for peak will make more sense now (unless, perhaps, you are using a Southwest Companion Pass (guide)).
Based on what I’m seeing in the wild, I have made a downward adjustment to the Southwest Rapid Rewards point value that we use for our calculations at Your Best Credit Cards. Our new value is 1.25 cents and that can still be adjusted further if warranted.
The other part is the changes we have seen to the airline itself. Assigned seating, paid seat assignments, and, most recently no more “Bags Fly Free.” I’ve never thought anything about the Southwest “experience” was worth paying more for and they stopped pricing as a Low Cost Carrier (it’s their costs that are low, not yours!) many years ago. They don’t even have a First Class to get upgraded to as an elite member.
This is all part of the plan to make Southwest more profitable with activist investor Elliott Investment Management- basically forcing them to make these changes.
Still, like many of you, no doubt, I remember reading the Harvard Business School Case Study on Southwest in business school and what made Southwest was everything you used to associate with Southwest. I’m very skeptical that becoming just another me-too US airline will right the ship in the long term even if it temporarily lifts the share price for Elliott.
Delta Targets Southwest Elites for Improved Status Match
If you are an aggrieved Southwest loyalist, Delta wants you.
Head over to their status match / challenge page where you’ll find that A-List Preferred will temporarily match to Platinum status (usually Gold) which is what I consider to be the lowest tier “useful” status at Delta. I mean even Silver beats nothing, but Platinum gets you access to better support and Regional Upgrade Certificates. A-List will match to Gold. You’ll still need to earn enough Medallion Qualifying Dollars to get full status through Feb 2027.
That said, Platinum only needs $3,750 MQDs and that can (unbelievably) even be earned from spend on the Delta Platinum and Delta Reserve American Express cards.
Aeroplan Devalues United and Etihad Awards
A Reddit thread has the full details so I’d check that out for more information. Long story short, some awards have as much as doubled in price, so…. this wasn’t good.
Hyatt Casino Bonus
Hyatt states: “Beginning today through June 9, 2025, members can stay, play and earn 777 Bonus Points for every eligible night, up to 10 nights, at 20 participating hotels and resorts globally including Rio Hotel & Casino, The Venetian Resort Las Vegas, Hyatt Regency Thessaloniki in Greece, Grand Hyatt Baha Mar in the Bahamas and Grand Hyatt Jeju in South Korea. Members can turn qualifying stays completed between April 10, 2025, and June 9, 2025, into jackpot travel experiences.”
While I doubt that 777 points will move the needle too far on selecting one of these hotels within the stay window, but maybe? Certainly if you are a Globalist and can get a good Hyatt-booked rate at Rio, this will give you back over $10 in value per night. I’ve seen rates as low as around $24, so that’s not nothing!
Thoughts?
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SW deval didn’t me hit too hard for my bookings. I see a few at 1.2 cpp and one at 1.8cpp with most in the middle. With companion pass it’s still an incredible value I think. Not sure how I’ll feel once the cheapest tix aren’t fully refundable but if they remain refundable as points bookings then maybe it’s not so bad. Baggage fees kind of suck but buying up 1 tier to get free checked bags isn’t horribly expensive (compared to $30-40 bag fees everywhere else).