Southwest Airlines has announced some major changes to its Rapid Rewards elite program, and I’d say this has some really interesting implications.
Continue reading: Southwest Makes A-List Status Easier To Earn, Adds Perks
Share your questions, experiences, and thoughts below.
I really like the ability to pay with both cash and points. A BIG plus.
But here's my question... in order for a flight to qualify to earn you status it has to be a paid ticket. I wonder how that is going to work for a "half and half" ticket?
@Eskimo... what do you base that statement on? They don't charge for bags, phone reservations, printing boarding passes, carry-ons or any of the other nickel and dime things the Spirits and Frontiers of the world charge for.
As someone who doesn't drink, this new perk with my A List Preferred is worthless to me. Just like the stack of drink coupons I used to get. I have no problem with people receiving that benefit at all, and I used to enjoy that as well once upon a time until ceasing partaking became necessary as a byproduct of a life-changing illness. But it would be nice to have some sort of alternative.
Agreed. I'm in the same boat. I haven't flown SW for a few years now, but do they have snacks for purchase (Pringle, cheez-its, etc.)? If so, it would be nice if having those as an alternative choice was an option.
Hmmm.... seems like this is how you encourage flight purchases and credit card spend. Makes it more likely I may spend a bit more on the card if on the border for A list status... as opposed to my Delta card which has no role in my wallet anymore.
Southwest doesn't nickel and dime, and often their ticket price is not the lowest. Not a low cost carrier.
@patrick - true, but it's not about the snacks, it's about getting free stuff for your loyalty 🙂
Why do airlines treat free drinks as some kind of amazing benefit? People can't go 3 hours without an alcoholic drink?
When they have ramp agents consistently making $80-100k a year, they aren't a low cost carrier.
They have elements of an LCC, e.g. the point-to-point network rather than hub-and-spoke, single aircraft type, lack of premium product, no partners.
But as people say, there is a certain level of service included in the ticket price, and they haven't unbundled everything.
They're in their own category IMO. Maybe I'd call them a pseudo-LCC.
They obviously can, but alcohol is expensive and people like getting expensive stuff for free. It's really not a difficult concept.
No, no snacks for purchase. There was some sort of canned espresso and cream coffee drink that has twice as much sugar as a fully-leaded soda. They had that earlier this year but it was a limited time only thing. I think I saw it offered on one or two flights, and the F/A was telling my seatmate on one it goes better with vodka in it.
Allegiant at least with their free drink benefit sometimes will give you two sodas/waters instead. Sun Country has given a snack box instead of the booze, but that's not an official rule. I wrote them a letter about that and got a reply that basically said most of their customers by far prefer the benefit of free alcohol, and it's my choice not to join them.
There are so many people that are so scared of flying they can only do so after a few drinks. Its weird to us in the points game but its a serious mental health issue that so many people have to deal with.
LCC/Low cost does not refer to their fares, it refers to their cost to operate. Their operating expenses arent as high as those at AA/UA/DL (Legacies), nor are they as low as those at Spirit/Frontier - the Ultra Low Costs Carriers (ULCC). Hence in the industry they'd be called a LCC - low cost carrier, and that's how they're referred to.
As far as fares, that has nothing to do with their cost base.
These changes highlight that WN is losing loyal passengers and are trying to do what it can to get them back.
it is a completely different and opposite problem of what the big 3 are facing and esp. DL and that should tell you something.
It seems to me that WN is recognizing they have lost a lot of loyalty for a variety of reasons. The ONLY reason I still fly WN is because of the companion pass, and come Jan 1, that is no longer a factor. Since I still have over half a million points, I won't stop flying them, but I'll only fly them when it makes sense. I no longer fly enough for A List, let alone Preferred; but the two free drink thing just cracks me up. I've got a stack of those coupons, mostly expired (but they still take them), and when I was flying for work, a drink on Monday morning at 6AM wasn't in the cards. I rarely drink anymore anyway, so it's not really something that appeals to me. The only reason I will keep the credit card is for the early boarding credits, since I'll be dropped down to 0 status next year, and I figure those could be handy.
I don't know what the markup is on the drinks, but I suspect it's pretty high. They give it away and it becomes a low cost perk, plus they probably realize that a lot of business travelers won't be having that drink on their morning flight anyway. And I can't tell you the number of times I've ordered a beer or a wine and they never bothered to come back and charge me for it. I don't think WN is too awfully worried about the adult beverage profit center.
Thank you @Jason.
Finally someone who really understood what low cost actually means.
Contrary to popular belief, having a low or unbundled fare doesn't make it a low cost carrier.
no, it is simply about looking at the industry as a whole.
When companies as large as WN are loosening the requirements to get loyal customers while DL - on the other end - is doing the exact opposite, it is clear that there is a big divide in the industry.
Unlike the article about ULCCs just a couple days ago, I recognize that the divide includes WN on the side of the ULCCs, even if not to the same degree.
DL has already reported for the 3rd quarter and AA and UA will report in a couple days. DL for years has accurately touted its higher revenue - which means higher value passengers even if AA and UA are more like DL than WN right now.
I think Southwest is unique in that their business offerings are anemic compared to the other airlines. This + 3X points on SWABIZ bookings reads as “help we don’t have business travelers anymore” than anything else. AA, DL, and UA not really having that issue.
We have 500k points & are planning on using them for most of our 2024 flights as I’ll be on companion pass all year. If they had airline partners I’d be more apt to stay loyal
Just as one example, you can as a regular consumer buy a mini of Deep Eddy for $1.25 in some states. I imagine wholesale the size of Southwest is south of a dollar a unit. So a 700% markup on the product alone, add in the other costs of distribution, provisioning, etc., it's still multi-fold.
There are some airlines that have upwards of 60-70% breakage on vouchers for oversale volunteers or customer service recovery, and that's closer to real cash money than a drink ticket. I imagine Southwest's breakage is at least 50% on drink coupons. I would be curious if they even attempt to measure shrinkage. Years ago, I had a friend who was a WN flight attendant based in the same airport where I worked for another airline. Every other week or so she would hand me a handful of drink coupons she had collected on board.
I'll somewhat agree with Tim here. Difference is Southwest doesn't have much to offer traditionally in the way of perks or benefits. Let's face it: Even the Companion Pass is of somewhat limited utility to a business traveler. How many uses are they getting out of it? Most of those who get one for flying weekly for work probably use it sparingly to take a spouse or friend along maybe a couple times a quarter. I had an uncle who ran a HVAC business in SoCal and flew people back and forth to San Jose during that boom and he had nearly a dozen employees with Companion Pass at one point, and made them sign up other employees as the companion, so sometimes was getting 50-100 free segments a year off each pass. But that I wager is by far the exception and probably something only a small business would do where travel budget is directly impacting someone's takehome.
Right now Southwest can make this offer as an attempt to gain loyal customers... it really doesn't cost them much. Throwing $2 worth of liquor at them costs little. It's not like the little packet of 6 knock-off cheez-its and 7 pretzels they hand out costs much... not like Delta who probably has a higher cost for it's vegan free-trade minority manufactured gluten free soy based gummy bears it serves First Class (or whatever those things are). At best, what most people are getting is a better boarding number out of this, or boarding after the A's as an A-Lister. They also get the free advance check-in. Recently Southwest has started limiting its sale of Early Bird checkin because with no cap, sometimes people were paying the $15 or whatever and getting a boarding position like B45. They shrank the population of available Early Birds, and now are going to remove part of the base that likely purchased it into getting it for free... just leaves those former paid positions as new paid positions for infrequent flyers who would have paid but saw the option sold out before. You could argue on an ancillary revenue basis this is neutral or close to it.
The Southwest fare sales lately are insanely low. I hate flying them, but hate myself just enough to sit through a few WN flights to fly for $49. And that was after getting their prior fare sale, which with their unlimited cancel/rebook policy I reticketed and turned 6 segments into 9 without laying out another penny out of pocket.
Maybe Tim agrees, but Southwest I think is in a panic point where they are trying to make it all up with volume.
Completely true @Eskimo.
By the same token though having a very low and unbundled fare and high costs doesn't make you an airline for very long.
Have an upvote for "vegan free-trade minority manufactured gluten free soy based gummy bears it serves..."