Southwest point subscription

[thedjwaver]

What do you think of the new SWA Rapid Rewards Point Subscription? Is this a good budgeting tool or something you would never consider?

 

[Belle1962]

Can you explain what this is.

 

[thedjwaver]

Can you explain what this is.

SWA has just introduced a new way of buying RR points: via an installment plan.
As the airline describes it, the idea is that you sign up to purchase a set number of points each month at a discounted price. Then, you’ll get a points bonus awarded every three months

 

[_19disnA]

All of those plans depend on how often you travel with that airline and if the cost of their 'subscription' saves you more then you would spend on tickets. They aren't giving anything away and likely have calculated what those points are worth in order to know what to charge you. The chart listed above shows you would be paying roughly $600-$1,200 per year to gain those extra points.

IF you fly frequently AND use Southwest quite a bit, it MIGHT save you money. All airlines offer some kind of points reward for travel and often they will sell you extra miles for some supposed discount. Also need to know when those points expire if you don't use them and if there are any other restrictions on how they can be used. When redeeming points, typically every flight is NOT the same amount of points and the most desirable or non-stop flights tend to require more points or may already be sold out (or have limited availability) when you try to use your points. How much you will actually 'save' depends on those types of factors.

 

[irt9206]

I did a quick check on a flight PVD-MCO at the end of June. A $365 flight cost 26,000 points and a $275 flight cost 20,120 points. Paying $618 for 30,000 or $1,430 for 80,000 points isn't worth it.

 

[IceSkatingPrincess]

This doesn't appeal to me.

Purchasing points is almost always a poor value. Most people are much better off building points using a strong rewards card and paying it off each month.

 

[FCDub]

They wouldn't offer this if it were supremely advantageous to the consumer.

 

[MICKIMINI]

I personally would not do this. There are other free ways to get points, for example: 3-1 to 5-31-21 charge 7000 points or more and get a 20% bonus which is similar to another bonus late last year (sign up). I try to shop with SWA and get extra points too. I found out my electric utility will let me charge up to $600 (4+ months electric) for only $2.50 which I am now doing on a regular basis until the credit runs low and I charge another $600. That is about $7.50 per year for 1800 points and if during a bonus I can get the extra 20%!

I check flight/point prices every day. I just got back 1660 points for modifying October OW flights for DH and I on same flight. Chances are the cost will go down again before then and I'll modify again.

I look at points like cash and squeeze as much as possible out of my SWA card!

 

[Gary2T]

The folks over at FlyerTalk.com did the math on this one. As expected, not worth it.

https://www.flyertalk.com/forum/sou...ew-rapid-reward-point-subscription-plans.html
The math from that thread:

Points value (current, literal):
$1 / 83 = $0.0120

30K:
$51.56 x 12 = $618.72
$618.72 / 30,000 = $0.0206 per point

40k:
$64.16 x 12 = $769.92
$769.92 / 40,000 = $0.0192 per point

80k:
$119.16 x 12 = $1,429.92
$1,429.92 / 80,000 = $0.0179 per point