Chase announced on May 15 that it is offering a 30% transfer bonus to Southwest Airlines Rapid Rewards for point transfers made through June 5. This move marks a shift in Chase’s approach, as such bonuses have been rare in the past.
The offer comes after recent changes that reduced the value of most Chase points from Sapphire Reserve cards when redeemed through the travel portal. With this bonus, customers may find transferring points to Southwest more valuable than booking paid travel directly with points, since the bonus brings redemption rates closer to previous levels before devaluations.
According to the announcement, there was a similar promotion during October 2020, which offered a 20% bonus at a time when few people were traveling due to the pandemic. More recently, there was also a two-week period in the fall featuring a 25% bonus. The current increase appears linked to ongoing changes in how both companies handle their loyalty programs and customer incentives.
Southwest has devalued its points by about 43% over twelve years prior to moving toward dynamic pricing models. The article notes that issuing more points now makes sense for both companies: “With Southwest devaluing points, the economics of giving more points works out for Chase and Southwest.” It also says that “Southwest customers have been redeeming fewer awards, and award travel takes up a smaller share of the airline’s miles flown,” suggesting why both firms are encouraging point transfers.
The author concluded by saying: “I’ve always targeted more value than this from my points so I’m not tempted, but it will be useful for some.”
