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Southwest Airlines introduces variable redemption rates for Rapid Rewards

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Southwest Airlines introduces variable redemption rates for Rapid Rewards
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Capri Whiteley Social media manager | The Points Guy

Southwest Airlines has implemented new "variable" award pricing for its Rapid Rewards loyalty program. The change, which began quietly last week, allows redemption rates to fluctuate significantly between flights. This development is part of a broader strategy overhaul announced on March 11, which also included the end of the "bags fly free" policy.

A spokesperson confirmed the rollout to TPG on Wednesday. The Points Guy (TPG) noted that previously, Southwest's redemptions were dynamic but followed a relatively fixed rate based on cash prices. TPG's March 2025 valuations place the value of a Southwest Rapid Rewards point at about 1.35 cents.

Examples of the new pricing include a flight from Phoenix Sky Harbor International Airport to Honolulu's Daniel K. Inouye International Airport during the week of July 4, where a $597 flight can be redeemed for 54,000 points—equating to 1.1 cents per point. Conversely, a September flight from Phoenix to San Francisco Bay Oakland International Airport offers over 1.7 cents per point when redeeming 7,500 points instead of paying $129.

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Leslie Harvey, a family travel blogger with Trips With Tykes and an avid Southwest flyer, observed that Hawaii flights are now generally less valuable compared to more standard routes. She mentioned seeing some flights offering better value than usual but considered them outliers.

The changes follow Southwest's recent reduction in points earned on lower fare classes. Wanna Get Away Plus flyers now earn six points per dollar instead of ten, while Wanna Get Away passengers earn two points per dollar down from six. Effective May 28, Wanna Get Away will be replaced by a new "basic" fare class.

Business Select passengers will still receive two free checked bags and earn more points per dollar than before.

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