Fixed-value redemptions partially replaced by variable pricing factors

Effective April 17, 2015, Southwest announced that the number of Rapid Rewards points needed for certain flights would vary based on destination, time, day of travel, demand, fare class, and other factors, while many flights would remain at the prior rate. Previously the program operated on a largely fixed-value basis (approximately 1.43 cents per point on Wanna Get Away fares). The change introduced unpredictability into what had been one of the more transparent domestic programs.

What to do: Even “simple” revenue-based programs can layer additional variables; monitor actual redemption values rather than assuming fixed cents-per-point.