Should I buy Southwest points, during the 30% discount offer? Generally speaking, buying Southwest points does not offer you a great value proposition, however, there are a few instances where you might consider purchasing them. Southwest Airlines, being America’s largest low-cost carrier of domestic passengers, takes travel to a higher level with outstanding Southwest Airlines customer service throughout each of its current 72 destinations.
In this travel guide prepared by Treknova, we will cover a few essential tips on should you buy Southwest points during the 30% discount offer.
What are Southwest Points?
Southwest Points is basically travel rewards program that is offered through Southwest Airlines to its customers. Now, with a variety of benefits to be taken advantage of, Southwest Points helps you make the most out of your travel experience. Also, there are special discount coupons that can provide even more opportunities to save money and earn points.
Are these Promotions a Good Deal?
For better or worse, Southwest points have a fairly defined value. You will not be able to get impressive value out of buying points and redeeming them for first class awards, like you can with Alaska miles.
Instead, Southwest award flights can be redeemed based on the general formula given as follows:
- For Business Select Fares: You earn 78 points per dollar (1.28 cents per point)
- For Anytime Fares: Your earn 78 points per dollar (1.28 cents per point)
- For Wanna Get Away Fares: You earn around 76-78 points per dollar (1.28-1.31 cents per point)
Having said that, the above-mentioned formula is actually based on the cost of base airfare, i.e., before applicable fees and taxes. So, the actual value you will get from an award will be around 1.4-1.5 cents per point. The current valuation of Southwest points sits at 1.5 cents per point.
The rate for buying nearly 2,000 points is punitive at 3 cents per point, that is more than twice the value of Southwest points. And, purchases of either 3,000 or 4,000 points cost 1.88 cents each with the discount. While that is better than the normal rate, it is still more than they are worth. So, it is better to look for another source when you are looking to top off your account. Your best bet for quick Southwest points are Chase Ultimate Rewards points, which you can transfer to Southwest immediately.
Check if You can Earn a 30% Spend Bonus on Your Southwest Credit Card
Southwest credit cards are popular with many Southwest flyers. However, there is one area where these cards fall somewhat short, along with most other co-branded airline credit cards. That are is the earning rates. Though, few Southwest cardholders will soon have the opportunity to increase their returns with a targeted spend bonus.
According to a recent report, a certain number of Southwest credit card holders are targeted for a 30% Rapid Rewards points bonus. In other words, these points count toward the points you will need to earn within a calendar year to qualify for the Southwest Companion Pass. So, let’s take a look at what you need to know about this promotion.
How to Find Out if You are Eligible for the 30% Rewards Points Bonus
It is important to know that the promotion does not appear to be open to everyone. Thus, to find out if you are eligible, simply visit the Southwest Airlines’ website, then log in to the Promotions page of your Southwest account. If you are targeted for this offer, you will see a promotion titled “Earn 30% bonus points” displayed on the page.
You will only see this information if you have already registered for the promotion between July 1, 2020 and Oct. 31, 2020. You will see a green text appearing below the promotion stating that you are registered.
More about the Promotion Details – Buy Southwest Points During The 30% Discount
Now, in order to qualify for the promotion, you will first be required to register for the promotion, then earn at least 6,000 Rapid Rewards points on your Southwest credit card. These points will need to be credited to your Rapid Rewards account under the category of “Credit Card” during August, September or October to count.
To make this promotion clear for you to understand, here is an example. If you have 2,000 points from your Rapid Rewards credit card credited to your account each month during the promotion, you will earn a 30% bonus on these 6,000 points. This means you will get 1,800 bonus points from Southwest, which are worth $27. Through this promotion, you can earn up to 25,000 bonus points. 25,000 Southwest points are worth $375.
Possibly best of all, the promotion page also notes that bonus points earned through this promotion will count toward earning the Southwest Companion Pass. However, the bonus points will not count toward A-List or A-List Preferred qualification. And, the promotion further notes that points earned from a credit card sign-up bonus and points transferred from Chase Ultimate Rewards will not be eligible for the 30% bonus. Bonus points will get credited directly to your Southwest Rapid Rewards account, although bonus points may not be credited to your account until up to eight weeks after the promotion ends.
How to Earn Points on Southwest Credit Cards
Normally, the Southwest Rapid Rewards Plus Credit Card, Southwest Rapid Rewards Premier Credit Card, Southwest Rapid Rewards Priority Credit Card and Southwest Rapid Rewards Premier Business Credit Card earn 2 points per dollar on Southwest purchases and purchases made with Rapid Rewards hotel and car rental partners. And, these cards earn 1 point per dollar (1.5% return) everywhere else. So, with the promotion, you could earn 2.6 points per dollar (3.9% return) on bonus spend and 1.3 points per dollar (1.95% return) on everything else.
The Southwest Rapid Rewards Performance Business Credit Card offers a slightly higher earning rate. Specifically, with this card you can earn 3 points per dollar on Southwest purchases made with Rapid Rewards hotel and car rental partners. You also earn 2 points per dollar (3% return) on social media and search engine advertising, internet, cable and phone services. And, you earn 1 point (1.5% return) per dollar spent on all other purchases. After this promotion is taken into account, you could earn 3.9 points per dollar (5.85% return) on flights, 2.6 points per dollar (3.9% return) on the mid-tier bonus categories, and 1.3 points per dollar (1.95% return) on everything else.
Though, it is usually not recommended putting a lot of spend on a co-branded airline credit card. However, it can make sense for some people to do so with this promotion. Even with the bonus, you might not be getting the best returns for travel purchases or everyday spending. But, the maximum of 25,000 points can go a long way for those chasing the coveted Southwest Companion Pass.
Thus, it can be seen that purchased points can represent great value sometimes. However, as always, you will need to crunch the numbers to ensure it makes sense. During the past few years, Southwest Airlines has offered bonus on purchase points about four times a year, and the maximum bonus ranged from 30% to 50%. A 35% discount is almost equivalent to more than a 50% bonus. So, the current promotion is about the highest it has ever been.
If you do not have an urgent need for Southwest points, it is recommended to the best wait for the next promotion with higher bonus. You should generally only buy Southwest or any other type of miles or points if you have a specific short-term need for them.