Any truth that Southwest is looking to change the name of its frequent flyer program from Rapid Rewards to something else?
I don’t know. Are they gonna change the something about it, or just the name?
Why change the name? It’s a very successful program.
I was reading about it and that’s what I was thinking…http://www.southwest.com/rapid_rewards/visa.html
I now reading articles that Southwest may be changing Rapid Rewards from a flight-based program (1 credit per 1 way flight) to a revenue-based program (meaning you get more credit based on the amount spend on fare) to be reveiled in 2010. 2000 dollars spent to earn a reward for example.
I think one thing that holds it back from a partner perspective is that rapid rewards credits are too big. For example, it’s not worth it for a partner who sells ~$20 items to partner with them as buying a single rapid rewards credit costs too much.
However, if they were to devalue them, say make every “old” credit worth 100 “new” credits, then a partner selling items of that value could offer 10-20 “new” credits to their customers.
I think that would destroy the program. I like the way it is now. Very easy, no muss, no fuss: 1 flight = 1 credit.
If they go to revenue based, how will they do it? Will it be the actual fare charged or the fare plus taxes? As an example, it would cost me $150.60 for a one-way walk up fare from OAK to LAX. However, the actual fare is $130.23 (the other $20.37 is government extortion).
I think Southwest is looking for a way to reward those who book “Anytime” or “Business Select” more than “Wanna-Get-Aways”. Based on 3Q 2009 average one-way fare of $123 (source 8-k) 16 average one-way fares are nearly $2000 of airfare to get the 16 current rapid rewards.
“Anytime” and “Business Select” already get additional credit when booking.