At their best airline loyalty programs make passengers want to fly with one specific carrier, even when it's not the most convenient or the cheapest.
To do that, an airline has to offer attainable perks that bring enough value that passengers will make sacrifices to get them.
Passengers probably won't change their travel dates or pay a much higher fare just to work toward loyalty status, but they will put up with small negative changes if it means working toward earning (or keeping) top-tier loyalty status.
Free travel is a key enticement but it's only a piece of the puzzle. Passengers also want to be treated like elites, or at least a little special. That could mean letting them board earlier, giving them access to better seats, or even small things like serving them free alcoholic drinks.
The biggest challenge for the airlines is making status hard to attain but attainable.
Southwest Airlines (LUV) -), which offers meaningful perks (including early boarding and free same-day standby) with its Rapid Rewards loyalty program, has made some big changes that make earning status with the airline easier.
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Image source: Patrick T. Fallon / AFP
Southwest Airlines offers meaningful loyalty perks
Southwest can't dangle some of the perks that a full-fare airline does because it does not offer first or business class. Instead, the airline gives A-List members — the first earned tier in Rapid Rewards — automatic check-in, which usually gets them a place in the prized A boarding group.
If an A-List member does not get a A position, or missed check-in due to a flight change, they can board after the A group but before the B group. That meaningful perk gives those passengers access to their choice of seat and eliminates any concern about whether overhead space is still available.
The airline, however, did not make it easy to earn that status. Becoming an A-List member required a person to earn 35,000 qualifying points or to fly 25 one-way trips. That's slightly more than two round-trip flights per month, which is a lot even for seasoned travelers.
With people traveling less for business, the airline has decided to lower the requirements for earning Rapid Reward status, though it won't happen until next year.
Southwest lowers tiers for Rapid Rewards
While the changes won't affect the current Rapid Rewards earning year, the airline has lowered the amount of required one-way flights to earn A-List to 20 from 25. (The points option is not changing.) Southwest will also give customers A-List Preferred status with 40 qualifying one-way flights, down from 50.
These moves come after Delta Air Lines (DAL) -) made moves that devalued its own loyalty program. JetBlue then tried to capitalize on that move by offering a status match to disaffected Delta customers.
Southwest's moves appear to be an attempt to reward its loyal customers and enhance their 2024 loyalty by making it easier to keep or earn status.
Under the new program, A-List Preferred members will receive two complimentary drinks, which will be added to their boarding passes, beginning Nov. 6. That's an increase from one drink. A-List Preferred members also get free WiFi.
In addition, the airline is also enabling all loyalty-program members to pay for flights with a mix of points and cash.
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"Starting in spring of 2024, Rapid Rewards Members will have the option to pay for their flight with a combination of cash and points, starting with as few as 1,000 points," the airline said on its website.
Previously, points could be used only when a customer had amassed enough to pay for a full flight with them.
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