One major U.S. airline has, in the recent past, demonstrated a tough relationship with the winter holiday season.
Last December, Southwest Airlines LUV experienced a serious systems meltdown that caused widespread disruption for its passengers.
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The airline ended up canceling a huge number of flights during one of the busiest times of the year for travel.
Outdated computer systems had apparently struggled to deal with an increase in bookings, hurting Southwest's ability to manage its flights.
The cancellations had a ripple effect, stranding passengers nationwide and separating them from their luggage.
The airline has implemented several steps to prevent a repeat of these incidents, but its relationship with passengers may be frayed with a new change on its way.
Image source: Paul Hennessy/Anadolu Agency via Getty Images
Southwest Airlines devalues its points by about 4%
Members of Rapid Rewards, Southwest's points earning program, are able to redeem points they earn by flying, or by spending with Southwest's partners.
They can use these points for flights, hotel stays and rental cars through Southwest and for gift cards, merchandise and other items through participating credit cards.
Now, however, the airline is devaluing its points, negatively impacting members.
But there is still time to book flights before the change is implemented on Jan. 1, 2024.
"Southwest award tickets are priced based on the cash value of that same ticket," wrote travel influencer Danny the Deal Guru on his website. "Rapid Rewards points are valued at about 1.4 cents-per-point. That means that if a flight costs $140, then you would be able to book it with 10,000 Rapid Rewards points. That might vary slightly based on routes."
But the carrier now says, beginning on the first day of the new year, that the points required per dollar of base fare will increase by approximately 4%.
"So with this 4% increase, that same $140 flight that we took as an example above, will cost 10,400 Rapid Rewards points starting next year," the website wrote. "That's not a huge devaluation, but it is a devaluation nonetheless. That brings the value of Rapid Rewards points to about 1.35 cent each."
Southwest last devalued points during the pandemic two years ago, after allowing passengers to convert their travel credits to points.
"After its historic operational meltdown a year ago the airline gave points to passengers," wrote Gary Leff on View From the Wing. "Their apology for last Christmas will be worth 4% less for anyone saving their points."
Leff also provided some historical perspective on the move.
"With this change Southwest will have devalued about 43% in 12 years since launching 'Rapid Rewards 2.0,'" he wrote. "And there’s really no good reason to devalue their points other than greed. Currently each point is worth around 1.2 cents apiece towards base airfare, or closer to 1.4 cents when factoring taxes saved."
Southwest travelers with award travel to book ought to consider doing it soon.
"There's little downside to redeeming your Southwest points now, before the January 1 4% devaluation, and you may come out ahead," Leff wrote.
"At least they've given some advance notice."
Travel points are not Southwest's only problem
Meanwhile, the carrier appears to have a labor issue on its hands right before the critical 2023 holiday season.
Southwest's pilots have begun preparing to strike. Those preparations include opening a Regional Strike Center in Dallas, the Southwest Airlines Pilot Association has announced.
The issue is not only wages but also working conditions that were exacerbated by last winter's system meltdown.
Southwest simply has not shown that it is willing to invest the time, energy, and money into creating a better experience for us nor our customers,” said SWAPA President Captain Casey Murray said in announcing the opening of the strike center.
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