Southwest Airlines has a new Vice President running the Rapid Rewards program. Nandika Suri, who most recently ran Choice Hotels Choice Privileges, has been put in charge.
Before moving to Choice a year and a half ago, she launched Under Armour’s program, and spent 17 years at United MileagePlus (née Mileage Plus) before that, leaving early in the pandemic. She’s risen unusually fast since the pandemic, after a long career as a mid-level manager at United.
She was the MileagePlus Director of Planning and Integration, and for 5 years was Director of the Elite Program where she describes herself as launching “the revenue based Premier Program on Jan 1, 2014 which is a step change in the way airlines define member value.” Before that she worked on the intergration of the United and Continental elite progams and managed non-air points redemptions.
Her mandate at Southwest is described as enhancing customer connection through loyalty, growing membership and engagement, and advancing partner relationships — specifically the co‑brand portfolio.
I do not know her. I’m somewhat familiar with her public presentations, and she consistently emphasizes:
- loyalty as an enterprise capability requiring cross‑functional integration
- a strongly data-driven operating model grounded in identity resolution, 360° customer views, and channel activation, and
- a bias toward “experiential/emotional” value rather than transactional earn and burn.
Choice Privileges just launched a redesign with faster elite qualification, a new top tier, point sharing, and better points-expiration rules plus experience-based redemptions.
We may see her hand in further adjusting point values (earn and burn economics) and driving greater personalization in marketing.
Her public talks have been framed more as an operator than marketer. She talks about program mechanics, measurement choices, and cross-functional governance more than brand. She talks a lot about execution details. She describes a “Consumer First” approach to business and financial outcomes, blending customer experience language with commercial outcomes. In terms of principles, while at Choice she emphasized:
- flexibility in redemption
- frequent recognition
- value-for-money
I’d expect her to be interested in how good the Rapid Rewards marketing database is. She talks a lot about data platforms, KPI alignment, and building member profiles so personalization is possible “real time” as customers move across channels. I’d expect to hear about evolving Rapid Rewards toward what travelers expect from a “modern loyalty program.”
Given the past history of driving non-air rewards, married to talk about experiences, I wouldn’t be surprised to see more packaging of “what points do” beyond Southwest-operated flights with a clearer story than “miscellaneous redemption” wrapping.
I wouldn’t be surprised to see some additional recognition and reward milestones positioned between A-List and A-List Preferred, and also rewards for going beyond that second tier. At Choice, this was framed as “more benefits, more often.”
I also expect to eventually see a premium credit card tied to lounge access, with Honolulu, Dallas and Austin lounges (at least) in the pipeline.
She joins as Southwest faces a challenge with its loyalty program. Redemptions have been falling consistently. The percentage of passenger miles flown on award tickets have fallen. Yet even with fewer redemptions, outstanding points liability on their books went down. (Some of this is revenue recognition changes goosing current revenue at the expense of future revenue).
Southwest’s rewards program has not been as much in the spotlight as the relatively negative changes to fundamentals like assigned seating and the loss of two free checked bags.
Ms. Suri’s prior experience at United focused on the “revenue based” program model as opposed to… one assumes, the old chart-based (a consumer favorite), so basically, more dynamic pricing and profit-driven rather than loyalty-pleasing, which I guess is to be expected these days, but *sigh*
Gary makes it clear that he doesn’t know her; would Gary like to know her?
WN Lounges? Now you’re dreaming.
“loyalty as an enterprise capability requiring cross‑functional integration” – holy word salad batman
I’ve said it before and I’ll say it again: without a bona fide domestic first class product, WN is cooked and this is all meaningless. I do hope they’re working on it.
Is it Gary or this exec who is obsessed with corporate buzzwords? As a marketer myself, someone who can’t help but over-use words that serve no larger purpose than attempting to make them sound impressive is usually full of s**t.
@Mike Hunt — Oh come on… You must know that SWA is not actually gonna do any of that, right? Yes, actual First (recliners at minimum, lie-flat for those who like to dream) would be nice, as with dedicated lounges, and even @Tim Dunn’s wild idea about TATL flights. But, no, let’s get real, none of it is happening, not soon, not for a while, probably not ever, especially not with rising fuel costs, and also not with activist investors who want to milk any and all profit, then exit quickly, leaving others holding the bag. They wouldn’t waste liquidity on anything nice, much less finance it.
Loyalty? My loyalty to what had been my favorite airline ended when “Bags Fly Free” and “open seating” ended. After I burn the last of my Rapid Rewards pointss at the end of this month, United and JetBlue will become my favorite airlines.
Southwest has experimented with awarding elite qualification trip count credit for award flights. That makes sense because Southwest books revenue when you travel on points. This is one simple and change she could make immediately.
The value of Rapid Rewards points has been reduced to bare minimum. It’s hard to see how Rapid Rewards could remain competitive if devaluation continues. Trip credit for points bookings would provide a slight boost to the value of points. It would also help keep the number of A-List members from crashing this year.
Another experiment Southwest conducted occasionally was higher point values for off-peak flights. It must not have worked out, because it hasn’t been repeated in recent years. But Southwest ought to do something about the fact that last-minute redemptions are much less attractive on Southwest than on other airlines. I always use United, Alaska, and American for those, even though I would prefer Southwest. Points prices don’t change in absolute lockstep with cash prices on most other airlines.
“Her focus will be enhancing Customer choice and long‑term value” The customer or the airline? And how long before they get rid of the Companion Pass?
@patrick – companion pass is really the only driver of large card spend, they’ve leaned into companion pass – i could see restrictions added, but not getting rid of it
@Darin – I do not think I speak like this about loyalty marketing in most of my coverage 😉
More nonsense from a once proud airline that told me what I could do with 25 years of loyalty as it picked my pocket for bag fees and seat choices. Last month I flew AA for the first time in 20+ years and UA for the first time in 19 years. Know what? They’re all equally awful. The Long Island Rail Road offers a better travel experience.
@1990 – You are a dullard and continue to prove it to everyone on this forum on a daily basis. I’ve lost interest for now. Bye.
@Mike Hunt — Ad hominem. So wise! Safe travels through Changi!
As someone who doesn’t live near a SW hub but used to be able to br convinced to fly far out of my way via Baltimore because of the other amenities and offerings, SW lost memory the last few years. There is nothing that makes differentiates them. Even Hawaii was a bust since flying east of the Rockies isn’t practical with them. I’ll stick with any other legacy airline where the flights are shorter and more direct and everything else is equal.
I was for the last 8 years. A-Prefered flyer. Since the new rules went into place and having a very bad experience and absolutely NO response to my concerns. I have now flown United 10 times since February.Start with fixing the problem, then and only then will your problems go away
Choice Hotels – really?
Who stays there?
This was a longtime coming. When the advantage of fuel hedging wore off changes were imminent. In the current economy SWA csnt stay in business catering to and depending on their “greyhound of the skies” consumers and passengers who want everything for nothing. Those type of customers can happily go fly spirit or frontier.
I come these new changes including more wide ranging benefits for A-List passengers. I dont think1st class is needed just bonfide benefits for A-List passengers including but not limited to seating and boarding.
If you’re unable to track they dont want the pajama wearing customers and those who burden the I & E Spreadsheet with bottom tier fares and max checked bags.
They have no choice. And I’m all for it.
Go back to “bags fly free” and “open seating.” Stop nickel and dime-ing.