Yesterday I covered changes being considered for United Clubs and for United’s premium credit card. Chase, which issues United cards, is also surveying changes to Southwest’s credit card portfolio at least in part as a result of the planned move to assigned seating.
The good news is that completing the survey earns 1,000 points.
I think it’s fair to say highlights of what they’re considering are:
Raising the annual fees
Eliminating the anniversary points
Adding a % discount on redemptions
Adding some sort of early boarding / seat upgrade credit / seat upgrade benefit in place of the current Early Bird / Upgraded Boarding credits
Charging More, Giving Less – A Risky Move That Seems To Work For Amex
Higher annual fees is the direction that rewards cards are headed, as co-brand deals get more expensive. American Express has seemed at the forefront of inching up annual fees while adding benefits with reasonable-sounding headline values that are either too niche or cumbersome for many cardmembers to keep on top of and use.
Eliminating anniversary points is an interesting move. It would be a cost cut, but those points are designed to get consumers to keep the card at the time they’re most likely to cancel. Annual fee rewards cards have high attrition rates whenever those fees hit. Offering a reward for allowing the fee to post is a way to stave off card cancellation.
Award Discounts Are Really Price Increases For Everyone Else?
Award discounts for cardmembers has really two models.
- Delta 15% discount is really a price increase on anyone who doesn’t take the card. More or less Delta raised prices on non-cardmembers, and restored the status quo ante to those with eligible co-brands.
- United extra inventory for cardmembers in some sense it’s a variation on the same theme, but there’s genuinely different inventory available that comes at a lower price – sometimes – that cardmembers can benefit from. It’s different award space that opens up, and it’s not just for cardmembers but also members with status. And it didn’t involve a concomitant price increase at the time it was introduced.
Southwest Airlines offers revenue-based redemption which generally a fixed value per point against paid fares. So if they reduce the value per point of redemptions immediately for non-cardmembers, it’ll be transparent that this is really a devaluation and not a benefit.
Perhaps they can afford to restore some value to cardmembers, though, because the Rapid Rewards progam devalued their points at the beginning of the year and has devalued ~43% in 12 years.
Revamped Seating Benefit For Cardmembers
Currently premium Southwest cards come with statement credits for 4 Upgraded Boardings every year when available, where you purchase A1-A15 boarding positions. If those go away, or come with assigned seating, a switch to credits for purchasing paid premium seats could make more sense.
Boarding position matters today primarily for where you’ll sit. The earlier you board, the more choices you have available, since seating is first-come, first-served. Under the new model, you’ll only care about boarding early to the extent you are worried about overhead bin space – but as long as Southwest retains free checked bags there will be less of a problem with full bins than other airlines, even without installing larger bins.
(HT: Doctor of Credit)
The proposed changes at Southwest is/will cause a shit storm for long time, loyal Southwest customers as Southwest changes into a cloned bastardized version of the other airlines in America. Rapid Reward credit card holders will suffer as many of the perks associated with these cards will be altered and/or disappear. After being a loyal Southwest customer for over 35 years, I will be looking elsewhere for my future flights – and I know that I speak for many other loyal Southwest customers. Just like Walt Disney , Herb Kelleher must be spinning in his grave seeing that his great airline is being gutted and ruined by greedy bean counters and shareholders. Greed destroys everything it touches.
Regarding: “The good news is that completing the survey earns 1,000 points”. What survey?
Yes, what survey?
I have two Southwest personal credit cards and I probably would not keep them longterm without the anniversary points, especially if they raise the annual fee.
I read that they are looking at a Jetbridge Jesus card that let’s you board early, and grab any seat you want without having to mess with a wheelchair. Still working through what they will do with displaced passengers.
The ultra premium version will allow you board late and tell whoever is in the seat you want, that it was “saved”.
@David R. Miller, the lower end customer will move to Spirit and Frontier. Enjoy. People like me who live cloes to LUV but would not consider Southwest today, will start to book them more and are willing to pay for higher end services like assigned seats. People who can pay for premium product keeps airlines alive and SWA understands that finally in 2024. Now if they can just fix the subpar wifi.
Yes, this might be a turning point for us cardholders … Increased pricing will cause increased departures….
I hold a SWA branded card, and I am so confused by all the talk, speculation, etc., on what will occur, that I am simply going to wait it out (“sweat it out”?) and see where all the pieces land. If it comes down to it, I can always cancel the card…I have the other cards already (alternate airlines…). In the meanwhile, it’s just got to be “one day at a time.”
David Miller – you are “spot on” correct. Unfortunately, all things cycle and SWA is on a downward spiral (no pun intended). They used to be my “go to” carrier; now, I’ll likely be going to other carriers. Such a shame.
As I don’t fly as often as I used to, the anniversary bonus was the primary reason I kept the card. If that goes away, so will me being a cardholder.
Not happy about these changes….get less for more $$. Bye bye.
@David R Miller, you are absolutely correct. I have also been loyal to SWA for over 30 years and a RR Member as well. However, if Southwest becomes just another Airline like all the others, I will look elsewhere and that makes me sad to say that. I will also look at other Credit Cards if Chase decides it no longer needs the business. There are lots of choices in Airlines and Credit Cards.
Jay Reems – what does “who live cloes to LUV ” mean? – Assigned seats is a “higher end service”? It is apparent that you are someone who really did/does not appreciate what Southwest has been for over 40 years – a low cost, reliable airline with the quickest boarding process and great employees. Now you seem to favor being nickel and dimed for features that should and have been free for decades.
@David R. Miller – 86% of Southwest customers prefer assigned seating. Times change. Older travelers need to move on from outdated ideas. The world has evolved and SWA is evolving 10 years later than when it could. Catering to customers that have outdated tastes is putting it out of business. I hope these changes are not too late to save the airline.
Please stop the madness!
Top tier flyers of Southwest choose Southwest for what it is today.
Retiring in the next 3 years so I won’t have any business travel after that, but my 25 round trips a year won’t be on Southwest if they make these changes.
I assume this survey is random and not to all cardholders? I have the Southwest priority card and heard nothing from either Chase or Southwest.
I have been a credit card holder and RR traveler since 2001 with SWA out of PVD. Yes, they “own” PVD but with non stop flights to maybe 5 cities.
With all their changes I read about, my loyalties will also change. Their customers will be like dominos, they will all fall away.
SWA will be just like every other airline!! I am waiting for Allegiant Airlines to charge for using the on board lavatory!!! Then, every other airline will be doing the same… more revenue!!
@David Miller, I imagine Jay means he lives close to Love Field in Dallas. Southwest is, by far, the biggest player there.
Every single time corporate people try to fix something that is not broken It turns into a disaster. I have always respected Southwest Airlines Boarding procedures. The greed mongers are going To truly destroy a good thing.
I’m ambarrased to say $145.00 fee once a year to have the Chase/ Southwest card. When I originally got it, I had no credit history and used it as a way of getting that. I fly once or twice a year but not enough to enjoy any of the perks. Those 7,500 anniversary points aren’t enough to get you anywhere one way. The constant bombardment of getaway deals for $45.00s turn into $300.00 of four hundred dollars once you try to book your flight. I was one of the people who got screwed in Christmas 2022. I had to pay for a hotel in Miami for four nights, in excess of $1000.00s and had to pay $600.00 to fly home to the west coast on another carrier. I only got reimbursed $333.00 after the federal government made Southwest refund cancelled flights.
I am a frequent flyer with Southwest and a card holder and am not happy at all with the changes. I talked recently with other passengers who also indicated they to did not like the changes. I can only assume the large group of people you talked to that “want” it are the b & c loaders who do not pay for pre-board, and why not, they are NOT-WILLING to pay more money to pick a better seat. Why pick o. Us if we are. It is our money let us spend it our way.
Like everything else, the few ruin things for the many. Requiring medical documents from your Doctor and paying the early bird fee as well for early boarding will reduce the nonsense. And no saving seats. My flight last week had a husband and wife saving two row (6 seats) for their children. New motto… open seating. You save seats, you walk to your destination.
I was with Airtran until they were absorbed by Southwest, and then became a Southwest flyer. SWA worked for our family living in the Midwest due to the lower overall costs, free checked bags, and relative ease of canceling or changing tickets when plans changed. We had the SWA card and it worked for us.
Now that we live in the PacNW, our kids are older, and we’re more schedule conscious, we’ve moved to Alaska… And we’re not going back. Non-stop flights to the Midwest, red-eye flight availability if we want to overnight it, 1 free checked bag with the card, better food selections, assigned seating, and in most cases, cheaper flights. We picked up lounge access since we frequently fly out of SEA, and it’s been a nice way to relax and grab a snack before our flights.
I’ll still keep my SWA card and charge the occasional thing, but as for flying like we used to on Southwest? No thanks.
80 percent of SW customers prefer assigned seating? They certainly didn’t ask their A-list members like me. Priority boarding and seat choice is the main perk for A-listers. Without that… why would I fly exclusively on SW, 25+ flights per year as I have for over 15 years? They are abandoning their customer base.
I find it interesting to see people say they love the sheep to slaughter boarding process of SW. I have asked other people in line every flight I’ve taken for the last two years (2 – 4 flights per month ) and could not find one single person who likes their awful boarding process.
Letting us purchase the seats we want is far superior to what they do. Their process allows all the medical miracle liars to jump the line at zero cost while I pay $50 or more to cross my fingers and hope I get a better number.. it’s archaic and dumb.
I hadn’t heard they were thinking about messing with our card benefits and I don’t see why they would. They stand to make way more money charging for seats than hoping a handful of people will “upgrade” at the last minute.
To the people saying b and c boarders are too cheap – only so many people get the dubious “honor” of paying out the nose to get a better number. You can only have 60 a boarders. Then it’s families. No one can blame anyone who hates being stuck in the middle or at the back every time they fly.
Just don’t touch the CP!!
@Dana Jenkerson you have always had a choice when you fly to choose to pay for your seat with another airline. So why do you want Southwest to turn into just another money grubbing carrier that nickel and dimes their Customers because they can. I have been on at least 8 flights over the past few months and on every one of them I heard Customers say they are sad to learn of the changes being proposed. There were numerous Customers who expressed that exact concern to the Flight Attendant as they were boarding. And again, if the boarding process does not work for you there are others out there. Keep in mind, however, they still board by groups, 1 ,2, 3 etc. and then you can watch as they try to find row 23 at the front of the aircraft. And, that seat you paid extra for, wait for it if you should be delayed arriving at the gate for any reason and they have given away that seat. Too bad for you. It is the whiners and the screamers who think they are more important than anybody else who make things a mess for everyone else.
How dare people complain about people who prebpoard there are other medical reasons people preboard beside s being in a wheelchair. How dare they snub their noses at people who preboard and are not in wheel chairs how dare they.
American says… Yep!… you are right on. I don’t know where these surveys are supposed to be coming from because as a frequent Southwest flier I know people DO like the boarding process the way it is. The people who say they want the changes aren’t going to fly Southwest anyway so why make the changes other than Elliot wants money for their investment in SW.
I know of no surveys asking flyers what they prefer and I have never heard of anyone having taken such a survey so I don’t know where these are coming from. You would think that they would be sent to their (SW) frequent flyers if such a survey existed. R
As you stated if they don’t like the way things are at Southwest, they have other options – which I hope they use. They do not appreciate the SW culture, the efficiency or ease in making and sometimes canceling or having to change flight plans. Let them fly on airlines that treat their passengers like puppy doo doo if that’s what they prefer. Southwest people LUV their jobs and that transfers down to how they treat passengers. Everything about Southwest is easy and simple. They don’t need to fix what isn’t broke.
We make no less than four flights a month and quite frankly prefer to fly Southwest than use the million + miles I have on Delta!
When, if at all, does this go into effect? I have no problem with boarding the way it is now. I use a wheelchair. Will the boarding procedure change for handicapped? Do we need to provide proof?
I also use a wheelchair with a cane and handicapped plaque. I also have the SWA/Chase credit card. I like SWA and the open seating plan now. If it isn’t broken why fix it. SWA will lose me as a customer if the new plan goes into effect. Where is the survey?
This is terrible.We love SW.
Now on top of it all Chase wants to increase annual fee. Is any of them even reading what we are saying?
Bro is just making stuff up @Jay Reams where do you pull this “86%” number…? LMAO.
Just taking with people in line to board my past ~5-6 southwest flights in the past couple months…it’s clear to see very few brand loyalists are actually in favor of the seating change. Most people don’t like it in general. We love Southwest for what it is – and no, we won’t be going to Frontier or Spirit.
Delta will be my first choice as an alternative next year if the credit cards get nerfed – their medallion status match is a decent way to try and offramp from A-List right now.
@ Hashi “…if they don’t like the way things are at Southwest, they have other options…”. Well, you may have to take your own advice if the changes move forward. I dislike Southwest currently for all of the reasons you luv them. I can’t wait for these changes to take place so that Southwest can become an option to consider.
I have traveled SW exclusively for many years and enjoyed every aspect of the airline. Having a back problem an unable to walk
the concourse, I have been in a wheelchair and treated very kindly. If this ceases I’m afraid I will have to make other arrangements. Please continue to help the disabled an elderly.
I’m A List preferred with Southwest and a Chase Southwest card holder. We charge everything every month on the Chase card and pay it off every month. We do it obviously for the points. If they reduce points I’ll start looking. I fly tomorrow and I am A1. As usual with Southwest A1 really means A20 or later because of all the wheel chair scammers who magically are healed in flight and can walk off with no problems. I’m about at the end of the road with Southwest. I’ve been brand exclusive to them except for international flights and I just feel like they continually over look their most loyal customers.
I agree with Hashi, I haven’t taken any survey regarding this change which will put SW, in my opinion, in line with all the other crappy airlines with the assigned seating. I have never had a problem with the way SW is currently handling it. It just comes down to time management, just make sure you check in 24 hrs from your flight time and most of the time you shouldn’t have a problem. I have never been worse than a high “B” group. I usually sit in the exit rows or the back and I usually get the seat I want. It’s unfortunate that has to change. I also have a SW credit card. We’ll have to see how they’re going screw that up too. Nothing’s broken, don’t need to fix it!!!
SW says there is a survey they put out that 86% of SW customers do not want open seating. Every longtime SW member I know, (myself included) never received this mystery survey. It is simply propaganda for them to gut the airline. I am so disappointed. SW was the best by a mile and now will just be another airline. I have no problem paying, but I want open seating.
I will wait and see what changes are actually made before proclaiming hysterically that “the sky is falling”. All the people who say they will leave SW because they will assign seats are going where? To another airline that assigns seats one way or another! I care more about flight schedule than where I sit, plane takes everyone to same final destination. Free bags are plus on SW too.
I will admit that if changes to credit card benefits and if direct flights change, then I would consider options like Alaska with their companion fare.