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How much are Southwest points worth in 2023? Here’s the value you can expect to get when you redeem Rapid Rewards points for flights, gift cards, and more<!-- wp:html --><p class="headline-regular financial-disclaimer">Our experts answer readers' credit card questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/personal-finance-editorial-standards#rating-credit-cards" class="not-content-link" target="_blank" rel="noopener">here's how we assess credit cards</a>). In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank" rel="noopener">our partners</a>; however, our opinions are our own. Terms apply to offers listed on this page.</p> <p>Southwest Airlines doesn't offer first or business-class service and has no airline partners to broaden its route network. As a result, <a href="https://www.businessinsider.com/personal-finance/how-to-earn-redeem-southwest-points">Southwest Rapid Rewards</a> has less upside than most frequent flyer programs, but what it lacks in high-end award opportunities, it makes up for with a consistent return on Southwest flights.</p> <p>That consistency is what gives Rapid Rewards points an average redemption value of 1.4 cents each in Personal Finance Insider's most recent <a href="https://www.businessinsider.com/personal-finance/what-are-points-miles-worth-value">points and miles valuations</a>. Read on to see which redemption options you should target and avoid to get the most out of your miles.</p> <p class="headline-regular financial-disclaimer">We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.</p> <h2>Best ways to use Southwest points</h2> <p>Southwest uses dynamic award pricing, so the number of points you need to book a flight is connected to the cash price, but there's some wiggle room. Because of how Southwest prices awards, you can maximize redemption value by using points when the base fare for a flight comprises a relatively small percentage of the total fare, which includes various taxes and fees. This tends to happen on cheaper flights, as well as flights with taxes and fees that are not passed on when booking an award.</p> <h3>Cheap flights</h3> <p>Since taxes and fees are generally fixed for a given itinerary, the base fare represents a smaller percentage of the total fare as the ticket price decreases. For example, consider this flight from San Jose to Las Vegas in February. A one-way Wanna Get Away fare is available for a little under $46 on the later departure.</p> <p class="copyright">Southwest</p> <p>The base fare for this flight is just under $29 (about 63% of the total fare); the remainder is comprised of various taxes and fees.</p> <p class="copyright">Southwest</p> <p>The award price is calculated according to the base fare, and since the base fare is low relative to the total, the award price is also relatively low.</p> <p class="copyright">Southwest</p> <p>You still have to pay the $5.60 9/11 security fee when booking this award, but you're off the hook for the other charges, which add up to almost 25% of the total fare. As a result, you get a redemption value of 1.67 cents per point, which is a little over our high valuation of 1.6 cents for Rapid Rewards points.</p> <h3>Flights with high taxes and fees</h3> <p>While taxes and fees are generally fixed for a given itinerary, they may vary from one itinerary to another. In some cases, higher taxes and fees will increase the total fare without affecting the base fare.</p> <p>For example, consider this flight from Fort Lauderdale to Nassau, Bahamas in January. A one-way Wanna Get Away fare is available for a little under $65.</p> <p class="copyright">Southwest</p> <p>The base fare for this flight is $34 (about 52% of the total fare). The remainder is again comprised of various taxes and fees.</p> <p class="copyright">Southwest</p> <p>Once again, since the base fare is low relative to the total, the award price is also relatively low.</p> <p class="copyright">Southwest</p> <p>You still have to pay the $5.60 9/11 security fee and a $1 Bahamas passenger levy, but the remaining fees disappear when booking an award. This itinerary has both a low base fare <em>and</em> high taxes and fees; as a result, you get a redemption value of over 2 cents per point, which is about as high as you're likely to get from Rapid Rewards.</p> <p>This approach only works if the taxes and fees are <em>not</em> passed on when booking an award. If you have to pay those charges in addition to points, then they don't have the same impact on your redemption value.</p> <h3>Wanna Get Away fares</h3> <p>Southwest offers four fare classes: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select (from least to most expensive). Similar to the examples above, the cheaper Wanna Get Away fares provide the best redemption value because the base fare makes up a smaller portion of the total.</p> <p>For example, here are cash prices for a flight from Denver to Phoenix in January.</p> <p class="copyright">Southwest</p> <p>The base fare for the Wanna Get Away ticket is just over $28 (about 63% of the total), while the base fare for the Business Select ticket is just over $150 (about 85% of the total). That leads to the award prices below.</p> <p class="copyright">Southwest</p> <p>The Wanna Get Away fare has a redemption value of 1.68 cents per point, which is well above our high valuation. Meanwhile, the Wanna Get Away+, Anytime, and Business Select fares have redemption values of 1.53, 1.4, and 1.37 cents per point, respectively. That trend holds across other flights, with the upshot that Wanna Get Away fares are your best bet to maximize redemption value.</p> <h2>Average-value redemption options</h2> <p>One nice aspect of the Rapid Rewards program is that while you're never going to get an amazing redemption value on flights, you're also never going to get far below average.</p> <p>For example, consider this flight from Nashville to Los Angeles around the peak of the holiday travel rush. The one-way Wanna Get Away fare is $323.</p> <p class="copyright">Southwest</p> <p>Alternatively, you could book the same flight as an award for a little under 24,000 points plus the $5.60 security fee. That yields a redemption value of 1.33 cents per point, which is below our average valuation of 1.4 cents per point, but not by much.</p> <p class="copyright">Southwest</p> <p> </p> <p>This example is typical and illustrates how Rapid Rewards offers a more consistent return than most airline programs. The redemption value you get from booking Southwest award flights is reliably high enough that using points is always at least a decent option.</p> <h2>Low-value ways to redeem Southwest points</h2> <p>Rapid Rewards credit cardholders have a variety of additional redemption options through the More Rewards program, but none of them are good ones.</p> <p>For example, the More Rewards menu offers a variety of gift cards and retail items, but the redemption value is below 1 cent per point. Gift cards top out at an abysmal 0.67 cents per point.</p> <p class="copyright">Southwest</p> <p> </p> <p>The More Rewards menu also offers VIP travel packages called Rapid Rewards Access Events. The redemption value of these awards is hard to pin down since the packages include features that aren't for sale publicly. But even if the redemption value is adequate, the opportunities are not. At the time of writing, the landing page lists only two Access Events: one that isn't on sale yet and another that's already sold out.</p> <p class="copyright">Southwest</p> <p>Finally, Southwest used to let Rapid Rewards members redeem points to book international flights on global carriers. Unfortunately, while the Southwest website still lists this as an option, the link to book flights has disappeared. Though the redemption value topped out around 1 cent per point, this was sometimes a useful alternative to paying cash or redeeming other rewards. Hopefully, it will return.</p> <h2>Other valuation factors</h2> <p>Redemption rates aren't the only variable we use to assess the value of points and miles. Here's how the Rapid Rewards program performs across other facets we take into consideration:</p> <p>Expiration policy (+) — Rapid Rewards points don't expire as long as your account remains open and in good standing. That means there's no pressure to redeem until you're ready, which is a great feature for any travel rewards.Award availability (+) — You can use Rapid Rewards points to book any available seat on a Southwest flight, though the cheapest (Wanna Get Away) fares tend to run out when flights are nearly full.Sharing/pooling (-) — There is no complimentary way to share points between Rapid Rewards accounts. You can transfer up to 60,000 points to another member at a cost of 1 cent per point, which is only useful in very limited circumstances (for example, if you need a small number of points right away to book an award).Ease of accumulation (+) — Earning rates for flight activity are good, and you can earn Rapid Rewards points from welcome bonuses and spending on an assortment of <a href="https://www.businessinsider.com/personal-finance/best-southwest-credit-card">Southwest credit cards</a>. You can also transfer points instantaneously from <a href="https://www.businessinsider.com/personal-finance/guide-earning-using-chase-ultimate-rewards-points">Chase Ultimate Rewards</a>® at 1:1, or within a week from <a href="https://www.businessinsider.com/personal-finance/how-to-earn-redeem-marriott-points">Marriott Bonvoy</a> at 3:1.Award change and cancellation policy (++) — You can change and cancel award flights with no fee up to 10 minutes before the originally scheduled departure time. Southwest also makes it incredibly easy to rebook award flights at a lower price when fares drop.Surcharges (+) — Southwest Airlines doesn't add surcharges to Rapid Rewards flights. You'll only pay government-imposed taxes and fees, some of which are waived on award flights as described above. Southwest also doesn't tack on fees for booking awards close to departure or by phone.Route network and partners (-) — Southwest serves over 100 destinations in the US, plus a dozen or so more in Mexico, the Caribbean, and Central America. That covers a lot of ground, but the lack of airline partners means there are no good options to use Rapid Rewards for flights beyond that region.Southwest Companion Pass (++) — The <a href="https://www.businessinsider.com/personal-finance/how-to-earn-the-southwest-companion-pass">Southwest Companion Pass</a> allows you to book a companion into any available seat for only the cost of taxes and fees, and unlike most <a href="https://www.businessinsider.com/personal-finance/best-credit-cards-airline-companion-tickets">companion tickets</a> (which only apply to cash fares), you can use the Companion Pass even when booking with points. It doesn't affect the redemption value of your points directly (since you can add a companion regardless of how you pay), but it inarguably adds value to the Rapid Rewards program as a whole.</p> <p>Having no airline partners means the Rapid Rewards program has limited utility beyond Southwest flights, but it offers consistent (if unexceptional) value on Southwest flights. The lack of a free mileage pooling option is the only other clear negative among these miscellaneous factors, while the Companion Pass and award change policy are standout features.</p> <h2>What to know about Southwest points value</h2> <p>Southwest Rapid Rewards is a utilitarian frequent flyer program: not a good fit for jet setters seeking a high-end travel experience, but favorable to domestic travelers who just want to get from A to B. The <a href="https://www.businessinsider.com/personal-finance/how-to-use-southwest-companion-pass">Companion Pass</a> is a boon to those who travel with others, and the dependable redemption value means you'll never get gouged when booking an award.</p> <p>While it isn't flashy, the Rapid Rewards program should not be overlooked.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/personal-finance/southwest-points-value">Business Insider</a></div><!-- /wp:html -->

Our experts answer readers’ credit card questions and write unbiased product reviews (here’s how we assess credit cards). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

Southwest Airlines doesn’t offer first or business-class service and has no airline partners to broaden its route network. As a result, Southwest Rapid Rewards has less upside than most frequent flyer programs, but what it lacks in high-end award opportunities, it makes up for with a consistent return on Southwest flights.

That consistency is what gives Rapid Rewards points an average redemption value of 1.4 cents each in Personal Finance Insider’s most recent points and miles valuations. Read on to see which redemption options you should target and avoid to get the most out of your miles.

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Best ways to use Southwest points

Southwest uses dynamic award pricing, so the number of points you need to book a flight is connected to the cash price, but there’s some wiggle room. Because of how Southwest prices awards, you can maximize redemption value by using points when the base fare for a flight comprises a relatively small percentage of the total fare, which includes various taxes and fees. This tends to happen on cheaper flights, as well as flights with taxes and fees that are not passed on when booking an award.

Cheap flights

Since taxes and fees are generally fixed for a given itinerary, the base fare represents a smaller percentage of the total fare as the ticket price decreases. For example, consider this flight from San Jose to Las Vegas in February. A one-way Wanna Get Away fare is available for a little under $46 on the later departure.

The base fare for this flight is just under $29 (about 63% of the total fare); the remainder is comprised of various taxes and fees.

The award price is calculated according to the base fare, and since the base fare is low relative to the total, the award price is also relatively low.

You still have to pay the $5.60 9/11 security fee when booking this award, but you’re off the hook for the other charges, which add up to almost 25% of the total fare. As a result, you get a redemption value of 1.67 cents per point, which is a little over our high valuation of 1.6 cents for Rapid Rewards points.

Flights with high taxes and fees

While taxes and fees are generally fixed for a given itinerary, they may vary from one itinerary to another. In some cases, higher taxes and fees will increase the total fare without affecting the base fare.

For example, consider this flight from Fort Lauderdale to Nassau, Bahamas in January. A one-way Wanna Get Away fare is available for a little under $65.

The base fare for this flight is $34 (about 52% of the total fare). The remainder is again comprised of various taxes and fees.

Once again, since the base fare is low relative to the total, the award price is also relatively low.

You still have to pay the $5.60 9/11 security fee and a $1 Bahamas passenger levy, but the remaining fees disappear when booking an award. This itinerary has both a low base fare and high taxes and fees; as a result, you get a redemption value of over 2 cents per point, which is about as high as you’re likely to get from Rapid Rewards.

This approach only works if the taxes and fees are not passed on when booking an award. If you have to pay those charges in addition to points, then they don’t have the same impact on your redemption value.

Wanna Get Away fares

Southwest offers four fare classes: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select (from least to most expensive). Similar to the examples above, the cheaper Wanna Get Away fares provide the best redemption value because the base fare makes up a smaller portion of the total.

For example, here are cash prices for a flight from Denver to Phoenix in January.

The base fare for the Wanna Get Away ticket is just over $28 (about 63% of the total), while the base fare for the Business Select ticket is just over $150 (about 85% of the total). That leads to the award prices below.

The Wanna Get Away fare has a redemption value of 1.68 cents per point, which is well above our high valuation. Meanwhile, the Wanna Get Away+, Anytime, and Business Select fares have redemption values of 1.53, 1.4, and 1.37 cents per point, respectively. That trend holds across other flights, with the upshot that Wanna Get Away fares are your best bet to maximize redemption value.

Average-value redemption options

One nice aspect of the Rapid Rewards program is that while you’re never going to get an amazing redemption value on flights, you’re also never going to get far below average.

For example, consider this flight from Nashville to Los Angeles around the peak of the holiday travel rush. The one-way Wanna Get Away fare is $323.

Alternatively, you could book the same flight as an award for a little under 24,000 points plus the $5.60 security fee. That yields a redemption value of 1.33 cents per point, which is below our average valuation of 1.4 cents per point, but not by much.

 

This example is typical and illustrates how Rapid Rewards offers a more consistent return than most airline programs. The redemption value you get from booking Southwest award flights is reliably high enough that using points is always at least a decent option.

Low-value ways to redeem Southwest points

Rapid Rewards credit cardholders have a variety of additional redemption options through the More Rewards program, but none of them are good ones.

For example, the More Rewards menu offers a variety of gift cards and retail items, but the redemption value is below 1 cent per point. Gift cards top out at an abysmal 0.67 cents per point.

 

The More Rewards menu also offers VIP travel packages called Rapid Rewards Access Events. The redemption value of these awards is hard to pin down since the packages include features that aren’t for sale publicly. But even if the redemption value is adequate, the opportunities are not. At the time of writing, the landing page lists only two Access Events: one that isn’t on sale yet and another that’s already sold out.

Finally, Southwest used to let Rapid Rewards members redeem points to book international flights on global carriers. Unfortunately, while the Southwest website still lists this as an option, the link to book flights has disappeared. Though the redemption value topped out around 1 cent per point, this was sometimes a useful alternative to paying cash or redeeming other rewards. Hopefully, it will return.

Other valuation factors

Redemption rates aren’t the only variable we use to assess the value of points and miles. Here’s how the Rapid Rewards program performs across other facets we take into consideration:

Expiration policy (+) — Rapid Rewards points don’t expire as long as your account remains open and in good standing. That means there’s no pressure to redeem until you’re ready, which is a great feature for any travel rewards.Award availability (+) — You can use Rapid Rewards points to book any available seat on a Southwest flight, though the cheapest (Wanna Get Away) fares tend to run out when flights are nearly full.Sharing/pooling (-) — There is no complimentary way to share points between Rapid Rewards accounts. You can transfer up to 60,000 points to another member at a cost of 1 cent per point, which is only useful in very limited circumstances (for example, if you need a small number of points right away to book an award).Ease of accumulation (+) — Earning rates for flight activity are good, and you can earn Rapid Rewards points from welcome bonuses and spending on an assortment of Southwest credit cards. You can also transfer points instantaneously from Chase Ultimate Rewards® at 1:1, or within a week from Marriott Bonvoy at 3:1.Award change and cancellation policy (++) — You can change and cancel award flights with no fee up to 10 minutes before the originally scheduled departure time. Southwest also makes it incredibly easy to rebook award flights at a lower price when fares drop.Surcharges (+) — Southwest Airlines doesn’t add surcharges to Rapid Rewards flights. You’ll only pay government-imposed taxes and fees, some of which are waived on award flights as described above. Southwest also doesn’t tack on fees for booking awards close to departure or by phone.Route network and partners (-) — Southwest serves over 100 destinations in the US, plus a dozen or so more in Mexico, the Caribbean, and Central America. That covers a lot of ground, but the lack of airline partners means there are no good options to use Rapid Rewards for flights beyond that region.Southwest Companion Pass (++) — The Southwest Companion Pass allows you to book a companion into any available seat for only the cost of taxes and fees, and unlike most companion tickets (which only apply to cash fares), you can use the Companion Pass even when booking with points. It doesn’t affect the redemption value of your points directly (since you can add a companion regardless of how you pay), but it inarguably adds value to the Rapid Rewards program as a whole.

Having no airline partners means the Rapid Rewards program has limited utility beyond Southwest flights, but it offers consistent (if unexceptional) value on Southwest flights. The lack of a free mileage pooling option is the only other clear negative among these miscellaneous factors, while the Companion Pass and award change policy are standout features.

What to know about Southwest points value

Southwest Rapid Rewards is a utilitarian frequent flyer program: not a good fit for jet setters seeking a high-end travel experience, but favorable to domestic travelers who just want to get from A to B. The Companion Pass is a boon to those who travel with others, and the dependable redemption value means you’ll never get gouged when booking an award.

While it isn’t flashy, the Rapid Rewards program should not be overlooked.

Read the original article on Business Insider

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