Southwest Airlines Credit Card Review

Credit: southwest.com

Southwest Airlines - Excelling in Customer Service

Is the Southwest Airlines Credit Card the Right Choice?

 The Southwest Airlines credit card has to be one of the best airline credit card rewards programs on the market.

First of all, they claim to be the fastest earning rewards program (and I think they just might be, we will look into that below).

Secondly, they are backed by  one of the best airlines. Southwest Airlines also focuses both on inexpensive flights to major connecting airports, as well as enjoyable flight service

The airline rewards industry has become extremely competitive. The Southwest Airlines Rapid Rewards credit card, with its recently revamped program, appears to be trying to stand apart.

Here, we will take a behind the scenes look at Southwest Airlines customer service philosophy and the benefits and redemption options reserved for their Rapid Rewards program members. At the end I'll review the benefits of the Southwest Airlines credit card from Chase Bank in more detail.

 

Southwest Flight Philosophy

 

 Founded in 1971 by Herb Kelleher (58 years after the Wright brothers first took to the sky), Southwest Airlines primary advantage was that it used a point-to-point transit model as opposed to the more costly spoke-and-hub model most of the other airlines focused on at the time.

While this limits their flight destinations and excludes some markets, it enables Southwest to focus on those flights that are most profitable – and at the same time remaining much more competitive in those markets.

 So will you lose any quality of service by flying on Southwest? Too often in corporate America, the word “cheaper” means, well ,“cheaper”. Thankfully Southwest Airlines' employees have adopted founder Herb Keheller's flamboyant personality. Repeatedly, customers use words such as “warm” and “helpful” to describe their experience with Southwest Airlines flight personnel

 They also do not have a first class section or much of a business section, choosing instead to focus on giving each customer “first class” service. A quick search on Youtube reveals multiple videos of their flight attendants aptitude for adding a “song and dance” to their routine to brighten up their travel-weary passengers. (Presumably, these videos were taken before the stewards had passengers put away their electronics.)

 I have personally enjoyed their service on a business flight I took with Southwest Airlines to attend a conference in Las Vegas. While my flight attendant neither sang nor danced, I must say that the service was some of the best I have ever experienced.

 Southwest Airlines Rapid Rewards Program

 The Rapids Rewards program used to be calculated on 16 Rapid Reward credits to one round-trip ticket. One Rapid Rewards credit was worth about 1200 "miles" as calculated by most other airlines.   Basically, that meant that you could get a free flight for about 19,200 miles (Provided there were seats available and your miles had not expired first).

That program was improved in early 2011.  Here is their new Rapid Rewards program with its changes.

Redeeming Rapid Rewards Credits For Flights

Southwest Airlines calculates their rewards redemption value, based on the the dollar amount of the flight. On their website, they provide a simple structure for their three types of tickets.

 Business Select: 120 points per dollar

Anytime: 100 points per dollar

Wanna Get Away:   60 points per dollar

Scenario:
 So, if you are booking a $100 flight (one way), it would require about 24,000 points to book a round-trip Business Select Flight, and only 12,000 points to book a round-trip Wanna Get Away flight. (Most other airlines require 25,000 points for a roundtrip ticket on a flight with blackout dates and other restrictions)

 Now, as part of Southwest Airlines Rapid Reward program redesign there have been some major improvements added. You can now book flights with no blackout dates, and no reserved seat restrictions. Basically, if there is a seat available, you can use your points to book it. (Not many airlines can boast that).

 Also, the points you earn do not expire as long as you earn more points every 24 months from the date of last earning.

Earning Rapid Rewards credits

You can earn points for every dollar you spend on the airfare with Southwest (ie 6 points for every dollar you spend on “Wanna Get Away” fares, 12 for every dollar spent on Business Select flights), or with their partners.

 You can also earn points by having a Southwest Airline's Credit Card....

The Southwest Airlines Rapid Rewards Credit card

Two Types of Southwest Airlines Credit Cards

I actually called Chase credit card customer service and spoke with one of their representatives about the differences between these cards.  Because these are such a new program, their representative (a foreigner) seemed to be having a very hard time explaining the difference between the two.  

I have done some further research, and actually have concluded that the card with the higher annual fee is the better Southwest credit card.  Surprised? The Rapid Rewards Premier card actually gives you an annual bonus of miles each year that is equal to the annual fee you pay.  A definite win in my opinion.

Here's the breakdown on the two cards:

There are two different personal cards offered, the Rapid Rewards Plus and the Rapid Rewards Premier. Both of these cards both earn rewards the same on purchases.  The difference? A couple of things.  The premier card typically has a sweeter promotion for opening the card.  And, if you transfer a balance from another credit card in the first 90 days, the Rapid Rewards Premier will let you transfer up to $15,000, giving 1 point per dollar for the transfer.  The Rapid Rewards Plus caps the points earned for balance transfer at $10,000.

Also, the Premier card gives a nicer yearly bonus, as we will see in a moment.

Points Earning and Redemption

Let's take a quick look at the ability to earn those Rapid Rewards points: You will earn 1 point for every dollar you spend, and 2 points for every dollar you spend on the credit card on Southwest Airfare. (The airfare points are a boon because they are earned in addition to the other points earn mentioned above)

 Now, 1 point per dollar may not seem like much. Especially when you look at some of the competitor cards out there (such as the Capital One Venture) that promise 2 points per dollar.

However, the power of the Southwest Airlines credit card is in the redemption.  The Capital One Venture card redeems 25,000 points for $250 in flight credits.  You could book a $250 airflight on Southwest Airlines for only 15,000 points on a "Wanna Get Away' ticket.

And, to reiterate a point mentioned above, at any given time, Southwest Airlines has a significant number of "Wanna Get Away" fares available.

Yearly Bonus

Each year cardholders receive a bonus lump of miles on their anniversary.  Southwest Airlines Rapid Rewards Plus cardmembers receive 3,000 bonus miles, and Premier members receive 6,000 bonus miles each year. In "Wanna Get Away" credits that's $50  the  Plus members, and $100 for the Premier Cardholders.

"More Rewards"

Cardholders also have access to an exclusive benefit called "More Rewards" that allows users to redeem their rewards points for item such as Hotel Stays, International Travel, Gift Cards and even exclusive experiences and "escapes"

Rapid Rewards customers that do not hold credit cards are restricted to only using their miles on Southwest.

Visa Benefits

If you qualify for a Visa Signature card (Typically credit line of $5,000 or more), there are some additional benefits included by Visa.  This includes a concierge service that could do everything from book last minute reservations at top-ranking restaurants, to helping book travel and  locating lost luggage.  Many Signature experiences are offered for items such as special access at sporting events and exclusive wine country tours.

Additionally, practical benefits such as rental car insurance and lost luggage insurance is also included. (Go to http://www.visasignature.com/benefits for a full list of the benefits.)

The Costs

The Southwest Airlines Rapid Rewards Plus Visa costs $69 per year. The Premier card costs $99 per year. The Annual fee is conveniently charged to the card. The interest rate is typically 14.24% variable APR.

 So is the Southwest Airlines Credit Card worth it to you?

 Will you use the credit card enough? Ok, so 12,000 points is a nice little chunk. And there's that annual fee.  Are you comfortable using your Southwest Airlines credit card for some of those monthly expenses you have? Things like paying the phone bill and buying groceries. Those little purchases add up rapidly throughout the year, and can greatly enhance the number of free flights you take each month. And if you pay your entire credit card balance off at the end of each month on its due date, there won't be any interest charged.

 If it's just a “back up” card, that sits in your dresser drawer, it's not going to earn you many free flights .

Do you frequently fly overseas? The Southwest Airlines Credit Card customers have the ability to book international flights with their Rapid Reward points through their exclusive “More Rewards” program that is reserved for cardholders only. However, that would be a flight other than Southwest

 Does Southwest fly where you fly? Hop on their website, play around with their flight booking tool to look at rates and destinations. Make sure they are offering the flights you are looking for.

 As always, check out the airline program you are interested in, read the FAQs, and most importantly, enjoy your decision. The Southwest Airlines Credit Card has proven to be the correct choice for many traveling people. Hopefully this review helps your decision.

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