Southwest Airlines' loyalty program is fairly generous, providing tangible benefits to people who hit the two highest levels.
The program is also unusual: Unlike full-fare carriers like Delta, American, and United Airlines, Southwest does not offer business or first class. So the discount airline can't offer upgrades to its most loyal members because it has nowhere on the planes to upgrade them.
Southwest Airlines (LUV) -) also can't offer bonuses like free checked baggage because the airline does not charge for bags in the first place.
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So instead of offering perks like the ones that are common with its rivals, Southwest has put its own spin on loyalty benefits with its Rapid Rewards program. The airline has three tiers to its program, with all of them offering meaningful perks.
The first tier, A-List, requires a person to fly 25 one-way flights or earn 35,000 qualifying points. People who hit that level get priority boardings, a priority security line at some airports, and a dedicated help phone number among the top perks.
A-List Preferred requires 50 one-way flights or 70,000 qualifying points, and people who hit that level add free internet as well as double points earned (to get to free flights faster).
Southwest's top perk is its Companion Pass. To earn that -- where a person of your choice can fly with you free -- you need 100 one-way flights or 135,000 qualifying points. Few people reach that lofty bar, but now Southwest wants to offer a taste of the Companion Pass to anyone willing to take two flights with the airline by Sept. 30.
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Southwest Airlines offers a big deal
Southwest Rapid Rewards members got an email that offers them a really inexpensive way to earn a Companion Pass. It's not a full-year offer, but the terms are very generous.
To claim the Companion Pass, all you have to do is:
- Register now; then purchase one round trip or two one-way flights by 8/30.
- Travel by 9/30.
If you complete those terms -- and any Southwest flights qualify -- you get a Companion Pass that's good from Jan. 8 through March 2024. That's two months where the person you choose (you can pick only one person) flies free.
There are some small caveats. First, you still have to pay taxes and fees for the additional person who flies with you. Second, the original qualifying flights cannot be purchased with Rapid Rewards points.
"A qualifying flight includes revenue flights paid entirely with dollars, Southwest LUV Vouchers, gift cards, or travel funds, and with no portion of the purchase price paid for with Rapid Rewards points," the airline said on its website. "Qualifying flights must be booked after registering for the promotion and before 11:59 p.m. CDT on Aug. 30, 2023."
Southwest has seen the market change
While Southwest has built back its business to prepandemic levels, the company has acknowledged that people are flying for business less often.
Leisure travel has picked up, with the company expecting its summer to be very strong, according to comments from Chief Commercial Officer Ryan Green, who spoke during the company's second-quarter-earnings call.
"Moving to the third quarter, we're seeing leisure booking and yield strength continue throughout the summer travel season with July revenue, which is essentially booked, expected to also be a record. Of course, much of the post-Labor Day booking curve comes in closer but we're very encouraged by the response to our June fare sale for off-peak fall travel and what that suggests for continued leisure demand," he said.
The Companion Pass offer suggests that the company might see some lowered demand after the holiday season. That would make sense as leisure travel slows in the winter until March, when many schools have break periods and families take more trips.
