Dive Brief:
- Southwest Airlines loyalty members can now use a combination of Rapid Rewards points and cash to book flights, the airline announced Monday. Cash + Points, as the perk is called, launched late last month.
- Members can also combine Rapid Rewards and cash for hotel bookings.
- “This year, we’re continuing our commitment to lean into customer preferences by giving them extra flexibility to make points go further by offering new ways to use their points,” Jonathan Clarkson, VP of marketing at Southwest Airlines, said in a prepared statement.
Dive Insight:
Southwest’s latest rewards changes are part of a broader push to offer Rapid Rewards loyalty members more value and flexibility.
In January, the airline eased A-list and A-list Preferred status requirements, reducing the number of required flights from 25 to 20 and 50 to 40, respectively.
Changes to the loyalty program are just the beginning of Southwest’s heavy investments in customer experience — with “many more on the horizon,” a Southwest spokesperson told CX Dive in an email.
“Backed by more than $2 billion in planned investments, the upgrades include everything from improved self-service options; onboard enhancements, like upgraded WiFi, in-seat power ports, and a refreshed cabin design to come; as well as changes to our award-winning Rapid Rewards program, making it easier to earn tier status,” the spokesperson said.
United Airlines is also boosting flexibility. In March, it became the first U.S. airline to offer its customers the ability to pool points among family and friends.
Customers want greater flexibility from their travel loyalty programs, according to an arrivia report released earlier this year. Customers listed the difficulty or complexity of earning and redeeming miles as one of their top complaints.
