Latest news with #SouthwestRapidRewards
Yahoo
4 hours ago
- Business
- Yahoo
Southwest Airlines credit cards have new annual fees — are these cards still worth it?
The Southwest credit cards were recently revamped to include higher annual fees and various updates to card benefits. It's never fun to hear about annual fee increases, which is why we wanted to take a look at the Southwest cards to see if they're still worth it for certain travelers. (Hint: They're still worth it for many Southwest loyalists, especially with the new Southwest bag policies.) Southwest credit cards With the recent Southwest credit card revamp, the three personal Southwest cards had their annual fees increased. However, Southwest cards may still be worth it if you want a free checked bag or one of the other card benefits, such as a 10,000 Companion Pass qualifying points boost each year. Southwest Rapid Rewards® Plus Credit CardSouthwest Rapid Rewards® Priority Credit CardSouthwest Rapid Rewards® Premier Credit CardHow do you know if a Southwest credit card is worth it for you? The most straightforward way to calculate the value of a Southwest credit card is to explore its benefits and see if it can provide you with enough value to more than offset the annual fee. For example, look at the welcome offers and rewards rates on the different Southwest cards and see how much value you can get from them. Research the different benefits, such as getting a free checked bag, and see how they may align with your upcoming travel plans. Keep in mind that you may not get value from every card benefit. That's OK as long as you still receive enough value from other perks to offset the annual fee. Breaking down Southwest credit card benefits This isn't a complete list of every benefit available on Southwest credit cards, but it will give you an idea of how much value these cards can provide. Welcome offer Credit card sign-up bonuses are typically one of the best ways to offset annual fees, at least for the first year or two. For example, a welcome bonus of 50,000 Southwest Rapid Rewards points is worth about $600, according to our Southwest points valuation. Rewards rate All three Southwest consumer credit cards provide elevated rewards on Southwest Airlines purchases and bonus points in a few other categories. You can earn valuable points on common expenses if the spending categories align with your everyday purchases. Related: Best rewards credit cards Free checked bag The Southwest cards provide a free first checked bag for you on Southwest flights. That's a potential savings of $35 on each one-way flight. If you were to take two round-trip flights in a year, you could save $140 on bag fees. In addition, this perk extends to up to eight other passengers on the same reservation, providing opportunities for even more savings. Seat selection Along with other changes, Southwest is ending its open seating policy, making the seat selection benefits on the Southwest cards all the more valuable. The best perk here is on the Southwest Rapid Rewards Priority Card, which lets you choose a complimentary Preferred seat when booking. This could be especially useful if flying on a basic fare with no seat selection benefits. Anniversary points Depending on the Southwest card, you'll receive 3,000 to 7,500 anniversary points each year. Using our valuation, those points are worth between $36 and $90, which is a simple way to help offset your annual fee. No foreign transaction fees You don't have to pay foreign transaction fees on the Southwest consumer cards, saving you about 3% on any foreign charges you make, including purchases in other countries. This benefit is generally only important if you plan to travel abroad. Related: Best credit cards with no foreign transaction fees Companion Pass qualifying points boost Each card provides 10,000 Companion Pass qualifying points each year. This is important for anyone trying to earn a Companion Pass, which is one of the best benefits Southwest offers. The Companion Pass essentially lets you add a free ticket (plus taxes and fees) to any Southwest flight. So, for the often low cost of paying the taxes and fees, you can travel with a friend or family member to any Southwest destination, including other countries. A-List tier qualifying points Two of the Southwest consumer cards offer A-List tier qualifying points for every $5,000 spent: Southwest Rapid Rewards Premier: Earn 1,500 Tier Qualifying Points toward A-List status for every $5,000 spent. Southwest Rapid Rewards Priority: Earn 2,500 Tier Qualifying Points toward A-List status for every $5,000 spent. You need to fly 20 qualifying one-way flights or earn 35,000 tier qualifying points in a calendar year to earn A-List status. A-List status benefits include complimentary seat selection when available, priority boarding, a free checked bag, same-day standby, a dedicated A-List member phone line, and more. Southwest credit card pros and cons Pros Generous welcome offers Free checked bag Anniversary points Can help earn the Companion Pass No foreign transaction fees Cons Annual fees Best for frequent Southwest travelers No premium travel benefits Southwest credit cards are worth it for … Frequent Southwest travelers Southwest credit cards make the most sense if you: Frequently fly Southwest Enjoy flying Southwest Live near a Southwest airport hub, such as Dallas (DAL), Baltimore (BWI), or Denver (DEN) These cards don't make as much sense if you don't fly Southwest often or have limited opportunities to use the travel rewards and benefits. Anyone who can take advantage of the rewards and benefits There are always exceptions to the rule, meaning you can still get value from Southwest cards even if you don't fly Southwest often or don't live near a major Southwest hub. For example, if you have any upcoming trips planned where it may make sense to fly Southwest, it could be worth signing up for a Southwest card. Even if you only plan to fly Southwest a few times per year, having one of these cards could be worth it. Two round-trip flights for a family of four could easily cover the annual fee in savings on bag fees alone. Read more: Are travel credit cards worth it? Alternative cards to consider Chase Sapphire Preferred® Card Why this is a good alternative: You miss out on all the specific Southwest benefits, like a free checked bag and anniversary points, with the Chase Sapphire Preferred, but you can access more flexible rewards. You don't have to be a frequent Southwest traveler for the Sapphire Preferred to make sense; you can play the field with whatever airline makes sense for your trips. In addition, you can transfer your points to Southwest if it makes Sapphire Reserve® Why this is a good alternative: The Chase Sapphire Reserve earns the same flexible rewards as the Sapphire Preferred and has the same transfer partners, including Southwest Airlines. In addition, the Sapphire Reserve also provides multiple premium benefits, including airport lounge access and a $300 annual travel credit, that you won't find on the Southwest credit airline credit cards If Southwest doesn't make sense for your situation, consider other airline credit cards from carriers like United and Delta: The New United℠ Explorer Card: Provides a free checked bag and priority boarding privileges, as well as two one-time United Club passes each anniversary year. The New United Club℠ Card: Provides two free checked bags and a United Club membership. Delta SkyMiles® Gold American Express Card: Provides a free checked bag on Delta flights, a 15% discount on eligible Delta award flights, and priority boarding. Delta SkyMiles® Reserve American Express Card: Provides a free checked bag on Delta flights, a 15% discount on eligible Delta award flights, priority boarding, an annual companion certificate, and at least 15 Delta Sky Club visits per Medallion Year. Southwest credit cards FAQs How much is 50,000 points worth on a Southwest credit card? We value Southwest points at about 1.2 cents per point, which means 50,000 Rapid Rewards points would be worth about $600. What are the advantages of having a Southwest Airlines credit card? The main advantage of having a Southwest Airlines credit card is that you get a free checked bag on Southwest flights. Eligible cardholders and up to eight additional passengers on the same reservation receive their first checked bag for free. Considering it typically costs $35 for a checked bag, that's potentially a lot of savings on bag fees. Which credit card is best for Southwest Airlines? These are the best credit cards for Southwest Airlines: Chase Sapphire Preferred® Card: Best general travel card Southwest Rapid Rewards® Plus Credit Card: Best for a low annual fee Southwest Rapid Rewards® Priority Credit Card: Best for annual Southwest credit Southwest Rapid Rewards® Premier Credit Card: Best for frequent Southwest flyers What is the Southwest Companion Pass, and how do I get it? The Southwest Companion Pass is a benefit you can earn by flying 100 qualifying flights or earning 135,000 Companion Pass qualifying points in a year. The pass lets you add a friend or family member to your Southwest flight for free, plus the cost of any taxes or fees. One of the easiest ways to work toward earning the Southwest Companion Pass is to sign up for a Southwest credit card with a large welcome bonus. Earning the pass means you get it for the rest of the year in which you earned it and the entire next calendar year. Are the benefits of a Southwest credit card worth the annual fee? It depends on the card and how frequently you fly, but the benefit of getting a free checked bag could provide more than enough value to offset your annual fee. On most one-way fares, Southwest charges $35 for a checked bag. So, seven flights in a year could offset the fee on the Southwest Rapid Rewards Priority card, and you would need fewer flights for the other Southwest consumer cards. Related: Best credit cards with no annual fee Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to the Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
USA Today
26-06-2025
- Business
- USA Today
Airlines and cruise lines love a partnership. Is that good for your wallet?
Travelers can book much more than just flights through an airline – including vacations at sea. Flyers may find a range of add-ons for other parts of their trip available through their carrier, from rental cars to hotels and even cruises. 'The open secret in the flight industry is that most of the money is made outside of flights,' Scott Keyes, founder of Going, told USA TODAY in an email. Co-branded credit cards, commissions on cruises, insurance and other extras often represent more revenue than the slim earnings on airfare, so the companies try to entice customers to book more than just their standard services. 'After all, they know you're traveling so there's a good chance you'll book, and they can take the first crack at getting your business before another travel company does,' he added. Here's what to know about booking a cruise through an airline. Which airlines sell cruises? 'Virtually all the major U.S. airlines have cruise line partnerships, from full-service carriers like Delta and United to budget airlines like Spirit and Frontier,' Keyes said. Those include: The programs feature the airline's branding but are typically powered by third-party cruise sellers, according to Sally French, Travel Expert at NerdWallet. 'Travelers can browse itineraries, compare cruise lines and book sailings,' she said in an email. Keyes noted that the carriers are not operating the cruises, nor are they chartering ships specifically for their customers. What are the pros of booking a cruise through an airline? Keyes said the main benefit is earning frequent flyer miles on the purchase. 'That is in addition to any miles you'd earn from your credit card, and sometimes airlines will offer credit towards elite status as well,' he said. Airlines could offer promotions that increase the return on investment, as well. 'For example, you might earn thousands of Southwest Rapid Rewards points or Delta SkyMiles simply by booking your next cruise through the airline's site, without paying anything extra over what the cruise would cost if you booked directly,' French said. Travelers may also be able to redeem miles while booking, she added, and find special offers for frequent flyers. What are the cons of booking a cruise through an airline? There can be drawbacks to the arrangement. 'Don't be seduced by the prospect of bonus points/miles, because often the prices aren't necessarily better and the points earned can be minimal,' French said. 'If you're looking to actually spend your airline's frequent flyer miles on a cruise, these tend to be a worse redemption than spending those points on flights.' In fact, Keyes said travelers will typically find the best overall cruise price by booking directly with the cruise line since they can pass along savings that would have gone to the airline as commission. Travelers may also lose out on exclusive offers or loyalty benefits available through the cruise operator, French added, and would have to deal with the third-party provider if something goes sideways. 'That extra layer can slow down problem resolution,' she said. Can I book flights through a cruise line? Many cruise lines separately allow passengers to bundle flights with their sailing. Passengers may find slightly different airfares than they would elsewhere, but that's not the primary benefit. 'The main perk of booking your flight through the cruise line is in case of a travel disruption, the cruise can help arrange an alternate flight to meet the ship at the next port,' Keyes said. 'If you (booked) the flight on your own, you're on your own.' Contributing: Zach Wichter, USA TODAY
USA Today
26-06-2025
- Business
- USA Today
Yes, you can book a cruise through your airline. But should you?
Travelers can book much more than just flights through an airline – including vacations at sea. Flyers may find a range of add-ons for other parts of their trip available through their carrier, from rental cars to hotels and even cruises. 'The open secret in the flight industry is that most of the money is made outside of flights,' Scott Keyes, founder of Going, told USA TODAY in an email. Co-branded credit cards, commissions on cruises, insurance and other extras often represent more revenue than the slim earnings on airfare, so the companies try to entice customers to book more than just their standard services. 'After all, they know you're traveling so there's a good chance you'll book, and they can take the first crack at getting your business before another travel company does,' he added. Here's what to know about booking a cruise through an airline. Which airlines sell cruises? 'Virtually all the major U.S. airlines have cruise line partnerships, from full-service carriers like Delta and United to budget airlines like Spirit and Frontier,' Keyes said. Those include: The programs feature the airline's branding but are typically powered by third-party cruise sellers, according to Sally French, Travel Expert at NerdWallet. 'Travelers can browse itineraries, compare cruise lines and book sailings,' she said in an email. Keyes noted that the carriers are not operating the cruises, nor are they chartering ships specifically for their customers. What are the pros of booking a cruise through an airline? Keyes said the main benefit is earning frequent flyer miles on the purchase. 'That is in addition to any miles you'd earn from your credit card, and sometimes airlines will offer credit towards elite status as well,' he said. Airlines could offer promotions that increase the return on investment, as well. 'For example, you might earn thousands of Southwest Rapid Rewards points or Delta SkyMiles simply by booking your next cruise through the airline's site, without paying anything extra over what the cruise would cost if you booked directly,' French said. Travelers may also be able to redeem miles while booking, she added, and find special offers for frequent flyers. What are the cons of booking a cruise through an airline? There can be drawbacks to the arrangement. 'Don't be seduced by the prospect of bonus points/miles, because often the prices aren't necessarily better and the points earned can be minimal,' French said. 'If you're looking to actually spend your airline's frequent flyer miles on a cruise, these tend to be a worse redemption than spending those points on flights.' In fact, Keyes said travelers will typically find the best overall cruise price by booking directly with the cruise line since they can pass along savings that would have gone to the airline as commission. Travelers may also lose out on exclusive offers or loyalty benefits available through the cruise operator, French added, and would have to deal with the third-party provider if something goes sideways. 'That extra layer can slow down problem resolution,' she said. Can I book flights through a cruise line? Many cruise lines separately allow passengers to bundle flights with their sailing. Passengers may find slightly different airfares than they would elsewhere, but that's not the primary benefit. 'The main perk of booking your flight through the cruise line is in case of a travel disruption, the cruise can help arrange an alternate flight to meet the ship at the next port,' Keyes said. 'If you (booked) the flight on your own, you're on your own.' Contributing: Zach Wichter, USA TODAY
Epoch Times
27-05-2025
- Business
- Epoch Times
Southwest Airlines Ending Free Checked Bags Policy for Most Customers
Southwest Airlines will begin charging baggage fees for most passengers starting on May 28, marking a first in the airline's history. Southwest told The Epoch Times by email that it will charge $35 for a first checked bag and $45 for the second on flights booked or voluntarily changed on or after May 28. The checked baggage fees will apply to customers flying on Southwest's Basic, Wanna Get Away Plus, and Anytime fares, according to the airline's updated Customers traveling on Southwest's Business Select fares and Rapid Rewards A-List Preferred Members will continue to receive two free checked bags, subject to weight and size limitations. The airline also stated that A-List flyers will receive their first checked bag for free, while Southwest Rapid Rewards credit card holders will be credited for one checked bag. Southwest first Related Stories 4/24/2025 3/11/2025 Aside from imposing baggage fees, the airline said it will also introduce 'a new Basic fare' that will provide a lower-cost option with less flexibility for customers. Southwest also revised how Rapid Rewards points are earned. Customers on Business Select fares will earn more points, while those on Wanna Get Away and Wanna Get Away Plus fares will get fewer points. This move is part of Southwest's In addition to assigned seating, the airline also planned to introduce premium seating options, with a third of its seats offering up to five inches of additional legroom for a premium fare. Southwest's leadership has framed these changes as a necessary step to enhance revenue and improve its financial performance while maintaining customer satisfaction. 'We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don't compete for today, and return to the levels of profitability that both we and our shareholders expect,' Bob Jordan, the airline's president, said in the 'We will do all this while remaining focused on what's made us strong—our people and the authentic, friendly, and award-winning customer service only they can provide.' Earlier this year, Southwest slashed 1,750 jobs—or 15 percent of its corporate workforce—marking an unprecedented move in its 53-year history. The airline The job cuts targeted primarily 'corporate overhead and leadership positions,' including senior leadership and director levels. Southwest stated that 11 senior leadership positions—representing 15 percent of its senior management committee—will be eliminated as part of the company's restructuring. Chase Smith and Tom Ozimek contributed to this report.
Yahoo
12-03-2025
- Business
- Yahoo
Southwest is eliminating free checked bags — Here's how you can still get the perk
Southwest Airlines announced it will no longer offer two free checked bags for every passenger starting May 28, 2025. The airline will only allow one free checked bag to Rapid Rewards A-List Preferred members and passengers on Business Select fares. Luckily, there's another way to secure a free checked bag: You'll get the perk as a Southwest credit cardholder. But that's not all these cards offer. In fact, now is one of the best times of the year to consider a Southwest credit card. Here's how you can choose the right Rapid Rewards card for your travels and what to know ahead of the policy change:Southwest's 'Two bags fly free' policy has long been a major money-saver for frequent Southwest flyers — especially when two checked bags on a domestic flight with other airlines could cost as much as $100 one-way. You do still have some time to take advantage of the perk if you're flying Southwest in the near future. The airline will not charge for checked baggage for flights booked before May 28, 2025. The airline hasn't yet given details on the cost you'll pay to check your first or second bag after this date. The checked baggage cost is just one of several changes Southwest is rolling out, including a new assigned seating program expected later this year. For one, the airline announced a new Basic fare, making up the lowest-cost tickets starting on the same date, though there aren't yet details on how the new fare will differ from Southwest's existing fare classes. It also recently updated its Rapid Rewards program, changing the number of points you can earn when purchasing different fare types on a qualifying flight. Without A-List boosts, you'll earn 14 points per dollar spent on qualifying flights in Business Select (the same fare class that will still get a free checked bag), 10 points per dollar spent on qualifying flights with a refundable Anytime ticket, 6 points per dollar on Wanna Get Away+ fare, and 2 points per dollar on Wanna Get Away without A-List Preferred Rapid Rewards status or a Business Select ticket, you can still get one free checked bag with a Southwest credit card. If you typically travel with a lot of luggage, keep in mind that you'll now only get your first checked bag free as a cardholder. We don't yet know exactly what Southwest will charge for baggage, but you'll likely save a significant amount on baggage fees if you fly with the airline a few times each year. As a comparison, JetBlue charges $35 off-peak and $40 during peak season flights, while American Airlines charges $40 for your first checked bag on domestic flights — though costs can differ depending on status and fare class. Assuming Southwest's future baggage fees are similar to other U.S. airlines, this benefit can quickly help you recoup the annual fee cost of a Southwest Rapid Rewards card. If you prefer flying Southwest and want to prepare for the changes coming later this year, now is a great time to consider opening a Southwest Rapid Rewards card. After you're approved for any of Southwest's three consumer credit cards and spend at least $4,000 within the first three months, you'll earn a valuable two-part welcome bonus: Companion Pass through Feb. 28, 2026 30,000 bonus points You must fly 100 one-way qualifying flights or earn 135,000 Companion Pass qualifying points in a calendar year to earn the pass otherwise. With it, you can bring a companion along with you on Southwest flights for free (not including taxes and fees). To earn the limited-time Companion Pass bonus, you must apply by March 31, a look at each of the Southwest Rapid Rewards cards to help determine which is right for you: Why we like it: The Rapid Rewards Plus card has the lowest annual fee among Southwest's credit cards at $69 and offers slightly lower rewards on Southwest purchases. But it still has some valuable benefits alongside the free checked bag perk starting in May. You'll get access to EarlyBird Check-Ins twice each year; 3,000 points on your cardmember anniversary; 10,000 Companion Pass qualifying points each year; and 25% back on eligible in-flight purchases. Combined with rewards you can use toward future flights, this card can make a great option if you prefer flying Southwest but aren't a frequent we like it: The Rapid Rewards Priority card is the most premium Southwest credit card with a $149 annual fee — though it's also the only card to offer a $75 annual travel credit for Southwest spending. You'll get some elevated perks, including 7,500 points each cardmember anniversary and four Upgraded Boardings (positions A1-A15) per year. Otherwise, the Rapid Rewards Priority card is similar to the Rapid Rewards Premier: 1,500 tier-qualifying points for every $5,000 you spend; 10,000 Companion Pass qualifying points each year; 25% off in-flight purchases; and no foreign transaction fees. This card is a solid option if you fly frequently and Southwest is your preferred airline. You can quickly recoup half the card's fee when you use the annual travel credit alone. Plus, Upgraded Boarding costs typically start at $30; if you fly at least four times each year and use this annual benefit, you can get more than $100 in added we like it: With a Rapid Rewards Premier card, you'll boost your rewards on Southwest purchases to 3x per dollar for a slightly higher $99 annual fee. This card also has some increased benefits, like 6,000 points each year on your cardmember anniversary and the ability to earn 1,500 tier qualifying points toward A-List status for every $5,000 in purchases. Beyond that, you'll get the same 10,000 Companion Pass qualifying points annually, 2 Early Bird Check-Ins, and 25% off in-flight spending as the Rapid Rewards Plus. The Rapid Rewards Premier also charges no foreign transaction fees, so it could be a better option if you plan to travel abroad with your Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to the Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
