Since Southwest Airlines announced its re-vamped Rapid Rewards program, it has taken a lot of flack both from long time program members as well as in the press.  Undeservedly so, in my opinion. 

Southwest needed to do something badly with that program and orient it towards the customer of tomorrow as opposed to the customer of the early 1990s.  These changes do that and while, yes, some people who have been reaping the rewards (pun intended) from short haul flights will do a bit worse, customers who will drive their business going forward will do a bit better. 

It’s all about rewarding those who spend more and travel more.  It’s scaled to mostly reward the people who are driving profits the most and that is what a rewards programs should do. 

I do hope that Southwest holds its course on this program and resists the temptation to change or revise their new plan.  Doing this now corrects a strong imbalance that has existed for some time and ensures that Southwest is competing nationally when it comes to this kind of program.  People will settle down in time and members will buy into the changes but it will take time as no one likes change.

Filed under: Frequent Flier by ajax