Southwest Airlines is revamping its frequent-flier program with changes designed to nudge customers into buying higher-priced tickets by letting them earn bonus flights faster.
Southwest says passengers will be able to redeem points for any flight without blackout dates. Its credit-card holders will be able to redeem points for international flights on other airlines.
CEO Gary Kelly says the overhaul will bring in "several hundred" millions of dollars in extra annual revenue within three or four years.
The new program begins March 1.
Since its start in 1987, Southwest Airlines Co.'s Rapid Rewards has been perhaps the simplest loyalty program in the airline industry. In most cases, customers earned one credit for every flight. Miles and fares didn't matter. But customers complained they weren't rewarded for longer trips, and credits expired in two years no matter what. Now, Southwest will extend the credits if there is some activity on the account.
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The changes will make Southwest's loyalty program more complicated but also more geared to its best customers - business travelers who pay high fares. Customers will earn six, 10 or 12 points for every dollar they spend depending on whether they pick the cheapest, middle or highest fare.
LOCAL ANGLE
Southwest is the top choice of passengers at Tucson International Airport, used by nearly a third of the 3.6 million travelers who flew into or out of TIA in 2009.
Southwest also carries more Phoenix passengers than any other airline, The Arizona Republic says.