Update: This offer ends today!
Originally posted on 8/10:
You can now convert select Southwest Travel Funds into Southwest points.
Funds have to have an expiration date of 9/7/22 in order to be converted into points.
If you have any Southwest Travel Funds that was supposed to expire between 3/1/20-9/7/22, they have been extended to 9/7/22 and are now eligible for conversion.
If you cancel a flight from now through 9/7/20, those funds will also have an expiration date of 9/7/22 and will be eligible for conversion.
The conversion rate is 1.282 cents of travel funds into 1 Southwest point. This conversion option will remain open through 12/15/20. Once you convert into points you can’t convert back into Travel Funds.
Southwest points never expire, can be used for anyone, and have no redeposit fees! However they can’t be used to pay for the 9/11 security fee or international taxes.
Southwest points are normally worth between 1.5-1.9 cents each as award tickets aren’t subject to the 7.5% excise tax normally levied on airfare, which increases the value of their points. However that tax is suspended through 12/31/20 as part of the CARES act. Taking a look at several routes, that means that points are currently worth 1.3-1.5 cents each.
However, assuming that the excise tax is restored in 2021, the value of Southwest points should increase back to 1.5-1.9 cents each. But either way, it seems to make sense to convert your Travel Funds into points.
Southwest points have a variable value. For example, here are some current values compared to normal values when the excise tax is in effect:
- A one-way Los Angeles-Las Vegas nonstop flight on 9/23 is $44.98 with tax. It can also be bought for 2,652 points plus $5.60 tax. So 2,652 points gets you a value of $39.38 ($44.98 airfare less the $5.60 tax on the points ticket), imputing a value of 1.49 cents (44.98/2,652) per point.
- Earlier this year a $38.99 ticket cost 1,784 points, a value of 1.87 cents per point.
- A one-way Cleveland-Baltimore nonstop flight on 9/23 is $48.98 with tax. It can also be bought for 2,964 points plus $5.60 tax. So 2,964 points gets you a value of $43.38 ($48.98 airfare less the $5.60 tax on the points ticket), imputing a value of 1.46 cents (43.38 /2,964) per point.
- A one-way LaGuardia-Dallas nonstop flight on 9/23 is $58.98 with tax. It can also be bought for 3,744 points plus $5.60 tax. So 3,744 points gets you a value of $53.38 ($58.98 airfare less the $5.60 tax on the points ticket), imputing a value of 1.43 cents (53.38/3,744) per point.
- Earlier this year a $58.98 ticket cost 3,235 points, a value of 1.65 cents per point.
- A one-way LaGuardia-Chicago nonstop flight on 9/23 is $74.98 with tax. It can also be bought for 4,992 points plus $5.60 tax. So 4,992 points gets you a value of $69.38 ($74.98 airfare less the $5.60 tax on the points ticket), imputing a value of 1.39 cents (69.38/4,992) per point.
- A one-way LaGuardia-Denver nonstop flight on 9/23 is $74.98 with tax. It can also be bought for 4,992 points plus $5.60 tax. So 4,992 points gets you a value of $69.38 ($74.98 airfare less the $5.60 tax on the points ticket), imputing a value of 1.39 cents (69.38/4,992) per point.
- A one-way LaGuardia-Houston nonstop flight on 9/23 is $74.98 with tax. It can also be bought for 4,992 points plus $5.60 tax. So 4,992 points gets you a value of $69.38 ($74.98 airfare less the $5.60 tax on the points ticket), imputing a value of 1.39 cents (69.38/4,992) per point.
- Earlier this year a $71.98 ticket cost 4,178 points, a value of 1.59 cents per point.
One potential use for this conversion would be buying tickets under $99, which may work for airline fee reimbursement.
For example, a $98.98 ticket from Baltimore to Kansas City on 9/23 could be converted into about 7,721 Southwest points. If you try that out, let us know how it goes!
Will you convert Southwest Travel Funds into points?
HT: Kobe bryent, via DDF and DDG
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24 Comments On "[Ends Today!] Southwest Travel Funds Can Now Be Converted Into Points!"
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will these points count for companion pass? if yes- we are in for a real treat 🙂
Is there a way to transfer LUV vouchers?
Buy a ticket with the luv voucher. Then when you cancel the ticket before september 7 of this year you will have travel funds expiring 9/7/22. You will then be able to covert those travel funds into points.
I don’t think the travel funds are considered newly created as the LUV voucher has an expiration. For example, my LUV voucher expires, Jan 10, 2021 – the travel fund I believe takes on Jan 10, 2021 as expiration and not Sept 7, 2022 as the Jan 10 date is outside of Sept 7, 2020. Can anyone confirm their experience (as I have quite a bit in LUV vouchers outside the window)? I am holding tight as you can usually just extend LUV voucher for 6 months but would prefer points if it works. Dan – any advice. Thanks!
I have travel funds for myself and 3 minor children. They do not need to have separate SW accounts currently for me to use those funds if I am on the reservation as well. If I convert those funds to points, will very kid need their own account? Thanks much.
Following
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This is my worry as well. I’ll need to make 7 different reservations when I want to rebook my family since each of have our own travel banks now and I convert into points I will need to make the New booking 7 different Times. Currently at checkout when you put in their names, since they were all on the original reservation, it will automatically pull in their travel funds.
No, you’ll get the points back into your (adult) account. I just converted my and my son’s travel funds into my SW points.
Once the points are in your account, you can book travel for your family using those points.
If you use miles for a flight they wont count towards A-list or companion @Dan can you confirm
Confirmed. Excerpt from their T&C below:
“The following will not count toward qualification for A-List or A-List Preferred status: Rapid Rewards program enrollment points; Rapid Rewards reward flights; Rapid Rewards Companion Pass travel; Rapid Rewards partner points except for tier qualifying points earned on the Southwest Rapid Rewards Priority Credit Card, Rapid Rewards Premier Credit Card, Rapid Rewards Premier Business Credit Card, or Rapid Rewards Performance Business Credit Cards from Chase (as per the rules described below); bonus points, unless specifically designated as such; nonrevenue travel, unless specifically designated as eligible; stops at intermediate cities on connecting or through flights; and charter flights. Tier qualifying points are not redeemable for travel on Southwest or through the “More Rewards” site.”
The cancellation/change policy is also more generous for flights booked with points than for flights booked with cash.
So, if you’re planning to fly Southwest after 9/7/20 and don’t have points, it might be advantageous to book the flight with cash, cancel it for travel funds, convert the travel funds to points, and then book the exact same flight with points. Once you’ve done that, you can freely cancel/change/reprice your flight for a refund in points. Unlike travel funds, points don’t expire and points can be used to book flights for others.
The downside is that you won’t earn points for your flights.
I think another use is to buy a $75 ticket with the SW Priority Chase card. You will be refunded the $75 because there is a annual travel credit. Then you can cancel the reservation and turn the travel funds into points that won’t expire.
Couldn’t you just buy a $75 SW gift card instead? That also doesn’t expire.
Do you get the $75 for GCs? Or just flights?
Would these points count towards Companion Pass? If so, looks like there may be a play here…
I booked one itinerary for two adults and four children. Is it possible to get all their travel credit into one adult’s Rapid Rewards account (particularly, the children’s credit)?
I would like to know as well. so far southwest is saying each child needed to be booked with their own rapid rewards account #
The rep created RR accounts for each kid and then the travel funds came up in the account and i was able to convert them to points
If I have a travel fund that expires in December and a use it to buy a ticket and cancel it, will the new travel fund expiration date be September 7 2022 or the original date of Dec 2020?
Dan, My travel funds have an expiration date of 11/19/20 and show as not eligible for conversion.
Is this now dead for new cancellations?
Similar to @Avrohom, I have funds that expire Oct 8, 2020 that are “Not eligibile for conversion”. I wonder why.
just to confirm, this won’t work for new cancelation of LUV vouchers?