Wednesday, November 16, 2016
Suspect Southwest Award Math
Southwest is marketing to differentiate themselves from legacy carriers. Bags Fly Free is a clear differentiation, but the miles program isn't as clear cut. I don't doubt their math below, but they are missing a big component. United has flat rate award pricing, so no round trips are less than 25,000 miles. Southwest bases award prices on ticket costs, so their round trip prices shift as the price changes. United passengers are less like to use award miles on cheap flights, but can receive great value using their miles for expensive flights since it's the same cost in miles.