Southwest Airlines Ceases Online Bonus Credit

All good things must come to an end. And last month, that included Southwest Airlines’ longest-running incentive for its Rapid Rewards members—bonus credits for online bookings.

On April 1, the airline stopped offering bonus credits for tickets purchased over the Internet, which gave frequent fliers the ability to earn a free trip faster. Southwest gives its passengers credit, rather than the miles or points other airlines offer.

Under the double credit offering, customers who belong to Southwest Airlines’ Rapid Rewards program and booked a trip online, received a free flight when they booked four round-trip flights in a 12-month period. Without the extra credit, frequent fliers must book eight round-trip flights in a year’s time to earn the bonus flight.

Paula Berg, a Southwest Airlines spokesperson, explained the promotion, which began eight years ago to drive consumers to the Web site at Southwest.com and boost online sales, has achieved its goal. The airline now estimates that more than 65% its annual revenue—in excess of $3 billion—is generated through southwest.com. In 2000, online ticket sales account for 30% of Southwest Airlines revenue, or $1.7 billion.

“[The promotion] was intended to be for a limited time,” Berg said. “It was having the effect we were hoping for. We’ve been successful with that mission and [it is no longer needed].”

The bonus credit offering had been extended a number of times during its eight-year course, Berg said.

“Essentially, the time came,” Berg said of ending the program. “It was tool to drive people [to the Web site] and it has been extremely success. It served its purpose.”

Although many customers have expressed disappointment with Southwest Airlines’ decision to cancel the program, its loyalty program remains strong. Members can earn double credit by linking with some of the airline’s partners, including Alamo and Hertz rental cars and by flying to or from specific airports, including Baltimore/Washington International and Chicago Midway.

“We have a really loyal customer base,” Berg said. “People know us and trust us. We’ll still do some fun things. We know people like getting those extra bonus credits. We’ll keep our eyes open.”