Why Southwest Rapid Rewards Program is a Winner for Families
In this hobby, when you hear an expression "most valuable mile," people usually talk about United Mileage Plus. I think that's fair. If you want a business class ticket, this mile is for you. United allows one-way redemptions and belongs to Star Alliance, which has the most partners.
In fact, the most recommended transfer option from Chase Ultimate Rewards is usually United Mileage Plus. Personally, I think for a middle-class family like mine with 2 or more kids, Southwest Rapid Rewards transfer makes more sense.
There are a few questions to ask when comparing the two:
1) How easy is it to redeem? United award tickets may or may not be available for a family of 4. It's almost impossible to find seats during Spring Break or a major holiday. On Southwest, you are guaranteed to find something available, since any flight is redeemable for points.
2) How many points are required? United starts at 10,000 miles one-way for some short routes around the Continental USA. Southwest award prices are more broad, with some tickets requiring just 4,000 points one-way. So they potentially can go further.
3) How much value does 1 point get? On United, the best case scenario is maybe 2 cents per mile in economy, but not guaranteed. My average redemption domestically is usually around 1.5 cents.
If you are a family like mine, economy is the redemption of choice the majority of the time. On Southwest you will officially get 1.43 cents per point, but actually closer to 1.6 cents, factoring in tax.
I will take "guaranteed" over "potential" any day.
4) How many transfer possibilities are there? United mile transfers from Chase premium cards with Ultimate Rewards program, but there is a way to redeem from Membership Rewards on United flights through one of their Star partners.
Southwest points also only transfer through Chase cards. They do partner with AirTran, but the scheme is a bit complicated and availability is not guaranteed. Plus, very soon the programs will be combined. Rapid Rewards redemptions by that metric are harder to acquire=more valuable.
5) Can you transfer to cash if needed? This is important for a family like mine, who has little in savings currently.
As far as I know, not from United. Sure, there are brokers who buy miles. But it's against the rules, so I would never do that. Also, there is a way to redeem miles for hotels or car rentals.
But if you lose your job, the last thing you will want to do is go on vacation. With Southwest Rapid Rewards points, you can convert 10,000 points to a $100 Amazon gift card, which is almost as good as cash to me. It is important to note that this option is available to Southwest Visa cardholders only. However, regular members can redeem during certain promotional periods.
You can buy paper towels and all kinds of stuff at a good price on Amazon. Things you would need in your everyday life anyway. So in this instance, your stash of Rapid Rewards points will become a quasi-emergency fund of sorts.