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Chase Ultimate Rewards is at it again as they just launched a transfer bonus to Southwest Airlines but you have minimal time remaining to take advantage of the transfer bonus.
Chase isn’t particularly known for points transfers as this is only the third bonus we’ve ever seen. The previous bonuses were:
- British Airways – 30% bonus (April 2019)
- IHG – 60% bonus (August 2020)
Ultimately, seeing another transfer bonus is exciting because if you’re planning to transfer points for a specific redemption, you’re receiving a discount on the amount of redeemed points. Additionally, it opens the doors for more bonuses to take place in the future. So, let’s take a look at the details.
SOUTHWEST AIRLINES 20% BONUS
Chase Ultimate Rewards is offering a limited-time 20% bonus when you transfer your points to Southwest Airlines through 31 October 2020 (inclusive).
Click HERE to see offer details
IS THIS A GOOD DEAL?
It’s challenging to extract extraordinary value from Southwest Rapid Reward points because the frequent flyer program is a revenue based program, which means there is direct correlation between the price of a ticket (in cash) and the points required for a redemption.
Generally, the correlation between Southwest fares and Southwest points are 76 points to the dollar. In other words, if the fare is $100, the fare will cost ~7600 points and this rule applies across the board (e.g. Wanna Get Away fares, Anytime fares and Business Select fares).
However, with the 20% transfer bonus, you will be receiving about 1.6-1.7 cents per point, which is marginally better value than booking through the Chase travel portal for 1.5 cents per point (given you have the Chase Sapphire Reserve Card) but much better than 1.25 cents per point (given you have the Chase Sapphire Preferred Card or Ink Business Preferred Credit Card).
As always, I advise against transferring points without a rather immediate redemption in mind. Your points are much more valuable as a transferrable currency (e.g. Chase UR, Amex MR, Citi TY, etc) than sitting in an airline or hotel loyalty program. Once you transfer the points to a loyalty program they are stuck there and in these turbulent times, who knows what tomorrow holds!?
Ideally, you will take advantage of this discount during a sale which can represent great savings.
It’s worth noting you will not see the transfer bonus calculated into the transfer ratio. In other words, the amount of points transferred will appear immediately in your Southwest account but the actual transfer bonus (the 20% in this case) will be delayed by a day or so.
Personally, ever since Chase announced their first transfer bonus last year – something other banks have been doing for a long time – I’ve been waiting to see a transfer bonus to Hyatt as that is a “sweetspot.”
Regardless, this is a good deal but not phenomenal. If you have a redemption in mind and were planning to transfer points to SWA anyway, definitely take advantage of this discount.
Are you planning to take advantage of the transfer bonus?