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Transcript of October 5th FlyerTalk Live! Chat

With special guest Debra Benton (Director of Loyalty and Partnership Marketing, Southwest Rapid Rewards)



Randy
Are we lucky or what? Tonight we welcome back Debra Benton, Director of Loyalty Marketing at Southwest Airlines to FlyerTalk Live! Debra was with us over three years ago and during that time, Rapid Rewards has continued to make strong gains and certainly can be admired for more than low fares. For the past few years they have given away more free tickets in their network than even United Airlines and picked up their fair share of Freddie Awards along the way. And their ‘double credits for online booking’ was better than the Energizer bunny, it just kept going on and on and on. But, I know you’re not here to listen to me – Debra, welcome to FlyerTalk Live! I think your members are waiting to chat with you. Debra, how are you?

Debra Benton
I am doing great! Thanks, I am very excited to be chatting with you all tonight.

Randy
You certainly have very loyal members. I think I hear the first question coming......

LaDonna at WebFlyer
This question was submitted earlier by nsx: How much notice of adverse changes (including non-renewal of bonuses that have been renewed for several years) does WN consider adequate? Is it 6 months, as in August's announcement of capacity controls?

Debra Benton
We try to give our Customers as much notice as possible on everything, especially changes. Sometimes business dictates closer in due to competitive happenings. In the case of announcements, such as double credit, each one is made with a published and widely distributed expiration date. Hint, Hint! If you haven't heard about an extension by about a month or so from the expiration date, there is unlikely to be one. Thanks for that great question. What else?

LaDonna at WebFlyer
This question was submitted earlier by Ryan Smith: In a FlyerTalk chat of April 11, 2002, Debra Benton stated: While many folks ask about changing expirations, we find that they would prefer to have the credits expire to us having to start restricting seats like the other guys. Have your findings changed since then? If so, what percentage of customers surveyed preferred extended credit expiration over unrestricted seats?

Debra Benton
As you know, long range planning in the airline industry is about 6 weeks. I think you will agree that the face of the industry has changed since 2002. The changing travel habits of our Customer base was a significant driver of the program changes. Our study did not necessarily compare the two but gaged the activity change for each program adjustment. And what we found was the positive of two year expiration far outweighed the negative of restricted seats. Thanks for the question.

LaDonna at WebFlyer
This question was submitted earlier by Lewis Crowley: Will holders of the new restricted RR tickets be allowed to standby for a different flight without having to pay any fare difference?

Debra Benton
Yes, they will be able to fly standby and get on based on our normal standby rules if a seat is available.

LaDonna at WebFlyer
This question was submitted earlier by nsx: Probably WN's biggest remaining major competitive advantage is the complete absence of change fees. Are change fees under consideration?

Debra Benton
No! Enough said? Thanks for appreciating our difference!

RR Flyer
I would like to know more about the DING product. I have received e-mails to sign up and get a bonus credit. How is DING different than the Click N' Saves I receive weekly?

Debra Benton
DING! is like the sign on Krispy Kreme telling you that the donuts are fresh while CnS is travel newsletter outlining weekly specials. We hope you are signed up for both because you will get the best of both worlds that way and really benefit. Thanks for asking, we are very excited about DING!

LaDonna at WebFlyer
This question was submitted earlier by David Harlan: Would it be possible for persons who hold a Companion Pass (and are therefore your most frequent fliers) to have unrestricted access to Rapid Reward seats now that seat access will be restricted?

Debra Benton
What a fabulous question! At this time, we are not considering doing that. Though of course, those Members will have many unrestricted Awards prior to the change that will remain unrestricted. In addition, their Companion still travels unrestricted as long as the Member is on the flight.

LaDonna at WebFlyer
This question was submitted earlier by nsx: How much revenue does WN estimate it loses per award ticket issued? Is WN willing to accept a higher revenue loss per free ticket than the other majors? If not, won't the capacity controls become just as tight as they are today for other FF programs?

Debra Benton
Revenue is an area that we don't really share for competitive reasons. Nor can I speak to other airlines. With more than 5 million Awards redeemed in the last two years, seat restrictions became necessary to ensure the long term competitiveness and profitability of the program. We intend to implement restrictions that is consistent to SW's commitment to our Customers. Next question.

Randy
OK, Debbie, your members are hogging all the air time here. Mind if i butt in? Debra, what are your thoughts with the new merger of America West and US Airways. I ask because for a long, long time, their airline and its frequent flyer program has been one of the main competitors of Southwest.

Debra Benton
Together they make a formidable competitor, in fact, one of the largest low fare airlines in the world we must monitor their progress diligently. It remains to be seen what their ultimate route structure, fleet mix, and Customer service package will look like. Anything else?

Randy
Nah, just like to hear your perspective. Thanks

Debra Benton
Anytime!

Miles Man
Was there any consideration to offer two types of awards? An unrestricted award ticket that cost more than the standard 16 credits, and the newly introduced restricted award ?

Debra Benton
We considered many options and continue to review ways to strengthen and tailor the program to our flyers' needs. Thanks for the idea!

LaDonna at WebFlyer
This question was submitted earlier by Ryan Smith: With the extended credit expiration period and addition of capacity controls, it is clear that Southwest is focusing the Rapid Rewards program towards the leisure and infrequent traveler, and away from the frequent business traveler. Why are you changing the customer focus of Rapid Rewards?

Debra Benton
We value ALL of our Customers! Changes to the program were not intended to benefit one group over another rather we were trying to make the program more competitive and expand the number of people who benefit. Thanks!

RR Flyer
Can you tell me where Southwest currently stands on the Wright Amendment issue? Personally, I would like it to be repealed now!!!

Debra Benton
As you can imagine, we would LUV to see it repealed! And we are working hard at getting it repealed. We feel it will give everyone more freedom to choose low fare to and from the North Texas area. Don't forget to sign up at www.setlovefree.com! We appreciate your support on this!!!

LaDonna at WebFlyer
This question was submitted earlier by nsx: Will WN allow customers to know how many award seats (including those already "sold") are allocated for specific flights?

Debra Benton
While we are waiting for the next question, I hope you have all heard about our new partners - IHG (Holiday Inn brands) and PeoplePC. Hopefully this will help our business flyers who use these folks.

Debra Benton
So glad you asked, I know this has been a popular question! We will not be publishing the number of seats on any given flight that are available for Awards. However, we are working to launch a Seatfinder at southwest.com to assist Customers who are looking for the best day to travel on an Award. This should launch early 2006! I hope that answers you.

pgapro
Does the HHonor reward companion pass award still issue 100 credits into the RR account for 6 RR tickets and the companion pass?

Debra Benton
Let me check on that and get back to you!

LaDonna at WebFlyer
This question was submitted earlier by nsx: RR was created when WN flew only short-haul flights. Will improvements be made to RR for long-haul customers? If not, do you regard today's RR as competitive for these customers?

Debra Benton
The beauty of the program is its equalitarian nature. We reward you for flying, not how far or how much you paid. We do regard the program as lucrative for long haul flyers. We are constantly evaluating the program to keep it competitive and prosperous. Thanks for asking!

Debra Benton
To answer pgapro, if I read this right. You are asking if you have 100 credits earned by Hilton stays, do you get 6 Awards and a Companion Pass. The answer is yes, for every 16 credits you get an Award and those same credits count towards a Companion Pass which requires 100 credits in 12 months. I hope that answers you.

LaDonna at WebFlyer
This question was submitted earlier by nsx: Are changes to the CP (e.g., limiting the maximum number of trips per year) under consideration, or would this be too small a savings for WN to bother with?

Debra Benton
No, we are not considering any changes to the CP level benefits. Thanks for asking!

RR Flyer
Is Southwest looking at doing anything about their checkin procedures? I hate having to stay up until mid-night or wake up at the crack of dawn to make sure I get an "A" boarding pass.

Debra Benton
Good news, RR FLyer! We recently announced that you may now check in online 24 hours prior to your flight! This is exciting news for the traveller who no longer wants to lose sleep! By the way, do you know if you don't have access to your printer when you check in (like at a hotel), you can print it out at the kiosk or gate. This means you can check in, get the A, and print at the station. Cool! Thanks for asking!

Randy
So much good information. Now, let me see if i can grill Debbie for just a second and try to get something top secret out of her. Debbie, rumor has it that there have been late night pizza deliveries to the HQ of Southwest Airlines which leaves me to believe that there must be something going on. Now, anything you can share with your members? Remember this is FlyerTalk

Randy
I promise not to tell anyone....

Debra Benton
Only for you Randy! But we are excited to announce that

Randy
yea!

Debra Benton
HighonLuv will be joining the esteemed FlyerTalk board community as an official spokesperson for SWA.

Randy
WHOOOHOOO! That is so cool. An official lurker for your members. That is not an easy decision...

Debra Benton
You have all been such a great resource for us and we appreciate your great insights that we want to provide you great Customer Service and have someone who regularly comes in and responds to your great questions and concerns.

Randy
but when i think about it, it makes sense. Southwests' success has always been more than just low fares - member based loyalty comes from great customer service.

Debra Benton
We are looking forward to talking to you more through this channel.

Randy
The Starwood Lurker from Austin and the Southwest Lurker (HighonLuv) from Dallas.

Randy
We will always be here listening and talking about Rapid Rewards

Debra Benton
Thank you for this great opportunity to talk with you tonight! Thank you too for your interest and support of Rapid Rewards!

Randy
Thank you on behalf of your many members on FlyerTalk. As we near the end of the hour i think we have one more question - can we have it now?

RR Flyer
What is the best way for me to find out when you make changes to the program? Should I continually check the website or is their an e-mail I can sign up for? (besides the ClickNSave I already receive?

Debra Benton
Thank you for asking, we love to keep you connected! While you can certainly get great information from the website, we do recommend you signing up for Click and Save, Rapid Rewards Email for the latest news on the program, and DING! for the best offers!

Debra Benton
Thank you to all of you at FlyerTalk for this evening. I enjoyed talking with you!

nsx2
Thanks for the great answers, Debra. We really appreciate your taking the time to be with us.

Debra Benton
I hope it was helpful and that our news of HighonLuv will also be worthwhile!

Mikel at WebFlyer
Randy was booted off his own chat :)

Mikel at WebFlyer
We and every member would like to thank Debra for joining us tonight and sharing her vast knowledge of the Rapid Rewards program, and we look forward to doing this again sometime.

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