Buy One Get One on Southwest Airlines for Two Full Years

Companion Pass Hacks

Author

Build Wealth Yourself
November 09, 2024

In partnership with

Dear Wealth Builders,

Getting both the Southwest personal and business credit cards and strategically timing your spend to hit the bonus requirements can be a savvy way to unlock a Southwest Companion Pass for almost two years. The Companion Pass is one of the most valuable perks for frequent travelers, allowing a designated person to fly with you for free (plus taxes and fees) on all your Southwest flights. By timing your bonus earnings correctly, you can maximize this benefit, potentially saving thousands on airfare. Here's a comprehensive guide to achieving the Companion Pass strategy, with pro tips and detailed examples.

Step 1: Understanding the Southwest Companion Pass and Credit Card Bonuses

The Southwest Companion Pass requires you to earn 135,000 qualifying points in a calendar year to unlock the perk, which allows a designated companion to fly with you for free for the remainder of the current year plus the entire following year. By strategically earning these points in January, you can ensure nearly two full years of Companion Pass benefits.

Why Two Cards are Key

The Companion Pass qualifying points can be earned through Southwest credit card sign-up bonuses, Rapid Rewards credit card spending, and flights booked through Southwest. By getting both a Southwest personal and a Southwest business credit card, you can leverage two sign-up bonuses, accelerating your journey to the required 135,000 points.

Step 2: Choosing the Right Cards

Southwest offers several personal and business credit cards with different rewards, annual fees, and benefits. Here’s a breakdown of the two primary cards for this strategy:

  1. Southwest Rapid Rewards® Plus Credit Card (Personal)

    • Sign-up bonus: Typically 50,000 - 75,000 points after meeting the spending requirement.

    • Annual fee: $69.

    • Benefits: 2 points per $1 spent on Southwest purchases and local transit, 1 point per $1 spent on all other purchases, plus 3,000 points on each cardmember anniversary.

  2. Southwest Rapid Rewards® Premier Business Credit Card (Business)

    • Sign-up bonus: Often 60,000 - 80,000 points after meeting the spending requirement.

    • Annual fee: $99.

    • Benefits: 2 points per $1 spent on Southwest purchases and local transit, 1 point per $1 spent on all other purchases, plus 6,000 points on each cardmember anniversary.

Each of these cards has different spending requirements for the sign-up bonus, so ensure that you meet these on time to qualify for the bonuses without overspending.

Step 3: Timing is Everything – Spend Bonuses in January

One of the biggest mistakes you can make with the Companion Pass strategy is hitting your bonus too early. If you earn your qualifying points too soon (in December, for example), you’d only get the Companion Pass for the remainder of that year. But if you wait until January, you’re awarded the pass for nearly two full years.

Example:

Let’s say you open both the Southwest personal and business credit cards in November. Each card requires $3,000 in spending within the first three months to earn the sign-up bonus. By carefully timing your spending, you could hit the $3,000 spend on both cards in January, earning the bonuses in the new calendar year and maximizing your Companion Pass period.

Pro Tip: To ensure you don’t accidentally hit the spending threshold early, set a strict spending budget for December that doesn’t contribute to the bonus requirements on these Southwest cards.

Step 4: Meeting the Spend Requirements Efficiently

For both the personal and business cards, you’ll need to spend a combined total of around $6,000 (assuming each card requires $3,000 in spending) within three months. Here are some strategies for meeting these requirements:

  1. Prepay Bills: If you have large, recurring expenses like rent, utilities, or insurance, consider prepaying these bills to meet the bonus requirement.

  2. Holiday Shopping: Given the timing of November or December applications, use holiday shopping to help meet the spending requirements in January.

  3. Business Expenses: For those with a business, consider putting all office supplies, inventory, or other allowable expenses on your Southwest Business Card.

  4. Charitable Contributions: If you’re planning charitable donations, consider charging them to your card (as long as the organization accepts credit cards without a fee).

Pro Tip: Don’t overspend just to meet the bonus. Use this strategy only if you have necessary, budgeted expenses that align with the required spending amount.

Step 5: Confirming the Companion Pass and Adding Your Companion

Once you’ve earned 135,000 points in January, your Companion Pass status should automatically activate within a few days. You’ll receive an email confirming that you’ve earned the pass and can then go to your Southwest account to designate your companion.

Changing Your Companion

Southwest allows you to change your designated companion up to three times each calendar year. This flexibility means that if you want to take different friends or family members on your trips, you can change your companion periodically throughout the year.

Pro Tip: Plan your travel dates in advance to get the most out of your Companion Pass. Since each companion change resets the three-per-year limit, careful planning can maximize the use of your pass.

Example Scenarios: Savings and Benefits of the Companion Pass

To fully appreciate the benefits of this strategy, let’s consider a few example scenarios that illustrate the cost savings:

  1. Frequent Domestic Traveler

    • Suppose you travel once a month domestically on Southwest flights, and each round-trip ticket averages $250.

    • With the Companion Pass, your travel companion can fly with you for free (plus minimal taxes and fees).

    • Over 12 months, this could result in a savings of $3,000 per year.

  2. Vacation and Business Trip Combo

    • Let’s say you travel four times a year for business and three times for leisure, each round-trip ticket averaging $300.

    • If you bring your family member or partner along on these trips, your annual savings could total around $2,100.

Pro Tip: To maximize savings, book travel as early as possible. Southwest’s no-change-fee policy allows flexibility, meaning you can adjust your plans if prices drop or your schedule changes.

Additional Tips for Maximizing the Companion Pass

  1. Use Points for Additional Flights: After earning the Companion Pass, you can book flights for yourself using your Rapid Rewards points, and your companion flies free. This allows you to save cash and use points while still getting the Companion Pass benefit.

  2. Stack Other Southwest Credit Card Benefits: Many Southwest credit cards offer anniversary points, in-flight discounts, and no foreign transaction fees. Use these perks strategically to enhance your travel experience.

  3. Plan Around Peak Travel Times: For those with flexible schedules, traveling during non-peak periods (such as weekdays or off-seasons) can help you find better flight availability, particularly when booking with points or using the Companion Pass.

  4. Check Fares Regularly: Southwest’s policy of no change fees is especially beneficial here. Check fares periodically after booking; if you find a lower fare, you can rebook at the reduced rate and have the difference refunded or credited back to you.

Alternatives to the Companion Pass Strategy

While this strategy is effective for frequent travelers, it might not be ideal for everyone. Here are a few alternatives to consider if you’re not sure this approach fits your lifestyle:

  1. Cash Back Credit Cards: For those who don’t fly often, a high-reward cash back card may offer more practical value.

  2. Flexible Points Cards: Cards that offer transferable points (such as the Chase Sapphire Preferred) provide flexibility to book travel across multiple airlines.

  3. Airline Cards with No Annual Fee: If you’re hesitant about paying an annual fee, you could consider airline cards with no or low fees that still offer a small amount of points.

Pro Tip: If you’re unsure about the Companion Pass, analyze your travel habits over the past year. If you’ve flown Southwest frequently or plan to, the pass could deliver excellent value.

Common Mistakes to Avoid

  1. Spending Too Early: Hitting the spending requirement before January will activate the bonus points within the current year, potentially costing you almost an entire year of Companion Pass benefits.

  2. Overspending to Earn Points: Only spend what you can afford. Charging unnecessary expenses just to meet the bonus threshold can lead to debt and negate the value of your rewards.

  3. Not Checking Eligibility: Southwest limits individuals to one personal and one business card, and both cards are subject to Chase’s 5/24 rule. If you’ve opened five or more cards in the last 24 months, you may not qualify for a new Southwest card.

Pro Tip: Keep track of your credit card accounts to ensure you’re eligible for both the Southwest personal and business cards before applying.

Final Thoughts on Using the Southwest Companion Pass

The Southwest Companion Pass strategy is one of the most powerful travel rewards strategies available, especially for travelers who frequently fly domestically or within the Southwest network. By planning and timing your spending to meet bonus requirements in January, you can unlock nearly two years of free travel for a companion, making it an ideal strategy for couples, families, and business travelers.

With the Southwest Companion Pass, you can explore new destinations, save money, and make travel memories with a companion, all while leveraging the perks of a well-timed credit card strategy. For those who are frequent flyers, this strategy is an invaluable way to make travel more affordable and enjoyable.

Summary:

  1. Choose the right Southwest personal and business cards for your needs.

  2. Strategically time your spending to hit the bonus requirements in January.

  3. Reap nearly two years of Companion Pass benefits by taking advantage of the pass's unique value.

  4. Use points wisely and plan your travels for maximum savings.

Whether you're a seasoned traveler or just starting to explore frequent flyer perks, the Southwest Companion Pass strategy offers a cost-effective way to enjoy more trips and make the most of your travel budget.

You’re Welcome,

Build Wealth Yourself Team

For Those Who Seek Unbiased News.

Be informed with 1440! Join 3.5 million readers who enjoy our daily, factual news updates. We compile insights from over 100 sources, offering a comprehensive look at politics, global events, business, and culture in just 5 minutes. Free from bias and political spin, get your news straight.