WestJet has released its latest promotion for purchasing WestJet Dollars (WSD), during which members can buy WestJet Dollars with up to a 40% discount. The sale is in effect as of July 10, 2023, and runs through to July 31, 2023.
In some cases, buying points during a sale can make sense; however, due to the way the WestJet Rewards program is structured, it doesn’t really ever make sense to buy WestJet Dollars, even during a sale like this.
Buy WestJet Dollars with a 40% Discount
Outside of sales, you can normally buy WestJet Dollars at a rate of 1 WestJet Dollar = $2 (CAD), excluding taxes.
During this promotion, you’ll receive a bigger discount as you purchase more WestJet Dollars, starting with a minimum of 100 WestJet Dollars.
The breakdown of discounts during this promotion is structured as follows:
- Buy 100–400 WSD and get a 20% discount (1 WSD = $1.60 CAD)
- Buy 500–900 WSD and get a 25% discount (1 WSD = $1.50 CAD)
- Buy 1,000–1,300 WSD and get a 30% discount (1 WSD = $1.40 CAD)
- Buy 1,500–2,300 WSD and get a 35% discount (1 WSD = $1.30 CAD)
- Buy 2,500–3,000 WSD and get a 40% discount (1 WSD = $1.20 CAD)
Even with a 40% discount, the cost of purchasing WestJet Dollars comes in well above our valuation of $1.02/WestJet Dollar (CAD).
If you buy WestJet Dollars with a Canadian billing address, you’ll also have to pay GST/HST on the amount of the purchase, too. This further erodes any value of this sale, and drives up the cost even higher.
Therefore, if for any reason you want to buy WestJet Dollars, it’s best to do so with a US billing address, since Canadian taxes won’t be levied on the transaction.
You can purchase up to 3,000 WSD in a calendar year, which is also the maximum possible amount you can purchase during this sale.
However, before you proceed with making a purchase, it’s important to consider if it’s a good idea in the first place.
Is Buying WestJet Dollars a Good Deal?
Before you consider taking advantage of this promotion, it’s important to take stock of the WestJet Rewards loyalty program, and the value you can get from redeeming WestJet Dollars.
WestJet Dollars can be used to offset the cost of a WestJet flight at a rate of 1 WestJet Dollar = $1 (CAD). Note that you need to redeem a minimum of 15 WestJet Dollars per guest and per direction of travel.
WestJet Dollars can only be used against the cost of a base fare, which means that you’ll be on the hook to cover the taxes and fees, as well as what WestJet terms as “Other Air Transportation Charges“, which are often quite costly.
With an at-par dollar valuation, it’s very difficult to extract outsized value from WestJet Dollars. This is in stark contrast to many other loyalty programs, with which you can get significantly greater value by booking flights with loyalty points.
Another feature of the WestJet Rewards program is Member Exclusive Fares, which offer a small discount from the regular cash rates.
In the email that WestJet sent out about the promotion, it suggests that buying WestJet Dollars at a discount can be a good way to top up your account.
It’s important to note that you need to be able to cover 100% of the Member Exclusive Fare’s base fare with WestJet Dollars to be eligible for whatever discount is being offered. This means that if you don’t have enough WestJet Dollars in your account, you aren’t eligible for the Member Exclusive Fare.
To illustrate this, suppose you’d like to fly from Toronto to Calgary with WestJet, and you have 200 WSD in your account. After entering in your preferred date, you see the following breakdown of fares.
In this example, we’ll ignore the EconoFlex and Basic fares and focus on the Econo fare, since it’s comparable to the Member Exclusive Fare in terms of inclusions and exclusions.
The total cost of the Member Exclusive Fare ($293.71 CAD) is a roughly 9% discount from the Econo fare ($321.06 CAD).
With WestJet Rewards, you must purchase a minimum of 25 WestJet Dollars, and with the way that this promotion is structured, you’d have to pay a minimum of $50 (CAD) plus taxes to top up your account, which is the regular rate without any discount applied.
Since you’re also on the hook for $75.71 (CAD) in taxes and fees with the Member Exclusive Fare, you’d wind up paying at least $125.71 (CAD) total.
In this case, you’d be better off putting your 200 WestJet Dollars towards the Econo fare instead, and then paying the remaining $121.06 (CAD) out-of-pocket to come out marginally ahead over buying WestJet Dollars to top up your account.
For another example, let’s suppose you’re flying a family of six from Calgary to Cancun to soak up some sun during the cold winter months, and have 2,500 WestJet Dollars in your account already. After a search, you get the following breakdown of fares.
Here, the Member Exclusive Fare once again offers a roughly 9% discount from the Econo fare.
The total cost for six with the Member Exclusive Fare is $5,961.30 (CAD), while the total cost for the Econo fare is $6,477.30 (CAD).
If you have 2,500 WSD sitting in your account, you’d be able to cover the base fare for three passengers. You’d then need to purchase another 2,500 WSD to be able to cover the entire base fare for the remaining three Member Exclusive Fares.
Since you’d be eligible for the highest 40% discount with this promotion, you decide to crunch the numbers to see if it’s a good deal.
Purchasing 2,500 WSD during this promotion costs $3,150 (CAD), with 5% GST levied against the transaction.
Since you’d be on the hook for $156.55 (CAD) in taxes and fees per person with the Member Exclusive Fare, you’d wind up paying a total of $4,089.30 (CAD) out-of-pocket: $3,150 (CAD) for the WestJet Dollars, and $939.30 (CAD) for the taxes and fees.
If you were to otherwise apply your 2,500 WSD to the total cost of the Econo fare and cover the remainder with cash, you’d have to pay an extra $3,977.30 (CAD) out-of-pocket after applying your WestJet Dollars.
This winds up being $130 (CAD) less than buying WestJet Dollars to top up your account, so you’re actually saving money by avoiding this promotion altogether. Plus, you’ll earn WestJet Dollars with an Econo fare, which you wouldn’t earn with a Member Exclusive Fare.
It goes to show that buying WestJet Dollars, even with the greatest discount, likely won’t result in any outsized value.
Conclusion
WestJet’s latest Buy WestJet Dollars promotion is available until July 31, 2023. You can get up to a 40% discount when purchasing WestJet Dollars, although you’d need to purchase at least 2,500 WSD to qualify for the best deal, which is a significant investment.
With the current way that the WestJet Rewards program is structured, there aren’t really any cases in which it makes sense to buy WestJet Dollars, even with a 40% discount.
Whenever promotions such as these come along, it’s important to consider if you stand to benefit from taking advantage of the sale. With WestJet Rewards, you’re likely better off avoiding the purchase of WestJet Dollars altogether, since there’s nothing to gain from making the effort.
