Maximise your Avios, air miles and hotel points

A good deal? 30% bonus on Tesco Clubcard transfers to Virgin Flying Club

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Tesco has launched a 30% bonus on transfers of Tesco Clubcard points to Virgin Atlantic’s Flying Club.  This means that you will receive 325 miles per £1 of Clubcard vouchers you convert, rather than the standard 250.

Full details are here.  The deals runs to March 31st, and the miles generally appear 1-2 days after initiating the transfer.

Virgin is also repeating its offer of bonus Virgin miles for opting-in for auto-conversion of your Clubcard points each quarter to Virgin.  This time, they have increased the bribe to 2,500 miles.

(Nothing stops you agreeing to this and then cancelling after one quarter!  If you have a dormant Clubcard account, you should set that up to auto-convert to Virgin Flying Club – based on last year, you will still receive the bonus miles even though nothing is being sent over.  You cannot earn this bonus if you have previously had an auto-convert bonus.)

This bonus is substantially worse than the 50% bonus offered last January and identical to the deal that ran last September.  It is another sign of a pick-up in the economy, with Virgin less desperate for the cash from Tesco.  I also would not bet on British Airways launching any sort of bonus.

Here is a reminder of some of the key features of Virgin Flying Club if you were considering doing a transfer:

1. Diversification

British Airways can fly you to pretty much anywhere that Virgin Atlantic can. However, that doesn’t mean they can get you Avios seats when you want them. Having a balance in another programme gives you more chance of getting seats on the dates you want them.

Both BA and Virgin allow one-way redemptions, so with a Virgin balance you could mix and match a trip as availability allows. Virgin also partners with Delta in the US and a number of other airlines.

However, Virgin and BA are both UK-focussed airlines, so you are likely to face an identical squeeze around UK school holidays. You may want to expand into Star Alliance and redeem on, say, Lufthansa if you want a better chance of seats at – say – UK half-term.

2. Fewer miles, cheaper taxes in Economy

Virgin recently announced lower taxes on Economy redemptions. These are quite aggressive – New York is £120 cheaper than BA. Virgin also requires fewer miles – New York is 35,000 in Economy vs 40,000 with Avios. However, Upper Class flights generally match BA in the miles and taxes required.

(BA also lets you redeem on carriers such as airberlin and Aer Lingus who charge minimal taxes, far less than even Virgin does.)

Virgin also runs occasional but fairly regular redemption sales, with big discounts on the miles needed for economy class redemptions.

Here is a sample of charges compared to BA:

New York £240 (British Airways: £359) 35,000 miles (40,000 Avios)

Barbados £237 (British Airways: £328) 45,000 miles (50,000 Avios)

Las Vegas £213 (British Airways: £356) 42,500 miles (50,000 Avios)

Johannesburg £362 (British Airways: £400) 50,000 miles (50,000 Avios)

Dubai £243 (British Airways: £335) 38,500 miles (40,000 miles)

3. Availability

I do not redeem on Virgin, so cannot comment on how easy or hard it is to get availability. In general, though, Upper Class cabins have fewer seats than BA Club World cabins, with subsequent squeezes on availability. Is it easy to get 4 Upper Class seats on Virgin for a family? I don’t know. It isn’t a problem with BA on many routes.

A random test showed that I could get 4 Upper Class seats to Dubai on various dates.  However, I would not expect to be able to get seats this late in the year for half term or Christmas, and I wasn’t disappointed.  It does seem possible though.

You can check availability on the Virgin website without having enough miles in your account to do the redemption.  You should spend some time researching your favourite routes before deciding whether to commit miles to Flying Club.

4. No 2-4-1 Amex voucher, but an upgrade voucher

There is no equivalent of the BA Amex 2-4-1 voucher. The Virgin credit card does give a 2-4-1 voucher but ONLY ON FLEXIBLE CASH TICKETS. You can, however, get a voucher with the Virgin credit card to upgrade Economy redemptions to Premium Economy for no extra miles. The two Virgin credit cards are reviewed here and hereTheir home page is here.

5. Fallback option of transferring to Hilton HHonors or IHG Rewards Club

Rare among airline schemes, Virgin lets you transfer miles out into Hilton HHonors (2:3) or IHG Rewards Club (the Holiday Inn etc scheme) at 1:1. There is a minimum transfer of 10,000 Virgin miles.  If you found yourself struggling to use your Virgin miles, you could also move them across.

(Note that the Hilton HHonors ratio above applies from 6 February.  I will post more about this tomorrow.  Until 6 February, the ratio is a better 1:2.)

A 30% transfer bonus does NOT make such transfers a great deal, however. 

I value Hilton HHonors points at 0.3p.  A £1 Tesco voucher gets you 325 Virgin miles which is 487 Hilton points.  At 0.3p, they are worth £1.46.  Terrible, less than 1.5x the face value of your Clubcard points.

Similarly, I value IHG Rewards Club points at 0.5p.  A £1 Tesco voucher gets you 325 Virgin miles which is 325 IHG Rewards Club points.  At 0.5p that, that is just £1.62 of value.  Avoid, unless you are just topping up your account.

6. Finally … a much improved cancellation policy

It used to be that if you had to cancel at 7+ days out, you lost 25% of your miles. If you cancelled within 7 days, you lost ALL your miles. BA, on the other hand, lets you cancel up to 24 hours before the flight with no penalty at all.

As I posted here, Virgin seems to have changed its rules. Whilst there has been no official announcement, the revised text is clearly on the website and is now very similar to BA. Thank goodness for that.

7. The Heathrow Clubhouse

The Virgin lounge at Heathrow, for Upper Class passengers, is widely regarded as one of the best airport lounges in the world. Get a haircut, have a massage, eat a proper meal, chill out in the audio or TV rooms or do one of many other (admittedly ‘boys toys’ type) activities. Well worth trying once in your life.

Note that, whilst full fare cash tickets in Upper Class also get a free chauffeur to and from the airport, reward tickets do NOT get this.

8. Easy to collect additional miles

It is now as easy to collect Flying Club miles as it is Avios. You can transfer from Tesco, Amex Membership Rewards and Heathrow Rewards, as well as all the major hotel schemes.  As I wrote here, some major hotel chains do not give Avios but do offer Flying Club miles.

There is a shopping portal similar to the Avios estore. There are also decent promotions, eg 5,000 miles for opening an ISA. There are also special sign-up bonuses on the two Virgin credit cards at the moment – 10,000 miles on the free one and 25,000 miles on the £140 version.

Conclusion

One of the emerging features is that Flying Club has a lot of offer the person who redeems in Economy. Lower taxes, fewer miles required and the ability to upgrade to Premium Economy for free via the credit card voucher.

You even get the option of selected long haul departures from Manchester, which BA abandoned long ago.

For business class redemptions, it is less clear cut. Smaller cabins, a smaller route network and fewer daily flights may make it trickier to find seats, whilst taxes and miles required tend to mirror BA. And there is no Amex 241 voucher, which for a couple effectively makes a ‘once a year’ redeemer require twice the miles. (It has a proportionately lower impact on a family of 4 taking multiple long-haul flights each year.)

You have until the end of March to decide whether to do a transfer ……


How to earn Virgin Points from UK credit cards

How to earn Virgin Points from UK credit cards (April 2024)

As a reminder, there are various ways of earning Virgin Points from UK credit cards.  Many cards also have generous sign-up bonuses.

You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 15,000 Virgin Points):

Virgin Atlantic Reward+ Mastercard

15,000 bonus points and 1.5 points for every £1 you spend Read our full review

Virgin Atlantic Reward Mastercard

A generous earning rate for a free card at 0.75 points per £1 Read our full review

You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.

American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express comes with 40,000 Membership Rewards points, which convert into 40,000 Virgin Points.

The Platinum Card from American Express

40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review

Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.

American Express Business Platinum

40,000 points sign-up bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Virgin Points

(Want to earn more Virgin Points?  Click here to see our recent articles on Virgin Atlantic and Flying Club and click here for our home page with the latest news on earning and spending other airline and hotel points.)

Comments (64)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Matthew says:

    You will need to be quick to convert Virgin miles to Hilton points as the website now says….

    Please note from 6 February 2014 the exchange miles to points rate is changing. Flying Club members will be able to exchange miles at the following rate: 2 Flying Club miles for 3 Hilton HHonors points.

    • Alan says:

      Damn ! Thanks for highlighting.

    • Andrew (@andrewseftel) says:

      Grumble! Not sure my latest points from Hilton will post in time to take me over 10k.

    • John says:

      WIth the autoconversion bonus, £23.50 tesco will give you 15000 hilton which works out to be 0.157p per hilton.

      If you assume that you can usually double the value of tesco vouchers, that’s an opportunity cost of just over 0.3p, which is akin to Rob’s valuation.

      Unfortunately, you can only get the autoconvert bonus once, which means BA has another 12 months to give me a bonus before my earliest Tesco vouchers expire.

      • Rob says:

        You can get Tesco vouchers reissued for another 2 years with a little trick. For each voucher, convert the min £2.50 to Avios. The balance comes back as change next time, so you get another 2 years.

        Obviously this works best if your vouchers are high value ones!

        • Zoe says:

          Tesco now frown on this, it gets a mention somewhere in their terms & conditions. I’m sure you would still be fine for an odd voucher but risky if you have lots.

      • Andrew (@andrewseftel) says:

        There’s a grace period of a couple months for expired vouchers redeemed online.

  • Mr Bridge says:

    just noticed you can upgrade 2 claases on VA.
    econ to upper is 25k e/w to
    Antigua, Barbados, Cancun,
    Cuba, Delhi, Grenada, Jamaica,
    Las Vegas, Los Angeles, Miami,
    Nairobi, Orlando, San Francisco,
    Shanghai, St Lucia, Tobago,
    Tokyo, Vancouver and between
    Hong Kong and Sydney

    with econ return about £900 ( nit sure on upgrade taxes) i think its not such a bad deal with the 30% Hmmm may look into that

  • Mr Bridge says:

    how long does the tx from cc points to va take?

  • James Ward says:

    Re availability. I’ve been helping some friends (newbies to points and miles) book their honeymoon to SE Asia. They’re doing a self-organised tour so were flexible about their initial destination. Having no kids, they were also reasonably flexible with dates.

    Virgin fly to Hong Kong and Shanghai. We found good availability to HKG and amazing availability to PVG. Two seats were available for days on end during March and April – including over the school holidays. I don’t know whether four would have been so easy; I guess not.

    Booking was a breeze. Although upgrades are not book able online, their call centre team seem always to be friendly, knowledgable and helpful. They can also do award ticket searches over an extended period whereas the website can only do day-by-day searches.

    Since my friends were paying the taxes anyway, it seemed a better use of their miles to book economy and upgrade. Six classes are upgradable, including M which was only about £100 more than the cheapest.

    The upgrade cost was 50,000 miles pp. BA would have charged 60,000 for an upgrade to Club.

  • MaltapointsTom says:

    Your comment “I also would not bet on British Airways launching any sort of bonus” is interesting, because I think there are a fair few of us sat on a pile of slowly expiring Tesco vouchers, in the hope of this bonus one day materialising.

    I’ve read comments on other posts which have suggested that the standard Clubcard to Avios conversion rate may even be lessened, so convert at the current rate while you still can. I’m not convinced by that, but I suppose it’s a possibility.

    I think I’ll continue to wait, but it’s been so long since a Clubcard-Avios conversion bonus that hopes of one coming along are starting to appear like a pipe dream.

    • Frenske says:

      Well for a long time you would earn double club points on all your Tesco purchases. Compared to those times the Avios earning ability through Tesco has dropped considerably already.

      • Rob says:

        Only if you earned the bulk of your Tesco points via normal shopping, and not via bonus point promotions.

    • Nick says:

      I can’t make my mind up on this. For the last 12 months I’ve been expecting a devaluation of clubcard points.

      However, the big dark cloud over the world of Avios collection is the inevetable reduction in interchange fees, which basically fund the credit card benefits we rely on. But as merchants are not going to be passing on this reduction it means that Tesco increase their profits on each transaction. This might give them a bit more to play with when it comes to giving value to CC points. My big fear is that credit card companies will not want to be seen to devalue their benefits package, so Amex will still want to offer 1.5 avios per £1…. which would require a devaluation of the actual avios points. That would be a disaster.

      My view is: the current exchange rate is good, and I get value from it, so I’ll convert at 2.4. Clubcard points account for a significant slice of my total avios, so the rate must be good. I might miss out if there is a bonus conversion, but I also won’t get stung in the event that they do drop the rate.

      • Andrew (@andrewseftel) says:

        Amex-issued Amex cards are currently out of the scope of EU interchange regulation. It remains to be seen whether they’ll have to reduce their fees anyway to compete with the lower regulated fees on MasterCard/Visa platforms though,

        • Malcolm says:

          How did they manage that. The operate credit cards as well as charge cards.

          I am not too clued up on the EU’s intervention on interchange fees though

        • Joe says:

          I will be amazed if that doesn’t change before implementation – and I thought the recommendations to the EC had already changed so as to include Amex and similar schemes. In some ways it won’t matter – as you say, simple competition will pull down Amex and the higher Mastercard rates.

  • sarah says:

    Well this gets to the heart of my condundrum. Hopefully going to Las Vegas this October. Have a lot of ClucCard points to convert I’m a Virgin girl at heart, whenever I travel for business I always go Virgin and much prefer Upper Class to BA Business Class. However, a brief search before shows limited availaibility to LAS with Virgin. As we’re likely to be meeting friends there we cant be completely flexible with dates. BA shows more availability albeit some involving a connection and travelling with AA. Any advice or experiences of booking Virgin Upper to LAS greatly received. The upgrade option is interesting, I’m assuming you still need Upper Class Reward Seat availability? TIA

    • Rob says:

      I don’t know that much about VS redemptions … Will open the floor to everyone else …..!

    • CV says:

      The VS flight to LAS is a very popular route (i.e. its usually full in all classses – when i have been on it), so if you cant get availability then try searching via LAX and adding on a connecting flight to LAS (perhaps with Delta now they have teamed up?)

    • Paul says:

      Yes, you still need UC rewards seat availability if you wish to book economy and upgrade. Note that this is often an excellent value redemption though – the upgradable economy fare required is often only £100 or so more expensive than the cheapest non-upgradable fare. (You need to pay the increased taxes too of course). Worth remembering too that you’re entitled to earn miles & tier points for this economy fare paid, even though it’s subsequently upgraded – so you’ll end up earning some of your miles back!

  • pazza2000 says:

    Quickly converting the small VS balances in some family members accounts over to HH. Thanks for advising of the upcoming devaluation.

  • Waribai says:

    Very useful and timely information. Have about 80k miles. Was considering converting them to HH points to use in Mallorca this summer. From what you are saying it might be poor value it seems.
    I would mostly want to redeem on MH or NH in premium cabins. Any ideas on the availability? I assumed it would be similar to avios and *A redemption availability on the two respective airlines. I guess I am wrong there?
    In hindsight I maybe should have just waited for an avios conversion opportunity instead of snapping up last September’s bonus! Just out of interest, what are you planning to do with your Virgin miles Raffles?

    • Rob says:

      I have read elsewhere that Virgin generally has poorer partner availability than its partners offer to their own alliance partners. This is only heresay, though. Posting the question at v-flyer.com is your best chance of getting an informed answer.

      My Virgin stash is only 85,000 miles. If I get a ‘week off’ from the family over the Summer I was hoping to use them for an Upper Class trip somewhere, as I haven’t done VS long-haul for a l-o-n-g time. I may also be off to Vegas for a conference this year, which would be a chance to use them.

      • ankomonkey says:

        I remember not so long ago, Raffles, you mentioned building a small collection of VS miles mainly to diversify. I notice your “small” pot is already 85k! Good work! Certainly faster than me. When you publish the Raffles’ Secrets That HFP Doesn’t Tell You book I think I need to buy it!

        • Rob says:

          I didn’t plan to get to 85k, to be honest! I moved over 50k from Tesco last September with the 30 per cent bonus so I had enough for a one way to the US. Virgin then started offering 3,000 miles for referring their credit card, and I did a few of those plus some Hertz rentals when they were giving 2,013 miles a time. Suddenly I find myself at 85k!

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