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Avios changes 3: understanding the new spending rates

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The changes to, and devaluation of, Avios / British Airways Executive Club announced yesterday are hugely complex and the three articles today are simply scratching the surface.  I will return to this topic tomorrow.

Key link: ‘Club Changes’ page on ba.com

Here are the other articles in this series you may have missed:

1. Understanding the new tier point rules

2. Understanding the new earning rates

4. What is an Avios point worth now?

5. Exploiting the ‘no repricing on date changes’ rule

6. Why are off-peak upgrades now more expensive than peak?

7. Save 43% of your Avios on long-haul redemptions if you fly Iberia

8. Partner redemptions may be cheaper if booked on iberia.com

9. What will happen to airline partner earning rates?

10. Are you a winner or a loser overall?

Avios wing 15

Remember that you can continue to book at the current rates until April 28th.  The FAQ in the link above implies that date changes (but only date changes) made after April 28th will not trigger a repricing either.

Availability

The one upside on the spend side is that BA now guarantees to make two Club World / Club Europe and four World Traveller / Eurotraveller seats available on every flight for redemption.

Ironically, this was not done to benefit you but to help reassure potential purchasers of Avios Group that British Airways would make a guaranteed supply of seats available.

It is not yet clear if ‘two means two’.  airberlin, Etihad and Air Canada – off the top of my head – are airlines which do not release more than two seats in Business Class and are thus out of bounds for families.

It would, surely, be suicidal for BA to re-focus the Executive Club on business travellers – who are more likely to have dependent children than the students and pensioners who are being jettisoned – and then not make enough seats available for a family?

The peak and off peak calendar

The key change is the introduction of a calendar of peak and off peak dates.  Roughly 1/3rd of the year has been classified as ‘peak’ (marked with a ‘x’).

Calendar 2

When you think about it, there are some obvious flaws to this idea:

  • Peak dates are based around UK school holidays.  Whilst flights are busy at such times, they are very low yielding (see BA’s £1,007 tickets over Christmas in Club World).  Surely a good time to encourage people to burn Avios points is a time when you can’t sell many high priced cash tickets?
  • It takes no account of seasonality.   You will pay a premium to fly to Dubai in August even though you would have to be crazy to do so.
  • It takes no account of peak holiday periods in other countries.  If you live abroad and want to visit the UK when your kids are off school, it may well be a cheaper off-peak time.  UK families will be pushed into peak redemptions.
  • Whilst I don’t want to argue with BA’s modellers, Christmas Day is NOT a peak day.  Planes are generally empty and fare are rock bottom.  I have flown on Christmas Day in the past.

What no-one seems to have spotted yet is that the Iberia Plus calendar of peak dates is totally different to the BA calendar.  Iberia treats January 8th to March 17th as off-peak, for example, whilst BA has the two half-term weeks in February marked as peak.

On these peak days, it will be cheaper to transfer your Avios to Iberia Plus and book from there as you will be switching from a BA peak date to an Iberia Plus non-peak date.  The downside is that BA redemptions booked via Iberia Plus cannot be cancelled or changed.

Economy

The prices of economy redemptions are unchanged.  During off-peak periods they will actually reduce.

On long-haul, of course, economy redemptions are often terrible value for money.  This may change if fuel surcharges are reduced aggressively.  The only exceptions are when travelling at super-peak periods, when you are not staying over a Saturday night or when you only need a one-way ticket.

Redemption chart 2

For comparison, here is the existing chart:

Avios bandings

Premium cabins

The picture is not so rosy in other classes.

Currently BA runs a 1 / 1.5 / 2 / 3 system for pricing across World Traveller, World Traveller Plus, Club World and First.

This is moving to 1 / 2 / 3 / 4.  Club World pricing goes from 200% to 300% of World Traveller so a 50% increase at peak periods.  First goes from 300% to 400% so a 33% increase at peak periods.

The increase is smaller off peak – Club World tickets increase by 25% in Band 9 whilst First tickets increase by 13%.

In practice, this means a California Club World ticket going up from 100,000 Avios to 125,000 or 150,000 depending on travel date.  Dubai goes from 80,000 Avios in Club World to 100,000 off-peak or 120,000 peak.

Partner awards

All partner awards are now priced as Peak pricing.

This effectively means a 50% increase in Business Class and a 33% increase in First Class.

At off-peak periods, two planes flying identical routes (eg BA and Cathay to Hong Kong) will cost a different amount of Avios points.

The infamous Dublin to Boston run in Business Class on Aer Lingus will increase from 50,000 Avios to 75,000 Avios return, for example, plus £75 or so of tax.  It will remain 25,000 Avios return in Economy.

Partner chart for two or more oneworld carriers

The little-know partner chart for rewards involving two different oneworld airlines, neither of which is BA, will presumably also change.  It has not yet been released.

Upgrade pricing

There will be some minor improvements here.  However, some of the comments I saw yesterday got the wrong end of the stick.

From December 2015, you can upgrade World Traveller tickets in Y, B, H, K, M, V, L, S or N ticket buckets.  This is an improvement over the current Y, B, H.

However, you will still only be able to upgrade by one class.  World Traveller will upgrade into World Traveller Plus.  As this is a very small cabin it is unlikely that very many seats – one or two per flight at most – would be made available for upgrades, and these seats will also be available for full redemptions.

On short haul, this may be a more genuine improvement as Club Europe availability is often OK.

The cost of long-haul upgrades will increase because it will remain the difference in cost between the ticket you have and the ticket you want.  Upgrading to World Traveller Plus to San Francisco will be 50,000 Avios return compared to the current 25,000 Avios.   The increase is due to World Traveller Plus redemptions increasing in price by 25,000 Avios.

Free domestic feeders are abolished on European redemptions

When Avios launched, both BA and Iberia offered free connecting flights domestically.  Iberia abandoned the idea within a year.  BA is now abandoning it for short-haul but retaining it for long-haul.

European redemptions now make little sense if you live outside London.  Hamburg would be 18,000 Avios + £70 per person with the ‘joy’ of changing in Heathrow thrown in.  easyJet would probably sell you a cash ticket from your regional airport for £70.

I see the logic in what has been done, because APD alone meant that 9,000 Avios + £35 was a bad deal for the airline.  It didn’t help that BA allowed stopovers in London because this meant APD was payable on both flights.

This could have been handled better.  The Reward Flight Saver taxes could have been capped at £35 even though the number of Avios doubled.  Stopovers could have been banned to save BA paying out additional APD.

What has been done has effectively disenfranchised a large part of the Avios customer base outside London.

Click for the next article – What is an Avios point worth now?

How to earn Avios from UK credit cards

How to earn Avios from UK credit cards (April 2024)

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

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways American Express Premium Plus

25,000 Avios and the famous annual 2-4-1 voucher Read our full review

British Airways American Express

5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.

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

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

Run your own business?

We recommend Capital on Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.

SPECIAL OFFER: Until 12th May 2024, the Capital on Tap Business Rewards Visa card is offering a bonus of 30,000 points, convertible into 30,000 Avios. You must have a Limited Company to apply. Click here to learn more and click here to apply.

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You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.

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 Avios. This includes both personal and small business cards.

Category

British Airways and Avios

Comments (203)

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

  • Matt says:
    29 Jan29 January 09:18

    I’ve got a pot of around 100k built up over the past few years, mostly through tesco and CC spend. Most of these I plan to redeem on internal US flights (such as west coast to Hawaii on partner airlines) with my family. Will the redemption avios required for these change much?

    I received my Lloyds Avios CC upgrade voucher yesterday….doubt I will ever get any decent value out of this now.

  • Chris says:
    29 Jan29 January 09:28

    As bad as it all may be (spend rates mainly for me) – those of us who earn the majority or our miles from Tesco/Credit cards and are UK based really probably won’t have a better option than to stick with Avios.

    BA’s spend rates are now probably closer to the competition – but the only miles we can earn in significant quantity for Premium spend are Avios.

    • nick says:
      29 Jan29 January 10:19

      That’s where I’m at too. As long as they leave the Tesco conversion rate untouched, it just means generating a few more low-cost avios through clubcard. About year ago I told BA I’d rather a 50% hike in the avios “cost” of a flight if it meant there was proper availability (and a sharp reduction in the cash element), and I still stand by that for long-haul. The problem BA have though is that as the redemption cost on their flights catches up with (and in many cases overtakes) the competition, the difference in the quality of the products on offer will be laid bare.

      The changes to short-haul for non-London members is shocking, though. I really, really resent that and I live in London!

      A few other thoughts: you can (presumably) still use avios to reduce the cash price of a ticket. Obviously this was almost never as good as the RFS, but it still might make sense for some?

      Also, those crazy “Oslo to Sydney for £2k” deals will become even better value, won’t they? They will earn more avios; come with lounge access at T5 which is going to get a lot harder to access; and the comparable redemption would be more expensive at the same time? The only times I’ve looked at paying cash to fly BA is in CE when the ticket price was cheaper than Easyjet (to Venice last April); and in CW on those heavily discounted tickets we saw recently. So I’m better off on those flights too. For short-haul economy flights BA will have to be cheaper than the competition on cash fares to get a sniff now. I won’t be getting lounge access at T5 whereas I will in any other terminal; and the avios/tier points I earn on the BA flight are now irrelevant.

    • Andrew S says:
      29 Jan29 January 11:15

      Agreed. these changes are great for me. And the added bonus is that we are now we have stabilitily for the next 2-3 years means i can maximise my collection.

  • Trevor says:
    29 Jan29 January 09:30

    While the comment about using Iberia to book flights at off-peak times due to their differing calendar is valid for flights from Madrid onward, note that you need to get to Spain first, and BA stipulate that “Iberia will also introduce variable, peak and off-peak Avios pricing for reward flights following their own calendar, except Iberia flights from London to Madrid which will be priced as per the British Airways calendar and Avios rates”

    Also note that D-Day is closer for Iberia, as it’s introducing the changes from 1 March!

  • Rob Payton says:
    29 Jan29 January 09:33

    Trusting the Etihad trip was a good one, although you were probably a little peoccupied on the return leg I imagine !
    I have 2 questions in the hope of maximising my mileage before the devaluation under the new system – I am sure you will have identical questions from others, so I will also post it on the webfeed so that you can give a general answer.

    1: If I redeem ( book) a 2 for 1 prior to the April 28 change, can I then change the date of the ticket after 28 April based on the old rules and without being transferred to the new ones?

    2: If I book a RTW Business Class DONE fare with Oneworld before 28 April , for travel later in the year, will all tier points and mileages be awarded based on the current system rather than the new one ( Like the LCY – JFK First points) ?

    I have 2 x 2 for 1 vouchers to use up, 1/2 a mill avios and also need to make a RTW, so need to get booking.

    I have made over 85 trips to Cape Town in the last 10 years so will be one of those worst affected by the new rules if i travel in economy!

    Thanks for a great and insightful page

    • Chris says:
      29 Jan29 January 09:39

      The BA FAQs say that any tickets booked before the 28 April will get the benefits due as of the date of booking. So you shouldn’t have a problem there.

      • CardiffJock says:
        29 Jan29 January 10:00

        That’s interesting Chris, and potentially helpful for me. I was planning on using my soon-to-be-issued 2-4-1 for a CW redemption to SFO in Summer 2016… but thought (as you can only book 355 days ahead) I’d be stuffed by the 50% increase because I’d need to be booking after the 28th April cut-off.

        My 2-4-1 is from BAPP so good for two years. So, do you reckon I can use my 2-4-1 now and book flights for say Jan/Feb 2016 and then call up in July/August this year and change them to July/Aug 2016?

        • Chris says:
          29 Jan29 January 10:19

          I also wonder that. Trying to change them to Jul/Aug 2016 means they’ll probably have to be re-issued as that would be longer than the max 1 year ticket validity (since booked in Feb 2015). I suspect they would be allowed to be re-issued according to the old rules (the FAQs seem to make that quite clear), but since they are re-issued from then on they probably follow the new rules (so subsequent changes would be as per new rules). This is just my opinion however.

      • Jason says:
        29 Jan29 January 10:16

        But you’ll be cancelling and re-booking after the 28th April when the new terms apply.
        BA don’t transfer the booking, they’ll cancel it, refund the Avios and voucher, and allow you to use them again less the £35 fee.

        • CardiffJock says:
          29 Jan29 January 10:20

          Perplexing! Just found this on the FAQs on the changes…. does this mean what I think it means? It’s hardly plain English!

          Will I be able to change the dates of an existing reward flight after 28 April?

          Yes. You will be able to make changes to your existing booking on or after the 28 April 2015 under the existing rules. This means, for example, that you will not have to use more Avios towards your existing booking if you need to change it after this date where under the new rules you would be required to use more Avios to make the same booking. This also means that you will not be refunded any difference in Avios if you make a change to your existing booking which would require you to use less Avios under the new rules. Please note change fees may apply.

          • Think Square says:
            29 Jan29 January 12:33

            I don’t think it’s that confusing. As I read it – book now, set dates at your leisure, with no penalty apart from the usual change fees.

            How their IT copes with all this is another matter!

        • Chris says:
          29 Jan29 January 10:21

          Maybe that’s what BA do internally – but the customer is only making a date change – and the FAQs state date changes are allowed according to the old rules if the ticket is booked before 28 April. Date changes are allowed on redemption tickets.

        • Rob P says:
          29 Jan29 January 10:43

          I would only be cancelling and rebooking if i changed the PAX or Destination surely? – It is just a date change otherwise?

    • Rob says:
      29 Jan29 January 09:53

      No, yes ( at a guess)

      • Laurence Dalby says:
        29 Jan29 January 11:56

        I was thinking the same thing, on the BAEC FAQs it says this:

        ‘Will I be able to change the dates of an existing reward flight after 28 April?

        Yes. You will be able to make changes to your existing booking on or after the 28 April 2015 under the existing rules. This means, for example, that you will not have to use more Avios towards your existing booking if you need to change it after this date where under the new rules you would be required to use more Avios to make the same booking. This also means that you will not be refunded any difference in Avios if you make a change to your existing booking which would require you to use less Avios under the new rules. Please note change fees may apply.’

        So surely that means I can book a reward in April 2015 for April 2016 and then change it to my preferred date once the availability opens up (assuming there is availability, in my case August 2016) and only pay the £35 fee?

        • Rob says:
          29 Jan29 January 12:10

          You have nothing to lose (except the change fee) but this has come up before – for eg with the £1 tax tickets offered last year – and it has always been the case that a ticket cannot be extended beyond 12 months from date of issue. It would require cancellation and rebooking by the agent (with a new PNR) and it would automatically price at the new higher rate.

  • Matt B says:
    29 Jan29 January 09:34

    If anybody wants a link to a good comparison chart for spending see here:

    https://twitter.com/bowlingformatt/status/560577530588307458

    • Mikeact says:
      29 Jan29 January 11:21

      Obviously me, but Off Peak more that Peak ??

    • Ian says:
      29 Jan29 January 11:21

      Is it me or is the Twitter chart the wrong way round? My usual business redemption to TYO seems to be more avios expensive in the off peak. I’m hoping, even though that’s figuratively speaking, it’s only 75k off peak or a dreaded 90k peak time. I haven’t got my head around the cost for a WTP ticket UuA to Club yet, any ideas?

  • Will says:
    29 Jan29 January 09:47

    We’re getting married at the start of May 2016, so I was planning to use a 241 and try to book our Honeymoon in early May this year… ouch!
    Although as it’s more of a ‘one off’ thing I guess spending 200k on 2 West Coast F tickets if we can ever get them isn’t really much worse than spending 150k… Has there been any news on whether F availability is changing at all?

    • CardiffJock says:
      29 Jan29 January 10:05

      Don’t think any changes to F availability.

      Regarding your May 2016 honeymoon, from my reading of Chris’s reply to Rob Paton (just above at 9.39am) it might be possible for you to book flights before the April cut-off and then change the dates when availability opens in May. If Chris’s interpretation is right then you’d not have to fork out any more than the 150k Avios originally spent, just a change fee.

  • Toby says:
    29 Jan29 January 09:51

    Much as this cuts deep, BAEC is still the best out there mainly due to;

    Household collection
    UK credit card earnings
    Tesco and other retailers

    • Rob says:
      29 Jan29 January 09:56

      True. We may even see, for eg, a big Tesco transfer bonus as a sop – albeit not this quarter which is another rubbish competition.

    • Paul says:
      29 Jan29 January 12:20

      Add to that list the 2-4-1 voucher

    • Stuart says:
      29 Jan29 January 12:21

      Agreed, I’ve been looking into other options but there just don’t seem to be any for those of us who don’t earn their points through flying. I’m going to continue to collect Avios as even with the devaluation I’ve done the sums and for my aspiration target (zone 7), it still makes sense.

      I just wish the partner airlines weren’t classed as ‘peak’ at all times as the dates I’d like to go are off-peak but the flight I want to take is non-BA, although they do run that route as well so I have the option.

    • Ian says:
      29 Jan29 January 15:49

      But that is about to change… Amex is soon to stop accepting churning for all cards and Tesco is devaluating Avios awards due to budget constraints.

      • Rob says:
        29 Jan29 January 16:08

        Don’t scare the horses! None of this is true although Amex has banned churning in the US as I reported last year.

        • Ian says:
          29 Jan29 January 19:35

          That’s what I heard, that the UK will follow suit. And that there will be a bonus at Tesco, but only after April, when you can’t anymore redeem will lower rates.

  • RT says:
    29 Jan29 January 09:58

    By the looks of things, it’s probably better to move over to Virgin right? You get the benefit of the companion voucher and redemption rates are significantly cheaper than BA’s revised costs….

    • Rob says:
      29 Jan29 January 10:18

      Virgin tends to track BA but be just a tiny bit better (eg their credit card gives 18,500 sign-up points normally instead of 18,000). I would expect a major change very quickly.

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